Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Feb. 27, 2019 | Apr. 30, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | Barrel Energy Inc. | ||
Entity Central Index Key | 1,631,463 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2018 | ||
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 | Non-accelerated Filer | ||
Entity Public Float | $ 367,000 | ||
Entity Common Stock, Shares Outstanding | 37,476,332 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 | ||
Entity Ex Transition Period | false | ||
Emerging Growth Company | true | ||
Entity Small Business | true | ||
Entity Shell Company | true |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 3,458 | $ 250,160 |
Prepaid | 33,333 | |
Total current assets | 36,791 | 250,160 |
Total assets | 36,791 | 250,160 |
Current liabilities: | ||
Accounts payable and accrued expense | 27,719 | 28,241 |
Advances from shareholder | 32,791 | 62,994 |
Convertible note - related party | 2,245 | |
Convertible notes | 52,709 | 54,515 |
Total liabilities | 113,219 | 147,995 |
Commitments and Contingencies | ||
Stockholders’ equity (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, 12,301,332 and 12,301,332 issued and outstanding, respectively | 23,801 | 12,301 |
Additional paid-in capital | 272,638 | 272,638 |
Stock subscription receivable | (11,500) | |
Accumulated other comprehensive loss | (6,857) | (4,297) |
Accumulated deficit | (354,510) | (178,477) |
Total stockholders’ equity (deficit) | (76,428) | 102,165 |
Total liabilities and stockholders’ equity (deficit) | $ 36,791 | $ 250,160 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2018 | Sep. 30, 2017 |
Stockholders' equity (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 | 12,301,332 | 12,301,332 |
Common Stock, Outstanding | 12,301,332 | 12,301,332 |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating expenses: | ||
Consulting expense | $ 129,722 | |
General and administrative expense | 41,164 | 43,289 |
Impairment of unproved property | 45,042 | |
Loss from operations | (170,886) | (88,331) |
Other income (expense) | ||
Interest expense | (5,147) | (7,399) |
Gain on debt forgiveness | 24,625 | |
Total other income (expense) | (5,147) | 17,226 |
Net loss before tax | (176,033) | (71,105) |
Income tax | ||
Net loss | (176,033) | (71,105) |
Foreign currency translation adjustment | (2,560) | (8,900) |
Comprehensive loss | $ (178,593) | $ (80,005) |
Net loss per common share, basic and diluted | $ (0.01) | $ (0.01) |
Weighted average number of common shares outstanding, basic and diluted | 12,301,332 | 10,806,144 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) | Common Stock | Additional Paid-In Capital | Stock Subscription Receivable | Accumulated Deficit | Other Comprehensive Income | Total |
Beginning Balance, Shares at Sep. 30, 2016 | 10,804,000 | |||||
Beginning Balance, Amount at Sep. 30, 2016 | $ 10,804 | $ 18,035 | $ (107,372) | $ 4,603 | $ (73,930) | |
Common stock issued for cash, shares | 833,332 | |||||
Common stock issued for cash, amount | $ 833 | 249,167 | 250,000 | |||
Cancellation of common stock for service, shares | (36,000) | |||||
Cancellation of common stock for service, amount | $ (36) | (864) | (900) | |||
Common stock issued for debt conversion, shares | 700,000 | |||||
Common stock issued for debt conversion, amount | $ 700 | 6,300 | (1,388) | 5,612 | ||
Change due to currency translation | (7,512) | (7,512) | ||||
Net loss | (71,105) | (71,105) | ||||
Ending Balance, Shares at Sep. 30, 2017 | 12,301,332 | |||||
Ending Balance, Amount at Sep. 30, 2017 | $ 12,301 | 272,638 | (178,477) | (4,297) | 102,165 | |
Stock issued for subscription receivable, shares | 11,500,000 | |||||
Stock issued for subscription receivable, amount | $ 11,500 | $ (11,500) | ||||
Change due to currency translation | (2,560) | (2,560) | ||||
Net loss | (176,033) | (176,033) | ||||
Ending Balance, Shares at Sep. 30, 2018 | 23,801,332 | |||||
Ending Balance, Amount at Sep. 30, 2018 | $ 23,801 | $ 272,638 | $ (11,500) | $ (354,510) | $ (6,857) | $ (76,428) |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (176,033) | $ (71,105) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Gain on debt forgiveness | (24,625) | |
Stock based compensation | (900) | |
Impairment of assets | 45,042 | |
Changes in operating assets and liabilities: | ||
Prepaid | (33,333) | |
Accounts payable and accrued expense | (522) | 60,318 |
Net cash provided by (used in) operating activities | (209,888) | 8,730 |
Cash flows from financing activities: | ||
Proceeds from sale of common stock | 250,000 | |
Repayment of advances and convertible note from related party | (32,448) | |
Net cash provided by(used in ) financing activities | (32,448) | 250,000 |
Effects of currency translation | (4,366) | (8,900) |
Net increase (decrease) in cash | (246,702) | 249,830 |
Cash - beginning of year | 250,160 | 330 |
Cash - end of year | 3,458 | 250,160 |
SUPPLEMENT DISCLOSURES: | ||
Interest paid | ||
Income taxes paid | ||
Non-Monetary Transactions | ||
Advances due to related party for expenses paid on behalf of the Company | 37,668 | 43,971 |
Common stock issued for convertible debt | 5,612 | |
Common stock subscribed not paid | $ 11,500 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
NOTE 1 - NATURE OF BUSINESS | BARREL ENERGY INC. is a Nevada corporation, incorporated January 17, 2014, which has engaged historically in the oil and gas sector of the energy industry. The Company entered into an agreement in the lithium exploration business which was subsequently terminated by the Company. It still maintains its interest in capped oil and gas properties in Alberta Canada. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
NOTE 2 - ACCOUNTING POLICIES | Accounting Method The Company’s financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America. The Company has elected a fiscal year ending on September 30. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Oil and Gas Property The Company holds a lease on shut in wells that are unproved oil and natural gas properties and the Company has not yet determined whether these properties contain reserves that are economically recoverable. The recoverability of amounts shown for oil and natural gas properties is dependent upon the discovery of economically recoverable reserves, confirmation of the Company’s interest in the underlying oil and gas leases, the ability of the Company to obtain necessary financing to complete their exploration and development and future profitable production or sufficient proceeds from the disposition thereof. The Company is, therefore, unable to estimate when these costs will be included in the amortization computation. The Company uses the successful efforts method in accounting for it oil and gas properties. Unproven oil and natural gas properties are reviewed on an annual basis for impairment. As of September 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 year ended September 30, 2017 and 2018, respectively. Property and equipment Property and equipment are carried at the cost of acquisition and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance is expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. Foreign currency translation The Company’s functional currency and reporting currency is in U.S. dollars. The financial statements of the Company are translated to U.S. dollars in accordance with SFAS No. 52, “ Foreign Currency Translation” Impairment of Long-lived Assets The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the asset by comparing the undiscounted future net cash flows expected to result from the asset to its carrying value. If the carrying value exceeds the undiscounted future net cash flows of the asset, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Fair value is estimated based upon either discounted cash flow analysis or estimated salvage value. See Footnote 6. Estimates and Assumptions 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. The Company’s significant estimates include the fair value of common stock issued for services. Actual results could differ from those estimates. Income Taxes Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for income taxes under the provisions of Financial Accounting Standards Board) Accounting Standards Codification 740, Accounting for Income Taxes The Company classifies penalties and interest related to unrecognized tax benefits as income tax expense in the Statements of Operations. Basic and diluted net loss per share Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. Diluted loss per share calculations include the dilutive effect of common stock which could total 7,536,400 shares if the convertible note and interest were converted to common stock. Basic and diluted net loss per share is the same due to the absence of common stock equivalents. Stock-Based Compensation The Company accounts for stock-based compensation to employees and consultants in accordance with FASB ASC 718. Stock-based compensation to employees is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with FASB ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. The Company estimates the fair value of stock-based payments using the Black Scholes option-pricing model for common stock options and warrants and the closing price of the Company’s common stock for common share issuances. Prepaid Expense Prepaid expenses of $33,333 and zero as September 30, 2018 and 2017, respectively consisted of prepaid consulting to a related party. Recent Accounting Pronouncements The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on their financial position, results of operations or cash flows As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
NOTE 3 - GOING CONCERN | The Company’s 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, an accumulated deficit of $354,510 and negative working capital of $76,428. The Company has not established any source of revenue to cover its operating costs. These factors raise substantial doubt about the company’s ability to continue as a going concern. 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. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
NOTE 4 - INCOME TAXES | The Company follows Accounting Standards Codification 740, Accounting for Income Taxes. During 2009, there was a change in control of the Company. Under section 382 of the Internal Revenue Code such a change in control negates much of the tax loss carry forward and deferred income tax. Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry forwards. For federal income tax purposes, the Company uses the accrual basis of accounting, the same that is used for financial reporting purposes. The Company did not have taxable income for the years ended September 30, 2018 or 2017. The Company’s deferred tax assets consisted of the following as of September 30, 2018, and 2017: 2018 2017 Net tax loss carry forward 74,447 62,467 Less: Valuation allowance (74,447 ) (62,467 ) Net deferred tax asset $ - $ - The Company had a net loss of $176,033 for the year ended September 30, 2018 and $71,105 for the year ended September 30, 2017. As of September 30, 2018, the Company’s net tax loss carry forward was $ 75,062 will begin to expire in the year 2036. All tax years from inception of the Company are open to review by appropriate taxing authorities. A reconciliation of income taxes at the federal statutory rate to amounts provided for the years ended September 30, 2018 and 2017 is as follows: 2018 2017 U.S. federal statutory rate 21 % 21 % Net operating loss (21 )% (21 )% Effective tax rate -- % -- % The Company due to its loses has not filed US Corporate tax returns and is subject to examination back to inception. Based on the recent change in corporation tax rates the Company calculated the deferred tax asset for the year ended September 30, 2018 at 21% compared to the rate of 35% prior to the change in corporation tax rates. |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
NOTE 5 - COMMON STOCK | On January 27, 2016 the Company issued 36,000 shares of common stock with a value of $900 for service. The shares were never physically issued. On June 10, 2017, the Company cancelled the issuance and paid $900 in cash to the vendor. On September 25, 2017 the Company sold 833,332 shares of common stock with a value of $250,000 for cash. On September 30, 2017 the Company issued 700,000 shares of common stock for the conversion of $5,612 (CDN $7,000) of convertible debt. On September 20, 2019 the Company received stock subscription agreement for 11,500,000 shares of common stock with a value of $11,500. As of September 30, 2019 the Company treated these transactions as stock subscriptions receivable. |
IMPAIRMENT OF UNPROVED PROPERTY
IMPAIRMENT OF UNPROVED PROPERTY | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
NOTE 6 - 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 September 30, 2017, the Company elected to impair the asset and reduce its value to zero. The Company had impairment expense of $0 for the year ended September 30, 2018 and $45,042 in 2017, respectively. |
CONVERTIBLE NOTE
CONVERTIBLE NOTE | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
NOTE 7 - CONVERTIBLE NOTE | On July 1, 2014, the Company issued a USD $67,215 (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 elected to allow conversion, for its extension, of any and all the notes outstanding principal and interest until the note is fully paid. On September 30, 2017 the Company issued 700,000 shares of common stock with a value of $5,612 (CDN $7,000) for partial conversion of the convertible note. 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 $6,038). On December 1, 2014, the Company issued to a related party, who is a former officer and director of the Company, a convertible note for USD $2,245 (CAD $2,800). The note bears an interest rate of 5% per annum and matured on December 31, 2015. On December 29, 2017 the Company paid the outstanding principal of $2,226 and interest of $334 for a total of $2,560. As of September 30, 2018, the convertible debts outstanding was US $52,709 plus accrued interest of US $22,655 for a total liability of $75,364. As of September 30, 2017, the convertible debts outstanding was US $54,515 plus accrued interest of US $18,477 for a total liability of $72,992. 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 TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
NOTE 8 - RELATED PARTY TRANSACTIONS | During the year ended September 30, 2017, an officer and director paid $43,971 in expenses on behalf of the Company. The funds are unsecured, payable on demand and bear no interest. As of September 30, 2017 and 2018, the total amount due to the officer and director is US$62,994 and $32,971, respectively. During the year ended September 30, 2018, an officer and director of the Company paid USD $37,668 of operating expenses on behalf of the Company while the Company repaid the related party $32,448. The total amount due as of September 30, 2018 is $32,971 The advances are unsecured, bear no interest and are payable on demand. During the year ended September 30, 2018, the Company paid a related party, who is a former officer and director of the Company, USD $100,000 in consulting fees under a consulting agreement with the Company. The contract was for one year and based on the date of the contract the Company expensed $66,667 for the year ended September 30, 2018 and prepaid of $33,333. On December 1, 2014, the Company issued to a related party, who is a former officer and director of the Company, a convertible note for USD $2,245 (CAD $2,800). The note bears an interest rate of 5% per annum and matured on December 31, 2015. On December 29, 2017 the Company paid the outstanding principal of $2,226 and interest of $334 for a total of $2,560. During the years ended September 30, 2018 and 2017 the Company’s operations conducted out of the premises at 14890 66a Ave., Surrey, B.C. V3S 9Y6 Canada. Mr. Gurm Sangha, the former President , Director made these premises available to the Company rent-free. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
NOTE 9 - SUBSEQUENT EVENT | During the period from September 30, 2018 to December 31, 2018, the Company entered into separate Subscription Agreements with 17 persons under which 25,000,000 shares of the Company’s common stock were sold for $0.001 per share. This included Harpreet Sangha, the Company’s Chairman, who entered into an agreement to purchase 10,000,000 shares of the Company’s common stock and Craig Alford, the Company’s President, who entered into an agreement to purchase 4,000,000 shares of the Company’s common stock. The subscription agreements dated September 30, 2018 for 11,500,000 shares of common stock with a value of $11,500 were treated as stock subscriptions receivable and funds were received in the period ending December 31, 2018. Subscription Agreements were approved by the Company’s Board of Directors. The sales of the 25,000,000 shares of the Company’s common stock occurred on November 5, 2018. The sales were made in reliance on the exemption provided by Section 4(a)(2) of the Securities Act of 1933 and, with respect to a majority of the purchasers, Regulation S. During the period from October 1 to December 31, 2019 the Company entered into consulting agreement with 5 individuals total cost of $35,500 plus 2 related parties for a total costs of $57,000. The agreement were for various lengths of time with all 7 terminating by December 31, 2019. On October 11, 2018, Barrel Energy Inc. (the “Company”) entered into an Earn-In Agreement (the “Agreement”) with True Grit Resources, a British Columbia corporation (“TGR”), an unrelated third party. In exchange for the payment by the Company of certain consideration, the Company may earn of to 100% participation interest in certain mineral rights leases that TGR has in Arizona. The first payment for $100,000 is due within ten (10) days of the execution of the Agreement and another payment of $300,000 or expenditure to the property is due within 30 days of the first payment. Upon receipt of $400,000, the Company will have a 49% participation interest in the Arizona property mineral lease rights .The Company may require a 70% earn-in interest by expending a cumulative $1,400,000 on the property. In order to secure the 100% participation interest, the Company is required to expend a cumulative amount of payments and property expenditures of $2,400,000. The mineral rights the Company is acquiring is subject to an option agreement dated October 3, 2017 between True Grit and two individuals with beneficial ownership of the mining Permit issued by the State of Arizona in accordance with ARS 27-234. The Company at the date of this filing is unable to confirm that the either the beneficial owners and or True Grit’s claims are current and active. If the Claims cannot t be confirmed the earn in agreement may not be valid and may be void. On November 5, 2018 the Company received an extension for the initial payments of $400,000 of which the initial $100,000 is required to be paid by February 28, 2019. The Company required the extension as it not received from True Grit . On January 17,2019 the Company terminated the Earn-In agreement with True Grit Resources. On November 15, 2018 the Company received an advance from one non-related party for $65,000. On December 3, 2018 the Company received an additional advance of $35,000 from the same individual for a total of $100,000. Both advances are unsecured, on demand and bear no interest. On November 12, 2018 the Company issued a $36,000 convertible note to Crown Partners, LLC. The note bears an original discount of $3,500, matures in 12 months from the origination date and bears interest at 5% per annuum. The note is convertible at any time, in part or whole, at $0.50 per share until the 180 th On November 13, 2018 the Company entered into a $3,000,000 equity purchase agreement with Crown Bridge Partners. Under the terms of the agreement, the Company may put to the investor shares of the Company common stock in minimums of $10,000 to maximums of either $100,000 or 200% of the average trading volume, whichever is less. The agreement may be terminated at any time by the Company or when the total commitment of shares are sold by the Company to the investor. As part of the agreement, the Company issued 175,000 shares of its common stock at $0.75 per share as a commitment fee. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies Policies | |
Accounting Method | The Company’s financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America. The Company has elected a fiscal year ending on September 30. |
Cash and Cash Equivalents | The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Oil and Gas Property | The Company holds a lease on shut in wells that are unproved oil and natural gas properties and the Company has not yet determined whether these properties contain reserves that are economically recoverable. The recoverability of amounts shown for oil and natural gas properties is dependent upon the discovery of economically recoverable reserves, confirmation of the Company’s interest in the underlying oil and gas leases, the ability of the Company to obtain necessary financing to complete their exploration and development and future profitable production or sufficient proceeds from the disposition thereof. The Company is, therefore, unable to estimate when these costs will be included in the amortization computation. The Company uses the successful efforts method in accounting for it oil and gas properties. Unproven oil and natural gas properties are reviewed on an annual basis for impairment. As of September 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 year ended September 30, 2017 and 2018, respectively. |
Property and equipment | Property and equipment are carried at the cost of acquisition and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance is expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. |
Foreign currency translation | The Company’s functional currency and reporting currency is in U.S. dollars. The financial statements of the Company are translated to U.S. dollars in accordance with SFAS No. 52, “ Foreign Currency Translation” |
Impairment of Long-Lived Assets | The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the asset by comparing the undiscounted future net cash flows expected to result from the asset to its carrying value. If the carrying value exceeds the undiscounted future net cash flows of the asset, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Fair value is estimated based upon either discounted cash flow analysis or estimated salvage value. See Footnote 6. |
Estimates and Assumptions | 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. The Company’s significant estimates include the fair value of common stock issued for services. Actual results could differ from those estimates. |
Income Taxes | Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for income taxes under the provisions of Financial Accounting Standards Board) Accounting Standards Codification 740, Accounting for Income Taxes The Company classifies penalties and interest related to unrecognized tax benefits as income tax expense in the Statements of Operations. |
Basic and diluted net loss per share | Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. Diluted loss per share calculations include the dilutive effect of common stock which could total 7,536,400 shares if the convertible note and interest were converted to common stock. Basic and diluted net loss per share is the same due to the absence of common stock equivalents. |
Stock-Based Compensation | The Company accounts for stock-based compensation to employees and consultants in accordance with FASB ASC 718. Stock-based compensation to employees is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with FASB ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. The Company estimates the fair value of stock-based payments using the Black Scholes option-pricing model for common stock options and warrants and the closing price of the Company’s common stock for common share issuances. |
Prepaid Expense | Prepaid expenses of $33,333 and zero as September 30, 2018 and 2017, respectively consisted of prepaid consulting to a related party. |
Recent Accounting Pronouncements | The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on their financial position, results of operations or cash flows As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Taxes Tables | |
Deferred tax assets | 2018 2017 Net tax loss carry forward 74,447 62,467 Less: Valuation allowance (74,447 ) (62,467 ) Net deferred tax asset $ - $ - |
Reconciliation of income taxes at the federal statutory rate | 2018 2017 U.S. federal statutory rate 21 % 21 % Net operating loss (21 )% (21 )% Effective tax rate -- % -- % |
NATURE OF BUSINESS (Details Nar
NATURE OF BUSINESS (Details Narrative) | 12 Months Ended |
Sep. 30, 2018 | |
Nature Of Business Details Narrative | |
State country name | Nevada |
Date of Incorporation | Jan. 17, 2014 |
ACCOUNTING POLICIES (Details Na
ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accounting Policies | ||
Impairment of assets | $ 45,042 | |
Antidilutive effect of common stock excluded from the computation of EPS | 7,536,400 | |
Prepaid expenses | $ 33,333 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Going Concern Details Narrative | ||
Accumulated deficit | $ (354,510) | $ (178,477) |
Working capital deficit | $ (76,428) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Income Taxes Details | ||
Net tax loss carry forward | $ 74,447 | $ 62,467 |
Less: Valuation allowance | (74,447) | (62,467) |
Net deferred tax asset |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Taxes Details | ||
U.S. federal statutory rate | 21.00% | 21.00% |
Net operating loss | (21.00%) | (21.00%) |
Effective tax rate |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Taxes Details Narrative | ||
Net loss | $ (176,033) | $ (71,105) |
Net tax loss carry forward | $ 75,062 | |
Tax loss carry forward, expiry year | 2,036 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Sep. 20, 2019 | Sep. 25, 2017 | Jan. 27, 2016 | Sep. 30, 2017 | Sep. 30, 2018 | Jun. 10, 2017 | |
Number of common shares sold | 833,332 | |||||
Number of common shares sold, value | $ 250,000 | |||||
Common stock shares issued for services, shares | 36,000 | |||||
Common stock shares issued for services, value | $ 900 | |||||
Debt conversion, converted instrument, amount | $ 5,612 | |||||
Subscription receivable | $ 11,500 | |||||
Common Stock | ||||||
Debt conversion, converted instrument, amount | $ 700 | |||||
Debt conversion, converted instrument, shares issued | 700,000 | |||||
Vendor [Member] | ||||||
Amount repaid upon cancellation of shares | $ 900 | |||||
Subsequent Event [Member] | Subscription agreement [Member] | ||||||
Common stock shares sold/issued | 11,500,000 | |||||
Subscription receivable | $ 11,500 |
IMPAIRMENT OF UNPROVED PROPER_2
IMPAIRMENT OF UNPROVED PROPERTY (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Impairment Of Unproved Property | ||
Impairment of assets | $ 45,042 |
CONVERTIBLE NOTE (Details Narra
CONVERTIBLE NOTE (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 29, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Convertible debt outstanding | $ 52,709 | $ 54,515 | ||
Convertible note – related party | 2,245 | |||
Total liability | 75,364 | 72,992 | ||
Accrued interest | $ 22,655 | 18,477 | ||
Debt conversion, converted instrument, amount | 5,612 | |||
On December 1, 2014 [Member] | ||||
Convertible note – related party | $ 2,245 | |||
Interest rate | 5.00% | |||
Debt maturity date | Dec. 31, 2015 | |||
On October 20, 2014 [Member] | ||||
Convertible debt outstanding | $ 20,000 | |||
Interest rate | 9.50% | |||
Debt maturity date | Dec. 31, 2016 | |||
Gain on debt forgiveness | $ 24,625 | |||
Forgiven debt amount | 20,000 | |||
Forgiven interest amount | $ 4,625 | |||
On July 1, 2014 [Member] | ||||
Convertible debt outstanding | $ 67,215 | |||
Interest rate | 9.50% | |||
Debt conversion, converted instrument, amount | $ 5,612 | |||
Debt conversion, converted instrument, shares issued | 700,000 | |||
Debt maturity date | Dec. 31, 2015 | |||
Former officer and director [Member] | ||||
Repayment of convertible debt, principal | $ 2,226 | |||
Repayment of convertible debt, interest | 334 | |||
Repayment of convertible debt | $ 2,560 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 29, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Advance from shareholder | $ 32,791 | $ 62,994 | |
Advances due to related party for expenses paid on behalf of the Company | 37,668 | 43,971 | |
Convertible note - related party | 2,245 | ||
Prepaid expenses | 33,333 | ||
Consulting expense | 129,722 | ||
Director & Officer [Member] | |||
Advance from shareholder | 32,971 | 62,994 | |
Advances due to related party for expenses paid on behalf of the Company | 37,668 | $ 43,971 | |
Repayment of advances and convertible note from related party | 32,448 | ||
Director & Officer [Member] | Consulting agreement [Member] | |||
Consulting fees | 100,000 | ||
Prepaid expenses | 33,333 | ||
Consulting expense | $ 66,667 | ||
Former officer and director [Member] | |||
Repayment of convertible debt, principal | $ 2,226 | ||
Repayment of convertible debt, interest | 334 | ||
Repayment of convertible debt | $ 2,560 | ||
On December 1, 2014 [Member] | Director & Officer [Member] | |||
Interest rate | 5.00% | ||
Convertible note - related party | $ 2,245 | ||
Debt maturity date | Dec. 31, 2015 |
SUBSEQUENT EVENT (Details Narra
SUBSEQUENT EVENT (Details Narrative) | Nov. 13, 2018USD ($)$ / sharesshares | Nov. 12, 2018USD ($) | Nov. 05, 2018 | Oct. 11, 2018USD ($) | Sep. 20, 2019USD ($)shares | Dec. 31, 2018USD ($)Number$ / sharesshares | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 03, 2018USD ($) | Nov. 15, 2018USD ($) |
Subscription receivable | $ 11,500 | |||||||||
Consulting fees | 129,722 | |||||||||
Convertible note payable | $ 52,709 | $ 54,515 | ||||||||
Subsequent Event [Member] | ||||||||||
Due to unrelated party | $ 100,000 | $ 35,000 | $ 65,000 | |||||||
Subsequent Event [Member] | Crown Partners, LLC. [Member] | Convertible Notes Payable [Member] | ||||||||||
Convertible note payable | $ 36,000 | |||||||||
Original issue discount | $ 3,500 | |||||||||
Maturity period | 12 months | |||||||||
Interest rate | 5.00% | |||||||||
Terms of conversion feature | The note is convertible at any time, in part or whole, at $0.50 per share until the 180th date of the note at which time it is convertible an 55% of the market price which is defined as the lowest trading price 25 days prior to conversion | |||||||||
Subsequent Event [Member] | Subscription agreement [Member] | ||||||||||
Common stock shares sold/issued | shares | 11,500,000 | |||||||||
Subscription receivable | $ 11,500 | |||||||||
Subsequent Event [Member] | Subscription agreement [Member] | Stock subscription receivable [Member] | September 30, 2018 [Member] | ||||||||||
Common stock shares sold/issued | shares | 11,500,000 | |||||||||
Subscription receivable | $ 11,500 | |||||||||
Subsequent Event [Member] | Subscription agreement [Member] | Person [Member] | ||||||||||
Number of persons/individuals/related parties | Number | 17 | |||||||||
Common stock shares sold/issued | shares | 25,000,000 | |||||||||
Sale of stock, price per shares | $ / shares | $ 0.001 | |||||||||
Subsequent Event [Member] | Subscription agreement [Member] | Harpreet Sangha [Member] | ||||||||||
Common stock shares issuable under agreement | shares | 10,000,000 | |||||||||
Subsequent Event [Member] | Subscription agreement [Member] | Craig Alford [Member] | ||||||||||
Common stock shares issuable under agreement | shares | 4,000,000 | |||||||||
Subsequent Event [Member] | Consulting agreement [Member] | Individual [Member] | ||||||||||
Number of persons/individuals/related parties | Number | 5 | |||||||||
Consulting fees | $ 35,500 | |||||||||
Term of agreement | Dec. 31, 2019 | |||||||||
Subsequent Event [Member] | Consulting agreement [Member] | Related parties [Member] | ||||||||||
Number of persons/individuals/related parties | Number | 2 | |||||||||
Consulting fees | $ 57,000 | |||||||||
Term of agreement | Dec. 31, 2019 | |||||||||
Subsequent Event [Member] | Earn-in agreement [Member] | True Grit Resources [Member] | ||||||||||
Description for participation interest in mineral rights | The Company may earn of to 100% participation interest in certain mineral rights leases that TGR has in Arizona | |||||||||
Purchase price to acquire 49% participation interest | $ 400,000 | |||||||||
Amount to be spent to acquire 70% earn-in interest on property | 1,400,000 | |||||||||
Purchase price to acquire 100% participation interest | 2,400,000 | |||||||||
Description for extension of initial payment | On November 5, 2018 the Company received an extension for the initial payments of $400,000 of which the initial $100,000 is required to be paid by February 28, 2019 | |||||||||
Subsequent Event [Member] | Earn-in agreement [Member] | True Grit Resources [Member] | Within 10 days [Member] | ||||||||||
Amount payable under agreement | 100,000 | |||||||||
Subsequent Event [Member] | Earn-in agreement [Member] | True Grit Resources [Member] | Within 30 days of first payment [Member] | ||||||||||
Amount payable under agreement | $ 300,000 | |||||||||
Subsequent Event [Member] | Equity purchase agreement [Member] | Crown Partners, LLC. [Member] | ||||||||||
Consideration receivable under agreement | $ 3,000,000 | |||||||||
Descriptin for terms of agreement | The Company may put to the investor shares of the Company common stock in minimums of $10,000 to maximums of either $100,000 or 200% of the average trading volume, whichever is less | |||||||||
Subsequent Event [Member] | Equity purchase agreement [Member] | Crown Partners, LLC. [Member] | Commitment fee [Member] | ||||||||||
Common stock shares sold/issued | shares | 175,000 | |||||||||
Sale of stock, price per shares | $ / shares | $ 0.75 |