American Energy 10-Q 20 Feb 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2017	Feb. 20, 2018
Document And Entity Information
Entity Registrant Name	AMERICAN ENERGY GROUP LTD
Entity Central Index Key	843,212
Document Type	10-Q
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--06-30
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		70,975,719
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Current Assets
Cash	$ 4,087	$ 70,254
Prepaid expenses	10,863	27,801
Total Current Assets	14,950	98,055
Property and Equipment
Office equipment	25,670	25,670
Accumulated depreciation	(24,237)	(24,012)
Net Property and Equipment	1,433	1,658
Total Assets	16,383	99,713
Current Liabilities
Accounts payable	58,750	57,013
Accrued liabilities	766,822	646,146
Note payable	8,096	25,833
Notes payable - related parties - current portion	354,389	300,000
Total Current Liabilities	1,188,057	1,028,992
Non-Current Liabilities
Notes payable - related parties, less current portion	1,516,000	1,447,000
Total Liabilities	2,704,057	2,475,992
Stockholders' Deficit
Common stock, par value $0.001 per share; authorized 80,000,000 shares; 70,975,719 and 70,118,576 shares issued and outstanding, respectively	70,976	70,119
Additional paid in capital	18,520,457	18,461,314
Accumulated deficit	(21,279,107)	(20,907,712)
Total Stockholders' Deficit	(2,687,674)	(2,376,279)
Total Liabilities and Stockholders' Deficit	$ 16,383	$ 99,713

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Jun. 30, 2017
Stockholders' Deficit
Common Stock Par Value	$ 0.001	$ 0.001
Common Stock Shares Authorized	80,000,000	80,000,000
Common Stock Shares Issued	70,975,719	70,118,576
Common Stock Shares Outstanding	70,975,719	70,118,576

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Condensed Consolidated Statements Of Operations
Revenue
Expenses
Administrative salaries	34,156	37,877	86,824	58,437
Legal and professional	109,563	93,379	153,789	230,937
General and administrative	43,551	42,422	82,079	84,535
Office overhead expenses		687		687
Depreciation	112	128	225	255
Total Expenses	187,382	174,493	322,917	374,851
Net Operating (Loss)	(187,382)	(174,493)	(322,917)	(374,851)
Other Income and (Expense)
Loss on extinguishment of debt				(258,183)
Interest expense	(24,352)	(22,058)	(48,478)	(61,427)
Total Other Income (Expense)	(24,352)	(22,058)	(48,478)	(319,610)
Net (Loss) Before Taxes	(211,734)	(196,551)	(371,395)	(694,461)
Income Taxes
Net (Loss)	$ (211,734)	$ (196,551)	$ (371,395)	$ (694,461)
Earnings per Share Basic and Fully Diluted	$ .00	$ .00	$ .00	$ .00
Weighted Average Number of Shares Outstanding Basic and Fully Diluted	70,849,943	66,621,682	70,635,657	66,743,393

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash Flows From Operating Activities
Net (Loss)	$ (371,395)	$ (694,461)
Adjustments to reconcile net loss to net cash (used in) operating activities:
Depreciation	225	255
Loss on extinguishment of debt		258,183
Amortization of debt discount		17,865
Changes in operating assets and liabilities
(Increase) decrease in prepaid expenses	16,938	17,335
Increase (decrease) in accounts payable	1,737	(1,576)
Increase (decrease) in accrued expenses and other current liabilities	120,676	71,091
Net Cash (Used In) Operating Activities	(231,819)	(331,308)
Cash Flows From Investing Activities
Cash Flows From Financing Activities
Proceeds from the issuance of notes payable related party	123,389	220,000
Principal payments on notes payable	(17,737)	(18,352)
Proceeds from the issuance of common stock	60,000	152,000
Net Cash Provided By Financing Activities	165,652	353,648
Net Increase (Decrease) in Cash	(66,167)	22,340
Cash and Cash Equivalents, Beginning of Period	70,254	213
Cash and Cash Equivalents, End of Period	4,087	22,553
Cash Paid For:
Interest	4,302	4,520
Taxes

General

General	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Note 1 - General	The accompanying unaudited condensed financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim condensed financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim condensed financial statements be read in conjunction with the Company's audited financial statements and notes thereto included in its June 30, 2017 Annual Report on Form 10-K. Operating results for the three months and six months ended December 31, 2017 are not necessarily indicative of the results that may be expected for the year ending June 30, 2018.

Basic Loss Per Share of Common

Basic Loss Per Share of Common Stock	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Note 2 - Basic Loss Per Share of Common Stock	The basic loss per share of common stock is based on the weighted average number of shares issued and outstanding during the period of the financial statements. Stock warrants convertible into 10,933,334 shares of common stock have not been included in the fully diluted income per share calculation for the three or six months ended December 31, 2017 or the three and six months ended December 31, 2016, because their inclusion would be anti-dilutive, thereby reducing the net loss per common share.

Common Stock

Common Stock	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Note 3 - Common Stock	During December, 2017, the Company issued 142,857 shares of common stock for cash at $0.07 per share for proceeds of $10,000.

Notes Payable - Related Partie

Notes Payable - Related Parties	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Note 4 - Notes Payable - Related Parties	During the six months ended December 31, 2017, the Company borrowed $65,000 from a current shareholder with interest at 5%, payable in full at maturity During the six months ended December 31, 2017, the Company borrowed an additional $4,000 from an individual investor with interest at 2.5%, payable in full in one year. During the six months ended December 31, 2017, the Company borrowed an additional $54,389 from an officer at 0%, payable in full in one year. For the three and six months ended December 31, 2017, the Company incurred interest expense on these notes payable in the amount of $22,445 and $44,176, respectively as compared to $20,357 and $39,041, respectively, for the three and six months ended December 31, 2016.

Warrants

Warrants	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Note 5 - Warrants	During the six months ended December 31, 2017, no stock warrants were issued. A summary of the status of the Company’s stock warrants as of December 31, 2017 is presented below: Weighted Ave. Stock Exercise Exercise Warrants Price Price Outstanding and Exercisable, June 30, 2017 10,933,334 $ 0.10-0.20 $ 0.14 Granted - $ - $ - Expired/Canceled - $ - - Exercised - $ - - Outstanding and Exercisable, December 31, 2017 10,933,334 $ 0.10-0.20 $ 0.14 A summary of outstanding stock warrants at December 31, 2017 follows: Number of Remaining Weighted Common Stock Contracted Exercise Ave Exer. Equivalents Expir. Date Life (Years) Price Price 2,333,334 February 2020 2.250 $ 0.10 $ 0.10 1,500,000 February 2020 2.250 $ 0.10 $ 0.10 2,600,000 May 2018 .500 $ 0.15 $ 0.15 2,000,000 February 2020 2.250 $ 0.20 $ 0.20 1,000,000 February 2020 2.250 $ 0.20 $ 0.20 500,000 February 2020 2.250 $ 0.10 $ 0.10 1,000,000 February 2020 2.250 $ 0.10 $ 0.10

Other Contingencies - Litigatio

Other Contingencies - Litigation	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Note 6 - Other Contingencies - Litigation	In August, 2014, we initiated separate legal actions in Pakistan for an injunction against Sui Southern Gas Company Limited (“Sui Southern”) and Hycarbex-American Energy, Inc. (“Hycarbex”), respectively, in furtherance of the prior interim orders of the Arbitration Tribunal. The new action filed in the Sindh, Karachi High Court named as defendants Sui Southern, Hycarbex, its parent company, Hycarbex Asia Pte. Ltd. (“Hycarbex Asia”) and two additional pro forma defendants and requests an injunction against Sui Southern against payment to Hycarbex of 18% of the total proceeds of gas sales. The requested injunction was granted to us by the Karachi Court but later vacated as premature as it pertains to the third party gas gatherer. However, we also filed in the Islamabad High Court an action against Hycarbex, Hycarbex Asia and Hydro Tur as defendants and obtained injunctive relief against Hycarbex from interference with the Arbitration Tribunal-ordered notifications to Sui Southern to pay us directly our 18% of production, and injunctive relief requiring Hycarbex to escrow the 18% of production which would have been payable to the Company. On April 15, 2015, the ICC Arbitration Tribunal rendered its Partial Final Award in the pending arbitration proceedings which declared that the November 9, 2003 Stock Purchase Agreement between the Company, Hycarbex and Hydro-Tur, which was amended on February 16, 2004, and December 15, 2009, is void ab initio The Company has affected the shareholder and management registration changes ordered by the ICC and has caused Hycarbex to open a new office in Islamabad, Pakistan for Hycarbex’s future operations. The new management of Hycarbex has also assumed control of Hycarbex’s Pakistan personnel. Finally, the new management of Hycarbex has begun its efforts to assume complete control of the Pakistan-based assets, including review and appraisement of each asset and interfacing with the local oil and gas regulatory authorities with jurisdiction over those assets to assure regulatory compliance. The assumption of complete control of the Hycarbex Pakistan-based assets is expected to take several months and be completed in calendar year 2018.

Going Concern

Going Concern	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Note 7 - Going Concern	The Company’s financial statements have been prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. Accordingly, the financial statements do not include any adjustments related to the recoverability of assets or classification of liabilities that might be necessary should the Company be unable to continue as a going concern. At December 31, 2017, the Company’s current liabilities exceeded its current assets and it has recorded negative cash flows from operations. The preceding circumstances combine to raise substantial doubt about the Company’s ability to continue as a going concern. Management has been successful in capital raises in the past to continue operations, but there can be no assurance that success will continue in the future.

Subsequent Events

Subsequent Events	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Note 8 - Subsequent Events	In accordance with ASC 855-10, management of the Company has reviewed all material events from December 31, 2017 through the date the financial statements were issued. There were no other material events that warrant any additional disclosure.

Warrants (Tables)

Warrants (Tables)	6 Months Ended
	Dec. 31, 2017
Warrants Tables
Summary of Common stock warrants outstanding and exercisable	A summary of the status of the Company’s stock warrants as of December 31, 2017 is presented below: Weighted Ave. Stock Exercise Exercise Warrants Price Price Outstanding and Exercisable, June 30, 2017 10,933,334 $ 0.10-0.20 $ 0.14 Granted - $ - $ - Expired/Canceled - $ - - Exercised - $ - - Outstanding and Exercisable, December 31, 2017 10,933,334 $ 0.10-0.20 $ 0.14
Summary of outstanding stock warrants	A summary of outstanding stock warrants at December 31, 2017 follows: Number of Remaining Weighted Common Stock Contracted Exercise Ave Exer. Equivalents Expir. Date Life (Years) Price Price 2,333,334 February 2020 2.250 $ 0.10 $ 0.10 1,500,000 February 2020 2.250 $ 0.10 $ 0.10 2,600,000 May 2018 .500 $ 0.15 $ 0.15 2,000,000 February 2020 2.250 $ 0.20 $ 0.20 1,000,000 February 2020 2.250 $ 0.20 $ 0.20 500,000 February 2020 2.250 $ 0.10 $ 0.10 1,000,000 February 2020 2.250 $ 0.10 $ 0.10

Basic Loss Per Share of Commo15

Basic Loss Per Share of Common Stock (Details Narrative)	6 Months Ended
	Dec. 31, 2017shares
Basic Loss Per Share Of Common Stock Details Narrative
Stock warrants convertible into shares of common stock	10,933,334

Common Stock (Details Narrative

Common Stock (Details Narrative) - Common Stock [Member]	6 Months Ended
	Dec. 31, 2017USD ($)$ / sharesshares
Common Stock Shares Issued for cash, shares | shares	142,857
Common Stock Shares Issued for cash, per share | $ / shares	$ 0.07
Common Stock Shares Issued for cash, value | $	$ 10,000

Notes Payable Related Parties (

Notes Payable Related Parties (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Proceeds from the issuance of debt			$ 123,389	$ 220,000
Interest expense	$ 22,445	$ 20,357	44,176	$ 39,041
Majority Shareholder [Member]
Proceeds from the issuance of debt			$ 65,000
Interest rate			5.00%
Investor [Member]
Proceeds from the issuance of debt			$ 4,000
Interest rate			2.50%
Officer [Member]
Proceeds from the issuance of debt			$ 54,389
Interest rate			0.00%

Warrants (Details)

Warrants (Details) - Warrant [Member]	6 Months Ended
	Dec. 31, 2017$ / sharesshares
Outstanding and Exercisable, Beginning Balance | shares	10,933,334
Granted | shares
Expired/Canceled | shares
Exercised | shares
Outstanding and Exercisable, Ending Balance | shares	10,933,334
Expired/Canceled, Exercise Price
Exercised, Exercise Price
Outstanding and Exercisable, Beginning Balance, Weighted Average Exercise Price	0.14
Granted, Weighted Average Exercise Price
Expired/Canceled, Weighted Average Exercise Price
Exercised, Weighted Average Exercise Price
Outstanding and Exercisable, Beginning Balance, Weighted Average Exercise Price	0.14
Minimum [Member]
Granted, Exercise Price	0.10
Outstanding and Exercisable, Ending Balance, Exercise Price	0.10
Maximum [Member]
Granted, Exercise Price	0.20
Outstanding and Exercisable, Ending Balance, Exercise Price	$ 0.20

Warrants (Details 1)

Warrants (Details 1)	6 Months Ended
	Dec. 31, 2017$ / sharesshares
Warrant [Member]
Number of Common Stock Equivalents | shares	2,333,334
Expir. Date	February 2020
Remaining Contracted Life (Years)	2 years 2 months 30 days
Exercise Price	$ 0.10
Weighted Ave Exer. Price	$ 0.10
Warrant 1 [Member]
Number of Common Stock Equivalents | shares	1,500,000
Expir. Date	February 2020
Remaining Contracted Life (Years)	2 years 2 months 30 days
Exercise Price	$ 0.10
Weighted Ave Exer. Price	$ 0.10
Warrant 2 [Member]
Number of Common Stock Equivalents | shares	2,600,000
Expir. Date	May 2018
Remaining Contracted Life (Years)	6 months
Exercise Price	$ 0.15
Weighted Ave Exer. Price	$ 0.15
Warrant 3 [Member]
Number of Common Stock Equivalents | shares	2,000,000
Expir. Date	February 2020
Remaining Contracted Life (Years)	2 years 2 months 30 days
Exercise Price	$ 0.20
Weighted Ave Exer. Price	$ 0.20
Warrant 4 [Member]
Number of Common Stock Equivalents | shares	1,000,000
Expir. Date	February 2020
Remaining Contracted Life (Years)	2 years 2 months 30 days
Exercise Price	$ 0.20
Weighted Ave Exer. Price	$ 0.20
Warrant 5 [Member]
Number of Common Stock Equivalents | shares	500,000
Expir. Date	February 2020
Remaining Contracted Life (Years)	2 years 2 months 30 days
Exercise Price	$ 0.10
Weighted Ave Exer. Price	$ 0.10
Warrant 6 [Member]
Number of Common Stock Equivalents | shares	1,000,000
Expir. Date	February 2020
Remaining Contracted Life (Years)	2 years 2 months 30 days
Exercise Price	$ 0.10
Weighted Ave Exer. Price	$ 0.10

Other Contingencies - Litigat20

Other Contingencies - Litigation (Details Narrative)	1 Months Ended
	Apr. 15, 2015	Aug. 31, 2014
Other Contingencies - Litigation Details Narrative
Gross working interest percentage		18.00%
Ownership working interest percenatge	100.00%
Gross production revenue percentage		18.00%