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 Companys 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 Hycarbexs future operations. The new management of Hycarbex has also assumed control of Hycarbexs 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 Companys 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 Companys 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 Companys 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 Companys 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% |