Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Oct. 22, 2018 | Dec. 31, 2017 | |
Document And Entity Information | |||
Entity Registrant Name | AMERICAN ENERGY GROUP LTD | ||
Entity Central Index Key | 843,212 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2018 | ||
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 | Non-accelerated Filer | ||
Entity Public Float | $ 2,484,150 | ||
Entity Common Stock, Shares Outstanding | 71,904,290 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 | ||
Entity Emerging Growth Company | true | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | false |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Current Assets | ||
Cash | $ 32,738 | $ 70,254 |
Prepaid expenses | 27,801 | |
Total Current Assets | 32,738 | 98,055 |
Property and Equipment | ||
Office equipment | 25,670 | 25,670 |
Accumulated depreciation | (24,462) | (24,012) |
Net Property and Equipment | 1,208 | 1,658 |
Total Assets | 33,946 | 99,713 |
Current Liabilities | ||
Accounts payable | 65,124 | 57,013 |
Note payable | 25,833 | |
Derivative liability | 84,821 | 78,084 |
Accrued liabilities | 1,118,507 | 646,146 |
Notes payable - related parties | 100,000 | 100,000 |
Total Current Liabilities | 1,368,452 | 907,076 |
Non-Current Liabilities | ||
Notes payable - related parties, less current portion | 2,150,816 | 1,647,000 |
Total Liabilities | 3,519,268 | 2,554,076 |
Commitments and Contingencies | ||
Stockholders' Deficit | ||
Common stock, par value $0.001 per share; authorized 80,000,000 shares; 71,904,290 and 70,118,576 shares issued and outstanding, respectively | 71,905 | 70,119 |
Additional paid in capital | 18,741,671 | 18,507,864 |
Accumulated deficit | (22,298,898) | (21,032,346) |
Total Stockholders' Deficit | (3,485,322) | (2,454,363) |
Total Liabilities and Stockholders' Deficit | $ 33,946 | $ 99,713 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Jun. 30, 2017 |
Stockholders' Equity (Deficit) | ||
Common Stock Par Value | $ 0.001 | $ 0.001 |
Common Stock Shares Authorized | 80,000,000 | 80,000,000 |
Common Stock Shares Issued | 71,904,290 | 70,118,576 |
Common Stock Shares Outstanding | 71,904,290 | 70,118,576 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
General and Administrative Expenses | ||
Legal and professional | $ 402,001 | $ 444,433 |
Depreciation and amortization expense | 450 | 509 |
General and administrative | 735,365 | 349,861 |
Total Expenses | (1,137,816) | (794,803) |
Net Operating (Loss) | (1,137,816) | (794,803) |
Other Income and (Expense) | ||
Loss on extinguishment of debt | (258,183) | |
Change in fair value of derivative | (6,736) | (78,084) |
Interest expense | (121,750) | (106,341) |
Other | (250) | (250) |
Total Other Income and (Expense) | (128,736) | (442,858) |
Net Loss before Income Taxes | (1,266,552) | (1,237,661) |
Income Taxes | ||
Net Loss | $ (1,266,552) | $ (1,237,661) |
Basic Loss per Common Share | $ (0.02) | $ (0.02) |
Weighted Average Number of Shares Outstanding | 71,188,830 | 67,331,791 |
Statements of Stockholders Equi
Statements of Stockholders Equity - USD ($) | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Total |
Beginning Balance, Shares at Jun. 30, 2016 | 66,518,674 | |||
Beginning Balance, Amount at Jun. 30, 2016 | $ 66,519 | $ 17,834,731 | $ (19,794,685) | $ (1,893,435) |
New shares issued for cash, Shares | 4,688,095 | |||
New shares issued for cash, Amount | $ 4,688 | 367,312 | 372,000 | |
August 2016, cancelled shares previously issued for services rendered, Shares | (1,088,193) | |||
August 2016, cancelled shares previously issued for services rendered, Amount | $ (1,088) | 1,088 | ||
September 2016, 2,000,000 warrants extended in connection with debt issuance, Shares | ||||
September 2016, 2,000,000 warrants extended in connection with debt issuance, Amount | 258,183 | 258,183 | ||
September 2016, 1,260,000 warrants extended in connection with stock options, Shares | ||||
September 2016, 1,260,000 warrants extended in connection with stock options, Amount | 46,550 | 46,550 | ||
Net loss | (1,237,661) | (1,237,661) | ||
Ending Balance, Shares at Jun. 30, 2017 | 70,118,576 | |||
Ending Balance, Amount at Jun. 30, 2017 | $ 70,119 | 18,507,864 | (21,032,346) | (2,454,363) |
New shares issued for cash, Shares | 1,785,714 | |||
New shares issued for cash, Amount | $ 1,786 | 123,214 | 125,000 | |
May 2018, 3,860,000 warrants extended in connection with stock options, Shares | ||||
May 2018, 3,860,000 warrants extended in connection with stock options, Amount | 110,593 | 110,593 | ||
Net loss | (1,266,552) | (1,266,552) | ||
Ending Balance, Shares at Jun. 30, 2018 | 71,904,290 | |||
Ending Balance, Amount at Jun. 30, 2018 | $ 71,905 | $ 18,741,671 | $ (22,298,898) | $ (3,485,322) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows From Operating Activities | ||
Net loss | $ (1,266,552) | $ (1,237,661) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 450 | 509 |
Loss on extinguishment of debt | 258,183 | |
Non-cash expense related to commitment of common stock in excess of authorized shares | 6,737 | 78,084 |
Share-based compensation expense | 110,593 | 46,550 |
Amortization of debt discount | 17,865 | |
Changes in operating assets and liabilities | ||
(Increase) decrease in prepaid expenses | 27,801 | (121) |
Increase (decrease) in accounts payable | 8,111 | (1,364) |
Increase (decrease) in accrued expenses and other current liabilities | 472,361 | 266,817 |
Net Cash (Used In) Operating Activities | (640,499) | (571,138) |
Cash Flows From Investing Activities | ||
Cash Flows From Financing Activities | ||
Proceeds from the issuance of note payable - related party | 503,816 | 272,000 |
Principal payments on notes payable | (25,833) | (2,821) |
Proceeds from the issuance of common stock | 125,000 | 372,000 |
Net Cash Provided By Financing Activities | 602,983 | 641,179 |
Net Increase (Decrease) in Cash | (37,516) | 70,041 |
Cash and Cash Equivalents, Beginning of Year | 70,254 | 213 |
Cash and Cash Equivalents, End of Year | 32,738 | 70,254 |
Cash Paid For: | ||
Interest | 7,996 | 6,958 |
Non-Cash Financing Activities: |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Note 1 - Organization and Summary of Significant Accounting Policies | a. Organization The American Energy Group, Ltd. (the Company) was incorporated in the State of Nevada on July 21, 1987 as Dimension Industries, Inc. Since incorporation, the Company has had several name changes including DIM, Inc. and Belize-American Corp. Internationale with the name change to The American Energy Group, Ltd. effective November 18, 1994. The Company’s authorized common stock, par value $0.001 is 80,000,000 shares. The Company’s authorized preferred stock, par value $0.001, is 20,000,000 shares. There is no preferred stock issued and outstanding. These financial statements do not include the consolidation of its recently re-acquired wholly owned subsidiary, Hycarbex American Energy, Inc as the Company had not yet received full access to the historical financial records, nor full control of its operations, as of June 30, 2018. b. Accounting Methods The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a June 30 year-end. c. Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents d. Property and Equipment and Depreciation Property and equipment are stated at cost. Depreciation on drilling and related equipment, vehicles and office equipment is provided using the straight-line method over expected useful lives of five to ten years. For the years ended June 30, 2018 and 2017, the Company incurred total depreciation of $450 and $509, respectively. e. Basic Loss Per Share of Common Stock For the Year For the Year Ended June 30, Ended June 30, 2018 2017 Loss (numerator) $ (1,266,552 ) $ (1,237,661 ) Shares (denominator) 71,188,830 67,331,791 Per Share Amount $ (0.02 ) $ (0.02 ) 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 12,193,334 and 12,193,334 shares of common stock for the years ended June 30, 2018 and 2017, respectively, are not included in the basic calculation because their inclusion would be antidilutive, thereby reducing the net loss per common share. f. Use of Estimates 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. g. Long Lived Assets All long lived assets are evaluated for impairment per FASB ASC 360 whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company recognized no impairment loss during the year ended June 30, 2018. h. Stock Based Compensation Equity securities issued for services rendered have been accounted for at the fair market value of the securities on the date of issuance. i. Income Taxes The Company accounts for corporate income taxes in accordance with FASB ASC 740-10 “Income Taxes”. FASB ASC 740-10 requires an asset and liability approach for financial accounting and reporting for income tax purposes. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Tax Cuts and Jobs Act was enacted on December 22, 2017 which reduced the U.S. corporate statutory tax rate from 35% to 21% beginning on January 1, 2018. We used a blended rate as an effective rate. The Company’s total deferred tax liabilities, deferred tax assets, and deferred tax asset valuation allowances at June 30, 2018 and June 30, 2017 are as follows: 2018 2017 Net Operating Losses: Federal $ (58,145,400 ) $ (57,201,767 ) State - - Total net operating losses $ (58,145,400 ) $ (57,201,767 ) Deferred Tax Asset: NOL Carryover 10,451,834 19,406,225 Less valuation allowance (10,451,834 ) (19,406,225 ) Net Deferred Tax Asset $ - $ - The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by FASB ASC 740-10. Net operating loss carryovers of the Company may be used to offset against future taxable income from the year 2018 through 2038 and will begin expiring in the year ended June 30, 2019. No tax benefit has been reported since the potential tax benefit is offset by a valuation allowance of the same amount. The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended June 30, 2018 and 2017 due to the following: 2018 2017 Book Loss $ (241,468 ) $ (38,429 ) Warrant Expense 19,644 - Extended Warrants 8,368 - Loss on Derivatives 15,247 - Meals & Entertainment 833 - Change in Depreciation 53 - Valuation allowance 197,323 38,429 Income tax provision $ - $ - The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended June 30, 2018, 2017, 2016 and 2015. j. Fair Value of Financial Instruments On January 1, 2008, the Company adopted FASB ASC 820-10-50, “ Fair Value Measurements. · Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. · Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement. The carrying amounts reported in the balance sheets for the cash and cash equivalents, receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The carrying value of the promissory notes approximates fair value because negotiated terms and conditions are consistent with current market rates as of June 30, 2018 and 2017. k. Concentration of Credit Risk Financial instruments which subject the Company to concentrations of credit risk include cash and cash equivalents. The Company maintains its cash and cash equivalents with major financial institutions selected based on management’s assessment of the banks’ financial stability. Balances occasionally exceed the $250,000 federal deposit insurance limit. The Company has not experienced any losses on deposits. l. Restoration, Removal and Environmental Liabilities The Company is subject to extensive federal, state and local environmental laws and regulations. These laws regulate the discharge of materials into the environment and may require the Company to remove or mitigate the environmental effects of the disposal or release of petroleum substances at various sites. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefit are expensed. Liabilities for expenditures of a noncapital nature are recorded when environmental assessments and/or remediation is probable, and the costs can be reasonably estimated. Such liabilities are generally undiscounted unless the timing of cash payments for the liability or component are fixed or reliably determinable. As of June 30, 2018, the Company believes it has no such liabilities. m. New Accounting Pronouncements Except for rules and interpretive releases of the SEC under authority of federal securities laws and a limited number of grandfathered standards, the FASB Accounting Standards Codification™ ("ASC") is the sole source of authoritative GAAP literature recognized by the FASB and applicable to the Company. In February 2016, the FASB issued ASU No. 2016-02: Leases (Topic 842) (ASU 2016-02). The main objective of ASU 2016-02 is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. ASU 2016-02 requires lessees to recognize assets and liabilities arising from leases on the balance sheet. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. For public entities, ASU 2016-02 is effective for financial statements issued for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years; early application is permitted. This standard is not expected to have a significant impact on the Company as it does not currently engage in significant leasing activity. The Company will continue to assess the impact this may have on its financial position, results of operations, and cash flows. n. Basis of Presentation Our financial statements for the year ended June 30, 2017, include an immaterial revision to liabilities, additional paid in capital as well as retained earnings related to the over commitment of shares and the extension of stock warrants to the shares issuable on the exercise of outstanding debentures, stock options and warrants. In accordance with Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin Nos. 99 and 108 (“SAB 99” and “SAB 108”), the Company has evaluated this error and, based on an analysis of quantitative and qualitative factors, has determined that it was not material to any of the reporting periods affected and no amendments to previously filed 10-Q or 10-K reports with the SEC are required. Impact of Errors on the Balance Sheet As of As of June 30, 2017 June 30, 2017 As Presented Adjustment As Revised Derivative Liability $ - $ 78,084 $ 78,084 Common Stock 70,119 - 70,119 Additional Paid in Capital 18,461,314 46,550 18,507,864 Accumulated Deficit (20,907,712 ) (124,634 ) (21,032,346 ) Total Deficit $ (2,376,279 ) $ (78,084 ) $ (2,454,363 ) Impact of Errors on the Statement of Operations For the Year Ended For the Year Ended June 30, 2017 June 30, 2017 As Presented Adjustment As Revised Net Loss $ (1,113,027 ) $ (124,634 ) $ (1,237,661 ) Net Loss per Common Share $ (.02 ) - $ (.02 ) Weighted Average Shares Calculation 67,331,791 - 67,331,791 |
Oil and Gas Properties
Oil and Gas Properties | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Note 2 - Oil and Gas Properties | The Company owns an interest in two oil and gas leases located in Southeast Texas. The Company is exploring various opportunities to realize value from these interests, including potential farmout or sale. The Company intends to adopt the full cost method of accounting for oil and gas properties in the event that the Company develops their interests in these leases. As of June 30, 2018 and 2017, the Company does not have any proved reserves as defined under FASB ASC 932-235-50 (formerly SFAS No. 69) and has not incurred any costs associated with the development of these oil and gas properties and had not received any oil and gas revenue from these leases. The carrying value of these leases is $0. Subsequent to the year ended June 30, 2018, the Company was awarded 100% of the stock of its previously wholly owned subsidiary, Hycarebex American Energy, Inc. Prior to the year ended June 30, 2018, the Company held an 18% gross royalty interest in the Yasin Concession in Pakistan, which was received in exchange for the original sale of Hycarbex. Revenues to have been derived from this interest were overriding in nature and there were no future financial obligations or commitments required of the Company to secure this royalty interest. The Company has not yet received full access to the historical financial and property records of Hycarbex since receiving the judgment award of the ICC subsequent to the year ended June 30, 2018, and as a result the Company has been unable to consolidate the accounting of Hycarbex into these financial statements. Oil and Gas properties currently determined to be owned by Hycarbex include working interests in five (5) large exploration blocks within Pakistan. These interests include: Block No. 2768-7 (Yasin), 673 square miles; Block No. 2667-8 (Zamzama North), 474 square miles; Block No. 3068-2 (Sanjawi), 871 square miles; Block No. 2466-8 (Karachi), 851 square miles; and Block No. 3371-13 (Peshawar), 960 square miles. Hycarbex is the registered owner of a 75% working interest in the Yasin Exploration Block, 95% working interest in the Karachi and Peshawar Exploration Blocks, 20% working interest in Zamzama North and Sanjawi Exploration Blocks, of which 10% is carried as to exploration costs with back-in rights to acquire an additional 10% working interest upon commercial discovery. |
Notes Payable - Related Party
Notes Payable - Related Party | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Note 3 - Notes Payable - Related Party | During the years ended June 30, 2018 and 2017, the Company borrowed $412,000 and $255,000, respectively, from a current shareholder. Interest on these notes accrues at 5% and is payable in full at maturity. The notes mature in February of 2020. The Company has accrued interest expense of $92,509 and $81,414 during the years ended June 30, 2018 and June 30, 2017, respectively, on these notes. The oil and gas properties in Southeast Texas serve as collateral on these notes. An officer of the Company loaned an additional $87,816 at 0% interest during the year ended June 30, 2018 resulting in a total balance of $87,816 as of June 30, 2018. In addition during the year ended June 30, 2018, the Company borrowed $4,000 from an individual investor. Interest on these notes accrues at 2.50% and is payable in full at maturity. The notes mature in April of 2019. The Company has accrued interest expense of $478 during the year ended June 30, 2018 on these notes. |
Derivative Liability
Derivative Liability | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Note 4 - Derivative Liability | The Company computes the fair value of the derivative liability arising from the over commitment of shares at each reporting period with the change in the fair value recorded as non-cash expense or non-cash income. The key component in the value of the derivative liability is the Company’s stock price, which is subject to significant fluctuation and is not under the Company’s control. Therefore, the resulting effect on net loss is subject to significant fluctuation and will continue to be so until the Company’s outstanding warrants are converted into common stock, or paid in full of cash. Assuming all other fair value inputs remain constant, the Company will record non-cash expense when its stock price increases and non-cash income when its stock price decreases. Since the number of shares issuable under the Variable Debentures is undeterminable, the Company may be required to issue shares in excess of the number of shares authorized by its shareholders. As a result, when the Company determines that is does not have sufficient shares to meet the obligations of derivative unexercised warrants, the derivatives must be valued using the Black Scholes option pricing model and a liability is recorded as though the obligations would be settled using some means other than stock. As of June 30, 2018 and 2017, the Company determined that it was over committed to the number of shares issuable on the exercise of outstanding debentures and warrants for approximately 4,097,624 shares and 2,311,910, respectively, resulting in the recognition of non-cash expenses of $6,736 and $78,084, respectively, for the years ended June 30, 2018 and 2017. |
Common Stock
Common Stock | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Note 5 - Common Stock | During the year ended June 30, 2017, the Company cancelled 1,088,193 shares previously issued in exchange for services in 2011. During the year ended June 30, 2017, the Company issued 4,688,095 shares of common stock for cash in the amount of $372,000. During the year ended June 30, 2018, the Company issued 1,785,714 shares of common stock for cash in the amount of $125,000. |
Common Stock Warrants
Common Stock Warrants | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Note 6 - Common Stock Warrants | During the year ended June 30, 2018, the Company extended 3,860,000 warrants. During the year ended June 30, 2017, the Company extended 5,333,334 warrants in connection with the financing addressed in Note 3. The warrants can be purchased at $0.10 per share. The Company reported a $258,183 loss on extinguishment of debt related to the extension of these warrant issuances. The expense of these warrants was calculated using the Black-Scholes option pricing model using the following assumptions: Dividend yield 0 Expected volatility 1.20 % Risk free interest 0.50 % Expected life 3.5 years A summary of the status of the Company’s stock warrants as of June 30, 2018 and 2017 is presented below: Weighted Ave. Stock Exercise Exercise Warrants Price Price Outstanding and Exercisable, June 30, 2016 12,193,334 $ 0.10-0.15 $ 0.12 Granted - - - Expired/Canceled - - - Exercised - - - Outstanding and Exercisable, June 30, 2017 12,193,334 $ 0.10–0.15 $ 0.12 Granted - - - Expired/Canceled - - - Exercised - - - Outstanding and Exercisable, June 30, 2018 12,193,334 $ 0.10–0.15 $ 0.12 A summary of outstanding stock warrants at June 30, 2018 follows: Number of Remaining Weighted Common Stock Contracted Exercise Ave Exer. Equivalents Expir. Date Life (Years) Price Price 3,860,000 June 2020 2.000 $ 0.15 $ 0.15 8,333,334 February 2020 1.750 $ 0.10 $ 0.10 |
Warrant Modification
Warrant Modification | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Note 7 - Warrant Modification | During the year ended June 30, 2018, the Company extended 3,860,000 warrants. In accordance with ASC 718-20-35-3 a modification of the terms or conditions of an equity award shall be treated as an exchange of the original award for a new award. In substance, the entity repurchases the original instrument by issuing a new instrument of equal or greater value, incurring additional compensation cost for any incremental value. During the years ended June 30, 2018 and 2017, the Company recognized $110,593 and $46,550, respectively, in compensation expense and additional paid in capital related to the extension of these warrants. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Note 8 - Subsequent Events | On August 31, 2018, the International Chamber of Commerce Arbitration Tribunal issued its unanimous Final Award completing the arbitration proceeding. The Final Award decrees that: (1) Hycarbex Asia Pte. Ltd. pay to the Company US$527,293 as reimbursement for legal fees and costs; (2) Hycarbex Asia Pte. Ltd. pay to the Company US$597,100 as reimbursement for the costs of arbitration; and (3) Hycarbex Asia Pte. Ltd. return to the Company 1.5 million of the company’s common shares, or if such shares are no longer held by Hycarbex Asia Pte. Ltd., authorizing the cancellation of the shares. The International Chamber of Commerce further authorized a refund to the Company of US$212,000 in filing and hearing fees deposited by the Company. Hycarbex Asia Pte. Ltd. is currently in liquidation proceedings in Singapore and thus the Company is uncertain whether the financial awards to the Company will be recovered from Hycarbex Asia Pte. Ltd. The Company has evaluated subsequent events from June 30, 2018 through the date the financial statements were issued and determined there were no additional items to report. |
Other Contingencies
Other Contingencies | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Note 9 - Other Contingencies | Litigation 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 sale of 100% of the stock of Hycarbex is void ab initio On August 31, 2018, the International Chamber of Commerce Arbitration Tribunal issued its unanimous Final Award completing the arbitration proceeding. The Final Award decrees that: (1) Hycarbex Asia Pte. Ltd. pay to the Company US$527,293 as reimbursement for legal fees and costs; (2) Hycarbex Asia Pte. Ltd. pay to the Company US$597,100 as reimbursement for the costs of arbitration; and (3) Hycarbex Asia Pte. Ltd. return to the Company 1.5 million of the company’s common shares, or if such shares are no longer held by Hycarbex Asia Pte. Ltd., authorizing the cancellation of the shares. The International Chamber of Commerce further authorized a refund to the Company of US$212,000 in filing and hearing fees deposited by the Company. Hycarbex Asia Pte. Ltd. is currently in liquidation proceedings in Singapore and thus the Company is uncertain whether the financial awards to the Company will be recovered from Hycarbex Asia Pte. Ltd. The Company has effected 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. New management of Hycarbex has also assumed control of Hycarbex’s Pakistan personnel. New Hycarbex management has begun its efforts to assume complete control of the Pakistan-based assets, including review and appraisement of each asset, interfacing with the local oil and gas regulatory authorities with jurisdiction over those assets to assure regulatory compliance, and continuation of legal proceedings where necessary to enforce its rights. The Government of Pakistan, including the Ministry of Petroleum, the Director General of Petroleum Concessions, the Securities and Exchange Commission of Pakistan and the Pakistan Board of Investment have each advised that they view the Company as the legal owner of Hycarbex. Further, subsequent to March 31, 2018, the Government of Pakistan granted to Hycarbex an extension to the Yasin Exploration License relating back to the date of the request for extension in March, 2013. Planning has been initiated toward development and exploration activities for the Yasin Exploration License based on this extension. The extension is subject to performance requirements pertaining to seismic, rework of the Haseeb #1 Well and the work program financial obligations which are being reviewed by Management and which will be discussed with the Government of Pakistan as the work at the site moves forward. Management intends to conduct a detailed review of the benefits and obligations associated with these Pakistan-based assets. |
Going Concern
Going Concern | 12 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Note 10 - 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 June 30, 2018, 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. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Organization And Summary Of Significant Accounting Policies | |
Organization | The American Energy Group, Ltd. (the Company) was incorporated in the State of Nevada on July 21, 1987 as Dimension Industries, Inc. Since incorporation, the Company has had several name changes including DIM, Inc. and Belize-American Corp. Internationale with the name change to The American Energy Group, Ltd. effective November 18, 1994. The Company’s authorized common stock, par value $0.001 is 80,000,000 shares. The Company’s authorized preferred stock, par value $0.001, is 20,000,000 shares. There is no preferred stock issued and outstanding. These financial statements do not include the consolidation of its recently re-acquired wholly owned subsidiary, Hycarbex American Energy, Inc as the Company had not yet received full access to the historical financial records, nor full control of its operations, as of June 30, 2018. |
Accounting Methods | The Company’s financial statements are prepared using the accrual method of accounting. The Company has elected a June 30 year-end. |
Cash Equivalents | The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents |
Property and Equipment and Depreciation | Property and equipment are stated at cost. Depreciation on drilling and related equipment, vehicles and office equipment is provided using the straight-line method over expected useful lives of five to ten years. For the years ended June 30, 2018 and 2017, the Company incurred total depreciation of $450 and $509, respectively. |
Basic Loss Per Share of Common Stock | For the Year For the Year Ended June 30, Ended June 30, 2018 2017 Loss (numerator) $ (1,266,552 ) $ (1,237,661 ) Shares (denominator) 71,188,830 67,331,791 Per Share Amount $ (0.02 ) $ (0.02 ) 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 12,193,334 and 12,193,334 shares of common stock for the years ended June 30, 2018 and 2017, respectively, are not included in the basic calculation because their inclusion would be antidilutive, thereby reducing the net loss per common share. |
Use of Estimates | 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Long Lived Assets | All long lived assets are evaluated for impairment per FASB ASC 360 whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company recognized no impairment loss during the year ended June 30, 2018. |
Stock Based Compensation | Equity securities issued for services rendered have been accounted for at the fair market value of the securities on the date of issuance. |
Income Taxes | The Company accounts for corporate income taxes in accordance with FASB ASC 740-10 “Income Taxes”. FASB ASC 740-10 requires an asset and liability approach for financial accounting and reporting for income tax purposes. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Tax Cuts and Jobs Act was enacted on December 22, 2017 which reduced the U.S. corporate statutory tax rate from 35% to 21% beginning on January 1, 2018. We used a blended rate as an effective rate. The Company’s total deferred tax liabilities, deferred tax assets, and deferred tax asset valuation allowances at June 30, 2018 and June 30, 2017 are as follows: 2018 2017 Net Operating Losses: Federal $ (58,145,400 ) $ (57,201,767 ) State - - Total net operating losses $ (58,145,400 ) $ (57,201,767 ) Deferred Tax Asset: NOL Carryover 10,451,834 19,406,225 Less valuation allowance (10,451,834 ) (19,406,225 ) Net Deferred Tax Asset $ - $ - The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by FASB ASC 740-10. Net operating loss carryovers of the Company may be used to offset against future taxable income from the year 2018 through 2038 and will begin expiring in the year ended June 30, 2019. No tax benefit has been reported since the potential tax benefit is offset by a valuation allowance of the same amount. The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended June 30, 2018 and 2017 due to the following: 2018 2017 Book Loss $ (241,468 ) $ (38,429 ) Warrant Expense 19,644 - Extended Warrants 8,368 - Loss on Derivatives 15,247 - Meals & Entertainment 833 - Change in Depreciation 53 - Valuation allowance 197,323 38,429 Income tax provision $ - $ - The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended June 30, 2018, 2017, 2016 and 2015. |
Fair Value of Financial Instruments | On January 1, 2008, the Company adopted FASB ASC 820-10-50, “ Fair Value Measurements. · Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. · Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement. The carrying amounts reported in the balance sheets for the cash and cash equivalents, receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The carrying value of the promissory notes approximates fair value because negotiated terms and conditions are consistent with current market rates as of June 30, 2018 and 2017. |
Concentration of Credit Risk | Financial instruments which subject the Company to concentrations of credit risk include cash and cash equivalents. The Company maintains its cash and cash equivalents with major financial institutions selected based on management’s assessment of the banks’ financial stability. Balances occasionally exceed the $250,000 federal deposit insurance limit. The Company has not experienced any losses on deposits. |
Restoration, Removal and Environmental Liabilities | The Company is subject to extensive federal, state and local environmental laws and regulations. These laws regulate the discharge of materials into the environment and may require the Company to remove or mitigate the environmental effects of the disposal or release of petroleum substances at various sites. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefit are expensed. Liabilities for expenditures of a noncapital nature are recorded when environmental assessments and/or remediation is probable, and the costs can be reasonably estimated. Such liabilities are generally undiscounted unless the timing of cash payments for the liability or component are fixed or reliably determinable. As of June 30, 2018, the Company believes it has no such liabilities. |
New Accounting Pronouncements | Except for rules and interpretive releases of the SEC under authority of federal securities laws and a limited number of grandfathered standards, the FASB Accounting Standards Codification™ ("ASC") is the sole source of authoritative GAAP literature recognized by the FASB and applicable to the Company. In February 2016, the FASB issued ASU No. 2016-02: Leases (Topic 842) (ASU 2016-02). The main objective of ASU 2016-02 is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. ASU 2016-02 requires lessees to recognize assets and liabilities arising from leases on the balance sheet. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. For public entities, ASU 2016-02 is effective for financial statements issued for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years; early application is permitted. This standard is not expected to have a significant impact on the Company as it does not currently engage in significant leasing activity. The Company will continue to assess the impact this may have on its financial position, results of operations, and cash flows. |
Basis of Presentation | Our financial statements for the year ended June 30, 2017, include an immaterial revision to liabilities, additional paid in capital as well as retained earnings related to the over commitment of shares and the extension of stock warrants to the shares issuable on the exercise of outstanding debentures, stock options and warrants. In accordance with Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin Nos. 99 and 108 (“SAB 99” and “SAB 108”), the Company has evaluated this error and, based on an analysis of quantitative and qualitative factors, has determined that it was not material to any of the reporting periods affected and no amendments to previously filed 10-Q or 10-K reports with the SEC are required. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Organization And Summary Of Significant Accounting Policies Tables Abstract | |
Schdule of Basic Loss Per Share of Common Stock | For the Year For the Year Ended June 30, Ended June 30, 2018 2017 Loss (numerator) $ (1,266,552 ) $ (1,237,661 ) Shares (denominator) 71,188,830 67,331,791 Per Share Amount $ (0.02 ) $ (0.02 ) |
Schedule of deferred tax assets | The Company’s total deferred tax liabilities, deferred tax assets, and deferred tax asset valuation allowances at June 30, 2018 and June 30, 2017 are as follows: 2018 2017 Net Operating Losses: Federal $ (58,145,400 ) $ (57,201,767 ) State - - Total net operating losses $ (58,145,400 ) $ (57,201,767 ) Deferred Tax Asset: NOL Carryover 10,451,834 19,406,225 Less valuation allowance (10,451,834 ) (19,406,225 ) Net Deferred Tax Asset $ - $ - |
Schedule of tax provision (benefit) | The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended June 30, 2018 and 2017 due to the following: 2018 2017 Book Loss $ (241,468 ) $ (38,429 ) Warrant Expense 19,644 - Extended Warrants 8,368 - Loss on Derivatives 15,247 - Meals & Entertainment 833 - Change in Depreciation 53 - Valuation allowance 197,323 38,429 Income tax provision $ - $ - |
Impact of errors on the balance sheet | As of As of June 30, 2017 June 30, 2017 As Presented Adjustment As Revised Derivative Liability $ - $ 78,084 $ 78,084 Common Stock 70,119 - 70,119 Additional Paid in Capital 18,461,314 46,550 18,507,864 Accumulated Deficit (20,907,712 ) (124,634 ) (21,032,346 ) Total Deficit $ (2,376,279 ) $ (78,084 ) $ (2,454,363 ) |
Impact of errors on the statement of operations | For the Year Ended For the Year Ended June 30, 2017 June 30, 2017 As Presented Adjustment As Revised Net Loss $ (1,113,027 ) $ (124,634 ) $ (1,237,661 ) Net Loss per Common Share $ (.02 ) - $ (.02 ) Weighted Average Shares Calculation 67,331,791 - 67,331,791 |
Common Stock Warrants (Tables)
Common Stock Warrants (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Common Stock Warrants | |
Schdule of Black-Scholes option pricing model | The expense of these warrants was calculated using the Black-Scholes option pricing model using the following assumptions: Dividend yield 0 Expected volatility 1.20 % Risk free interest 0.50 % Expected life 3.5 years |
Summary of Common stock warrants outstanding and exercisable | A summary of the status of the Company’s stock warrants as of June 30, 2018 and 2017 is presented below: Weighted Ave. Stock Exercise Exercise Warrants Price Price Outstanding and Exercisable, June 30, 2016 12,193,334 $ 0.10-0.15 $ 0.12 Granted - - - Expired/Canceled - - - Exercised - - - Outstanding and Exercisable, June 30, 2017 12,193,334 $ 0.10–0.15 $ 0.12 Granted - - - Expired/Canceled - - - Exercised - - - Outstanding and Exercisable, June 30, 2018 12,193,334 $ 0.10–0.15 $ 0.12 |
Summary of outstanding stock warrants | A summary of outstanding stock warrants at June 30, 2018 follows: Number of Remaining Weighted Common Stock Contracted Exercise Ave Exer. Equivalents Expir. Date Life (Years) Price Price 3,860,000 June 2020 2.000 $ 0.15 $ 0.15 8,333,334 February 2020 1.750 $ 0.10 $ 0.10 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Organization And Summary Of Significant Accounting Policies Details Abstract | ||
Loss (numerator) | $ (1,266,552) | $ (1,237,661) |
Shares (denominator) | 71,188,830 | 67,331,791 |
Per Share Amount | $ (0.02) | $ (0.02) |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies (Details 1) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Net Operating Losses: | ||
Federal | $ (58,145,400) | $ (57,201,767) |
State | ||
Total net operating losses | (58,145,400) | (57,201,767) |
Deferred Tax Asset | ||
NOL Carryover | 10,451,834 | 19,406,225 |
Less valuation allowance | (10,451,834) | (19,406,225) |
Net Deferred Tax Asset |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies (Details 2) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Organization And Summary Of Significant Accounting Policies Details 3Abstract | ||
Book Loss | $ (241,468) | $ (38,429) |
Warrant Expense | 19,644 | |
Extended Warrants | 8,368 | |
Loss on Derivatives | 15,247 | |
Meals & Entertainment | 833 | |
Change in Depreciation | 53 | |
Valuation allowance | 197,323 | 38,429 |
Income tax provision |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies (Details 3) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Common Stock | $ 71,905 | $ 70,119 | |
Accumulated Deficit | (22,298,898) | (21,032,346) | |
Total Deficit | $ (3,485,322) | (2,454,363) | $ (1,893,435) |
As Presented [Member] | |||
Derivative Liability | |||
Common Stock | 70,119 | ||
Additional Paid in Capital | 18,461,314 | ||
Accumulated Deficit | (20,907,712) | ||
Total Deficit | (2,376,279) | ||
Adjustment [Member] | |||
Derivative Liability | 78,084 | ||
Common Stock | |||
Additional Paid in Capital | 46,550 | ||
Accumulated Deficit | (124,634) | ||
Total Deficit | (78,084) | ||
As Revised Member [Member] | |||
Derivative Liability | 78,084 | ||
Common Stock | 70,119 | ||
Additional Paid in Capital | 18,507,864 | ||
Accumulated Deficit | (21,032,346) | ||
Total Deficit | $ (2,454,363) |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies (Details 4) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Net Loss | $ (1,266,552) | $ (1,237,661) |
Net Loss per Common Share | $ (0.02) | $ (0.02) |
Adjustment [Member] | ||
Net Loss | $ (1,113,027) | |
Net Loss per Common Share | $ (0.02) | |
Weighted Average Shares Calculation | 67,331,791 | |
As Presented [Member] | ||
Net Loss | $ (124,634) | |
Net Loss per Common Share | ||
Weighted Average Shares Calculation | ||
As Revised Member [Member] | ||
Net Loss | $ (1,237,661) | |
Net Loss per Common Share | $ (0.02) | |
Weighted Average Shares Calculation | 67,331,791 |
Organization and Summary of S_9
Organization and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Organization And Summary Of Significant Accounting Policies Details Narrative Abstract | ||
Entity incorporation, state country name | State of Nevada | |
Entity incorporation, date of incorporation | Jul. 21, 1987 | |
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 80,000,000 | 80,000,000 |
Preferred stock, par value | $ 0.001 | |
Preferred stock shares authorized | 20,000,000 | |
Depreciation | $ 450 | $ 509 |
Stock warrants convertible into shares of common stock | 12,193,334 | $ 12,193,334 |
Cash, FDIC insured amount | $ 250,000 | |
Income Taxes description | <font style="font: 10pt Times New Roman, Times, Serif">Net operating loss carryovers of the Company may be used to offset against future taxable income from the year 2018 through 2038 and will begin expiring in the year ended June 30, 2019.</font></p>" id="sjs-B13"><p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Net operating loss carryovers of the Company may be used to offset against future taxable income from the year 2018 through 2038 and will begin expiring in the year ended June 30, 2019.</font></p> |
Oil and Gas Properties (Details
Oil and Gas Properties (Details Narrative) | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Ownership royalty interest percenatge | 18.00% |
Ownership percentage of common stock | 100.00% |
Carrying value of leases | $ 0 |
Hycarbex [Member] | |
Historical financial and property records, Description | Hycarbex is the registered owner of a 75% working interest in the Yasin Exploration Block, 95% working interest in the Karachi and Peshawar Exploration Blocks, 20% working interest in Zamzama North and Sanjawi Exploration Blocks, of which 10% is carried as to exploration costs with back-in rights to acquire an additional 10% working interest upon commercial discovery.</p>" id="sjs-B7"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: justify">Hycarbex is the registered owner of a 75% working interest in the Yasin Exploration Block, 95% working interest in the Karachi and Peshawar Exploration Blocks, 20% working interest in Zamzama North and Sanjawi Exploration Blocks, of which 10% is carried as to exploration costs with back-in rights to acquire an additional 10% working interest upon commercial discovery.</p> |
Notes Payable Related Party (De
Notes Payable Related Party (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Proceeds from the issuance of debt | $ 503,816 | $ 272,000 |
Interest rate | 5.00% | |
Interest expense | $ 92,509 | 81,414 |
Officer [Member] | ||
Proceeds from the issuance of debt | $ 87,816 | |
Interest rate | 0.00% | |
Investor [Member] | ||
Proceeds from the issuance of debt | $ 4,000 | |
Interest rate | 2.50% | |
Interest expense | $ 478 | |
Notes maturity date | Apr. 30, 2019 | |
Shareholder [Member] | ||
Proceeds from the issuance of debt | $ 412,000 | $ 255,000 |
Derivative Liability (Details N
Derivative Liability (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Liability Details Narrative Abstract | ||
Change in fair value of derivative | $ 6,736 | $ 78,084 |
Number of shares issuable on the exercise of outstanding debentures and warrants | 4,097,624 | 2,311,910 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
New shares issued for cash, Amount | $ 125,000 | $ 372,000 |
Common Stock [Member] | ||
Cancelled shares previously issued for services rendered, Shares | 1,088,193 | |
New shares issued for cash, Shares | 1,785,714 | 4,688,095 |
New shares issued for cash, Amount | $ 125,000 | $ 372,000 |
Common Stock Warrants (Details)
Common Stock Warrants (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Common Stock Warrants Details Abstract | |
Dividend yield | 0.00% |
Expected volatility | 1.20% |
Risk free interest | 0.50% |
Expected life | 3 years 6 months |
Common Stock Warrants (Details
Common Stock Warrants (Details 1) - Warrant [Member] - $ / shares | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Outstanding and Exercisable, Beginning Balance | 12,193,334 | 12,193,334 |
Granted | ||
Expired/Canceled | ||
Exercised | ||
Outstanding and Exercisable, Ending Balance | 12,193,334 | 12,193,334 |
Granted, Exercise Price | ||
Expired/Canceled, Exercise Price | ||
Exercised, Exercise Price | ||
Outstanding and Exercisable, Beginning Balance, Weighted Average Exercise Price | 0.12 | 0.12 |
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 | 0.12 | 0.12 |
Minimum [Member] | ||
Outstanding and Exercisable, Beginning Balance, Exercise Price | 0.10 | 0.10 |
Outstanding and Exercisable, Ending Balance, Exercise Price | 0.10 | 0.10 |
Maximum [Member] | ||
Outstanding and Exercisable, Beginning Balance, Exercise Price | 0.15 | 0.15 |
Outstanding and Exercisable, Ending Balance, Exercise Price | $ 0.15 | $ 0.15 |
Common Stock Warrants (Detail_2
Common Stock Warrants (Details 2) | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Warrant [Member] | |
Number of Common Stock Equivalents | shares | 3,860,000 |
Expire Date | June 2,020 |
Remaining Contracted Life (Years) | 2 years |
Exercise Price | $ 0.15 |
Weighted Ave Exer. Price | $ 0.15 |
Warrant 1 [Member] | |
Number of Common Stock Equivalents | shares | 8,333,334 |
Expire Date | February 2,020 |
Remaining Contracted Life (Years) | 1 year 9 months |
Exercise Price | $ 0.10 |
Weighted Ave Exer. Price | $ 0.10 |
Common Stock Warrants (Detail_3
Common Stock Warrants (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Warrants purchased price | $ 0.10 | |
Loss on extinguishment of debt | $ (258,183) | |
Common Stock Warrants [Member] | ||
Extended warrants | 3,860,000 | 5,333,334 |
Warrant Modification (Details N
Warrant Modification (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based compensation expense | $ 110,593 | $ 46,550 |
Common Stock Warrants [Member] | ||
Extended warrants | 3,860,000 | 5,333,334 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] | 1 Months Ended |
Aug. 31, 2018USD ($)shares | |
Reimbursement for legal fees and costs | $ 527,293 |
Reimbursement for the costs of arbitration | $ 597,100 |
Common shares return | shares | 1,500,000 |
Refound for filing and hearing | $ 212,000 |
Other Contingencies (Details Na
Other Contingencies (Details Narrative) - USD ($) | 1 Months Ended | |
Aug. 31, 2018 | Apr. 15, 2015 | |
Litigation [Member] | ||
Litigation description | <font style="font: 10pt Times New Roman, Times, Serif">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 sale of 100% of the stock of Hycarbex is void <i>ab initio</i> and of no legal effect on account of the fraud and misrepresentations of Hycarbex, Hydro-Tur and Hycarbex-Asia, thereby returning the Company to its 100% ownership position of the common stock of Hycarbex. In connection with its findings, the ICC Arbitration Tribunal ordered that the register of shareholders for Hycarbex be corrected to reflect the Company as the owner of 100% of the common stock, that Hycarbex and Hycarbex-Asia take any and all steps necessary to effect the rectification of the register of shareholders of Hycarbex to reflect the Company as the owner of 100% of the common stock, and that Hycarbex and Hycarbex-Asia bear all costs of the arbitration proceedings, including the Company’s legal costs, which costs and fees are to be fixed by the ICC Arbitration Tribunal in a subsequent award after submission of the total costs and fees by AEGG. The ICC Arbitration Tribunal dismissed Hydro-Tur’s application for costs. The April 15 Award made moot certain of the pending actions in Pakistan due to the recovery of ownership of 100% of the stock of Hycarbex.</font></p>" id="sjs-C4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">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 sale of 100% of the stock of Hycarbex is void <i>ab initio</i> and of no legal effect on account of the fraud and misrepresentations of Hycarbex, Hydro-Tur and Hycarbex-Asia, thereby returning the Company to its 100% ownership position of the common stock of Hycarbex. In connection with its findings, the ICC Arbitration Tribunal ordered that the register of shareholders for Hycarbex be corrected to reflect the Company as the owner of 100% of the common stock, that Hycarbex and Hycarbex-Asia take any and all steps necessary to effect the rectification of the register of shareholders of Hycarbex to reflect the Company as the owner of 100% of the common stock, and that Hycarbex and Hycarbex-Asia bear all costs of the arbitration proceedings, including the Company’s legal costs, which costs and fees are to be fixed by the ICC Arbitration Tribunal in a subsequent award after submission of the total costs and fees by AEGG. The ICC Arbitration Tribunal dismissed Hydro-Tur’s application for costs. The April 15 Award made moot certain of the pending actions in Pakistan due to the recovery of ownership of 100% of the stock of Hycarbex.</font></p> | |
Ownership percentage | 100.00% | |
Subsequent Event [Member] | ||
Reimbursement for legal fees and costs | $ 527,293 | |
Reimbursement for the costs of arbitration | $ 597,100 | |
Common shares return | 1,500,000 | |
Refound for filing and hearing | $ 212,000 |