UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2015
Commission file number 000-55343
Perkins Oil & Gas, Inc.
(Exact name of registrant as specified in its charter)
Nevada
(State or other jurisdiction of incorporation or organization)
P.O. Box 21
Bonita, CA 91908
(Address of principal executive offices, including zip code)
(619)247-9630
(Telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the last 90 days. YES [X] NO [ ]
Indicate by check mark whether the registrant has submitted electronically and
posted on its corporate Web site, if any, every Interactive Data File required
to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of
this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit and post such files). YES [X ] NO [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer, "accelerated filer,"
"non-accelerated filer," and "smaller reporting company" in Rule 12b-2 of the
Exchange Act.
Large accelerated filer [ ] Accelerated filer [ ]
Non-accelerated filer [ ] Smaller reporting company [X]
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). YES [ ] NO [X]
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 6,750,000 shares as of November 9,
2015
ITEM 1. FINANCIAL STATEMENTS
Perkins Oil & Gas Inc.
Balance Sheets
--------------------------------------------------------------------------------
As of As of
September 30, 2015 June 30, 2015
------------------ -------------
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash $ 971 $ 6
-------- --------
TOTAL CURRENT ASSETS 971 6
OTHER ASSETS
Oil and Gas Property (Successful Efforts Method) 17,500 17,500
Less: Accumulated Amortization (17,500) (17,500)
-------- --------
TOTAL OTHER ASSETS -- --
-------- --------
TOTAL ASSETS $ 971 $ 6
======== ========
LIABILITIES & STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable $ 7,117 $ 1,905
Accrued interest payable 420 1,048
Promissory notes payable--long tem notes due in one year 6,000 15,500
-------- --------
TOTAL CURRENT LIABILITIES 13,537 18,453
LONG TERM LIABILITIES
Accrued interest payable 1,461 505
Promissory notes payable 29,400 18,900
-------- --------
TOTAL LONG TERM LIABILITIES 30,861 19,405
TOTAL LIABILITIES 44,398 37,858
STOCKHOLDERS' DEFICIT
Common stock, ($0.001 par value, 75,000,000 shares authorized;
6,750,000 and 6,750,000 shares issued and outstanding
as of September 30, 2015 and June 30, 2015 6,750 6,750
Additional paid-in capital 40,751 40,751
Deficit accumulated (90,928) (85,353)
-------- --------
TOTAL STOCKHOLDERS' DEFICIT (43,427) (37,852)
-------- --------
TOTAL LIABILITIES & STOCKHOLDERS' DEFICIT $ 971 $ 6
======== ========
See Notes to Financial Statements
2
Perkins Oil & Gas Inc.
Statements of Operations
(Unaudited)
--------------------------------------------------------------------------------
Three Months Three Months
ended ended
September 30, 2015 September 30, 2014
------------------ ------------------
REVENUES
Revenues $ -- $ --
---------- ----------
TOTAL REVENUES -- --
GENERAL & ADMINISTRATIVE EXPENSES
Administrative Expenses 5,247 6,695
Amortization -- --
Oil Well Operating and Maintenance Expenses -- 4,616
---------- ----------
TOTAL GENERAL & ADMINISTRATIVE EXPENSES 5,247 11,311
---------- ----------
LOSS FROM OPERATION (5,247) (11,311)
---------- ----------
OTHER INCOME (EXPENSE)
Interest Expense (328) (207)
Interest Income -- --
Gain on Debt Forgiveness -- --
---------- ----------
TOTAL OTHER INCOME (EXPENSE) (328) (207)
NET INCOME (LOSS) $ (5,575) $ (11,518)
========== ==========
BASIC EARNINGS PER SHARE $ (0.00) $ (0.00)
========== ==========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 6,750,000 6,750,000
========== ==========
See Notes to Financial Statements
3
Perkins Oil & Gas Inc.
Statements of Cash Flows
(Unaudited)
--------------------------------------------------------------------------------
Three Months Three Months
ended ended
September 30, 2015 September 30, 2014
------------------ ------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (5,575) $(11,518)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Amortization --
Gain on Debt Forgiveness
Changes in operating assets and liabilities:
Increase(Decrease) in accounts payable 5,212 4,614
Increase(Decrease) in interest payable 328 207
-------- --------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (35) (6,697)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of Oil and Gas Property -- --
-------- --------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES -- --
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock -- --
Proceeds form issuance of notes payable 1,000 --
-------- --------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 1,000 --
-------- --------
NET INCREASE (DECREASE) IN CASH 965 (6,697)
CASH AT BEGINNING OF PERIOD 6 11,484
-------- --------
CASH AT END OF PERIOD $ 971 $ 4,787
======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during year for:
Interest $ -- $ --
======== ========
Income Taxes $ -- $ --
======== ========
See Notes to Financial Statements
4
Perkins Oil & Gas Inc.
Notes to the Condensed Financial Statements (Unaudited)
September 30, 2015
--------------------------------------------------------------------------------
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The accompanying condensed financial statements have been prepared by the
Company without audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly the
financial position, results of operations, and cash flows at September 30 ,2015
and for all periods presented herein, have been made.
Certain information and footnote disclosures normally included in the condensed
financial statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted. It is
suggested that these condensed financial statements be read in conjunction with
the financial statements and notes thereto included in the Company's June 30,
2015 audited financial statements. The results of operations for the periods
ended September 30, 2015 and the same period last year are not necessarily
indicative of the operating results for the full years.
NOTE 2 - GOING CONCERN
The Company's financial statements are prepared using generally accepted
accounting principles 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. The Company has not yet
established an ongoing source of revenues sufficient to cover its operating
costs and allow it to continue as a going concern. The ability of the Company to
continue as a going concern is dependent on the Company obtaining adequate
capital to fund operating losses until it becomes profitable. If the Company is
unable to obtain adequate capital, it could be forced to cease operations.
In order to continue as a going concern, the Company will need, among other
things, additional capital resources. Management's plan is to obtain such
resources for the Company by obtaining capital from management and significant
shareholders sufficient to meet its minimal operating expenses and seeking
equity and/or debt financing. However management cannot provide any assurances
that the Company will be successful in accomplishing any of its plans.
The ability of the Company to continue as a going concern is dependent upon its
ability to successfully accomplish the plans described in the preceding
paragraph and eventually secure other sources of financing and attain profitable
operations. The accompanying financial statements do not include any adjustments
that might be necessary if the Company is unable to continue as a going concern.
NOTE 3 - PROMISSORY NOTES PAYABLE
Since inception the Company received cash totaling $35,400 from J. Michael Page
and Howard H. Hendricks in the form of notes totaling $35,400. As of September
30, 2015 the amount due to J. Michael Page was $23,000 and the amount due to
Howard H. Hendricks was $12,400.
On April 30, 2013, the Company received a $4,500 loan. This loan is at 2%
interest with principle and interest all due on May 1, 2015. On May 1, 2015, the
loan was extended to May 1, 2017.
On June 7, 2013, the Company received a $3,000 loan. This loan is at 4% interest
with principle and interest all due on June 7, 2015. On June 7, 2015, the loan
was extended to June 7, 2017.
On September 6, 2013, the Company received a $9,000 loan. This loan is at 4%
interest with principle and interest all due on September 6, 2015, the loan was
extended to September 6, 2017.
5
Perkins Oil & Gas Inc.
Notes to the Condensed Financial Statements (Unaudited)
September 30, 2015
--------------------------------------------------------------------------------
On September 30, 2013, the Company received a $500 loan. This loan is at 4%
interest with principle and interest all due on September 30, 2015, the loan was
extended to September 30, 2017.
On November 15, 2013, the Company received a $2,000 loan. This loan is at 4%
interest with principle and interest all due on November 15, 2015.
On January 21, 2014, the Company received a $4,000 loan. This loan is at 4%
interest with principle and interest all due on January 21, 2016
On February 6, 2015, the Company received a $1,200 loan. This loan is at 4%
interest with principle and interest all due on February 6, 2017
On March 9, 2015, the Company received a $3,000 loan. This loan is at 4%
interest with principle and interest all due on March 9, 2017
On April 16, 2015, the Company received a $5,500 loan. This loan is at 4%
interest with principle and interest all due on April 16, 2017.
On May 13, 2015, the Company received a $1,700 loan. This loan is at 4% interest
with principle and interest all due on May 13, 2017.
On August 8, 2015, the Company received a $1,000 loan. This loan is at 4%
interest with principle and interest all due on August 8, 2017.
As of September 30, 2014, accrued interest is $809, and September 30, 2015
accrued interest is $1,881.
NOTE 4 - CAPITAL STOCK
The Company's capitalization is 75,000,000 common shares with a par value of
$0.001 per share. No preferred shares have been authorized or issued.
On May 28, 2012, the Company issued a total of 4,000,000 shares of common stock
to one director for cash in the amount of $0.005 per share for a total of
$20,001
On February 1, 2013, the Company issued a total of 750,000 shares of common
stock to one director for cash in the amount of $0.01 per share for a total of
$7,500
On March 15, 2014, the Company issued a total of 2,000,000 shares of common
stock to one various individuals for cash in the amount of $0.01 per share for a
total of $20,000
As of September 30, 2015 the Company had 6,750,000 shares of common stock issued
and outstanding.
The stockholders' equity section of the Company contains the following classes
of capital stock as of September 30, 2015:
Common stock, $0.001 par value: 75,000,000 shares authorized; 6,750,000 shares
issued and outstanding.
NOTE 5 SUBSEQUENT EVENT
On October 30, 2015, the Company received a $5,100 loan. This loan is at 4%
interest with principle and interest all due on October 30, 2017.
6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this annual report on Form 10-K contain or may contain
forward-looking statements that are subject to known and unknown risks,
uncertainties and other factors which may cause actual results, performance or
achievements to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. These
forward-looking statements were based on various factors and were derived
utilizing numerous assumptions and other factors that could cause our actual
results to differ materially from those in the forward-looking statements. These
factors include, but are not limited to, our ability to consummate a merger or
business combination, economic, political and market conditions and
fluctuations, government and industry regulation, interest rate risk, U.S. and
global competition, and other factors. Most of these factors are difficult to
predict accurately and are generally beyond our control. You should consider the
areas of risk described in connection with any forward-looking statements that
may be made herein. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this report.
Readers should carefully review this annual report in its entirety, including
but not limited to our financial statements and the notes thereto. Except for
our ongoing obligations to disclose material information under the Federal
securities laws, we undertake no obligation to release publicly any revisions to
any forward-looking statements, to report events or to report the occurrence of
unanticipated events. For any forward-looking statements contained in any
document, we claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.
RESULTS OF OPERATIONS
We are an exploration stage company and have generated $5,207 in revenues since
inception (May 25, 2012) and have incurred $104,630 in operating expenses,
$13,702 in other income resulting in net loss of $90,928 through September 30,
2015. We received our initial funding of $20,000 through the sale of common
stock to J Michael Page, the officer and director of the Company at that time,
who purchased 4,000,000 shares of our common stock at $0.005 per share in June,
2012. On February 1, 2013 an additional 750,000 shares were issued to Mr. Page
for consideration of $7,500 or $.01 per share. On March 15, 2014, the Company
issued a total of 2,000,000 shares of common stock to various individuals for
cash in the amount of $0.01 per share for a total of $20,000. These shares were
issued pursuant to the Company's Registration Statement on Form S-1; the
offering was closed on March 15, 2014. On June 20, 2014 in a private transaction
and pursuant to a share transfer agreement between J. Michael Page and Howard H.
Hendricks, Mr. Hendricks purchased 4,750,000 shares of common stock from J.
Michael Page.
For the three months ended September 30, 2015 and 2014, we had no revenues and
incurred $5,247 and $6,695 in general and administrative expenses and $0 and
$4,616 in oil well operating and maintenance expense, respectively.
7
From June 1, 2012 through December 31, 2012 total production from the well was
189 barrels. The average sales price was $94 per barrel with an average cost of
$67 per barrel. From January 1, 2013 through December 31, 2013 total production
from the well was 39 barrels. The average sales price was $101 per barrel with
an average cost of $225 per barrel. In February 2013 the well was hit by
vandalism causing production delays and repair costs of $3,000. From January 1,
2014 through December 31, 2014 total production from the well was 33 barrels.
The average sales price was $93 per barrel with an average cost of $130 per
barrel. There was no production from July through October due to lighting
strikes and vandalism. Expenses during this period were $8,121. Effective April
18, 2015 the company transferred its interest in the Perkins Oil Slack (Perkins
No. 001, Serial No. 192865) to Four Star Oil Company, Inc. In exchange for
cancellation of outstanding debt $8,475 and the company agreed to pay Four Star
Oil Company, Inc. $5,500. The Company is currently looking for a new well.
The following table provides selected financial data about our company for the
three months ended September 30, 2015 and the year ended June 30, 2015.
Balance Sheet Data: 9/30/15 6/30/15
------------------- ------- -------
Cash $ 971 $ 6
Total assets $ 971 $ 6
Total liabilities $ 44,398 $ 37,858
Shareholders' equity (deficit) $(43,427) $(37,852)
Our cash balance at September 30, 2015 was $971. Our cash balance and revenues
generated from a new lease may not be sufficient to cover the expenses we will
incur during the next twelve months. If we experience a shortage of funds prior
to funding we may utilize funds from our director, who has informally agreed to
advance funds to allow us to pay for filing fees and professional fees, however
he has no formal commitment, arrangement or legal obligation to advance or loan
funds to the company. The Company's former president, J. Michael Page, made
loans to the Company of $23,000 and the current president, Howard H. Hendricks,
made loans to the Company of $12,400, which have accrued interest of $1,881
through September 30, 2015. We are an exploration stage company and have
generated $5,207 in revenue to date.
Our auditor has issued a going concern opinion. This means that there is
substantial doubt that we can continue as an on-going business for the next
twelve months unless we obtain additional capital to pay our bills. This is
because we have only generated limited revenues from our oil sales.
LIQUIDITY AND CAPITAL RESOURCES
Our cash balance at September 30, 2015 was $971, with $44,398 in outstanding
liabilities, consisting of $7,117 in accounts payable, $1,881 in accrued
interest payable and $35,400 in notes payable to a related party. If we
experience a shortfall of cash our director has agreed to loan us additional
funds for operating expenses, however he has no legal obligation to do so. Total
expenditures over the next 12 months are expected to be approximately $25,000.
8
PLAN OF OPERATION
Our plan of operation for the twelve months following the date of this report is
to secure another property/well to continue exploration activities. As we were
only able to sell 40% of the securities from our recent offering ($20,000),
substantially all of the funds raised by the offering were spent on the monthly
maintenance of the Perkins well and assuring that we meet our corporate and
disclosure obligations so that we remain in good standing with the State of
Nevada and maintain our status as a reporting issuer with the SEC.
OFF-BALANCE SHEET ARRANGEMENTS
We have no off-balance sheet arrangements.
GOING CONCERN
Our auditor has issued a going concern opinion. This means that there is
substantial doubt that we can continue as an on-going business for the next
twelve months unless we obtain additional capital to pay our bills. This is
because we have generated only minimum revenues from our well.
ITEM 4. CONTROLS AND PROCEDURES.
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Management maintains "disclosure controls and procedures," as such term is
defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the
"Exchange Act"), that are designed to ensure that information required to be
disclosed in our Exchange Act reports is recorded, processed, summarized and
reported within the time periods specified in the Securities and Exchange
Commission rules and forms, and that such information is accumulated and
communicated to management, including our Chief Executive Officer and Chief
Financial Officer, as appropriate, to allow timely decisions regarding required
disclosure.
In connection with the preparation of this quarterly report on Form 10-Q, an
evaluation was carried out by management, with the participation of the Chief
Executive Officer and the Chief Financial Officer, of the effectiveness of our
disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
under the Exchange Act) as of September 30, 2015.
Based on that evaluation, management concluded, as of the end of the period
covered by this report, that our disclosure controls and procedures were
effective in recording, processing, summarizing, and reporting information
required to be disclosed, within the time periods specified in the Securities
and Exchange Commission's rules and forms.
CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING
As of the end of the period covered by this report, there have been no changes
in the internal controls over financial reporting during the quarter ended
September 30, 2015, that materially affected, or are reasonably likely to
materially affect, our internal control over financial reporting subsequent to
the date of management's last evaluation.
9
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS
The following exhibits are included with this quarterly filing. Those marked
with an asterisk and required to be filed hereunder, are incorporated by
reference and can be found in their entirety in our original Registration
Statement on Form S-1, filed under SEC File Number 333-186286, at the SEC
website at www.sec.gov:
Exhibit No. Description
----------- -----------
3.1 Articles of Incorporation*
3.2 Bylaws*
31.1 Sec. 302 Certification of Principal Executive Officer
31.2 Sec. 302 Certification of Principal Financial Officer
32.1 Sec. 906 Certification of Principal Executive Officer
32.2 Sec. 906 Certification of Principal Financial Officer
101 Interactive data files pursuant to Rule 405 of Regulation S-T
SIGNATURES
Pursuant to the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
November 9, 2015 Perkins Oil & Gas, Inc., Registrant
By: /s/ Howard H. Hendricks
---------------------------------------------------------
Howard H. Hendricks, President, Chief Executive Officer,
Principal Accounting Officer, and Chief Financial Officer
In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
November 9, 2015 Perkins Oil & Gas, Inc., Registrant
By: /s/ Howard H. Hendricks
---------------------------------------------------------
Howard H. Hendricks, President, Chief Executive Officer,
Principal Accounting Officer, and Chief Financial Officer
10