Year Ended March 31,
§ From January 9, 2007 through March 31,
§ 2007
§ 2006
§ 2007
§ Cash Flows from Operating Activities
§ Net Loss
§ $ (1,151,457 ) $ (600,811 ) $ (733,630 ) Adjustments to reconcile net loss to net cash used in operating activities:
§ Amortization
§ 49,643
§ 49,643
§ 12,411
§ Depreciation expense
§ 8,706
§ 7,433
§ 2,353
§ Loss on settlement of debt
§ 309,612
§ -
§ 281,600
§ Value of conversion feature
§ 134,776
§ -
§ 134,776
§ Compensation on option grant
§ 13,940
§ -
§ 13,940
§ Common stock issued for services
§ 337,804
§ 25,200
§ 187,804
§ Changes in assets:
§ Prepaid expenses
§ 2,294
§ -
§ 2,294
§ Deposits
§ 1,312
§ (1,312 ) -
§ Changes in liabilities
§ Increase (decrease) in accounts payable and accrued expenses
§ 2,703
§ 77,406
§ 51,970
§ Increase in accrued compensation due related parties
§ 72,000
§ 107,000
§ -
§ Increase in short-term borrowings
§ 58,506
§ 44,778
§ 16,348
§ Net cash used in operating activities
§ (160,161 ) (290,663 ) (30,134 ) Cash Flows from Investing Activities
§ Proceeds from sale of interest in oil and gas properties
§ 25,000
§ -
§ 25,000
§ Acquisition of oil and gas properties
§ (55,590 ) -
§ (55,590 ) Purchase of equipment
§ (7,432 ) (56,764 ) -
§ Net cash used in investing activities
§ (38,022 ) (56,764 ) (30,590 ) Cash Flows from Financing Activities
§ Proceeds from sale of common stock
§ 61,250
§ 295,000
§ -
§ Offering costs
§ -
§ (21,450 ) -
§ Proceeds from issuance of debt
§ 50,000
§ -
§ 50,000
§ Repayment of debt
§ -
§ (10,000 ) Advances from related parties
§ 82,500
§ 133,000
§ 11,000
§ Repayment of related party advances
§ (1,500 ) (67,000 ) -
§ Net cash provided by financing activities
§ 192,250
§ 329,550
§ 61,000
§ Net Increase (Decrease) in Cash and Cash Equivalents
§ (5,933 ) (17,877 ) 276
§ Cash and Cash Equivalents - Beginning of Period
§ 6,200
§ 24,077
§ -
§ Cash and Cash Equivalents - End of Period
§ $ 267
§ $ 6,200
§ $ 276
§ The accompanying notes are an integral part of these financial statements F-5 |