Check this out,
Shown below is certain selected consolidated financial data
of the Company for the years ended December 31, 1995 and 1996.
This data should be read in conjunction with the Company's
financial statements and notes included elsewhere herein. The
Company's auditors, Simonton, Kutac & Barnidge, have issued a
"going concern" qualification of their opinion, which notes that
the significant operating losses and working capital deficit
raise substantial doubt about the company's ability to continue
as a going concern. The financial statements do not include any
adjustments that might result from the outcome of that particular
uncertainty.
STATEMENT OF OPERATIONS
(December 31, 1996)
For the Years Ended
December 31,
1996 1995
Revenue:
Oil and gas sales $ 34,236 $ 41,349
Other income 22,289 --
56,525 41,349
Expenses:
Lease operating 181,906 4,349
General and administrative 1,143,276 42,817
Depreciation, depletion and amortization 72,135 80,375
Interest 22,382 26,198
1,419,699 153,739
Loss before income taxes (1,363,174) (112,390)
Provision for income taxes -- --
Net loss (1,363,174) (112,390)
Weighted average common shares outstanding:
Primary and fully diluted 19,004,250 13,898,750
Loss per common share:
Primary and fully diluted $ (0.07) $ (0.01)
BALANCE SHEET
(December 31, 1996)
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31,
1996 1995
Current Liabilities
Amounts due for oil and gas
properties $925,000 $ --
Bonds payable 233,161 244,577
Advances from related parties 11,610 --
Accounts payable 250 --
Note payable to related parties 35,484 33,475
Total Current Liabilities 1,205,505 278,052
Deferred income tax liability 3,032,000 --
Commitments and contingencies -- --
Stockholders' Equity
Preferred stock, Series A, $.001 par
value 10% cumulative convertible;
2,500,000 shares authorized, issued
and outstanding<fn1> -- 2,500
Common stock, $.001 par value; 50,000,000
and 25,000,000 shares authorized at
December 31, 1996 and 1995,
respectively, 24,726,775, and
14,327,570 shares issued and out-
standing at December 31, 1996 and 1995,
respectively 24,727 14,328
Paid-in capital 12,768,434 11,229,414
Accumulated deficit (7,904,236)( 6,541,062)
Total Stockholders' Equity 4,888,925 4,705,180
Total Liabilities and
Stockholders' Equity $9,126,430 $4,983,232
I don't like the fact that the company has so little cash and is spending so much more than it's making. A point has to come soon
where the investments in the leased land starts making $$$.
J.B. |
