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