Overview
Sino American Oil Company (the "Company") is a development stage enterprise that
was originally incorporated, on April 2, 2010, under the laws of the State of
Nevada. The Company is in the Oil and Gas Exploration, Development and
Production Business and has been since inception.
Sino American Oil Company plans to grow shareholder value through securing oil
and natural gas reserves and negotiating oil and natural gas exploration,
development and production deals within the United States of America and Canada.
The focused industries are oil & gas exploration, oil & gas development, and oil
& gas production sales. We anticipate being able to generate revenue on the sale
of oil and gas.
Sino American Oil Company is currently negotiating deals within a very large
exploration area oil field owners located in the Western Canadian sedimentary
basin. The deals involve oil and gas production acquisitions, mineral land
acquisitions and further production increases through production optimization
and drilling activities as well as production infrastructure installations.
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Results of Operations for the Year Ended September 30, 2022, compared to the
Year Ended September 30, 2021
We have not generated any revenue to date.
Officer compensation was $0 compared to $74,000, for the years ended September
30, 2022 and 2021, respectively. Officer compensation was accrued in the prior
year for the former CEO.
Consulting expense was $200,000 compared to $386,237 for the years ended
September 30, 2022 and 2021, respectively. We saw an increase in consulting
expense in the prior year as the Company began to undertake activities in the
oil and gas industry. Certain consultants that were used in the prior year have
not provided services in the current year.
Consulting expense - related party was $90,000 compared to $150,365 for the
years ended September 30, 2022 and 2021, respectively. In the current year we
incurred consulting expense of $15,000 per month for services provided by
Triage.
General and administrative expense ("G&A") was $153,912 compared to $126,042 for
the years ended September 30, 2022 and 2021, respectively. G&A expense has
increased in large part due to legal fees.
Interest expense was $3,122 compared to $2,095 for the years ended September 30,
2022 and 2021, respectively.
We had a net loss of $447,034 compared to $619,377, for the years ended
September 30, 2022 and 2021, respectively.
Liquidity and Capital Resources
Cash flow from operations
Cash used in operating activities for year ended September 30, 2022 was $95,795
compared to $230,519 of cash used in operating activities for year ended
September 30, 2021.
Cash Flows from Financing
For the year ended September 30, 2022, we received $63,937 from related party
loans and $31,848 from other loans. In the prior year we received $20,000 from
the sale of common stock, $42,886 from related party loans and $167,643 from
other loans.
Outstanding loans as of September 30, 2022
On September 1, 2021, the Company entered into a loan agreement with Home Run
Oil and Gas, Inc. ("Home Run"). Home Run loaned the company $114,103 ($150,000
CAD). The loan in non-interest bearing and is due on or before November 30,
2021. This loan is currently past due.
Off-Balance Sheet Arrangements
We have not entered into any off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources and would be considered
material to investors.
Critical Accounting Estimates and Policies
Refer to Note 2 of our financial statements contained elsewhere in this Form
10-K for a summary of our critical accounting policies and recently adopting and
issued accounting standards.
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