UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549  

 

 

FORM 10-Q  

 

 

QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2015

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File Number: 000-54482

 

CN RESOURCES INC.

(Exact name of registrant as specified in its charter)

 

NEVADA

(State or other jurisdiction of incorporation or organization)

 

255 Duncan Mill Road, Suite 203

Toronto, Ontario

Canada M3B 3H9

(Address of principal executive offices, including zip code)

 

(416) 510-2991

(Registrant’s 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 o

 

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 o NO x

 

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 o Accelerated Filer o
  Non-accelerated Filer o 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 o NO x

 

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 56,100,000 as of January 19, 2016

 

 

 

TABLE OF CONTENTS

 

    Page
PART I
     
Item 1. Financial Statements 3
  Consolidated Balance Sheets (unaudited) 3
  Consolidated Statements of Operations and Comprehensive Loss (unaudited) 4
  Consolidated Statements of Cash Flows (unaudited) 5
  Notes to the Consolidated Financial Statements (unaudited) 6
     
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 8
     
Item 4. Controls and Procedures 8
     
PART II
     
Item 1. Legal Proceedings 8
     
Item 1A. Risk Factors 8
     
Item 2. Changes in Securities and Use of Proceeds 8
     
Item 6. Exhibits 8
     
Signatures 9

 

2 

 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1.  FINANCIAL STATEMENTS.

 

CN RESOURCES INC.

Consolidated Balance Sheets

(Unaudited)

 

    

November 30, 2015

   

May 31, 2015

Assets   

      
           
Current assets          
Cash and cash equivalents  $4,895,940   $226,786 
Accounts receivable   32,676    30,229 
Note receivable   -      5,343,704 
Other receivable   1,658    7,301 
Total current assets  $4,930,274   $5,608,020 
           
Total assets  $4,930,274   $5,608,020 
           
           
Liabilities and Stockholders' Equity          
           
Liabilities          
Current Liabilities          
Accounts payable  $21,843   $16,536 
Due to director   12,151    367,472 
Total current liabilities   33,994    384,008 
           
Asset retirement obligation   6,736    6,190 
           
Total liabilities   40,730    390,198 
           
Stockholders' equity          
Common stock, 100,000,000 of shares authorized          
with $0.00001 par value, 56,100,000 issued and          
outstanding   561    561 
Preferred stock, 100,000,000 shares authorized          
with $0.00001 par value, none issued   -      -   
Additional paid-in capital   6,514,639    6,514,639 
Accumulated Other Comprehensive Loss   (865,172)   (559,076)
Accumulated deficits   (760,484)   (738,302)
Total stockholders' equity   4,889,544    5,217,822 
           
Total liabilities and stockholders' equity  $4,930,274   $5,608,020 

 

 The accompanying notes are an integral part of these unaudited  financial statements.

3 

 

 

CN RESOURCES INC.

Consolidated Statements of Expenses

(Unaudited)

 

   For the Three Months Ended    For the Six Months Ended  
   November 30,   November 30,   November 30,   November 30, 
  2015   2014   2015   2014 
                     
Revenue                    
Revenue (net of royalty)  $19,898   $49,200   $43,952   $139,857 
                     
Operating expenses                    
                     
Accretion expenses   273    156    546    386 
Bank service charge   49    92    103    97 
Management fee   6,000    6,000    12,000    12,000 
Production and operating expenses   7,687    5,345    11,328    12,879 
Professional fees   10,510    15,700    17,510    20,060 
Depreciation and depletion expense   -      8,511    -      43,580 
General and administrative expenses   9,000    13,377    18,000    22,377 
Regulatory filing   2,158    10,650    10,208    13,247 
Total operating expenses   35,677    59,831    69,695    124,626 
                     
Operating income (loss)   (15,779)   (10,631)   (25,743)   15,231 
                     
Interest income   2,592    -      3,561    -   
                     
Net income (loss)  $(13,187)  $(10,631)  $(22,182)  $15,231 
                     
Loss per common share - basic and diluted  $(0.00)  $(0.00)  $(0.00)  $0.00 
                     
Comprehensive income:                    
Net income (loss)  $(13,187)  $(10,631)  $(22,182)  $15,231 
Foreign currency translation adjustment   (28,807)   -      (306,096)   -   
Total comprehensive income (loss)   (41,994)   (10,631)   (328,278)   15,231 
                     
Weighted average common shares                    
outstanding - basic and diluted   56,100,000    56,100,000    56,100,000    56,100,000 

 

The accompanying notes are an integral part of these unaudited  financial statements.

4 

 

 

CN RESOURCES INC.

Consolidated Statements of Cash Flows

(Unaudited)

 

    For the Six Months    For the Six Months 
    Ended    Ended 
    November 30,     November 30,  
    2015    2014 
           
Cash Flows From Operating Activities          
Net income (loss) for the period  $(22,182)  $15,231 
Adjustments to reconcile net loss to net cash used in operating activities          
Depreciation and depletion   -      43,966 
Accretion   546      
Changes in operating assets and liabilities          
   Accounts receivable   (2,447)   7,815 
Other receivable   5,307    (359)
Accounts payable   5,643    1,532 
Net cash (used in) provided in operating activities   (13,133)   68,185 
           
Cash Flows from Investing Activities          
Note receivable   4,718,126    (1,412,000)
Oil and gas property expenditure   -      (39,746)
Net cash (used in) provided in investing activities   4,718,126    (1,451,746)
           
Cash Flows from Financing Activities          
Proceeds from Director advances   20,928    41,933 
Payments to Director for advances   -      (24,564)
Net cash (used in) provided by financing activities   20,928    17,369 
           
Foreign currency adjustment   (56,767)   -   
           
Net increase (decrease) in cash and cash equivalents   4,669,154    (1,366,192)
Cash and cash equivalents, beginning of the period   226,786    6,052,324 
Cash and cash equivalents, end of the period  $4,895,940   $4,686,132 
           
Supplemental cash flow information          
cash paid for interest  $-     $-   
cash paid for income tax  $-     $-   
           
Non cash transaction  $376,249   $-   

 

The accompanying notes are an integral part of these unaudited  financial statements.

5 

 

CN RESOURCES INC.

Notes to the Consolidated Financial Statements

(Unaudited)

November 30, 2015

 

 

1. BUSINESS OPERATIONS

 

CN Resources Inc. is an independent energy company engaged in the exploration, development, production, and sale of crude oil. Our operations are conducted through a 100% wholly owned Ontario Corporation (also named CN Resources Inc.) which owns a producing joint venture oil well in the Redwater area in Alberta, Canada.

 

2. BASIS OF PRESENTATION

 

The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year.

 

Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted.

 

Going Concern

 

The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred a loss of $22,182 for the six months ended November 30, 2015 and has an accumulated deficit of $760,484 since inception; further losses are anticipated in the development of its business raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from director and or private placements of common stock.

 

3. NOTES RECEIVABLE

 

On November 13, 2014, the Company provided a loan in the amount of $1,412,000 (CAD $1,600,000) to an arm’s length party with an interest of 7% per annum. On January 12, 2015 and January 21, 2015, the Company provided a further $4,329,730 (CAD $5,100,000) to the same third party with an interest of 7% per annum. These loans are unsecured and due on demand. As of November 30, 2015, we have received complete payment for the Note receivable, and no amount is outstanding.

 

4. DUE TO DIRECTOR

 

The director loans the Company money from time to time on an interest-free due-on-demand basis and, as of November 30, 2015, the total amount advanced was $12,151.

 

The Company is currently using the office space from its President and CEO and on rent free basis, the President is also provided telephone and administrative services for the Company on free basis, however, there is no agreement or guarantee that the President will provide the free services for any specific period of time.

 

6 

 

ITEM 2.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION.

 

This section of this annual report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.

 

The following discussion and analysis presents management's perspective of our business, financial condition, and overall performance. This information is intended to provide investors with an understanding of our past performance, current financial condition, and outlook for the future, and should be read in conjunction with our Audited Annual Financial Statements Form 10-K.

 

OVERVIEW OF THE COMPANY

 

CN Resources Inc. is an independent energy company engaged in the exploration, development, production, and sale of crude oil. Our operations are conducted through a 100% wholly owned Ontario Corporation (also named CN Resources Inc.) which owns a producing joint venture oil well in the Redwater area in Alberta, Canada.

 

The Company’s immediate core strategy is to create and enhance shareholder value by acquiring proved developed and producing light oil assets, optimize the producing assets to increase production and fully develop the assets potential for reserves. Management believes that this is the best approach to create shareholder value based on risk and rewards analysis.

 

During the Quarter ended November 30, 2105, Crude oil price is still depressed at an historical low level with WTI of $34 per barrel, the Board of Directors has decided to take a cautious approach to further investments in this sector until a clear visibility can be obtained before venturing into any capital commitment.

 

Results of Operations

 

The following is a discussion of our results of operations, financial condition and capital resources. You should read this discussion in conjunction with our Financial Statements and the Notes thereto contained elsewhere in this Form 10-Q. Comparative results of operations for the periods indicated are discussed below.

The following table sets forth certain of our oil operating information for the three months ended November 30, 2015 and 2014.

    

November 30,
2015

    November 30,
2014
 
Production revenue (net of royalty)  $19,898   $49,200 
Production cost  $7,687   $5,345 

 

The following table sets forth certain of our oil operating information for the six months ended November 30, 2015 and 2014.

    November 30,
2015
    November 30,
2014
 
Production revenue (net of royalty)  $43,952   $139,857 
Production cost  $11,328   $12,879 

 

Cash Flow Analysis

 

For the six months ended November 30, 2015, we used $13,133 cash in operating activities (November 20, 2014 - $68,185), cash generate from investing activities is $4,718,126 (November 30, 2014 - $(1,451,746)) and Cash flow from financing activities is $20,928 (November 30, 2014 - $17,369).

 

7 

 

Liquidity and Capital Resources

 

At November 30, 2015, we have cash on hand of $4,895,940 (November 30, 2014 - $4,686,132), oil revenue receivable of $32,676 (2014 - $53,517). We have accounts payable of $21,843 (2014 – $5,370) and we have no other material debts to anyone.

 

Planned Capital Expenditures

The Company is evaluating its various options in its development strategies, have not committed to any specific capital expenditure at this time due to the unsettling global market conditions for crude oil.

 

Off Balance Sheet Arrangements

We have no off-balance sheet arrangements.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

 

ITEM 4.  CONTROLS AND PROCEDURES.

 

Under the supervision and with the participation of our management, including the Principal Executive Officer and Principal Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer have concluded that these disclosure controls and procedures are not effective due to limited segregation of duties, lack of independent directors, and no written internal control procedure manual. The Company plans to address the weakness in control as soon as the Company considers that the financial situation allows the Company to spend the limited resources to mitigate the weakness in control.

 

There were no material changes in our internal control over financial reporting during the quarter ended November 30, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

PART II. OTHER INFORMATION

 

ITEM 1.  LEGAL PROCEEDINGS

 

We are not aware of any pending or threatened litigation against us or our officers and director in their capacity as such.

 

ITEM 1A.  RISK FACTORS

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

 

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS.

 

There is no change in securities in the three-month period ended November 30, 2015.

 

ITEM 6.  EXHIBITS

 

Exhibit   Description
31.01   Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.01   Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS   XBRL Instance Document
101.SCH   XBRL Taxonomy Extension Schema Document
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document
101.LAB   XBRL Taxonomy Extension Label Linkbase Document
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document

 

8 

 

 

SIGNATURE

 

Pursuant to the requirements 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.

 

  CN Resources Inc.  
       
Date: January 19, 2016 By: /s/ Oliver Xing  
    Oliver Xing  
   

President, Principal Executive Officer, Principal Accounting Officer, Principal Financial Officer, Secretary/Treasurer and sole member of the Board of Directors

 

 

9
 

 

 

 

 



Exhibit 31.01

 

SARBANES-OXLEY SECTION 302(a) CERTIFICATION

 

I, Oliver Xing, certify that:

 

1. I have reviewed this Form 10-Q for the period ended November 30, 2015 of CN Resources Inc.;
   
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
   
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
   
4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
   
  a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
     
  b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and,
     
  d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
     
5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
   
  a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

Date: January 19, 2016 /s/ Oliver Xing  
  Oliver Xing
  Principal Executive Officer and Principal Financial Officer

 

 



Exhibit 32.01

 

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of CN Resources Inc. (the “Company”) on Form 10-Q for the period ended November 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “report”), I, Oliver Xing, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

  (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

  (2) The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: January 19, 2016 /s/ Oliver Xing  
  Oliver Xing
  Chief Executive Officer and Chief Financial Officer

 

 



v3.3.1.900
Document and Entity Information - shares
6 Months Ended
Nov. 30, 2015
Jan. 19, 2016
Document and Entity Information [Abstract]    
Entity Registrant Name CN Resources Inc.  
Entity Central Index Key 0001494809  
Amendment Flag false  
Current Fiscal Year End Date --05-31  
Document Type 10-Q  
Document Period End Date Nov. 30, 2015  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2016  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   56,100,000


v3.3.1.900
Consolidated Balance Sheets (Unaudited) - USD ($)
Nov. 30, 2015
May. 31, 2015
Current assets    
Cash and cash equivalents $ 4,895,940 $ 226,786
Accounts receivable $ 32,676 30,229
Note receivable 5,343,704
Other receivable $ 1,658 7,301
Total current assets 4,930,274 5,608,020
Total assets 4,930,274 5,608,020
Current Liabilities    
Accounts payable 21,843 16,536
Due to director 12,151 367,472
Total current liabilities 33,994 384,008
Asset retirement obligation 6,736 6,190
Total liabilities 40,730 390,198
Stockholders' equity    
Common stock, 100,000,000 of shares authorized with $0.00001 par value, 56,100,000 issued and outstanding $ 561 $ 561
Preferred stock, 100,000,000 shares authorized with $0.00001 par value, none issued
Additional paid-in capital $ 6,514,639 $ 6,514,639
Accumulated Other Comprehensive Loss (865,172) (559,076)
Accumulated deficits (760,484) (738,302)
Total stockholders' equity 4,889,544 5,217,822
Total liabilities and stockholders' equity $ 4,930,274 $ 5,608,020


v3.3.1.900
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Nov. 30, 2015
May. 31, 2015
Balance Sheets [Abstract]    
Common stock, shares authorized 100,000,000 100,000,000
Common stock, par value $ 0.00001 $ 0.00001
Common stock, shares issued 56,100,000 56,100,000
Common stock, shares outstanding 56,100,000 56,100,000
Preferred stock, shares authorized 100,000,000 100,000,000
Preferred stock, par value $ 0.00001 $ 0.00001
Preferred stock, shares issued


v3.3.1.900
Consolidated Statements of Expenses (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2015
Nov. 30, 2014
Revenue        
Revenue (net of royalty) $ 19,898 $ 49,200 $ 43,952 $ 139,857
Operating expenses        
Accretion expenses 273 156 546 386
Bank service charge 49 92 103 97
Management fee 6,000 6,000 12,000 12,000
Production and operating expenses 7,687 5,345 11,328 12,879
Professional fees $ 10,510 15,700 $ 17,510 20,060
Depreciation and depletion expense 8,511 43,580
General and administrative expenses $ 9,000 13,377 $ 18,000 22,377
Regulatory filing 2,158 10,650 10,208 13,247
Total operating expenses 35,677 59,831 69,695 124,626
Operating income (loss) (15,779) $ (10,631) (25,743) $ 15,231
Interest income 2,592 3,561
Net income (loss) $ (13,187) $ (10,631) $ (22,182) $ 15,231
Loss per common share - basic and diluted $ 0.00 $ 0.00 $ 0.00 $ 0.00
Comprehensive income:        
Net income (loss) $ (13,187) $ (10,631) $ (22,182) $ 15,231
Foreign currency translation adjustment (28,807) (306,096)
Total comprehensive income (loss) $ (41,994) $ (10,631) $ (328,278) $ 15,231
Weighted average common shares outstanding - basic and diluted 56,100,000 56,100,000 56,100,000 56,100,000


v3.3.1.900
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Cash Flows From Operating Activities    
Net income (loss) for the period $ (22,182) $ 15,231
Adjustments to reconcile net loss to net cash used in operating activities    
Depreciation and depletion 43,580
Accretion $ 546 386
Changes in operating assets and liabilities    
Accounts receivable (2,447) 7,815
Other receivable 5,307 (359)
Accounts payable 5,643 1,532
Net cash (used in) provided in operating activities (13,133) 68,185
Cash Flows from Investing Activities    
Note receivable $ 4,718,126 (1,412,000)
Oil and gas property expenditure (39,746)
Net cash (used in) provided in investing activities $ 4,718,126 (1,451,746)
Cash Flows from Financing Activities    
Proceeds from Director advances $ 20,928 41,933
Payments to Director for advances (24,564)
Net cash (used in) provided by financing activities $ 20,928 $ 17,369
Foreign currency adjustment (56,767)
Net increase (decrease) in cash and cash equivalents 4,669,154 $ (1,366,192)
Cash and cash equivalents, beginning of the period 226,786 6,052,324
Cash and cash equivalents, end of the period $ 4,895,940 $ 4,686,132
Supplemental cash flow information    
cash paid for interest
cash paid for income tax
Non cash transaction $ 376,249


v3.3.1.900
Business Operations
6 Months Ended
Nov. 30, 2015
Business Operations [Abstract]  
BUSINESS OPERATIONS

1. BUSINESS OPERATIONS

 

CN Resources Inc. is an independent energy company engaged in the exploration, development, production, and sale of crude oil. Our operations are conducted through a 100% wholly owned Ontario Corporation (also named CN Resources Inc.) which owns a producing joint venture oil well in the Redwater area in Alberta, Canada.



v3.3.1.900
Basis of Presentation
6 Months Ended
Nov. 30, 2015
Basis of Presentation [Abstract]  
BASIS OF PRESENTATION

2. BASIS OF PRESENTATION

 

The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year.

 

Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted.

 

Going Concern

 

The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred a loss of $22,182 for the six months ended November 30, 2015 and has an accumulated deficit of $760,484 since inception; further losses are anticipated in the development of its business raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from director and or private placements of common stock.



v3.3.1.900
Notes Receivable
6 Months Ended
Nov. 30, 2015
Notes Receivable [Abstract]  
NOTES RECEIVABLE

3. NOTES RECEIVABLE

 

On November 13, 2014, the Company provided a loan in the amount of $1,412,000 (CAD $1,600,000) to an arm’s length party with an interest of 7% per annum. On January 12, 2015 and January 21, 2015, the Company provided a further $4,329,730 (CAD $5,100,000) to the same third party with an interest of 7% per annum. These loans are unsecured and due on demand. As of November 30, 2015, we have received complete payment for the Note receivable, and no amount is outstanding.



v3.3.1.900
Due to Director
6 Months Ended
Nov. 30, 2015
Due to Director [Abstract]  
DUE TO DIRECTOR

4. DUE TO DIRECTOR

 

The director loans the Company money from time to time on an interest-free due-on-demand basis and, as of November 30, 2015, the total amount advanced was $12,151.

 

The Company is currently using the office space from its President and CEO and on rent free basis, the President is also provided telephone and administrative services for the Company on free basis, however, there is no agreement or guarantee that the President will provide the free services for any specific period of time.



v3.3.1.900
Business Operations (Details)
Nov. 30, 2015
Business Operations (Textual)  
Equity method investment, ownership percentage 100.00%


v3.3.1.900
Basis of Presentation (Details) - USD ($)
3 Months Ended 6 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2015
Nov. 30, 2014
May. 31, 2015
Basis of Presentation [Abstract]          
Incurred loss $ (13,187) $ (10,631) $ (22,182) $ 15,231  
Accumulated deficits $ (760,484)   $ (760,484)   $ (738,302)


v3.3.1.900
Notes Receivable (Details)
Jan. 21, 2015
USD ($)
Jan. 21, 2015
CAD
Nov. 13, 2014
USD ($)
Nov. 13, 2014
CAD
Notes Receivable Textual        
Actual loan amount $ 4,329,730 CAD 5,100,000 $ 1,412,000 CAD 1,600,000
Interest rate 7.00% 7.00% 7.00% 7.00%


v3.3.1.900
Due to Director (Details) - USD ($)
Nov. 30, 2015
May. 31, 2015
Due to Director (Textual)    
Due to director $ 12,151 $ 367,472
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