ITEM
8. FINANCIAL STATEMENTS
AND SUPPLEMENTARY DATA
GRID PETROLEUM CORP. AND SUBSIDIARIES
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(AN EXPLORATION STAGE COMPANY)
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Index to Consolidated Financial Statements
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Table of Contents
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Page
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F-1
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F-2
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F-3
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F-4
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F-5
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F-6 to F-28
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Scrudato & Co., PA
CERTIFIED PUBLIC ACCOUNTING FIRM
Report of Independent Registered Public Accounting Firm
Board of Directors and Stockholders
Grid Petroleum, Corp.
We have audited the accompanying balance sheet of Grid Petroleum Corp. as of March 31, 2015 and 2014 and the related consolidated statements of operations, changes in stockholders’ deficit and cash flows for the years then ended. These financial statements are the responsibility of the Company management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Grid Petroleum Corp. at March 31, 2015 and 2014, and the results of their operations and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2, the Company has experienced substantial losses since its inception and has limited business operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also discussed in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ Scrudato & Co., PA
Califon, New Jersey
September 9, 2016
7 Valley View Drive Califon, New Jersey 07830 (908) 534-0008
Registered Public Company A
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(KNOWN AS SUNBERTA RESOURCES INC.)
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(AN EXPLORATION STAGE COMPANY)
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March 31,
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March 31,
|
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2015
|
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2014
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|
ASSETS
|
|
|
|
|
|
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Current Assets
|
|
|
|
|
|
|
Cash
|
|
$
|
-
|
|
|
$
|
-
|
|
Total Current Assets
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
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Due from related party
|
|
|
16,848
|
|
|
|
17,048
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|
Oil & gas properties
|
|
|
7,026,666
|
|
|
|
7,026,666
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|
|
|
|
|
|
|
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TOTAL ASSETS
|
|
$
|
7,043,514
|
|
|
$
|
7,043,714
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|
|
|
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LIABILITIES
|
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Current Liabilities:
|
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Bank overdraft
|
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$
|
39
|
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$
|
-
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|
Accounts payable
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5,223
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|
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|
9,321
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Due to related party
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41,888
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7,195
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Notes payable, net of discount
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1,407,492
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711,783
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Notes payable, interest
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147,836
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|
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44,296
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|
Derivative liabilities
|
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843,376
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|
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|
1,747,378
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Stockholder loans
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508,459
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|
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368,459
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Total Current Liabilities
|
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|
2,954,313
|
|
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2,888,432
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|
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STOCKHOLDERS' EQUITY
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Preferred stock, $0.001 par value 20,000,000 shares authorized
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1,320
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1,320
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1,319,500 issued and outstanding at March 31, 2015 and March 31, 2014
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Common stock, $0.001 par value 7,500,000,000 authorized
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6,898,408
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4,896,649
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6,898,408,070 shares issued and outstanding at March 31, 2015
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4,896,649,008 shares issued and outstanding at March 31, 2014
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Additional paid in capital
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10,525,911
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11,169,172
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Accumulated other comprehensive loss
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4,144
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4,144
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Deficit accumulated during the development stage
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(123,849
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)
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(123,849
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)
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Deficit accumulated during the exploration stage
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(13,216,733
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)
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(11,792,154
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)
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Total Stockholders' Equity
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4,089,201
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4,155,281
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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|
$
|
7,043,514
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|
$
|
7,043,714
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GRID PETROLEUM CORP.
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(KNOWN AS SUNBERTA RESOURCES INC.)
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(AN EXPLORATION STAGE COMPANY)
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From
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Inception
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(March 31, 2009
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For the years ended
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through
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March 31,
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March 31,
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2015
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2014
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2015
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Revenue
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$
|
-
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$
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-
|
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$
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-
|
|
|
|
|
|
|
|
|
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|
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Operating expenses
|
|
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|
|
|
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|
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|
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Consulting
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860,000
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534,500
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|
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2,403,550
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Depreciation
|
|
|
-
|
|
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|
-
|
|
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2,759
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Impairment of rights to future exploration costs
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|
-
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|
|
-
|
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4,825,334
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Impairment of oil and gas properties
|
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|
-
|
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|
|
-
|
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85,334
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Interest expense
|
|
|
-
|
|
|
|
-
|
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8,989
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Investor relations
|
|
|
-
|
|
|
|
-
|
|
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|
89,753
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|
Management fees
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|
120,000
|
|
|
|
98,155
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|
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|
316,515
|
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Lease
|
|
|
-
|
|
|
|
9,931
|
|
|
|
9,931
|
|
Professional fees
|
|
|
156,764
|
|
|
|
37,103
|
|
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|
486,185
|
|
Salaries & benefits
|
|
|
-
|
|
|
|
-
|
|
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|
22,294
|
|
Other G&A expenses
|
|
|
188,069
|
|
|
|
81,919
|
|
|
|
900,791
|
|
Loss from operations
|
|
|
(1,324,833
|
)
|
|
|
(761,608
|
)
|
|
|
(9,151,434
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
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Other income/ (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in derivative liability
|
|
|
824,734
|
|
|
|
(1,630,950
|
)
|
|
|
(870,777
|
)
|
Interest on convertible notes
|
|
|
(924,481
|
)
|
|
|
(1,968,470
|
)
|
|
|
(3,194,522
|
)
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Total other income/expenses
|
|
|
(99,746
|
)
|
|
|
(3,599,420
|
)
|
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|
(4,065,299
|
)
|
|
|
|
|
|
|
|
|
|
|
|
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Profit (Loss) before income taxes
|
|
|
(1,424,579
|
)
|
|
|
(4,361,029
|
)
|
|
|
(13,216,733
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
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Income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit (Loss)
|
|
$
|
(1,424,579
|
)
|
|
$
|
(4,361,029
|
)
|
|
$
|
(13,216,733
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
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Other comprehensive gain (loss)
|
|
|
|
|
|
|
|
|
|
|
|
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Loss on elimination of convertible notes
|
|
|
-
|
|
|
|
119,505
|
|
|
|
-
|
|
Foreign currency translation adjustments
|
|
|
-
|
|
|
|
-
|
|
|
|
4,144
|
|
Comprehensive Profit (Loss)
|
|
|
(1,424,579
|
)
|
|
|
(4,241,524
|
)
|
|
|
(13,212,589
|
)
|
|
|
|
|
|
|
|
|
|
|
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Per share information
|
|
|
|
|
|
|
|
|
|
|
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|
Basic, weighted number of common shares outstanding
|
|
|
6,481,622,805
|
|
|
|
1,797,458,565
|
|
|
|
|
|
Net profit (loss) per common share
|
|
|
(0.0002
|
)
|
|
|
(0.0024
|
)
|
|
|
|
|
The accompanying notes are an integral part of these consolidated financial statements
GRID PETROLEUM CORP.
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|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
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(AN EXPLORATION STAGE COMPANY)
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|
FOR THE PERIOD FROM FORMATION, (SEPTEMBER 19, 2006) TO MARCH 31, 2015
|
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|
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|
|
|
|
|
|
|
|
|
|
Deficit
|
|
|
Deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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Accumulated
|
|
|
Accumulated
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
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Other
|
|
|
during the
|
|
|
during the
|
|
|
Total
|
|
|
|
Preferred Stock
|
|
|
Common Stock
|
|
|
Paid-In
|
|
|
Comprehensive
|
|
|
Exploration
|
|
|
Development
|
|
|
Shareholders'
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Income (Loss)
|
|
|
Stage
|
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|
Stage
|
|
|
Equity
|
|
Beginning balances, September 19, 2006
|
|
|
-
|
|
|
$
|
-
|
|
|
|
52,000,000
|
|
|
$
|
26,000
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
26,000
|
|
Shares issued pursuant to subscriptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 15, 2006 at $0.0005
|
|
|
-
|
|
|
|
-
|
|
|
|
25,500,000
|
|
|
|
25,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
25,500
|
|
Shares issued for acquisition of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
subsidiary at $0.05
|
|
|
-
|
|
|
|
-
|
|
|
|
2,000
|
|
|
|
107
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
107
|
|
Shares issued pursuant to subscriptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
March 30, 2007
|
|
|
-
|
|
|
|
-
|
|
|
|
4,540,000
|
|
|
|
22,700
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
22,700
|
|
Non-cash use of premises contributed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
by a director
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,250
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,250
|
|
Net (loss) for the period
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(857
|
)
|
|
|
(31,138
|
)
|
|
|
-
|
|
|
|
(31,995
|
)
|
Balances March 31, 2007
|
|
|
-
|
|
|
$
|
-
|
|
|
|
82,042,000
|
|
|
$
|
74,307
|
|
|
$
|
2,250
|
|
|
$
|
(857
|
)
|
|
$
|
(31,138
|
)
|
|
$
|
-
|
|
|
$
|
44,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash use of premises contributed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
by a director
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,000
|
|
Net income (loss) for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,152
|
|
|
|
(82,075
|
)
|
|
|
-
|
|
|
|
(76,923
|
)
|
Balances March 31, 2008
|
|
|
-
|
|
|
$
|
-
|
|
|
|
82,042,000
|
|
|
$
|
74,307
|
|
|
$
|
8,250
|
|
|
$
|
4,295
|
|
|
$
|
(113,213
|
)
|
|
$
|
-
|
|
|
$
|
(26,361
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash use of premises contributed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
by a director
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,000
|
|
Net income (loss) for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
504
|
|
|
|
(60,062
|
)
|
|
|
-
|
|
|
|
(59,558
|
)
|
Balances March 31, 2009
|
|
|
-
|
|
|
$
|
-
|
|
|
|
82,042,000
|
|
|
$
|
74,307
|
|
|
$
|
14,250
|
|
|
$
|
4,799
|
|
|
$
|
(173,275
|
)
|
|
$
|
-
|
|
|
$
|
(79,919
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash use of premises contributed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
by a director
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,000
|
|
Forgiveness of shareholder's loan
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
27,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
27,500
|
|
Forgiveness of fees payable to a consultant
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,813
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,813
|
|
Legal fees paid by a shareholder
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,569
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,569
|
|
Shares issued pursuant to subscriptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 9, 2010 at $0.40
|
|
|
-
|
|
|
|
-
|
|
|
|
1,250,000
|
|
|
|
1,250
|
|
|
|
498,750
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
500,000
|
|
Excess of price paid to related party for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
oil & gas properties over related party's cost
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(220,000
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(220,000
|
)
|
Stock cancelled March 17, 2010
|
|
|
-
|
|
|
|
-
|
|
|
|
(18,002,000
|
)
|
|
|
(10,267
|
)
|
|
|
10,267
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Imputed interest on shareholders' loan
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,318
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,318
|
|
Net (loss) for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(655
|
)
|
|
|
-
|
|
|
|
(123,849
|
)
|
|
|
(124,504
|
)
|
Balances March 31, 2010
|
|
|
-
|
|
|
$
|
-
|
|
|
|
65,290,000
|
|
|
$
|
65,290
|
|
|
$
|
345,467
|
|
|
$
|
4,144
|
|
|
$
|
(173,275
|
)
|
|
$
|
(123,849
|
)
|
|
$
|
117,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deficit
|
|
|
Deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
Accumulated
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
Other
|
|
|
during the
|
|
|
during the
|
|
|
Total
|
|
|
|
Preferred Stock
|
|
|
Common Stock
|
|
|
Paid-In
|
|
|
Comprehensive
|
|
|
Exploration
|
|
|
Development
|
|
|
Shareholders'
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Income (Loss)
|
|
|
Stage
|
|
|
Stage
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued pursuant to agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 14, 2010 at $1.48 and;
|
|
|
-
|
|
|
|
-
|
|
|
|
134,420
|
|
|
|
134
|
|
|
|
199,866
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
200,000
|
|
September 28, 2010 at $0.75
|
|
|
-
|
|
|
|
-
|
|
|
|
266,667
|
|
|
|
267
|
|
|
|
199,733
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
200,000
|
|
Shares issued for consulting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2010 at $0.82
|
|
|
-
|
|
|
|
-
|
|
|
|
50,000
|
|
|
|
50
|
|
|
|
40,900
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
40,950
|
|
Shares issued for consulting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 18, 2010 at $0.39
|
|
|
-
|
|
|
|
-
|
|
|
|
50,000
|
|
|
|
50
|
|
|
|
19,450
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19,500
|
|
Shares issued for consulting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 15, 2010 at $0.39
|
|
|
-
|
|
|
|
-
|
|
|
|
150,000
|
|
|
|
150
|
|
|
|
58,350
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
58,500
|
|
Shares issued to retire debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 1, 2011 at $0.05
|
|
|
-
|
|
|
|
-
|
|
|
|
1,300,000
|
|
|
|
1,300
|
|
|
|
62,171
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
63,471
|
|
Shares issued for services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 3, 2011 at $0.02
|
|
|
-
|
|
|
|
-
|
|
|
|
6,000,000
|
|
|
|
6,000
|
|
|
|
87,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
93,000
|
|
Shares issued for acquisition of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
subsidiary at $0.12
|
|
|
-
|
|
|
|
-
|
|
|
|
62,000,000
|
|
|
|
62,000
|
|
|
|
7,368,900
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,430,900
|
|
Net (loss) for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(834,271
|
)
|
|
|
-
|
|
|
|
(834,271
|
)
|
Balances March 31, 2011
|
|
|
-
|
|
|
$
|
-
|
|
|
|
135,241,087
|
|
|
$
|
135,241
|
|
|
$
|
8,381,837
|
|
|
$
|
4,144
|
|
|
$
|
(1,007,546
|
)
|
|
$
|
(123,849
|
)
|
|
$
|
7,389,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consulting fees issued by shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 18, 2011
|
|
|
-
|
|
|
|
-
|
|
|
|
500,000
|
|
|
|
500
|
|
|
|
14,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,000
|
|
Conversion of debt to stock August 29 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 21, 2011
|
|
|
-
|
|
|
|
-
|
|
|
|
9,406,149
|
|
|
|
9,406
|
|
|
|
169,527
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
178,933
|
|
Conversion of debt to stock November 28-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
December 8, 2011
|
|
|
-
|
|
|
|
-
|
|
|
|
11,295,545
|
|
|
|
11,296
|
|
|
|
76,518
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
87,814
|
|
Service fees issued by shares Dec 2, 2011
|
|
|
-
|
|
|
|
-
|
|
|
|
12,000,000
|
|
|
|
12,000
|
|
|
|
84,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
96,000
|
|
Shares returned Treasury - preliminary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
transaction
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,198,528
|
)
|
|
|
(3,199
|
)
|
|
|
3,199
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Conversion of debt to stock January 6 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 9, 2012
|
|
|
-
|
|
|
|
-
|
|
|
|
12,815,862
|
|
|
|
12,816
|
|
|
|
104,988
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
117,804
|
|
Consulting fees issued by shares Feb 2, 2012
|
|
|
-
|
|
|
|
-
|
|
|
|
1,684,427
|
|
|
|
1,685
|
|
|
|
15,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,845
|
|
Preferred stock issued in acquiring
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
subsidiary
|
|
|
2,076,000
|
|
|
|
2,076
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,149,924
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,152,000
|
|
Preferred stock converted to common
|
|
|
(111,000
|
)
|
|
|
(111
|
)
|
|
|
22,200,000
|
|
|
|
22,200
|
|
|
|
(22,089
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net (loss) for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(621,639
|
)
|
|
|
-
|
|
|
|
(621,639
|
)
|
Balances for March 31, 2012
|
|
|
1,965,000
|
|
|
|
1,965
|
|
|
|
201,944,542
|
|
|
|
201,945
|
|
|
|
12,977,564
|
|
|
|
4,144
|
|
|
|
(1,629,185
|
)
|
|
|
(123,849
|
)
|
|
|
11,432,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deficit
|
|
|
Deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
Accumulated
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
Other
|
|
|
during the
|
|
|
during the
|
|
|
Total
|
|
|
|
Preferred Stock
|
|
|
Common Stock
|
|
|
Paid-In
|
|
|
Comprehensive
|
|
|
Exploration
|
|
|
Development
|
|
|
Shareholders'
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Income (Loss)
|
|
|
Stage
|
|
|
Stage
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification of loss on convertible notes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(119,505
|
)
|
|
|
119,505
|
|
|
|
-
|
|
|
|
-
|
|
Reclassification of conversion of notes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(117,804
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(117,804
|
)
|
Preferred stock converted to common
|
|
|
(80,000
|
)
|
|
|
(80
|
)
|
|
|
16,000,000
|
|
|
|
16,000
|
|
|
|
(15,920
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Shares issued for consulting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 17, 2012 at $0.01
|
|
|
-
|
|
|
|
-
|
|
|
|
1,514,101
|
|
|
|
1,514
|
|
|
|
13,627
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,141
|
|
Shares issued for consulting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 23, 2012 at $0.01
|
|
|
-
|
|
|
|
-
|
|
|
|
2,500,000
|
|
|
|
2,500
|
|
|
|
22,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
25,000
|
|
Shares issued for loan agreement
|
|
|
-
|
|
|
|
-
|
|
|
|
1,000,000
|
|
|
|
1,000
|
|
|
|
9,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,000
|
|
Conversion of promissory notes to stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 12, 2012 - September 18, 2012
|
|
|
-
|
|
|
|
-
|
|
|
|
25,715,010
|
|
|
|
25,715
|
|
|
|
66,885
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
92,600
|
|
Elimination of derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 12, 2012 - September 18, 2012
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
93,398
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
93,398
|
|
Preferred stock converted to common
|
|
|
(328,000
|
)
|
|
|
(328
|
)
|
|
|
65,600,000
|
|
|
|
65,600
|
|
|
|
(65,272
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Preferred stock converted to common
|
|
|
(125,000
|
)
|
|
|
(125
|
)
|
|
|
25,000,000
|
|
|
|
25,000
|
|
|
|
(24,875
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Conversion of promissory notes to stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 5, 2012 - December 21, 2012
|
|
|
-
|
|
|
|
-
|
|
|
|
49,508,657
|
|
|
|
49,508
|
|
|
|
35,012
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
84,520
|
|
Elimination of derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 5, 2012 - December 21, 2012
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
92,876
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
92,876
|
|
Conversion of promissory notes to stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 8, 2013 - March 21, 2013
|
|
|
-
|
|
|
|
-
|
|
|
|
177,789,278
|
|
|
|
177,789
|
|
|
|
(79,869
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
97,920
|
|
Elimination of derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 5, 2012 - December 21, 2012
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
114,480
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
114,480
|
|
Net (loss) for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,801,940
|
)
|
|
|
-
|
|
|
|
(5,801,940
|
)
|
Balances for March 31, 2013
|
|
|
1,432,000
|
|
|
|
1,432
|
|
|
|
566,571,588
|
|
|
|
566,571
|
|
|
|
13,121,602
|
|
|
|
(115,361
|
)
|
|
|
(7,311,620
|
)
|
|
|
(123,849
|
)
|
|
|
6,138,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deficit
|
|
|
Deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
Accumulated
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
Other
|
|
|
during the
|
|
|
during the
|
|
|
Total
|
|
|
|
Preferred Stock
|
|
|
Common Stock
|
|
|
Paid-In
|
|
|
Comprehensive
|
|
|
Exploration
|
|
|
Development
|
|
|
Shareholders'
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Income (Loss)
|
|
|
Stage
|
|
|
Stage
|
|
|
Equity
|
|
Conversion of promissory notes to stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 8, 2013 - May 22, 2013
|
|
|
-
|
|
|
|
-
|
|
|
|
136,159,247
|
|
|
|
136,159
|
|
|
|
(101,059
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
35,100
|
|
Elimination of derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 8, 2013 - May 22, 2013
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
47,964
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
47,964
|
|
Conversion of promissory notes to stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 16, 2013 - September 19, 2013
|
|
|
-
|
|
|
|
-
|
|
|
|
553,633,424
|
|
|
|
553,633
|
|
|
|
(432,364
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
121,269
|
|
Elimination of derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 16, 2013 - September 19, 2013
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
941,748
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
941,748
|
|
Conversion of promissory notes to stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2013 - December 30, 2013
|
|
|
-
|
|
|
|
-
|
|
|
|
1,124,666,667
|
|
|
|
1,124,667
|
|
|
|
(989,656
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
135,011
|
|
Elimination of derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2013 - December 30, 2013
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
156,129
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
156,129
|
|
Conversion of promissory notes to stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 7, 2014 - March 20, 2014
|
|
|
-
|
|
|
|
-
|
|
|
|
2,404,368,082
|
|
|
|
2,404,368
|
|
|
|
(2,190,562
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
213,807
|
|
Elimination of derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 7, 2014 - March 20, 2014
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
708,956
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
708,956
|
|
Intrinsic value of the beneficial conversion feature of the convertible notes payable
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
17,551
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
17,551
|
|
Preferred stock converted to common
|
|
|
(112,500
|
)
|
|
|
(113
|
)
|
|
|
112,500,000
|
|
|
|
112,500
|
|
|
|
(112,388
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Common shares retired
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,250,000
|
)
|
|
|
(1,250
|
)
|
|
|
1,250
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Reclassification of loss on convertible notes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
119,505
|
|
|
|
(119,505
|
)
|
|
|
-
|
|
|
|
-
|
|
Net (loss) for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,361,029
|
)
|
|
|
-
|
|
|
|
(4,361,029
|
)
|
Balances for March 31, 2014
|
|
|
1,319,500
|
|
|
|
1,320
|
|
|
|
4,896,649,008
|
|
|
|
4,896,649
|
|
|
|
11,169,172
|
|
|
|
4,144
|
|
|
|
(11,792,154
|
)
|
|
|
(123,849
|
)
|
|
|
4,155,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion of promissory notes to stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 1, 2014 - June 26, 2014
|
|
|
-
|
|
|
|
-
|
|
|
|
1,545,892,462
|
|
|
|
1,545,892
|
|
|
|
(1,463,042
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
82,851
|
|
Elimination of derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 1, 2014 - June 26, 2014
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
148,436
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
148,436
|
|
Conversion of promissory notes to stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 28, 2014
|
|
|
-
|
|
|
|
-
|
|
|
|
135,866,600
|
|
|
|
135,867
|
|
|
|
(129,073
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,793
|
|
Elimination of derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 28, 2014
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,573
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,573
|
|
Conversion of promissory notes to stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 29, 2015
|
|
|
-
|
|
|
|
-
|
|
|
|
320,000,000
|
|
|
|
320,000
|
|
|
|
(316,800
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,200
|
|
Elimination of derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 29, 2015
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,646
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,646
|
|
Intrinsic value of the beneficial conversion feature of the convertible notes payable
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,104,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,104,000
|
|
Net (loss) for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,424,579
|
)
|
|
|
-
|
|
|
|
(1,424,579
|
)
|
Balances for March 31, 2015
|
|
|
1,319,500
|
|
|
|
1,320
|
|
|
|
6,898,408,070
|
|
|
|
6,898,408
|
|
|
|
10,525,912
|
|
|
|
4,144
|
|
|
|
(13,216,733
|
)
|
|
|
(123,849
|
)
|
|
|
4,089,201
|
|
The accompanying notes are an integral part of these consolidated financial statements
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From
|
|
|
|
|
|
|
|
|
|
Inception
|
|
|
|
For the years ended
|
|
|
(March 31, 2009
|
|
|
|
March 31,
|
|
|
through
|
|
|
|
2015
|
|
|
2014
|
|
|
March 31, 2015)
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
|
Net profit (loss) in exploration stage
|
|
$
|
(1,424,579
|
)
|
|
$
|
(4,361,029
|
)
|
|
$
|
(13,216,733
|
)
|
Net loss in development stage
|
|
|
-
|
|
|
|
-
|
|
|
|
(123,849
|
)
|
Adjustment to reconcile net loss to net cash used
|
|
|
|
|
|
|
|
|
|
|
|
|
in operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of rights to future exploration costs
|
|
|
-
|
|
|
|
663,967
|
|
|
|
4,825,334
|
|
Impairment of oil and gas properties
|
|
|
-
|
|
|
|
-
|
|
|
|
85,334
|
|
Depreciation
|
|
|
-
|
|
|
|
-
|
|
|
|
2,759
|
|
Change in debt discount
|
|
|
(369,333
|
)
|
|
|
(60,209
|
)
|
|
|
(429,542
|
)
|
Change in derivative liabilities
|
|
|
(904,002
|
)
|
|
|
1,034,072
|
|
|
|
843,376
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in interest payable
|
|
|
103,541
|
|
|
|
37,577
|
|
|
|
147,836
|
|
Increase (decrease) in accounts payable
|
|
|
(4,099
|
)
|
|
|
(16,794
|
)
|
|
|
5,223
|
|
Decrease (increase) in due from related party
|
|
|
200
|
|
|
|
(17,048
|
)
|
|
|
(16,848
|
)
|
Net cash provided by operating activities
|
|
|
(2,598,271
|
)
|
|
|
(2,719,463
|
)
|
|
|
(7,877,110
|
)
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase/disposal of equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,759
|
)
|
Purchase of oil & gas properties
|
|
|
-
|
|
|
|
-
|
|
|
|
(11,937,334
|
)
|
Net cash used in investing activities
|
|
|
-
|
|
|
|
-
|
|
|
|
(11,940,093
|
)
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank overdraft
|
|
|
39
|
|
|
|
-
|
|
|
|
39
|
|
Proceeds from note payable
|
|
|
1,065,042
|
|
|
|
183,551
|
|
|
|
1,837,034
|
|
Proceeds from stockholders' loans
|
|
|
140,000
|
|
|
|
150,609
|
|
|
|
508,459
|
|
Due to related party
|
|
|
34,693
|
|
|
|
7,195
|
|
|
|
41,888
|
|
Issuance of preferred stock
|
|
|
-
|
|
|
|
(113
|
)
|
|
|
1,320
|
|
Issuance of common stock
|
|
|
1,358,498
|
|
|
|
2,377,648
|
|
|
|
17,424,319
|
|
Net cash provided by financing activities
|
|
|
2,598,271
|
|
|
|
2,718,891
|
|
|
|
19,813,058
|
|
Accumulated other comp income
|
|
|
-
|
|
|
|
-
|
|
|
|
4,144
|
|
Net increase/(decrease) in cash
|
|
|
0
|
|
|
|
(573
|
)
|
|
|
(0
|
)
|
Cash, beginning of period
|
|
|
-
|
|
|
|
573
|
|
|
|
-
|
|
Cash, end of period
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary disclosure for non-cash
|
|
|
|
|
|
|
|
|
|
|
|
|
investing and financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Forgiveness of accounts payable-related parties
|
|
|
-
|
|
|
|
-
|
|
|
|
7,382
|
|
Forgiveness of shareholder's loan
|
|
|
-
|
|
|
|
-
|
|
|
|
27,500
|
|
Stock issued to retire debt
|
|
|
-
|
|
|
|
-
|
|
|
|
733,062
|
|
Swap of a portion of oil & gas properties for
|
|
|
|
|
|
|
|
|
|
|
|
|
rights to future exploration costs
|
|
|
-
|
|
|
|
-
|
|
|
|
4,825,334
|
|
The accompanying notes are an integral part of these consolidated financial statements
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
1.
BASIS
OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Description of Business
Grid Petroleum Corp. (the “Company”) was incorporated in the State of Nevada with the name Sunberta Resources Inc. on November 15, 2006. The Company moved through the exploration stage and the Exploration Stage and is currently in the exploration stage once more. Its principal business is the acquisition and exploration of mineral claims and oil & gas properties.
On November 16, 2006, the Company acquired all the issued and outstanding shares of Sunberta Resources Inc. (“Sunberta Alberta”) an inactive corporation incorporated in the province of Alberta, Canada on September 19, 2006. The consideration for the acquisition of Sunberta Alberta was 2,000 shares (on a post-split basis) of the Company.
In January, 2007, Sunberta Alberta acquired seven placer claim tenures on southern Vancouver Island, British Columbia, Canada. During the year ended March 31, 2009, the Company abandoned three of the placer claim tenures and decided to abandon the remaining four properties. Between May 31, 2009 and June 14, 2009, the remaining four placer claim tenures expired. The carrying cost of the properties was written off and the operations associated with the properties were treated in the financial statements as discontinued operations in the year ended March 31, 2009. The Company entered the Exploration Stage on March 31, 2009, to seek other opportunities. See also note 2.
On November 18, 2009, the Company changed its name to Grid Petroleum Corp. (formerly known as Sunberta Resources, Inc.).
The Company’s activities to December 31, 2009, were carried on in Alberta and British Columbia, Canada. In February, 2010, operations were carried on in England. In mid-2010 the Company began to focus on its mineral properties in the United States, and activities of the Company thenceforth were controlled from the United States.
On May 14, 2010, the Company acquired from the CEO for nominal consideration all the issued shares of Grid Petroleum Ltd. (“Grid UK”), a company incorporated in January 27, 2010, under the laws of England. The purpose of Grid UK is to maintain bank accounts in the UK as nominee for the Company. Grid UK does not have any assets, liabilities or operations of its own.
On January 20, 2011, the Company entered into a Share Exchange Agreement (the “Agreement”) with a Nevada corporation, Joaquin Basin Resources Inc., (“Seller”), and its stockholders, (“Selling Shareholders”). Pursuant to the provisions of the Agreement, the Company issued to the Selling Shareholders (i) 62,000,000 shares of Company common stock and (ii) 2,076,324 shares of convertible preferred stock, in exchange for the transfer and delivery to the Company by the Selling Shareholders of the 62,000,000 shares of common stock issued by the Seller, which were all of the issued and outstanding securities of the Seller. As a result of the related transaction on February 1, 2011, the Seller became a wholly owned subsidiary of the Company. The issue of preferred stock was delayed until February 2012. None of the parties to the Agreement is a related person.
On May 23, 2012, we executed an agreement to acquire a 10% percent working interest, 7.5% net revenue interest, from a third party interest holder of the Garcia #3 well in Jim Wells County, Texas. The Company agreed to purchase the working interest for $300,000, payable in convertible promissory note with Direct Capital, convertible into 0.001 shares of the Company’s common stock. The convertible promissory note was executed on May 23, 2012.
On October 1, 2013 the Company executed a Convertible Promissory Note for $384,000 for oilfield management and industry support for the Company’s expansion efforts into California, Texas, and Oklahoma. Additional support has been is being provided on an ongoing basis for evaluation into North Dakota and Colorado for future expansion efforts. The note represents a monthly fee of $16,000 per month for the last 24 months of work provided to the company.
Principles of Consolidation
The consolidated financial statements include accounts of the Company and its wholly-owned subsidiaries, Sunberta Alberta, Grid Petroleum Ltd. (“Grid UK”) and Joaquin Basin Resources, Inc. All significant inter-company balances and transactions are eliminated.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|
Cash and Cash Equivalents
Cash and cash equivalents are comprised of cash and highly liquid investments with original maturity dates of less than three months that may not be reported as investments. While the Company may maintain cash and cash equivalents in bank deposit accounts, which at times exceed Federal Deposit Insurance Corporation insured limits, they have not experienced any losses in such accounts.
Management believes it is not exposed to any significant credit risk on cash and cash equivalents.
Mineral Properties and Exploration Expenses
Mineral properties purchased are capitalized and carried at cost. Exploration and development cost are charged to operations as incurred until such time that proven or probable ore reserves are discovered. From that time forward, the Company will capitalize all costs to the extent that future cash flow from reserves equals or exceeds the cost deferred. The deferred cost will be amortized using the unit-of-production method when a property reaches commercial production.
Oil and Gas Properties and Exploration Expenses
Oil and gas property acquisition costs are capitalized and carried at cost. Exploration and development costs are accounted for on the successful-efforts method, whereby the costs related to successful projects are capitalized and all costs incurred as a result of unsuccessful projects are expensed when it is determined that the exploration efforts on that property are unsuccessful. The Company will periodically analyze exploration efforts, once exploration on its oil and gas properties has commenced, to determine which projects have been unsuccessful in establishing proved reserves. The costs of unsuccessful projects will be expensed.
Impairment of Long-Lived Assets
The Company periodically analyzes its long-lived assets for potential impairment, assessing the appropriateness of lives and recoverability of unamortized balances through measurement of undiscounted operating cash flows in accordance with ASC No. 144,
Property, Plant and Equipment
. If impairment is deemed to exist, it will be written down to its fair value. Fair value is generally determined using a discounted cash flow analysis. As of March 31, 2015, the Company does not believe any adjustment for impairment is required.
Asset Retirement Obligations
The Company has adopted FASB Accounting Standards Codification Topic (“ASC”) No. 410,
Asset Retirement and Environmental Obligations
which requires that the fair value of liability for an asset retirement obligation be recognized in the period in which it is incurred. ASC No. 410 requires a liability to be recorded for the present value of the estimated site restoration costs with a corresponding increase to the carrying amount of the related long-lived asset. The liability will be accreted and the asset will be depreciated over the life of the related assets. Adjustments for changes resulting from the passage of time and changes to either the timing or amount of the original present value estimate underlying the obligation will be made. The Company has not incurred any asset retirement obligations as of March 31, 2015.
Advertising Expenses
Advertising costs are expensed as incurred.
Use of Estimates
The preparation of the Company’s consolidated financial statements in conformity with generally accepted accounting principles of United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Actual results could differ from those estimates.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|
Loss Per Share
Basic loss per share of common stock is computed by dividing the net loss by the weighted average number of common shares outstanding during the period after giving retroactive effect to the forward stock split affected on January 14, 2008 (see Note 12). Diluted earnings (loss) per share is equal to the basic per share for the years ended March 31, 2015 and 2014. Common stock equivalents are not included in the loss per share since they are anti-dilutive. All per share amounts have been adjusted for the forward stock split.
Fair Value of Financial Instruments
The carrying value of cash, notes payable, and accounts at March 31, 2015 and 2014 reflected in these financial statements approximates their fair value due to the short-term maturity of these financial instruments.
Income Taxes
The Company records deferred taxes in accordance with FASB ASC No. 740,
Income Taxes.
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and loss carry-forwards and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized.
Comprehensive Income
The Company has adopted ASC No. 220, Comprehensive Income. Comprehensive income includes net income and all changes in equity during a period that arises from non-owner sources, such as foreign currency items and unrealized gains and losses on certain investments in equity securities.
Exploration Stage
The Company entered the exploration stage upon its inception. The Company exited the development stage and entered the Exploration Stage on March 31, 2009 when the Company’s mineral claims tenures in British Columbia were abandoned and the Company started seeking new business. The Company exited the Exploration Stage and entered a new exploration stage on March 31, 2010 after the Company acquired oil and gas properties in Wyoming. In January 2011, the Company acquired oil and gas properties in California and started planning to explore the properties.
Recent Accounting Pronouncements
The Company has reviewed recently issued accounting pronouncements and plans to adopt those that are applicable to it. The Company does not expect the adoption of any other pronouncements to have a material impact on its results of operations or financial position.
Reclassification
Certain prior year amounts have been reclassified to conform to the current year presentation.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
2. GOING CONCERN
These consolidated financial statements have been prepared on a going-concern basis which assumes the Company will be able to realize assets and discharge liabilities in the normal course of business for the foreseeable future.
The Company has experienced substantial losses since its inception and has limited business operations, which raises substantial doubt about the Company’s ability to continue as going concern. The ability of the Company to
meet its commitments as they become payable, including the completion of acquisitions, exploration and development of oil and gas properties and projects, is dependent on the ability of the Company to obtain necessary financing or achieving a profitable level of operations. There is no assurance the Company will be successful in achieving these goals.
The Company does not have sufficient cash to fund its desired exploration for the next twelve months. The Company has arranged financing as described in Note 6 and intends to draw upon this financing arrangement to fund exploration, production and administration. This financing may be insufficient to fund expenditures or other cash requirements required to find, develop and exploit oil and reserves to the point of profitable operations. There can be no assurance the Company will be successful in finding oil and gas reserves. The Company plans to seek additional financing if necessary in private or public equity offering to secure future funding for operations. There can be no assurance the Company will be successful in raising additional funding. If the Company is not able to secure additional funding, the implementation of the Company’s business plan will be impaired. There can be no assurance that such additional financing will be available to the Company on acceptable terms or at all.
These financial statements do not give effect to adjustments to the amounts and classification to assets and liabilities that would be necessary should the Company be unable to continue as a going concern.
3. OIL AND GAS PROPERTIES
The Company has oil and gas properties in California.
On January 20, 2011, the Company purchased, through its subsidiary Joaquin Basin Resources Inc., a 50% working interest (37% net revenue interest) in a mineral lease on 4,000 acres in Kings and Fresno counties in California. The lease was initially recorded at the cost of issuing 62,000,000 common shares. On January 20, 2012, 2,076,000 shares of convertible preferred stock were issued in concluding the Joaquin Basin purchase agreement. The cost of the issue, $4,152,000, was based on the value of preferred stock as if converted to common stock. The total cost, $7,026,666, was supported by a volumetric analysis.
On November 21, 2011, a portion of the interest in the lease was swapped for a future “carry” of exploration costs and administration of the lease. Grid’s 50% working interest (37.5% net revenue interest) was reduced to 30% and 14% respectively. The co-lessee, is the obligor under the agreement. Future exploration costs include the operating “carry” costs of the lease and drilling costs of the first well, named “First Farmin Well.” The exploration costs were valued based on the percentage reduction in net revenue interest. A reduction of $4,825,334 in the value of the Joaquin Basin property was recorded.
Impairment of the California properties from their recorded acquisition values was considered at March 31, 2015 and 2014. Management considered that there were no changes in circumstances that would warrant impairment from the estimated values indicated by independently prepared geological reports.
On October 18, 2013, the Company entered into an Asset Swap Agreement (the “Asset Swap Agreement”) by and amongst the Company, Xploration Inc., a Nevada Corporation (“Xploration”) and Solimar Energy, LLC, a California limited liability company (“Solimar”); thereby, swapping certain land leases as described below, forgiveness of delay rentals and terminating the (a) Kreyenhagen Trend Joint Operating Agreement dated March 1, 2011, between Solimar and Xploration (“Kreyenhagen Trend JOA”), (b) Jacalitos Joint Operating Agreement dated March 1, 2011, between Solimar and Xploration (“Jacalitos JOA”) and the (c) Farmin / Settlement Agreement dated November 3, 2011, between Solimar and Xploration, with an effective date as of September 1, 2013.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
3. OIL AND GAS PROPERTIES (continued)
|
Solimar assigned eighty four percent (84%) of its interest in the Bureau of Land Management Lease, serial number: CACA 49877 representing 1,140.62 gross and net landowner acres that is a part of the Kreyenhagen Trend to the Company.
The Company has oil and gas properties in Wyoming which it does not wish to develop and, accordingly has recorded an impairment in the amount of $85,334 at March 31, 2013.
In connection with an Amendment to an Asset Purchase Agreement dated November 21, 2011, the Company recorded rights to future exploration costs in the amount of $4,825,334 on its balance sheet as of March 31, 2012. The Company recorded a full impairment as of March 31, 2013.
Oil and gas properties are summarized as follow as at March 31, 2015:
|
|
|
|
|
|
Proved
|
|
Unconventional Acreage
|
|
$
|
7,026,666
|
|
4. NOTE PAYABLE
Notes payable comprised as the following:
|
|
March 31,
|
|
|
March 31,
|
|
|
|
2015
|
|
|
2014
|
|
Asher Note #4
|
|
|
13,000
|
|
|
|
13,000
|
|
Asher Note #11
|
|
|
-
|
|
|
|
400
|
|
Asher Note #13
|
|
|
-
|
|
|
|
10,425
|
|
Asher Note #14
|
|
|
-
|
|
|
|
32,500
|
|
Special Situations
|
|
|
21,491
|
|
|
|
21,491
|
|
Direct Capital #1
|
|
|
70,671
|
|
|
|
70,671
|
|
Direct Capital #2
|
|
|
380,800
|
|
|
|
384,000
|
|
Direct Capital #3
|
|
|
360,000
|
|
|
|
-
|
|
Direct Capital #4
|
|
|
360,000
|
|
|
|
-
|
|
Direct Capital #5
|
|
|
240,000
|
|
|
|
-
|
|
Syndication Capital #1
|
|
|
5,000
|
|
|
|
5,000
|
|
Syndication Capital #2
|
|
|
14,072
|
|
|
|
14,072
|
|
Syndication Capital #3
|
|
|
11,000
|
|
|
|
11,000
|
|
Syndication Capital #4
|
|
|
11,000
|
|
|
|
11,000
|
|
Syndication Capital #5
|
|
|
11,000
|
|
|
|
11,000
|
|
Syndication Capital #6
|
|
|
16,000
|
|
|
|
16,000
|
|
Syndication Capital #7
|
|
|
16,000
|
|
|
|
16,000
|
|
Syndication Capital #8
|
|
|
16,000
|
|
|
|
16,000
|
|
Syndication Capital #9
|
|
|
16,000
|
|
|
|
16,000
|
|
Syndication Capital #10
|
|
|
16,000
|
|
|
|
16,000
|
|
Syndication Capital #11
|
|
|
16,000
|
|
|
|
16,000
|
|
Syndication Capital #12
|
|
|
48,000
|
|
|
|
-
|
|
Syndication Capital #13
|
|
|
48,000
|
|
|
|
-
|
|
Syndication Capital #14
|
|
|
48,000
|
|
|
|
-
|
|
Gel Properties #2
|
|
|
-
|
|
|
|
22,190
|
|
Coventry Enterprises #2
|
|
|
20,000
|
|
|
|
40,243
|
|
LG Capital Funding
|
|
|
29,000
|
|
|
|
29,000
|
|
New Venture Attorneys
|
|
|
50,000
|
|
|
|
-
|
|
|
|
$
|
1,837,034
|
|
|
$
|
771,993
|
|
Debt discount
|
|
|
(429,542
|
)
|
|
|
(60,209
|
)
|
Notes payable, net of discount
|
|
$
|
1,407,492
|
|
|
$
|
711,783
|
|
Accrued interest
|
|
|
147,836
|
|
|
|
44,296
|
|
|
|
$
|
2,962,821
|
|
|
$
|
1,467,862
|
|
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
4. NOTE PAYABLE (continued)
|
On April 4, 2013, the Company arranged a debt swap under which a Special Situations Fund note for $40,000 was transferred to Asher Enterprises. The promissory note is unsecured, bears interest at 8% per annum. Any principal amount not paid by the maturity date bears interest at 22% per annum. During the years ended March 31, 2015 and 2014, the Company accrued $2,860 and $2,993 respectively in interest expense.
After 180 days from issuance, the note may be converted at the option of the holder into common stock of the Company. The conversion price is 55% of the market price, where market price is defined as “the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date”.
On June 30, 2013, the Company recorded a derivative liability of $66,774 being the fair value of the conversion feature which was determined using the Black-Scholes valuation method.
During the years ended March 31, 2015 and 2014, the Company recorded a gain of $20,307 and a loss of $78,686 respectively due to the change in value of the derivative liability.
At March 31, 2015 and 2014, principal balance of $13,000 and $13,000 respectively, accrued interest of $5,853 and $2,993 respectively, and a derivative liability of $21,088 and $41,395 respectively was recorded.
Asher Note #11
On November 2, 2012, the Company received funding pursuant to a convertible promissory note in the amount of $27,500. The promissory note is unsecured, bears interest at 8% per annum, and matures on August 6, 2013. During the years ended March 31, 2015 and 2014, the Company accrued $0 and $1,466 respectively in interest expense.
After 180 days from issuance, the note may be converted at the option of the holder into common stock of the Company. The conversion price is 58% of the market price, where market price is defined as “the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date”.
On May 2, 2013 the Company recorded a debt discount and derivative liability of $29,050, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the year ended March 31, 2015 the Company recorded a credit of $400 to the principal balance with a corresponding increase to additional paid in capital. As per Asher Enterprises, the note has fully converted and has a zero balance due.
At March 31, 2015 and 2014, principal balance of $0 and $400 respectively, accrued interest of $0 and $0 respectively, a debt discount of $0 and $0 respectively and a derivative liability of $0 and $0 respectively was recorded.
Asher Note #13
On June 16, 2013, the Company received funding pursuant to a convertible promissory note in the amount of $27,500. The promissory note is unsecured, bears interest at 8% per annum, and matures on March 17, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. During the years ended March 31, 2015 and 2014, the Company accrued $0 and $1,660 respectively in interest expense.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
4. NOTE PAYABLE (continued)
|
After 180 days from issuance, the note may be converted at the option of the holder into common stock of the Company. The conversion price is 51% of the market price, where market price is defined as “the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date.”
On December 11, 2013 the Company recorded a debt discount and derivative liability of $38,033, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the years ended March 31, 2015 and 2014, the Company recorded a gain of $14,847 and a loss of $29,227 respectively due to the change in value of the derivative liability during the period.
During the year ended March 31, 2015 the Company issued an aggregate of 230,500,000 common shares upon the conversion of principal amount of $10,425 and interest amount of $1,100. The derivative liability amounting to $21,196 was re-classified to additional paid in capital.
At March 31, 2015 and 2014, principal balance of $0 and $10,425 respectively, accrued interest of $0 and $1,660 respectively, a debt discount of $0 and $0 respectively and a derivative liability of $0 and $36,043 respectively was recorded.
Asher Note #14
On August 2, 2013, the Company received funding pursuant to a convertible promissory note in the amount of $32,500. The promissory note is unsecured, bears interest at 8% per annum, and matures on May 5, 2014. During the years ended March 31, 2015 and 2014, the Company accrued $0 and $1,710 respectively in interest expense.
After 180 days from issuance, the note may be converted at the option of the holder into common stock of the Company. The conversion price is 51% of the market price, where market price is defined as “the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date.”
On January 30, 2014 the Company recorded a debt discount and derivative liability of $25,319, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the years ended March 31, 2015 and 2014, the Company recorded a gain of $56,576 and a loss of $87,045 respectively due to the change in value of the derivative liability during the period, and a debt discount of $9,328 and $15,991 respectively was accreted to the statement of operations.
During the years ended March 31, 2014 the Company issued an aggregate of 676,000,000 common shares upon the conversion of principal amount of $32,500 and interest amount of $1,300. The derivative liability amounting to $55,789 was re-classified to additional paid in capital.
At March 31, 2015 and 2014, principal balance of $0 and $32,500 respectively, accrued interest of $0 and $1,710 respectively, a debt discount of $0 and $9,328 respectively and a derivative liability of $0 and $112,365 respectively was recorded.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
4. NOTE PAYABLE (continued)
|
Special Situations Fund One Note
On March 12, 2012, the Company arranged a debt swap under which an Asher Enterprises note for $40,000 was transferred to Special Situations Fund One for the Asher note plus an additional $21,491, for a total of $61,491. On April 4, 2013, the Company transferred $40,000 of the note to Asher Enterprises. The promissory note is unsecured, bears interest at 8% per annum, and matures on September 12, 2012. During the years ended March 31, 2015 and 2014, the Company accrued $1,719 and $14,128 respectively in interest expense.
After 180 days from issuance, the note may be converted at the option of the holder into common stock of the Company. The conversion price is 55% of the market price, where market price is defined as “the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date.”
On September 9, 2012, the Company recorded a derivative liability of $71,218, being the fair value of the conversion feature which was determined using the Black-Scholes valuation method.
During the years ended March 31, 2015 and 2014, the Company recorded gains of $36,521 and $6,293 due to the change in value of the derivative liability during the period.
At March 31, 2015 and 2014, principal balance of $21,491 and $21,491 respectively, accrued interest of $11,030 and $19,047 respectively, and a derivative liability of $37,781 and $74,302 respectively was recorded.
Direct Capital Note #1
On March 31, 2012, the Company entered into a debt settlement agreement with Direct Capital Group, Inc., whereby the Company exchanged $70,671 in total outstanding debt into Convertible Preferred Shares of the Company. Each of the Convertible Preferred shares will convert into common shares of the Company with the conversion price being the lesser of $0.001 or shall equal the variable conversion price (the “Variable Conversion Price”). The Variable Conversion Price shall mean 50% multiplied by the market price (the “Market Price”). The
Market Price means the average of the lowest six (3) Trading Prices for the Common Stock during the ten (10) Trading day period ending on the latest complete Trading Day prior to the Conversion Date. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
On December 31, 2012, the Company recorded an initial derivative liability of $94,326 being the fair value of the conversion feature which was determined using the Black-Scholes valuation method.
During the years ended March 31, 2015 and 2014, the Company recorded a gain of $122,773 and a loss of $151,081 due to the change in value of the derivative liability during the period.
At March 31, 2015 and 2014, principal balance of $70,671 and $70,671 respectively and a derivative liability of $126,882 and $249,655 respectively was recorded.
Direct Capital Note #2
On October 1, 2013 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $384,000. The promissory note is unsecured, bears interest at 6% per annum, and matures on April 1, 2014. Any principal amount not paid by the maturity date shall bear interest at the rate of 12% per annum. During the years ended March 31, 2015 and 2014, the Company accrued $46,016 and $11,425 respectively in interest expense.
The note may be converted at the option of the holder into common stock of the Company. The conversion price is 70% of the market price, where market price is defined as “the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date.”
On October 31, 2013 the Company recorded a debt discount and derivative liability of $268,330, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the years ended March 31, 2015 and 2014, the Company recorded a gain of $457,279 and a loss of $669,841 respectively due to the change in value of the derivative liability during the period, and a debt discount of $1,474 and $266,856 respectively was accreted to the statement of operations.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
4. NOTE PAYABLE (continued)
|
During the years ended March 31, 2014 the Company issued an aggregate of 320,000,000 common shares upon the conversion of principal amount of $3,200. The derivative liability amounting to $3,646 was re-classified to additional paid in capital.
At March 31, 2015 and 2014, principal balance of $380,800 and $384,000 respectively, accrued interest of $57,441 and $11,425 respectively, a debt discount of $0 and $1,474 respectively and a derivative liability of $477,246 and $938,171 respectively was recorded.
Direct Capital Note #3
On October 1, 2014 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $360,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on April 1, 2015. Any principal amount not paid by the maturity date shall bear interest at a rate of 22% annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933
During the years ended March 31, 2015 and 2014, the Company accrued $14,282 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On October 1, 2014, interest expense relating to the beneficial conversion feature of this convertible note of $360,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the years ended March 31, 2015 and 2014 debt discount of $359,011 and $0 respectively was accreted to the statement of operations.
At March 31, 2015 and 2014, principal balance of $360,000 and $0 respectively, accrued interest of $14,282 and $0 respectively, and debt discount of $989 and $0 respectively was recorded.
Direct Capital Note #4
On January 1, 2015 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $360,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on July 1, 2015. Any principal amount not paid by the maturity date shall bear interest at a rate of 22% annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933
During the years ended March 31, 2015 and 2014, the Company accrued $7,022 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On January 1, 2015, interest expense relating to the beneficial conversion feature of this convertible note of $360,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the years ended March 31, 2015 and 2014 debt discount of $177,017 and $0 respectively was accreted to the statement of operations.
At March 31, 2015 and 2014, principal balance of $360,000 and $0 respectively, accrued interest of $7,022 and $0 respectively, and debt discount of $182,983 and $0 respectively was recorded.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
4. NOTE PAYABLE (continued)
|
Direct Capital Note #5
On March 31, 2015 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $240,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on September 30, 2015. Any principal amount not paid by the maturity date shall bear interest at a rate of 22% annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933
During the years ended March 31, 2015 and 2014, the Company accrued $0 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On March 31, 2015, interest expense relating to the beneficial conversion feature of this convertible note of $240,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the years ended March 31, 2015 and 2014 debt discount of $0 and $0 respectively was accreted to the statement of operations.
At March 31, 2015 and 2014, principal balance of $240,000 and $0 respectively, accrued interest of $0 and $0 respectively, and debt discount of $240,000 and $0 respectively was recorded.
Syndication Capital Note #1
On December 31, 2012, the Company entered into a debt settlement agreement with Syndication Capital, whereby the Company exchanges $105,000 in total outstanding debt into Convertible Preferred Shares of the Company. Each of the Convertible Preferred shares will convert into common shares of the Company with the conversion price being the lesser of $0.001 or shall equal the variable conversion price (the “Variable Conversion Price”). The Variable Conversion Price shall mean 50% multiplied by the market price (the “Market Price”). The Market Price means the average of the lowest three (3) Trading Prices for the Common Stock during the ten (10) Trading day period ending on the latest complete Trading Day prior to the Conversion Date. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
On December 31, 2012, the Company recorded an initial derivative liability of $140,146 being the fair value of the conversion feature which was determined using the Black-Scholes valuation method.
On August 4, 2013, the Company transferred $100,000 of the note to Gel Properties, LLC and recorded a credit to derivative liability of $453,305.
During the years ended March 31, 2015 and 2014, the Company recorded a gain of $8,686 and $324,511 respectively due to the change in value of the derivative liability during the period.
At March 31, 2015 and 2014, principal balance of $5,000 and $5,000 respectively and a derivative liability of $8,977 and $17,663 respectively was recorded.
Syndication Capital Note #2
On July 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $14,072. The promissory note is unsecured, bears interest at 8% per annum, and matures on February 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
4. NOTE PAYABLE (continued)
|
During the years ended March 31, 2015 and 2014, the Company accrued $3,096 and $1,059 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At March 31, 2015 and 2014, principal balance of $14,072 and $14,072 respectively and accrued interest of $4,155 and $1,059 respectively was recorded.
Syndication Capital Note #3
On July 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $11,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on February 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the years ended March 31, 2015 and 2014, the Company accrued $2,420 and $828 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At March 31, 2015 and 2014, principal balance of $11,000 and $11,000 respectively and accrued interest of $3,248 and $828 respectively was recorded.
Syndication Capital Note #4
On August 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $11,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on March 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the years ended March 31, 2015 and 2014, the Company accrued $2,420 and $636 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At March 31, 2015 and 2014, principal balance of $11,000 and $11,000 respectively and accrued interest of $3,056 and $636 respectively was recorded.
Syndication Capital Note #5
On September 30, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $11,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on April 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
4. NOTE PAYABLE (continued)
|
During the years ended March 31, 2015 and 2014, the Company accrued $2,413 and $436 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At March 31, 2015 and 2014, principal balance of $11,000 and $11,000 respectively and accrued interest of $2,849 and $436 respectively was recorded.
Syndication Capital Note #6
On October 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on May 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the years ended March 31, 2015 and 2014, the Company accrued $3,330 and $530 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At March 31, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $3,860 and $530 respectively was recorded.
Syndication Capital Note #7
On November 30, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on June 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the years ended March 31, 2015 and 2014, the Company accrued $3,140 and $424 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At March 31, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $3,564 and $424 respectively was recorded.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
4. NOTE PAYABLE (continued)
|
Syndication Capital Note #8
On December 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on July 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the years ended March 31, 2015 and 2014, the Company accrued $2,952 and $316 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At March 31, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $3,268 and $316 respectively was recorded.
Syndication Capital Note #9
On January 31, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on August 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the years ended March 31, 2015 and 2014, the Company accrued $2,765 and $207 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At March 31, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $2,972 and $207 respectively was recorded.
Syndication Capital Note #10
On February 28, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on September 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the years ended March 31, 2015 and 2014, the Company accrued $2,575 and $109 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At March 31, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $2,684 and $109 respectively was recorded.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
4. NOTE PAYABLE (continued)
|
Syndication Capital Note #11
On March 31, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on October 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the years ended March 31, 2015 and 2014, the Company accrued $2,387 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At March 31, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $2,387 and $0 respectively was recorded.
Syndication Capital Note #12
On April 30, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $48,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on November 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the years ended March 31, 2015 and 2014, the Company accrued $6,286 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On April 30, 2014, interest expense relating to the beneficial conversion feature of this convertible note of $48,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the years ended March 31, 2015 and 2014 debt discount of $48,000 and $0 respectively was accreted to the statement of operations.
At March 31, 2015 and 2014, principal balance of $48,000 and $0 respectively and accrued interest of $6,286 and $0 respectively was recorded.
Syndication Capital Note #13
On July 31, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $48,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on February 1, 2015. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the years ended March 31, 2015 and 2014, the Company accrued $3,624 and $0 respectively in interest expense.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
4. NOTE PAYABLE (continued)
|
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On July 31, 2014, interest expense relating to the beneficial conversion feature of this convertible note of $48,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the years ended March 31, 2015 and 2014 debt discount of $48,000 and $0 respectively was accreted to the statement of operations.
At March 31, 2015 and 2014, principal balance of $48,000 and $0 respectively and accrued interest of $3,624 and $0 respectively was recorded.
Syndication Capital Note #14
On October 31, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $48,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on May 1, 2015. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the years ended March 31, 2015 and 2014, the Company accrued $1,589 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On October 31, 2014, interest expense relating to the beneficial conversion feature of this convertible note of $48,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the years ended March 31, 2015 and 2014 debt discount of $42,564 and $0 respectively was accreted to the statement of operations.
At March 31, 2015 and 2014, principal balance of $48,000 and $0 respectively, debt discount of $5,436 and $0 respectively, and accrued interest of $1,589 and $0 respectively was recorded.
Gel Properties, LLC Note #2
On August 8, 2013, the Company issued a convertible promissory note to Gel Properties, LLC. Under the terms of the note, the Company has borrowed a total of $50,000 from Gel Properties, LLC, which accrues interest at an annual rate of 6% and has a maturity date of August 8, 2015. The note also contains customary events of default.
During the years ended March 31, 2015 and 2014, the Company accrued $71 and $1,815 respectively in interest expense.
On February 5, 2014 the Company recorded a debt discount and derivative liability of $125,429, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the years ended March 31, 2015 and 2014, the Company recorded a gain of $5,863 and a loss of $98,327 respectively due to the change in value of the derivative liability during the period and a debt discount of $11,111 and $38,889 respectively was accreted to the statement of operations.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
4. NOTE PAYABLE (continued)
|
During the years ended March 31, 2014 the Company issued an aggregate of 370,392,462 common shares upon the conversion of principal amount of $22,190 and interest amount of $1,886. The derivative liability amounting to $52,969 was re-classified to additional paid in capital.
At March 31, 2015 and 2014, principal balance of $0 and $22,190 respectively, accrued interest of $0 and $1,815 respectively, a debt discount of $0 and $11,111 respectively and a derivative liability of $0 and $58,832 respectively was recorded.
Coventry Enterprises Note #2
On March 3, 2014, the Company arranged a debt swap under which an Xploration, Inc. note for $4,000 in principal and $46,000 in interest was transferred to Coventry Enterprises, LLC. The promissory note is unsecured, bears interest at 6% per annum and matures on March 3, 2015. During the years ended March 31, 2015 and 2014, the Company accrued $1,661 and $198 respectively in interest expense.
On March 3, 2014 the Company recorded a debt discount and derivative liability of $63,693, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the years ended March 31, 2015 and 2014, the Company recorded a gain of $59,285 and a loss of $129,087 respectively due to the change in value of the derivative liability during the period and debt discount of $21,275 and $28,725 respectively was accreted to the statement of operations.
During the year ended March 31, 2015 the Company issued an aggregate of 404,866,600 common shares upon the conversion of principal amount of $20,243. The derivative liability amounting to $27,655 was re-classified to additional paid in capital.
At March 31, 2015 and 2014, principal balance of $20,000 and $40,243 respectively, accrued interest of $1,859 and $198 respectively, a debt discount of $0 and $21,275 respectively and a derivative liability of $29,566 and $116,506 respectively was recorded.
LG Capital Funding Note
On March 3, 2014, the Company arranged a debt swap under which an Xploration, Inc. note for $40,000 was transferred to LG Capital Funding, LLC. The promissory note is unsecured, bears interest at 8% per annum and matures on March 3, 2015. During the years ended March 31, 2015 and 2014, the Company accrued $2,676 and $143 respectively in interest expense.
On March 3, 2014 the Company recorded a debt discount and derivative liability of $63,048, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the years ended March 31, 2015 and 2014, the Company recorded a gain of $50,380 and a loss of $120,481 respectively due to the change in value of the derivative liability during the period and a debt discount of $17,021 and $22,979 respectively was accreted to the statement of operations.
At March 31, 2015 and 2014, principal balance of $29,000 and $29,000 respectively, accrued interest of $2,819 and $143 respectively, a debt discount of $0 and $17,021 respectively and a derivative liability of $52,066 and $102,446 respectively was recorded.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
4. NOTE PAYABLE (continued)
|
New Venture Attorneys Note
On April 1, 2014, the Company issued a convertible promissory note to New Venture Attorneys PC for legal fees. Under the terms of the note, the Company has borrowed a total of $50,000 from New Venture Attorneys PC, which accrues interest at an annual rate of 8% and has a maturity date of April 1, 2015. The note also contains customary events of default. During the years ended March 31, 2015 and 2014, the Company accrued $3,989 and $0 respectively in interest expense.
After 180 days from issuance, the note may be converted at the option of the holder into common stock of the Company. The conversion price is 50% of the market price, where market price is defined as “the lowest closing bid on the OTCQB for the ten prior trading days including the day upon which a Notice of Conversion is received by the Company.”
On September 29, 2014 the Company recorded a debt discount and derivative liability of $81,987, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the years ended March 31, 2015 and 2014, the Company recorded a loss of $7,782 and $0 respectively due to the change in value of the derivative liability during the period and a debt discount of $49,866 and $0 respectively was accreted to the statement of operations.
At March 31, 2015 and 2014, principal balance of $50,000 and $0 respectively, accrued interest of $3,989 and $0 respectively, a debt discount of $134 and $0 respectively and a derivative liability of $89,769 and $0 respectively was recorded.
5. DERIVATIVE LIABILITIES
The Company issued financial instruments in the form of convertible notes with embedded conversion features. Some of the convertible notes payable have conversion rates, which are indexed to the market value of the Company’s stock price.
During the years ended March 31, 2015 and 2014, the Company recorded derivative liabilities for embedded conversion features related to convertible notes payable of face value $81,987 and $1,257,919 respectively. During the years ended March 31, 2015 and 2014, $92,844 and $551,188 respectively of convertible notes payable principal and accrued interest was converted into common stock of the Company. For the years ended March 31, 2015 and 2014, the Company performed a final mark-to-market adjustment for the derivative liability related to the convertible notes of and the carrying amount of the derivative liability related to the conversion feature of $161,255 and $1,854,797 respectively, was re-classed to additional paid in capital on the date of conversion in the statement of shareholders’ deficit. During the years ended March 31, 2015 and 2014, the Company recognized a gain of $824,737 and a loss of $1,630,950 respectively based on the change in fair value (mark-to market adjustment) of the derivative liability associated with the embedded conversion features in the accompanying statement of operations.
These derivative liabilities have been measured in accordance with fair value measurements, as defined by ASC 820. The valuation assumptions are classified within Level 1 and Level 2 inputs. The following table represents the Company’s derivative liability activity for the embedded conversion features discussed above.
The following table represents the Company’s derivative liability activity for the embedded conversion features discussed above
:
|
|
March 31,
|
|
|
March 31,
|
|
|
|
2015
|
|
|
2014
|
|
Balance, beginning of year
|
|
$
|
1,747,378
|
|
|
$
|
713,306
|
|
Initial recognition of derivative liability
|
|
|
81,987
|
|
|
|
1,257,919
|
|
Conversion of derivative instruments to Common Stock
|
|
|
(161,255
|
)
|
|
|
(1,854,797
|
)
|
Mark-to-Market adjustment to fair value
|
|
|
(824,734
|
)
|
|
|
1,630,950
|
|
Balance, end of year
|
|
$
|
843,376
|
|
|
$
|
1,747,378
|
|
These instruments were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign operation. The instruments do not qualify for hedge accounting, and as such, all future changes in the fair value will be recognized currently in earnings until such time as the instruments are exercised, converted or expire.
6. SECURITIES PURCHASE AGREEMENT
On April 23, 2010, the Company entered into an agreement with an investor whereby the investor committed to purchase up to $5,000,000 of units, consisting of shares of the Company’s common stock and share purchase warrants, until April 22, 2013. The Company may draw on the facility from time to time, as and when it determines appropriate in accordance with the terms and conditions of the agreement. Each advance shall be in an aggregate amount of not more than $1,000,000 and in integral multiples of $100,000. The Company will use the advances to fund operating expenses, acquisitions, and exploration and general corporate activities. The investor also has an option to subscribe up to a further $2,500,000.
Each unit consists of one share of the Company’s common stock and one share purchase warrant. The unit price will be the price to the higher of either: (a) $0.75; or (b) 90% of the volume weighted average of the closing price of common stock, for the five banking days immediately preceding the date of the notice of advance. Each warrant shall entitle the investor to purchase one additional share of common stock at an exercise price equal to 150% of the unit price at which the unit containing the warrant being exercised was issued.
The Company issued 401,067 shares under the agreement during the fiscal year ended March 31, 2011, realizing $400,000. This option expired as of April 22, 2013.
7. RELATED PARTY TRANSACTIONS
Related party transaction is not disclosed elsewhere in the consolidated financial statements are as follows:
On March 8, 2010, the Company entered an employment agreement with the newly-appointed President, James Powell. Pursuant to the terms of the agreement, the President will receive a base salary of $5,000 per month. The employment agreement will continue indefinitely subject to termination by either party without cause on 30 days’ notice.
On October 24, 2011, the Company entered into a new employee agreement with President, James Powell. Pursuant to the terms of the agreement, the President will receive a base salary of $2,500 per month. This agreement supersedes any prior agreements made between the Company and the President.
On March 8, 2010, the Company entered an employment agreement with the newly-appointed Chairman of the Board, Tim DeHerrera. Pursuant to terms of the terms of the agreement, Mr. DeHerrera will receive a base salary of $8,000 per month with an incremental rise of $500 per quarter until an amount of $10,000 per month is achieved.
Mr. DeHerrera agreed to acquire 6,000,000 shares of the former CEO’s shares at $0.02 per share. The new CEO’s shares were be held in escrow in the form of eight certificates each representing 750,000 shares which were released between April 30, 2010 and March 5, 2012 (a minimum of twenty-one months from the first release date).
On December 2, 2011, the Company entered into a new employee agreement with Chairman, Tim DeHerrera. Pursuant to the terms of the agreement, the Chairman will receive an annual salary of $90,000 payable as follows; $7,500 per month for months 1-12 and $10,000 per month for months 13-24. The parties agreed that if the Company does not have the capital available to compensate the cash portion of the agreement, Mr. DeHerrera shall have the option of converting the fees earned into common stock at $.01 per share. As additional compensation for services, the Company shall issue common stock of the Company equal up to an amount of 12,000,000 shares upon signing the agreement and an additional 12,000,000 on December 12, 2013. This agreement supersedes any prior agreements made between the Company and the Chairman.
On December 2, 2011, pursuant to the employment and consulting agreement, Mr. DeHerrera was issued 12,000,000 restricted common shares.
On May 23, 2012, pursuant to the employment consulting agreement, Mr. Powell was issued 2,500,000 common shares.
On March 3, 2015, Tim DeHerrera, resigned from his position with the Company as Treasurer, Secretary and a member of the Board. His resignation was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
7. RELATED PARTY TRANSACTIONS (continued)
|
On March 3, 2015, James Powell was appointed as the Company’s Treasurer, Secretary and as a member of the Board.
During the years ended March 31, 2015 and 2014, the Company recorded $30,000 and $30,000 respectively in consulting fees for Mr. Powell increasing the amount due to $150,000.
During the years ended March 31, 2015 and 2014, the Company recorded $110,000 and $120,609 respectively in consulting fees and other expenses for Mr. DeHerrera increasing the amount due to $358,459.
The Company is indebted to its officers as follow:
|
|
March 31,
|
|
|
|
2015
|
|
|
2014
|
|
James Powell - President
|
|
$
|
150,000
|
|
|
$
|
120,000
|
|
Tim DeHerrera - Chairman of the Board
|
|
|
358,459
|
|
|
|
248,459
|
|
|
|
$
|
508,459
|
|
|
$
|
368,459
|
|
The amounts consist of unpaid salary and advances made on behalf of the Company. The loans carry no interest, are unsecured, are due on demand and have no maturity.
During the years ended March 31, 2015 and 2014 Direct Capital Group funded the Company $1,027,319 and $385,425. $1,017,319 of notes and interest were converted into 320,000,000 shares of the company’s common stock during the March 31, 2015 fiscal year.
During the years ended March 31, 2015 and 2014, the Company is indebted to Direct Capital Group for $34,693 and $7,194 respectively.
During the years ended March 31, 2015 and 2014 accrued debt to Syndication Capital Group of $147,617 and $182, 997 which was converted into convertible debt.
8. PREFERRED STOCK
On January 25, 2011 the Company filed an amendment to its Nevada Certificate of Designation to create two new series of preferred stock:
|
A.
|
Preferred Series A - par value $0.001 - 10,000,000 shares authorized
|
|
B.
|
Preferred Series B - par value $0.001 – 10,000,000 shares authorized
|
The preferred stock may be converted at will to common stock in the ratio of 0.005 preferred share to one common share.
On January 31, 2012, 2,076,000 shares of Preferred Series A stock were issued in completion of the agreement signed January 20, 2011, wherein the Company acquired100% of the outstanding common stock of Joaquin Basin Resources, Inc., owner of an oil & gas property. There being no market for the shares, they were valued at the prevailing market price of $0.01 for the number of post-conversion shares of common stock. The value, $4,152,000, was assigned to the cost of the Joaquin Basin oil & gas property.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
8. PREFERRED STOCK (continued)
|
On January 31, 2012, 111,000 shares of Series A Preferred Stock were converted to 22,200,000 shares of common stock at the conversion ratio of .005 preferred to 1 common. The securities exchanged had equal value, resulting in no gain or loss on the transaction.
As of March 31, 2012, 10,000,000 Series A preferred shares and 10,000,000 Series B preferred shares of par value $0.001 were authorized, of which 1,965,000 Series A were issued and outstanding, (0 as of March 31, 2011).
On April 23, 2012, 80,000 shares of Series A Preferred Stock were converted to 16,000,000 shares of common stock at the conversion ratio of .005 preferred to 1 common. The securities exchanged had equal value, resulting in no gain or loss on the transaction.
On August 14, 2012, 328,000 shares of Series A Preferred Stock were converted to 65,600,000 shares of common stock at the conversion ratio of .005 preferred to 1 common, according to the attributes of the preferred stock. The securities exchanged had equal value, resulting in no gain or loss on the transaction.
On October 12, 2012, 125,000 shares of Series A Preferred Stock were converted into 25,000,000 shares of common stock at the conversion ratio of .005 preferred to 1 common. The securities exchanged had equal value, resulting in no gain or loss on the transaction.
As of March 31, 2013, 10,000,000 Series A preferred shares and 10,000,000 Series B preferred shares of par value $0.001 were authorized, of which 1,432,000 Series A shares were issued and outstanding, (1,965,000 shares as of March 31, 2012).
On September 20, 2013, 112,500 Series A preferred shares were converted to 112,500,000 shares of common stock.
As of March 31, 2014, 10,000,000 Series A preferred shares and 10,000,000 Series B preferred shares of par value $0.001 were authorized, of which 1,319,500 Series A shares were issued and outstanding (1,432,000 shares as of March 31, 2013).
As of March 31, 2015, 10,000,000 Series A preferred shares and 10,000,000 Series B preferred shares of par value $0.001 were authorized, of which 1,319,500 Series A shares were issued and outstanding, (1,319,500 shares as of March 31, 2014).
9. COMMON STOCK
Effective January 14, 2008, the Company split its common stock on a twenty-for-one basis. All shareholders as of the record date of January 14, 2008 receive twenty shares of common stock in exchange for each one common share of their currently issued common stock. The authorized, issued and per share information presented is on a post-split basis. On January 14, 2008, the Company’s total paid-in capital was less than the product of the par value per share multiplied by the number of post-split shares outstanding. As a result, the shareholders may have an obligation to make up the shortfall of $7,735 should the shortfall not be otherwise eliminated.
On March 9, 2010, the Company issued 1,250,000 shares pursuant to a subscription at a price of $0.40 per share for total proceeds of $500,000.
On April 5, 2010, the Company cancelled 18,002,000 shares surrendered for cancellation by the former CEO and majority shareholder of the Company pursuant to an agreement effective March 17, 2010.
On May 14 and September 28, 2010, 134,420 and 266,667 shares, respectively, were issued at $0.48 pursuant to a Securities Purchase Agreement. $400,000 cash was realized.
Pursuant to consulting agreements with two advisors, common stock was issued for services:
Date Issued
|
|
Shares
|
|
|
Price Per Share
|
|
Expense
|
December 31, 2010
|
|
|
50,000
|
|
|
$
|
0.82
|
|
Consulting $40,950
|
October 18, 2010
|
|
|
50,000
|
|
|
$
|
0.39
|
|
Consulting $19,500
|
November 15, 2010
|
|
|
150,000
|
|
|
$
|
0.39
|
|
Consulting $58,500
|
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
|
|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
9. COMMON STOCK (continued)
|
On January 3, 2011, 6,000,000 shares of restricted common stock were issued for services at $0.02 per share; whereby an expense of $93,000 was recorded.
On February 1, 2011, 1,300,000 shares of common stock were issued at $0.05 per share in retirement of debt of $63,471. The loss on the transaction was de minimus.
On February 1, 2011, 62,000,000 shares of common stock were issued at $0.12 per share in exchange for stock of a subsidiary, acquiring an oil and gas property of $7,368,900. See Note 1.
On August 18, 2011, 500,000 shares of common stock were issued at $0.10 per share for consulting. An expense of $15,000 was recorded.
Between August 29 and September 21, 2011, 9,406,149 common shares were issued at $0.01, $0.02 and $0.03 per share in elimination of $55,000 notes payable. A loss of $32,814 was recorded.
Between November 28 and December 8, 2011, 11,295,545 common shares were issued at $0.10, $0.006 and $0.008 per share in elimination of $55,000 notes payable. A loss of $32,814 was recorded.
On December 2, 2011, 12,000,000 shares were issued for consulting at $0.008 per share. An expense of $96,000 was recorded.
On January 1, 2012, 3,198,528 shares were returned to Treasury and cancelled in a preliminary transaction further to a consulting agreement.
Between January 1 and February 8, 2012, 12,815,862 common shares were issued at $0.008, $0.009 and $0.010 per share in elimination of $115,000 notes payable. A loss of $2,803 was recorded.
On February 2, 2012, 1,684,427 shares of common stock were issued at $0.01 per share for consulting. An expense of $16,845 was recorded.
On January 31, 2012, 22,200,000 shares of common stock were issued at $0.01 per share in converting 111,000 shares of Series A preferred stock to common stock. The value of the common stock equated to that of the preferred stock, resulting in no gain or loss on the transaction.
As at March 31, 2012, 1,500,000,000 common shares of par value $0.001 were authorized, of which 201,944,542 were issued and outstanding, (135,241,087 as at March 31, 2011).
On April 23, 2012, 16,000,000 shares of common stock were issued in an exchange for 80,000 of Series A Preferred Stock. The stocks exchanged had equal value, resulting in no gain or loss on the transaction.
GRID PETROLEUM CORP.
|
|
(KNOWN AS SUNBERTA RESOURCES INC.)
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|
(AN EXPLORATION STAGE COMPANY)
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|
NOTES
TO FINANCIAL STATEMENTS
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|
9. COMMON STOCK (continued)
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On May 17, 2012, 1,514,101 shares of common stock were issued for consulting valued at the closing price on the day of $0.01 per share. An expense of $15,141 was recorded.
On May 23, 2012, 2,500,000 shares of common stock were issued for consulting pursuant to an employment agreement, valued at the closing price on the day of $0.01. An expense of $25,000 was recorded.
On June 11, 2012, 1,000,000 shares of common stock were issued at the closing price of $0.01 pursuant to a loan agreement with Vista Capital Investments. An expense of $10,000 was recorded.
Between July 12 and September 18, 2012, 25,715,010 shares of common stock were issued in the elimination of debt at the uniform price of $0.01. An expense of $164,550 was recorded.
On August 14, 2012, 65,600,000 shares of common stock were issued in an exchange for 328,000 of Series A Preferred Stock. The stocks exchanged had equal value, resulting in no gain or loss on the transaction.
On October 12, 2012, 125,000 shares of Series A Preferred Stock were converted into 25,000,000 shares of common stock at the conversion ratio of .005 preferred to 1 common. The stocks exchanged had equal value, resulting in no gain or loss on the transaction.
From October 1, 2012 to December 31, 2012, the holders of a convertible notes converted a total of $92,600 of principal and interest into 49,508,657 shares of our common stock.
From January 1, 2013 to March 31, 2013, the holders of a convertible notes converted a total of $97,920 of principal and interest into 177,789,278 shares of our common stock.
On September 20, 2013, 112,500 Series A preferred shares were converted to 112,500,000 shares of common stock.
From April 1, 2013 to March 31, 2014, the holders of a convertible notes converted a total of $213,540 of principal and $46,266 of interest into 4,218,827,420 shares of our common stock.
From April 1, 2014 to March 31, 2015, the holders of a convertible notes converted a total of $92,844 of principal and interest into 2,001,759,062 shares of our common stock.
As of March 31, 2015, 7,500,000,000 common shares of par value $0.001 were authorized, of which 6,578,408,070 shares were issued and outstanding, (4,896,649,008 shares as of March 31, 2014).
GRID PETROLEUM CORP.
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|
(KNOWN AS SUNBERTA RESOURCES INC.)
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|
(AN EXPLORATION STAGE COMPANY)
|
|
NOTES
TO FINANCIAL STATEMENTS
|
|
The Company had no income tax expense during the reported period due to net operating losses.
A reconciliation of income tax expense to the amount computed at the statutory rates is as follows:
|
|
March 31,
|
|
|
|
2015
|
|
|
2014
|
|
Operating profit (loss) for the year ended March 31
|
|
$
|
(1,324,833
|
)
|
|
$
|
(761,608
|
)
|
Average statutory tax rate
|
|
|
34
|
%
|
|
|
34
|
%
|
Expected income tax provisions
|
|
$
|
(450,443
|
)
|
|
$
|
(258,947
|
)
|
Unrecognized tax gains (loses)
|
|
|
(450,443
|
)
|
|
|
(258,947
|
)
|
Income tax expense
|
|
$
|
-
|
|
|
$
|
-
|
|