NOTES TO THE FINANCIAL STATEMENTS
OCTOBER 31. 2022
NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS
Black Rock Petroleum Company, (“Black Rock”
or “The Company”) located at 1361 Peltier Drive, Point Roberts WA, 98281, was formed on April 24, 2013 under the laws of the
State of Nevada. We have not commenced our planned operations. The Company’s fiscal year end is April 30.
On March 15, 2021, the Company believed it had
completed a transaction whereby it acquired One Hundred percent (100%) of the ownership interests of Torrance Petroleum LLC, a Wyoming
limited liability company, in exchange for transfer of Sixty Million Four Hundred Twenty-five Thousand (60,425,000) restricted shares
of Company common stock, $0.00001 par value, (the “BKRP Common Shares”) owned by Zoltan Nagy, President/CEO of the Company,
to the Seller, Affluence Projects LLC, a Delaware limited liability company. The original agreement provided that, in addition to transfer
of the BKRP Common Shares to Seller, the Company would issue to Seller shares of a new class of preferred stock, i.e., Fifty Million (50,000,000)
shares of Series A Preferred Stock. The amended agreement eliminated the shares of Series A Preferred Stock being issued to the Seller.
As a result, no additional shares of Company stock were issued by the Company pursuant to the transaction, as the BKRP Shares being transferred
to the Seller had been owned by Mr. Nagy and, thus, were already counted in the number of common shares issued and outstanding prior to
the closing of the transaction.
Torrance Petroleum LLC has not fulfilled its obligations
to complete the transaction despite all assurances. Black Rock Petroleum Company therefore unilaterally rescinds the agreement as integral
conditions have not been met. The Company agrees to return the mineral rights of the 520 acre oil field in Torrance California back to
the seller in exchange for the return of 60,425,000 shares to Zoltan Nagy President of Black Rock Petroleum Company.
We have not generated any operating revenues to
date.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Basis of Presentation
The Company’s financial statements have
been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Use of Estimates
The preparation of financial statements in conformity
with generally accepted accounting principles 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. Actual results could differ from those estimates.
Fair value of financial instruments
The Company follows paragraph 825-10-50-10 of
the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of
the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments.
Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States
of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair
value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to
valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority
to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The
three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:
| Level 1: | Quoted market prices available in active markets for identical
assets or liabilities as of the reporting date. |
| Level 2: | Pricing inputs other than quoted prices in active markets
included in Level 1, which are either directly or indirectly observable as of the reporting date. |
| Level 3: | Pricing inputs that are generally unobservable inputs
and not corroborated by market data. |
The carrying amount of the Company’s financial
assets and liabilities, such as cash and accounts payable approximate their fair value because of the short maturity of those instruments.
The Company’s notes payable approximates the fair value of such instruments based upon management’s best estimate of
interest rates that would be available to the Company for similar financial arrangements at October 31, 2022.
Income Taxes
The Company follow ASC 740-10-30, which requires
recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial
statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement
and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to
reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the
assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income
in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in the Statements of Income in the period that includes the enactment date.
On December 22, 2017, the Tax Cuts and Jobs Act
(TCJA) was signed into law by the President of the United States. TCJA is a tax reform act that among other things, reduced corporate
tax rates to 21 percent effective January 1, 2018. FASB ASC 740, Income Taxes, requires deferred tax assets and liabilities to be adjusted
for the effect of a change in tax laws or rates in the year of enactment, which is the year in which the change was signed into law. Accordingly,
the Company adjusted its deferred tax assets and liabilities at December 31,2017, using the new corporate tax rate of 21 percent. See
Note 5.
The Company adopted ASC 740-10-25 (“ASC
740-10-25”) with regard to uncertainty income taxes. ASC 740-10-25 addresses the determination of whether tax benefits claimed
or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10-25, we may recognize the tax
benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the
taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such
a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.
ASC 740-10-25 also provides guidance on derecognition, classification, interest and penalties on income taxes, and accounting in interim
periods and requires increased disclosures. We had no material adjustments to our liabilities for unrecognized income tax benefits
according to the provisions of ASC 740-10-25.
Net income (loss) per common share
Net income (loss) per common share is computed
pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing
net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss)
per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding
shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common
shares assumes that the Company incorporated as of the beginning of the first period presented. There were no potentially dilutive shares
for the periods ended October 31, 2022 and 2021.
Recently issued accounting pronouncements
In February 2016, the FASB issued ASU 2016-02,
Leases (Topic 842). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and
requires expanded disclosures about leasing arrangements. The new standard supersedes the present U.S. GAAP standard on leases and
requires substantially all leases to be reported on the balance sheet as right-of-use assets and lease obligations. ASU 2016-02 is effective
for fiscal years beginning after December 15, 2018 and interim periods in fiscal years beginning after December 15, 2018, with early
adoption permitted. There has been no material impact on our financial statements as a result of adopting this standard.
On June 20, 2018, the Financial Accounting Standards
Board (FASB) issued Accounting Standards Update (ASU) 2018-07,Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee
Share-Based Payment Accounting. ASU 2018-07 is intended to reduce cost and complexity and to improve financial reporting for share-based
payments to nonemployees (for example, service providers, external legal counsel, suppliers, etc.). Under the new standard, companies
will no longer be required to value non-employee awards differently from employee awards. Meaning that companies will value all equity
classified awards at their grant-date under ASC718 and forgo revaluing the award after this date. The Company has chosen to early adopt
this standard. There has been no material impact on our financial statements as a result of adopting this standard.
The Company has implemented all new accounting
pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise
disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have
a material impact on its financial position or results of operations.
NOTE 3 – GOING CONCERN
As reflected in the accompanying financial statements,
the Company has an accumulated deficit of $140,039 as at October 31, 2022, has no current operations and has generated no income to date.
These factors raise substantial doubt about its ability to continue as a going concern. The financial statements have been prepared assuming
that the Company will continue as a going concern. These financial statements do not include any adjustments relating to the recoverability
and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be
unable to continue as a going concern. The Company is currently seeking an acquisition opportunity with a company in the mining sector.
NOTE 4 – RELATED PARTY TRANSACTIONS
Since the fiscal year ended April 30, 2016, Zoltan
Nagy, CEO and Director and a shareholder , has advanced the Company funds to pay for general operating expenses. As of October 31, 2022
and April 30, 2022, $93,838 and $84,613, respectively, is due to the related parties. The amount due is unsecured, non-interest bearing
and due on demand.
NOTE 5 – LOAN PAYABLE
During the year ended April 30, 2021, Walter Weeks
advanced the Company $32,125. The loan is unsecured, non-interest bearing and due on demand.
NOTE 6 – SUBSEQUENT EVENTS
Management
has evaluated subsequent events pursuant to the requirements of ASC Topic 855, from the balance sheet date through the date the financial
statement were available to be issued and has determined that there are no material subsequent events that require disclosure in these
financial statements.