Business Context and Reporting Period
Company: GoEnergy, Inc. (Note: Metadata listed "Prairie Operating Co." but filing is for GoEnergy, Inc.)
Reporting Period: Quarter ended April 30, 2010
Status: Exploration Stage Company / Shell Company / Smaller Reporting Company
Operations: The Company is in the exploration stage with no revenue. It holds mineral claims (the "Eagle Property" in British Columbia) and intends to explore for lead, zinc, copper, silver, or gold. No exploration activities have been conducted to date due to lack of funds.
Key Financial Metrics
| Metric | Three Months Ended Apr 30, 2010 | Nine Months Ended Apr 30, 2010 | As of Apr 30, 2010 |
|---|---|---|---|
| Revenue | $0 | $0 | N/A |
| Net Loss | $(6,088) | $(25,726) | N/A |
| Cash and Equivalents | N/A | N/A | $4,779 |
| Total Assets | N/A | N/A | $4,779 |
| Total Current Liabilities | N/A | N/A | $122,179 |
| Working Capital Deficit | N/A | N/A | $(117,400) |
| Accumulated Deficit | N/A | N/A | $(189,045) |
| Related Party Debt | N/A | N/A | $116,848 (Principal) |
Material Changes vs. Prior Period
- Net Loss: Net loss for the three months ended April 30, 2010, was $(6,088), compared to $(2,980) in the same period in 2009. This represents an increase in losses of approximately 104%.
- Expense Drivers: The increase in loss is primarily driven by higher professional fees ($3,827 vs. $2,537) and the accrual of interest expense on related party loans ($515 vs. $0).
- Liquidity: Cash balances remained relatively stable at $4,779, supported by a $10,000 loan from a related party during the quarter, offset by operating cash outflows of $(5,824).
- Liabilities: Current liabilities increased from $96,476 (July 31, 2009) to $122,179 (April 30, 2010), largely due to an increase in the related party loan balance from $90,000 to $116,848.
Outlook, Risks, and Management Commentary
- Going Concern: The filing explicitly states that the Company has incurred losses since inception and has a working capital deficiency. These factors raise substantial doubt about the Company's ability to continue as a going concern.
- Capital Needs: Management states that current cash reserves ($4,779) are insufficient to fund operations for the remainder of the fiscal year or to commence any of the three planned phases of exploration on the Eagle Property.
- Funding Strategy: The Company plans to raise funds through equity issuances or short-term loans from its President (Strato Malamas). However, no arrangements are currently in place, and the President is under no obligation to provide loans.
- Exploration Plan:
- Phase One: Estimated cost $6,200 (Surface sampling). Not started due to lack of funds.
- Phase Two: Estimated cost $16,500 (Soil grid extension). Contingent on Phase One.
- Phase Three: Estimated cost $126,500 (Trenching and geophysics). Contingent on Phase Two.
- Risks: No revenue history; reliance on related party financing; no assurance of future funding; no known mineral reserves; potential inability to pursue business plan if funding is not secured.
Investor Verification Checklist
- Related Party Dependence: Verify the terms and repayment status of the $116,848 loan from Strato Malamas and Webworks Multimedia Corporation, which constitutes the majority of liabilities.
- Cash Runway: Confirm if the $4,779 cash balance is sufficient to cover immediate administrative expenses or if the company is currently insolvent.
- Exploration Status: Verify if any funds have been raised since the filing date to initiate Phase One of the Eagle Property exploration.
- Shell Company Status: Note the company is designated as a shell company with no active operations or revenue.
- Historical Write-offs: Review Note 5 regarding the $49,000 promissory note receivable written off in 2007 and the status of collection efforts.