Business Context and Reporting Period
Company: GoEnergy, Inc. (Note: Metadata listed "Prairie Operating Co." but filing is for GoEnergy, Inc.)
Reporting Period: Fiscal year ended July 31, 2010
Status: Exploration stage company; Shell company designation.
Operations: The Company has no revenue and no employees. It holds mineral claims on the "Eagle Property" in British Columbia, Canada, but has not commenced exploration due to lack of capital. Previous oil and gas interests in Texas were abandoned after the joint venture partner lost lease rights.
Key Financial Metrics
| Metric | Value (July 31, 2010) | Value (July 31, 2009) |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(35,781) | $(19,460) |
| Cash and Equivalents | $975 | $4,802 |
| Total Assets | $990 | $4,802 |
| Total Current Liabilities | $128,445 | $96,476 |
| Working Capital Deficit | $(127,455) | $(91,674) |
| Accumulated Deficit | $(199,100) | $(163,319) |
| Related Party Debt | $116,848 (Principal) | $90,000 (Principal) |
Material Changes
- Liquidity Deterioration: Cash reserves decreased by approximately 80% from $4,802 to $975.
- Increased Losses: Net loss for the year increased by 84% compared to the prior year, driven by administrative expenses and interest on related party loans.
- Debt Accumulation: Principal owed to related parties increased by $26,848 due to new loans taken to cover operating costs.
- Stock Price: Trading activity remained extremely limited; the stock traded on OTCBB with a high of $0.20 and low of $0.03 in the quarter ended July 31, 2010.
Outlook, Risks, and Management Commentary
- Going Concern: The independent auditor has raised substantial doubt about the Company's ability to continue as a going concern due to the accumulated deficit and working capital deficit.
- Capital Needs: The Company explicitly states it does not have enough capital to fund its three-phase exploration plan (estimated total cost ~$149,000). It relies on potential equity financing or non-obligatory loans from the majority shareholder (Strato Malamas).
- Operational Status: No exploration work has been performed on the Eagle Property. The Company has no current source of revenue.
- Risks: Significant competition from larger mining firms; inability to raise capital; regulatory compliance costs; and the speculative nature of mineral exploration with no known reserves.
Investor Verification Checklist
- Capital Sufficiency: Verify if the Company has secured the necessary funding to proceed with Phase 1 exploration ($6,200) given current cash of only $975.
- Related Party Dependence: Assess the risk of reliance on Strato Malamas for loans, noting he is under no obligation to provide further funds.
- Asset Validity: Confirm the status of the Eagle Property claims and whether they are current or at risk of lapse.
- Management Continuity: Note that the Company has no employees and relies on independent contractors; verify the commitment of the current CEO/CFO (Terry Fields).
- Historical Performance: Acknowledge the Company has generated zero revenue since inception in 2001 and has a history of failed property acquisitions.