Business Context and Reporting Period
Company: GoEnergy, Inc. (Note: Request metadata listed "Prairie Operating Co.", but the filing text identifies the registrant as GoEnergy, Inc.)
Filing Type: Form 10-K (Annual Report)
Period Ended: July 31, 2009
Status: Exploration Stage Company / Shell Company
Business Overview: GoEnergy is a Delaware corporation engaged in the exploration of mineral properties. The Company holds the "Eagle Property" in British Columbia, Canada, and previously held interests in Texas oil and gas leases which were abandoned due to the loss of rights by the primary lessee. The Company has no employees and relies on independent contractors.
Key Financial Metrics
| Metric | July 31, 2009 | July 31, 2008 (Restated) |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(19,460) | $(23,374) |
| Total Assets | $4,802 | $2,219 |
| Cash and Cash Equivalents | $4,802 | $2,219 |
| Total Current Liabilities | $96,476 | $74,433 |
| Working Capital Deficit | $(91,674) | $(72,214) |
| Accumulated Deficit (Since Inception) | $(163,319) | $(143,859) |
| Related Party Debt | $90,000 | $70,000 |
Note: The filing does not provide data on profit margins or operating cash flow from operations other than the net loss and cash usage figures.
Material Changes vs. Prior Period
- Net Loss Reduction: Net loss decreased by approximately $3,914 compared to the prior year, primarily due to lower professional fees and the absence of certain administrative expenses recorded in the prior period.
- Related Party Borrowing: The loan from the former President/Shareholder (Strato Malamas) increased by $20,000, from $70,000 to $90,000, to fund ongoing operations.
- Cash Position: Cash and cash equivalents increased by $2,583, driven entirely by the related party loan, as operating activities consumed cash.
- Restatement: The 2008 financial statements were restated to correct an accounting error regarding professional and audit expenses, adjusting accrued liabilities and the accumulated deficit.
Outlook, Risks, and Management Commentary
Going Concern Uncertainty
The Company has incurred cumulative losses of $163,319 since inception and has a working capital deficiency of $91,674. The auditors have expressed substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include adjustments that might result from this uncertainty.
Liquidity and Capital Resources
The Company has no revenue and insufficient cash reserves to fund its planned exploration phases or cover expenses for the next 12 months. Management anticipates relying on additional equity financing or loans from the majority shareholder (Strato Malamas), though he is under no obligation to provide further funds.
Exploration Plan
The Company plans a three-phase exploration program for the Eagle Property in British Columbia:
- Phase 1: Reconnaissance mapping and sampling (Estimated cost: ~$6,200).
- Phase 2: Grid mapping and soil sampling extension (Estimated cost: ~$16,500).
- Phase 3: Trenching and geophysics (Estimated cost: ~$126,500).
None of these phases have commenced due to lack of capital.
Risks
- Capital Shortage: Inability to raise funds will halt operations.
- Exploration Risk: The Eagle Property has no known reserves; exploration may yield no commercially viable deposits.
- Related Party Dependence: Operations are heavily dependent on loans from a single individual.
- Regulatory Compliance: Mining activities are subject to strict environmental and permitting regulations which could delay or increase costs.
Investor Verification Checklist
- Capital Adequacy: Verify if the Company has secured the funding required to initiate Phase 1 of the exploration plan (~$6,200).
- Related Party Loans: Confirm the repayment terms and interest accrual on the $90,000 owed to Strato Malamas.
- Property Status: Verify the current status and validity of the mineral claims on the Eagle Property in British Columbia.
- Going Concern: Assess the likelihood of the Company ceasing operations if additional equity financing is not raised immediately.
- Management Continuity: Note that the former CEO/CFO (Strato Malamas) resigned in September 2008; verify the current operational capacity of the remaining officer (Terry Fields).