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, 2009 (Form 10-Q)
Status: Exploration Stage Company incorporated in Delaware (May 2, 2001).
Operations: The Company holds interests in oil and gas leases in Texas and mineral claims (Eagle Property) in British Columbia, Canada. It has generated no revenue since inception and has not commenced active exploration or production.
Key Financial Metrics
| Metric | Three Months Ended Apr 30, 2009 | Nine Months Ended Apr 30, 2009 | Balance Sheet (Apr 30, 2009) |
|---|---|---|---|
| Revenue | $0 | $0 | N/A |
| Net Loss | $(2,980) | $(14,213) | N/A |
| Cash and Equivalents | N/A | N/A | $0 |
| Total Assets | N/A | N/A | $0 |
| Total Current Liabilities | N/A | N/A | $81,994 |
| Working Capital | N/A | N/A | $(81,994) Deficiency |
| Accumulated Deficit | N/A | N/A | $(150,827) |
| Debt (Related Party) | N/A | N/A | $80,000 |
Note: The filing indicates a negative cash balance of $(833) in the Statement of Cash Flows, while the Balance Sheet lists Cash as $0. The company reports a working capital deficiency.
Material Changes vs. Prior Period
- Cash Position: Cash and cash equivalents decreased from $2,219 (July 31, 2008) to $0 (April 30, 2009).
- Liabilities: Total current liabilities increased from $70,000 to $81,994. This includes an increase in the related party loan from $70,000 to $80,000 and the accrual of $1,161 in interest payable.
- Expenses: Net loss for the nine months ended April 30, 2009 was $(14,213), compared to $(13,280) for the same period in 2008. Expenses were primarily professional fees ($12,714) and office costs ($1,499).
- Assets: Total assets dropped to zero as cash was depleted and no new assets were capitalized.
Outlook, Risks, and Management Commentary
- Going Concern: The filing explicitly states that the Company's losses and working capital deficiency raise substantial doubt about its ability to continue as a going concern. Realization of assets may differ from carrying values if the company cannot continue operations.
- Liquidity: The Company has no cash reserves. Management plans to raise funds through borrowing or increasing owner's equity. There is no assurance that funds will be available.
- Plan of Operation: The Company intends to explore the Eagle Property in three phases (costing approx. $6,200, $16,500, and $126,500 respectively). However, no funds are currently available to commence Phase One, and no geologists have been hired.
- Related Party Dependence: The Company relies on loans from the President (totaling $80,000 at period end). The majority shareholder is under no obligation to continue paying expenses.
- Properties: Texas oil and gas interests have not generated revenue. The Canadian mineral claims have no known reserves.
Investor Verification Checklist
- Cash Status: Verify the discrepancy between the negative cash flow ending balance ($(833)) and the zero cash balance on the Balance Sheet.
- Related Party Debt: Confirm the terms and repayment status of the $80,000 loan from the President, which bears 2% interest and is due on demand.
- Going Concern Viability: Assess the likelihood of securing the equity financing or loans required to fund the planned exploration phases.
- Asset Valuation: Review the status of the Texas oil/gas leases and Canadian mineral claims, as they have generated no revenue and may be impaired.
- Accounting Adjustments: Note the adjustment of $13,292 to accounts payable and accumulated deficit due to a prior accounting error regarding professional fees.