Business Context and Reporting Period
Company: GoEnergy, Inc. (Note: Metadata listed "Prairie Operating Co." but filing is for GoEnergy, Inc.)
Reporting Period: Quarter ended October 31, 2008
Status: Exploration Stage Company
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 drilling operations due to lack of funds.
Key Financial Metrics
| Metric | Q3 2008 (3 Months) | Q3 2007 (3 Months) | YTD Inception (Oct 31, 2008) |
|---|---|---|---|
| Revenue | $0 | $0 | $4,865 (Historical Investment Income) |
| Net Loss | $(5,858) | $(3,748) | $(145,284) |
| Total Expenses | $5,858 | $3,748 | $150,149 |
| Cash and Equivalents | $1,736 | $2,412 | $1,736 |
| Total Assets | $1,736 | $2,412 | $1,736 |
| Total Liabilities | $75,375 | $70,000 | $75,375 |
| Working Capital Deficit | $(73,639) | $(67,588) | $(73,639) |
| Accumulated Deficit | $(142,472) | $(136,614) | $(142,472) |
Debt: The Company owes $75,000 in loans from a related party (President/Director). These loans bear 2% interest since July 1, 2008, with no specific repayment terms.
Material Changes
- Increased Losses: Net loss for the quarter increased by $2,110 compared to the prior year quarter, driven primarily by a $1,784 increase in professional fees.
- Cash Burn: Cash decreased by $483 during the quarter. Operating activities used $5,483 in cash, partially offset by $5,000 in financing from a related party loan.
- Liability Growth: Current liabilities increased by $5,375 due to the new related party loan and accrued interest.
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 operations cease.
- Liquidity Crisis: Cash reserves ($1,736) are insufficient to fund operations for the remainder of the fiscal year or the next 12 months. The Company has no funds to commence its planned three-phase exploration program on the Eagle Property.
- Funding Strategy: Management plans to seek additional funding via equity financing or loans from the President. However, the President is under no obligation to provide further loans, and no specific funding arrangements are currently in place.
- Operational Status: No exploration work has been conducted on the Eagle Property. Previous oil and gas interests in Texas were lost when the joint venture partner lost rights to the properties.
- Unusual Items: A $49,000 promissory note receivable from a former consultant was written off in 2007, though the Company intends to pursue payment. An accounting error correction in 2003-2004 previously adjusted accounts payable by $13,292.
Investor Verification Checklist
- Capital Sufficiency: Verify if the Company has secured the necessary funding to cover the estimated $6,200 cost for Phase One of exploration, as current cash is insufficient.
- Related Party Dependence: Assess the risk of reliance on the President for loans, given the lack of obligation and the existing $75,000 debt.
- Asset Viability: Confirm the status of the Texas oil and gas interests (noted as lost rights) and the validity of the Canadian mineral claims (Eagle Property).
- Going Concern Status: Review the likelihood of the Company ceasing operations if additional capital is not raised immediately.