Business Context and Reporting Period
Company: GoEnergy, Inc. (Note: Metadata listed "Prairie Operating Co." but filing text confirms registrant is GoEnergy, Inc.)
Reporting Period: Quarter ended January 31, 2010 (Three and Six Months)
Status: Exploration Stage Company / Smaller Reporting Company / Shell Company
Operations: The Company is in the exploration stage with no revenue. It holds interests in the "Eagle Property" (mineral claims in British Columbia, Canada) and previously held oil and gas interests in Texas which were lost. The Company has not commenced exploration activities on the Eagle Property due to lack of funds.
Key Financial Metrics
| Metric | Three Months Ended Jan 31, 2010 | Six Months Ended Jan 31, 2010 | Balance Sheet (Jan 31, 2010) |
|---|---|---|---|
| Revenue | $0 | $0 | N/A |
| Net Loss | $(16,517) | $(19,637) | N/A |
| Cash and Equivalents | N/A | N/A | $603 |
| Total Assets | N/A | N/A | $603 |
| Total Current Liabilities | N/A | N/A | $111,914 |
| Working Capital | N/A | N/A | $(111,311) |
| Accumulated Deficit | N/A | N/A | $(182,956) |
| Related Party Debt | N/A | N/A | $106,848 (Loan) + $2,566 (Interest) |
Note: The filing does not provide margin data as there is no revenue.
Material Changes vs. Prior Period
- Cash Position: Cash decreased from $4,802 (July 31, 2009) to $603 (January 31, 2010), a reduction of approximately 87%.
- Net Loss: Net loss for the three months ended Jan 31, 2010 was $(16,517), compared to $(5,375) in the same period in 2009. This increase is primarily driven by higher professional fees ($12,553 vs $4,854) and the incurrence of interest expenses on related party loans.
- Liabilities: Total current liabilities increased from $96,476 to $111,914, largely due to an increase in the loan from a related party ($90,000 to $106,848) and accrued interest.
Outlook, Risks, and Management Commentary
- Going Concern: The filing explicitly states that the Company's accumulated 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: Cash reserves ($603) are insufficient to fund operations for the remainder of the fiscal year or the next 12 months. The Company has no funds to commence the planned three-phase exploration of the Eagle Property.
- Funding Strategy: Management plans to raise funds through borrowing or equity issuances. The Company anticipates relying on its majority shareholder to pay expenses, though the shareholder is under no obligation to do so.
- Exploration Plan:
- Phase 1: Estimated cost $6,200 (Surface sampling). Not started due to lack of funds.
- Phase 2: Estimated cost $16,500 (Soil grid extension). Contingent on Phase 1.
- Phase 3: Estimated cost $126,500 (Trenching/Geophysics). Contingent on Phase 2.
- Risks: No assurance of raising capital; no known mineral reserves; potential inability to meet obligations; reliance on related party funding.
Investor Verification Checklist
- Capital Adequacy: Verify if the Company has secured the necessary funding to cover the $111,914 in current liabilities and fund the initial $6,200 exploration phase.
- Related Party Dependence: Confirm the status of the $106,848 loan from the related party and whether the shareholder intends to continue funding operations.
- Asset Status: Verify the current legal status and value of the "Eagle Property" mineral claims in British Columbia.
- Going Concern: Assess the likelihood of the Company ceasing operations if additional equity or debt financing is not obtained immediately.