[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
[ ]
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
ITEM 8.01 | OTHER EVENTS. |
ITEM 9.01 | EXHIBITS. |
Exhibit No.
|
Document Description
|
99.1
|
Audited Financial Statements for the period ended July 31, 2014 and 2013
|
99.2
|
Unaudited Financial Statements for the period ended January 31, 2015
|
99.3
|
Pro Forma Financial Statements
|
AMAZING ENERGY OIL AND GAS, CO.
|
||
formerly, Gold Crest Mines, Inc.
|
||
BY:
|
TERRENCE J. DUNNE
|
|
Terrence J. Dunne, President
|
INDEPENDENT AUDITOR'S REPORT
|
F-1
|
|
FINANCIAL STATEMENTS FOR THE YEARS ENDED JULY 31, 2014 AND 2013:
|
||
Consolidated Balance Sheets
|
F-2
|
|
Consolidated Statements of Operations
|
F-3
|
|
Consolidated Statement of Stockholders' Equity
|
F-4
|
|
Consolidated Statements of Cash Flows
|
F-5
|
|
Notes to Consolidated Financial Statements
|
F-6
|
July 31, 2014
|
July 31, 2013
|
|||||||
OIL & GAS SALES
|
1,414,276
|
561,235
|
||||||
OPERATING EXPENSES
|
||||||||
Lease Operating Expenses
|
449,960
|
123,024
|
||||||
Selling, General, & Administrative Expenses
|
671,873
|
696,908
|
||||||
Depreciation Expense
|
10,828
|
-
|
||||||
Depletion Expense
|
500,355
|
66,527
|
||||||
Accretion Expense
|
12,605
|
6,842
|
||||||
Gain on Sale of Assets
|
-
|
(36,500
|
)
|
|||||
TOTAL OPERATING EXPENSES
|
1,645,621
|
856,801
|
||||||
LOSS FROM OPERATIONS
|
(231,345
|
)
|
(295,566
|
)
|
||||
OTHER EXPENSE
|
||||||||
Interest Expense
|
(192,313
|
)
|
(191,964
|
)
|
||||
TOTAL OTHER EXPENSE
|
(192,313
|
)
|
(191,964
|
)
|
||||
NET LOSS
|
(423,658
|
)
|
(487,530
|
)
|
Preferred
|
Preferred
|
Preferred
|
Preferred
|
Preferred
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common
|
Treasury
|
Stock
|
Stock
|
Stock
|
Stock
|
Stock
|
Additional
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock
|
Stock
|
Series A
|
Series B
|
Series C
|
Series D
|
Series E
|
Paid-in
|
Accumulated
|
Stockholders'
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit
|
Deficit
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
Balances, July 31, 2012
|
13,655,500
|
$
|
136
|
57,713
|
$
|
(60,000
|
)
|
1,000,000
|
$
|
10,000
|
1,000,000
|
$
|
10,000
|
1,000,000
|
$
|
10,000
|
1,000,000
|
$
|
10,000
|
317,581
|
$
|
3,176
|
$
|
5,122,720
|
$
|
(2,495,365
|
)
|
$
|
2,610,667
|
||||||||||||||||||||||||||||||||||||||
Preferred E Shares issued for Cash
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
659,446
|
6,594
|
1,147,436
|
-
|
1,154,030
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury Shares Repurchased
|
-
|
-
|
-
|
(30,998
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(30,998
|
)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
62,500
|
1
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
122,653
|
-
|
122,654
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(487,530
|
)
|
(487,530
|
)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Balances, July 31, 2013
|
13,718,000
|
$
|
137
|
57,713
|
$
|
(90,998
|
)
|
1,000,000
|
$
|
10,000
|
1,000,000
|
$
|
10,000
|
1,000,000
|
$
|
10,000
|
1,000,000
|
$
|
10,000
|
977,027
|
$
|
9,770
|
$
|
6,392,809
|
$
|
(2,982,895
|
)
|
$
|
3,368,823
|
||||||||||||||||||||||||||||||||||||||
Forfeiture of stock award
|
(51,786
|
)
|
(1
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(9,294
|
)
|
-
|
(9,295
|
)
|
||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
76,489
|
-
|
76,489
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred E Shares issued for cash
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
10,000
|
100
|
17,400
|
-
|
17,500
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(423,658
|
)
|
(423,658
|
)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Balances, July 31, 2014
|
13,666,214
|
$
|
136
|
57,713
|
$
|
(90,998
|
)
|
1,000,000
|
$
|
10,000
|
1,000,000
|
$
|
10,000
|
1,000,000
|
$
|
10,000
|
1,000,000
|
$
|
10,000
|
987,027
|
$
|
9,870
|
6,477,404
|
$
|
(3,406,553
|
)
|
$
|
3,029,859
|
July 31, 2014
|
July 31, 2013
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net Loss
|
(423,658
|
)
|
(487,530
|
)
|
||||
Adjustments to reconcile net loss to cash
provided by (used in) operating activities
|
||||||||
Stock based compensation
|
67,195
|
122,654
|
||||||
Depreciation Expense
|
10,828
|
-
|
||||||
Depletion Expense
|
500,355
|
66,527
|
||||||
Accretion Expense
|
12,605
|
6,842
|
||||||
Changes in Operating Assets and Liabilities:
|
||||||||
Accounts Receivable
|
(160,695
|
)
|
(49,582
|
)
|
||||
Prepaid Expenses & Other Current Assets
|
27,743
|
4,884
|
||||||
Accounts Payable
|
(23,798
|
)
|
(313,073
|
)
|
||||
Accounts Payable, Related Party
|
34,560
|
103,605
|
||||||
Accrued Expenses
|
113,462
|
(6,650
|
)
|
|||||
Employee Receivables
|
-
|
16,245
|
||||||
Net cash provided by (used in) operating activities
|
158,597
|
(536,078
|
)
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Cash paid for purchase of property and equipment
|
(21,949
|
)
|
(3,054
|
)
|
||||
Cash paid for purchase of oil and gas properties
|
(1,048,697
|
)
|
(1,604,388
|
)
|
||||
Cash received for sale of oil and gas properties
|
30,785
|
-
|
||||||
Cash paid for Security Deposits
|
(26,621
|
)
|
-
|
|||||
Net cash used in investing activities
|
(1,066,482
|
)
|
(1,607,442
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
s
|
||||||||
Proceeds from the sale of Preferred Stock
|
17,500
|
1,154,030
|
||||||
Purchase of Treasury Shares
|
-
|
(30,998
|
)
|
|||||
Net cash provided by financing activities
|
17,500
|
1,123,032
|
||||||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(890,385
|
)
|
(1,020,488
|
)
|
||||
CASH AND CASH EQUIVALENTS - BEGINNING
|
1,325,004
|
2,345,492
|
||||||
CASH AND CASH EQUIVALENTS - ENDING
|
434,619
|
1,325,004
|
||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
|
||||||||
Interest Paid
|
80,185
|
191,964
|
||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
||||||||
Adjustment to oil & gas properties for returned leaseholder payments
|
-
|
105,600
|
||||||
Asset Retirement Obligation Incurred
|
24,847
|
107,292
|
||||||
Revisions in Estimate of ARO
|
(11,710
|
)
|
-
|
|||||
Oil & gas additions in AP
|
7,014
|
-
|
(a) | ranks superior to the Common Stock and all future ‐ created series of Preferred Stock; |
(b) | cumulative dividends accrue in the amount of eight percent of the stated value of $0.75 per share, payable annually in cash or stock, at the option of the Corporation; |
(c) | convertible into Common Stock at a conversion price of $0.60 per share; |
(d) | redeemable at the option of the Company at any time after twelve months at a price equal to 120% of the stated value; |
(e) | liquidation preference in an amount per share equal to the greater of (i) the stated value plus all accrued and unpaid dividends on such share, if any, or (ii) the per share amount a holder of Series A Preferred Stock would have been entitled to receive if such holder had exercised its conversion rights; |
(f) | no voting rights; |
(g) | voluntary conversion by the holder, and mandatory conversion upon request of the Company, at a 125% premium, following a change of control; and |
(h) | standard anti ‐ dilution adjustments for common stock dividends and splits, mergers and similar transactions. |
Fiscal Period
|
Accrued Series A
Preferred
Dividends
|
Shares of
Common Stock
Issued from
Conversion
|
Number of
Accredited
Investors
|
||||
Year Ended July 31, 2011
|
$
|
28,151
|
1,250,000
|
10
|
|||
Year Ended July 31, 2012
|
$
|
88,151
|
1,250,000
|
10
|
|||
Year Ended July 31, 2013
|
$
|
148,151
|
1,250,000
|
10
|
|||
Year Ended July 31, 2014
|
$
|
208,151
|
1,250,000
|
10
|
(a) | ranks superior to the Common Stock and all future ‐ created series of Preferred Stock; |
(b) | cumulative dividends accrue in the amount of eight percent of the stated value of $1.00 per share, payable annually in cash or stock, at the option of the Corporation; |
(c) | convertible into Common Stock at a conversion price of $0.83 per share; |
(d) | redeemable at the option of the Company at any time after twelve months at a price equal to 120% of the stated value; |
(e) | liquidation preference in an amount per share equal to the greater of (i) the stated value plus all accrued and unpaid dividends on such share, if any, or (ii) the per share amount a holder of Series A Preferred Stock would have been entitled to receive if such holder had exercised its conversion rights; (f) no voting rights; |
(g) | voluntary conversion by the holder, and mandatory conversion upon request of the Company , at a 120% premium, following a change of control; and |
(h) | standard anti ‐ dilution adjustments for common stock dividends and splits, mergers and similar transactions. |
Fiscal Period
|
Accrued Series B
Preferred
Dividends
|
Shares of
Common Stock
Issued from
Conversion
|
Number of
Accredited
Investors
|
||||
Year Ended July 31, 2011
|
$
|
18,848
|
1,182,000
|
37
|
|||
Year Ended July 31, 2012
|
$
|
97,648
|
1,182,000
|
37
|
|||
Year Ended July 31, 2013
|
$
|
176,448
|
1,182,000
|
37
|
|||
Year Ended July 31, 2014
|
$
|
255,248
|
1,182,000
|
37
|
(a) | ranks superior to the Common Stock and all future ‐ created series of Preferred Stock; |
(b) | cumulative dividends accrue in the amount of eight percent of the stated value of $1.25 per share, payable annually in cash or stock, at the option of the Corporation; |
(c) | convertible into Common Stock at a conversion price of $1.09 per share; |
(d) | redeemable at the option of the Company at any time after twelve months at a price equal to 120% of the stated value; |
(e) | liquidation preference in an amount per share equal to the greater of (i) the stated value plus all accrued and unpaid dividends on such share, if any, or (ii) the per share amount a holder of Series A Preferred Stock would have been entitled to receive if such holder had exercised its conversion rights; |
(f) | no voting rights; |
(g) | voluntary conversion by the holder, and mandatory conversion upon request of the Company, at a 115% premium, following a change of control; and |
(h) | standard anti ‐ dilution adjustments for common stock dividends and splits, mergers and similar transactions. |
Fiscal Period
|
Accrued Series C
Preferred
Dividends
|
Shares of
Common Stock
Issued from
Conversion
|
Number of
Accredited
Investors
|
||||
Year Ended July 31, 2011
|
$
|
8,333
|
1,150,000
|
11
|
|||
Year Ended July 31, 2012
|
$
|
108,333
|
1,150,000
|
11
|
|||
Year Ended July 31, 2013
|
$
|
208,333
|
1,150,000
|
11
|
|||
Year Ended July 31, 2014
|
$
|
308,333
|
1,150,000
|
11
|
(a)
|
ranks superior to the Common Stock and all future
‐
created series of Preferred Stock;
|
(b)
|
cumulative dividends accrue in the amount of eight percent of the stated value of $1.50 per share, payable annually in cash or stock, at the option of the Corporation;
|
(c)
|
convertible into Common Stock at a conversion price of $1.36 per share;
|
(d)
|
redeemable at the option of the Company at any time after twelve months at a price equal to 120% of the stated value;
|
(e)
|
liquidation preference in an amount per share equal to the greater of (i) the stated value plus all accrued and unpaid dividends on such share, if any, or (ii) the per share amount a holder of Series A Preferred Stock would have been entitled to receive if such holder had exercised its conversion rights;
|
(f)
|
no voting rights;
|
(g)
|
voluntary conversion by the holder, and mandatory conversion upon request of the Company, at a 110% premium, following a change of control; and
|
(h)
|
standard anti
‐
dilution adjustments for common stock dividends and splits, mergers and similar transactions.
|
Fiscal Period
|
Accrued Series D
Preferred
Dividends
|
Shares of
Common Stock
Issued from
Conversion
|
Number of
Accredited
Investors
|
||||
Year Ended July 31, 2011
|
$
|
-
|
-
|
0
|
|||
Year Ended July 31, 2012
|
$
|
75,579
|
1,100,000
|
43
|
|||
Year Ended July 31, 2013
|
$
|
195,579
|
1,100,000
|
43
|
|||
Year Ended July 31, 2014
|
$
|
315,579
|
1,100,000
|
43
|
(a)
|
ranks superior to the Common Stock and all future
‐
created series of Preferred Stock;
|
(b)
|
cumulative dividends accrue in the amount of eight percent of the stated value of $1.75 per share, payable annually in cash or stock, at the option of the Corporation;
|
(c)
|
convertible into Common Stock at a conversion price of $1.67 per share;
|
(d)
|
redeemable at the option of the Company at any time after twelve months at a price equal to 120% of the stated value;
|
(e)
|
liquidation preference in an amount per share equal to the greater of (i) the stated value plus all accrued and unpaid dividends on such share, if any, or (ii) the per share amount a holder of Series A Preferred Stock would have been entitled to receive if such holder had exercised its conversion rights;
|
(f)
|
no voting rights;
|
(g)
|
voluntary conversion by the holder, and mandatory conversion upon request of the Company, at a 105% premium, following a change of control; and
|
(h)
|
standard anti
‐
dilution adjustments for common stock dividends and splits, mergers and similar transactions.
|
Fiscal Period
|
Accrued Series E
Preferred
Dividends
|
Shares of
Common Stock
Issued from
Conversion
|
Number of
Accredited
Investors
|
||||
Year Ended July 31, 2011
|
$
|
-
|
-
|
0
|
|||
Year Ended July 31, 2012
|
$
|
812
|
333,460
|
5
|
|||
Year Ended July 31, 2013
|
$
|
115,810
|
1,025,878
|
23
|
|||
Year Ended July 31, 2014
|
$
|
253,461
|
1,036,878
|
24
|
2014
|
2013
|
|||||||
Total capitalized costs
|
6,752,312
|
5,714,252
|
||||||
Less accumulated depreciation, depletion and
|
||||||||
amortization
|
(566,882
|
)
|
(66,527
|
)
|
||||
Net capitalized costs
|
$
|
6,185,430
|
$
|
5,647,725
|
Year ended
|
Year ended
|
|||||||
July 31, 2014
|
July 31, 2013
|
|||||||
Federal Income Tax Benefit at:
|
||||||||
Statutory Rate
|
(784,228
|
)
|
(640,184
|
)
|
||||
Permanent Differences
|
14,867
|
9,984
|
||||||
Valuation Allowance
|
769,361
|
630,200
|
||||||
Provision for Income Taxes
|
-
|
-
|
July 31, 2014
|
July 31, 2013
|
|||||||
Deferred Tax Assets:
|
||||||||
Net Operating Loss
|
$
|
2,091,317
|
$
|
1,721,777
|
||||
Carryforward
|
||||||||
Accruals
|
-
|
-
|
||||||
Reserves
|
-
|
-
|
||||||
Deferred Tax Liabilities:
|
||||||||
Intangible drilling and other
costs for oil and gas properties
|
(1,321,956
|
)
|
(1,091,577
|
)
|
||||
Net deferred tax assets and liabilities
|
769,361
|
630,200
|
||||||
Less valuation allowance
|
(769,361
|
)
|
(630,200
|
)
|
||||
Total deferred tax assets and liabilities
|
$
|
-
|
$
|
-
|
July 31,
2013
|
July 31,
2014
|
|||||||
Asset retirement obligation – beginning of period
|
$
|
252,870
|
$
|
138,736
|
||||
Asset retirement obligation incurred
|
24,847
|
107,292
|
||||||
Asset retirement obligation sold
|
-
|
-
|
||||||
Accretion
|
12,605
|
6,842
|
||||||
Revisions in estimated cash flows
|
(11,710
|
)
|
-
|
|||||
Cost incurred
|
-
|
-
|
||||||
Asset retirement obligation – end of period
|
$
|
278,612
|
$
|
252,870
|
Year ended July 31, 2014
|
United States
|
|||
Acquisition costs of properties:
|
||||
Proved .........................................................................................................................................
|
$
|
—
|
||
Unproved ....................................................................................................................................
|
||||
Exploration costs ....................................................................................................................................
|
—
|
|||
Development costs..................................................................................................................................
|
1,055,711
|
|||
Total................................................................................................................................
|
$
|
1,055,711
|
||
Year ended July 31, 2013
|
||||
Acquisition costs of properties:
|
||||
Proved .........................................................................................................................................
|
$
|
443,403
|
||
Unproved ....................................................................................................................................
|
—
|
United States
|
||||
Exploration costs ....................................................................................................................................
|
—
|
|||
Development costs..................................................................................................................................
|
937,564
|
|||
Total................................................................................................................................
|
$
|
1,380,967
|
As of July 31, 2014
|
United States
|
|||
Proved properties .............................................................................................................................
|
$
|
6,752,312
|
||
Unproved properties ........................................................................................................................
|
—
|
|||
Total oil and gas properties .................................................................................................
|
6,752,312
|
|||
Accumulated DD&A .......................................................................................................................
|
(566,882
|
)
|
||
Net oil and gas properties ....................................................................................................
|
$
|
6,185,430
|
||
As of July 31, 2013
|
||||
Proved properties .............................................................................................................................
|
$
|
5,714,252
|
||
Unproved properties ........................................................................................................................
|
—
|
|||
Total oil and gas properties .................................................................................................
|
5,714,252
|
|||
Accumulated DD&A .......................................................................................................................
|
(66,527
|
)
|
||
Net oil and gas properties ....................................................................................................
|
$
|
5,647,725
|
·
|
Future revenues were based on an unweighted 12-month average of the first-day-of-the-month price held constant throughout the life of the properties.
|
·
|
Production and development costs were computed using year-end costs assuming no change in present economic conditions.
|
·
|
Future net cash flows were discounted at an annual rate of 10%.
|
For the Year Ended July 31,
|
2014
|
2013
|
||||||||||||||
Oil (1)
|
Natural
Gas (1)
|
Oil (1)
|
Natural
Gas (1)
|
|||||||||||||
Net proved developed and undeveloped reserves:
|
||||||||||||||||
Beginning of year.......................................................................
|
597,898
|
1,992,686
|
274,806
|
3,455,532
|
||||||||||||
Revisions of previous estimates ........................................
|
(351,117
|
)
|
(1,112,901
|
)
|
189,994
|
(1,898,551
|
)
|
|||||||||
Extensions, discoveries and other additions......................
|
39,435
|
283,223
|
138,498
|
463,091
|
||||||||||||
Production ..........................................................................
|
(11,466
|
)
|
(107,458
|
)
|
(5,400
|
)
|
(27,386
|
)
|
||||||||
End of year................................................................................
|
274,750
|
1,055,550
|
597,898
|
1,992,686
|
||||||||||||
Net proved developed reserves:
|
||||||||||||||||
Beginning of year......................................................................
|
419,214
|
1,677,460
|
159,339
|
2,210,372
|
||||||||||||
End of year...............................................................................
|
201,150
|
753,670
|
419,214
|
1,677,460
|
·
|
future costs and sales prices will probably differ from those required to be used in these calculations;
|
·
|
actual production rates for future periods may vary significantly from the rates assumed in the calculations;
|
·
|
a 10% discount rate may not be reasonable relative to risk inherent in realizing future net oil and gas revenues;
|
·
|
and future net revenues may be subject to different rates of income taxation.
|
Future cash inflows ..............................................................................................................
|
$
|
27,530,730
|
||
Future production costs ........................................................................................................
|
(8,252,720
|
)
|
||
Future development costs......................................................................................................
|
(1,908,400
|
)
|
||
Future income tax expense....................................................................................................
|
(6,079,363
|
)
|
||
10% discount for estimated timing of cash flows.................................................................
|
(3,529,403
|
)
|
||
Standardized measure of discounted future net cash flows..................................................
|
$
|
7,760,844
|
Future cash inflows
|
$
|
61,781,556
|
||
Future production costs
|
(12,281,127
|
)
|
||
Future development costs
|
(2,799,400
|
)
|
||
Future income tax expense
|
(16,345,361
|
)
|
||
10% discount for estimated timing of cash flows
|
(19,887,367
|
)
|
||
Standardized measure of discounted future net cash flows
|
$
|
10,468,301
|
Year Ended July 31,
|
||||||||
2014
|
2013
|
|||||||
Standardized Measure, beginning of year
|
$
|
10,468,301
|
$
|
9,438,367
|
||||
Sales of oil produced, net of production costs
|
(964,317
|
)
|
(438,211
|
)
|
||||
Net changes in prices, development and production costs
|
(3,492,083
|
)
|
9,653,916
|
|||||
Extensions, discoveries and improved recovery, less related costs
|
2,605,202
|
4,117,711
|
||||||
Development costs incurred and changes during the period
|
1,055,711
|
(1,539,553
|
)
|
|||||
Revisions of previous quantity estimates
|
(8,232,979
|
)
|
(3,971,029
|
)
|
||||
Accretion of discount
|
4,059,268
|
(420,242
|
)
|
|||||
Net changes in production rates and other
|
428,376
|
(5,546,861
|
)
|
|||||
Net change in income taxes
|
1,833,365
|
(825,797
|
)
|
|||||
Standardized Measure, end of year
|
$
|
7,760,844
|
$
|
10,468,301
|
|
Page
|
|
PART I.
|
FINANCIAL INFORMATION
|
|
Item 1.
|
Financial Statements (unaudited)
|
|
|
Consolidated Balance Sheet – October 31, 2014 and July 31, 2014
|
F-1
|
|
Consolidated Statement of Operations - for the three months ended October 31, 2014 and 2013
|
F-2
|
|
Consolidated Statement of Cash Flows - for the three months ended October 31, 2014 and 2013
|
F-3
|
|
Notes to Unaudited Consolidated Financial Statements
|
F-4
|
|
October 31,
2014 |
July 31,
2014 |
||||||
|
(Unaudited)
|
|
||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
384,515
|
$
|
434,619
|
||||
Oil and gas receivables, related party
|
182,531
|
234,598
|
||||||
Total current assets
|
567,046
|
669,217
|
||||||
Property, Plant and Equipment, net
|
58,149
|
59,917
|
||||||
Oil and Gas Properties, Full Cost Method
|
||||||||
Evaluated properties, net of accumulated depletion of $677,206 and $566,882 respectively
|
6,173,293
|
6,185,430
|
||||||
Total oil and gas properties, full cost method
|
6,173,293
|
6,185,430
|
||||||
Other assets, net
|
26,621
|
26,621
|
||||||
|
||||||||
|
$
|
6,825,109
|
$
|
6,941,185
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$
|
100
|
$
|
-
|
||||
Accounts payable, related party
|
101,990
|
145,176
|
||||||
Accrued liabilities
|
7,561
|
6,805
|
||||||
Interest payable, related party
|
160,369
|
112,259
|
||||||
Short-term debt, related party
|
673,695
|
673,695
|
||||||
Total current liabilities
|
943,715
|
937,935
|
||||||
Long-term Liabilities:
|
||||||||
Asset retirement obligation
|
282,053
|
278,612
|
||||||
Long-term debt, related party
|
2,694,779
|
2,694,779
|
||||||
Total long-term liabilities
|
2,976,832
|
2,973,391
|
||||||
Shareholders' Equity:
|
||||||||
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized, 0 and 4,987,027
shares issued and outstanding
|
-
|
49,870
|
||||||
Common stock, $0.00001 par value per share, 100,000,000 shares authorized, 22,009,592 and
13,666,214 issued and outstanding
|
220
|
136
|
||||||
Treasury Stock
|
(112,998
|
)
|
(90,998
|
)
|
||||
Additional paid-in capital
|
6,666,730
|
6,477,404
|
||||||
Accumulated deficit
|
(3,649,390
|
)
|
(3,406,553
|
)
|
||||
Total shareholders' equity
|
2,904,562
|
3,029,859
|
||||||
|
||||||||
|
$
|
6,825,109
|
$
|
6,941,185
|
|
Three Months Ended
October 31,
|
|||||||
|
2014
|
2013
|
||||||
Revenue from oil and gas sales, net
|
$
|
324,317
|
$
|
181,605
|
||||
Operating costs and expenses:
|
||||||||
Lease operating expense
|
218,000
|
80,104
|
||||||
Selling, general and administrative expenses
|
185,614
|
147,051
|
||||||
Depreciation expense
|
1,768
|
2,707
|
||||||
Depletion expense
|
110,324
|
97,574
|
||||||
Accretion expense
|
3,441
|
3,151
|
||||||
Total operating costs and expenses
|
519,147
|
330,587
|
||||||
Operating loss
|
(194,830
|
)
|
(148,982
|
)
|
||||
Other income (expense):
|
||||||||
Interest income
|
104
|
-
|
||||||
Interest expense
|
(48,111
|
)
|
(48,096
|
)
|
||||
Total other income (expense)
|
(48,007
|
)
|
(48,096
|
)
|
||||
Net loss
|
$
|
(242,837
|
)
|
$
|
(197,078
|
)
|
Three Months Ended October 31,
|
||||||||
2014
|
2013
|
|||||||
Operating Activities:
|
||||||||
Net loss
|
$
|
(242,837
|
)
|
$
|
(197,078
|
)
|
||
Adjustments to reconcile net loss to net cash
used in operating activities:
|
||||||||
Stock based compensation expense
|
71,557
|
16,799
|
||||||
Depreciation expense
|
1,768
|
2,707
|
||||||
Depletion expense
|
110,324
|
97,574
|
||||||
Accretion expense
|
3,441
|
3,151
|
||||||
Changes operating assets and liabilities:
|
||||||||
Accounts receivable
|
52,067
|
(15,518
|
)
|
|||||
Accounts payable
|
100
|
84,705
|
||||||
Accounts payable, related party
|
(43,186
|
)
|
(79,837
|
)
|
||||
Accrued expenses
|
48,866
|
53,575
|
||||||
Net cash provided by operating activities
|
2,100
|
(33,922
|
)
|
|||||
Investing Activities:
|
||||||||
Proceeds from the sale of oil and gas properties
|
66,777
|
-
|
||||||
Cash paid for purchase of property and equipment
|
-
|
(6,312
|
)
|
|||||
Cash paid for purchase of oil and gas properties
|
(164,964
|
)
|
(123,261
|
)
|
||||
Net cash used in investing activities
|
(98,187
|
)
|
(129,573
|
)
|
||||
Financing Activities:
|
||||||||
Proceeds from sale of common stock, net
|
1,500,000
|
-
|
||||||
Purchase of treasury shares
|
(22,000
|
)
|
-
|
|||||
Cash paid for preferred stock dividends
|
(1,432,017
|
)
|
-
|
|||||
Net cash provided by financing activities
|
45,983
|
-
|
||||||
Net increase (decrease) in cash and cash equivalents
|
(50,104
|
)
|
(163,495
|
)
|
||||
Cash and cash equivalents, beginning of period
|
434,619
|
1,325,004
|
||||||
Cash and cash equivalents, end of period
|
$
|
384,515
|
$
|
1,161,509
|
Index
|
|
Unaudited Pro Forma Consolidated Balance Sheet as of July 31, 2014
|
F-1
|
Unaudited Pro Forma Consolidated Statement of Operations
|
|
for the Year Ended July 31, 2014
|
F-2
|
Unaudited Pro Forma Consolidated Statement of Operations
|
|
for the Three Months Ended October 31, 2014
|
F-3
|
Notes to the Unaudited Pro Forma Consolidated Financial Statements
|
F-4
|
AMAZING ENERGY OIL AND GAS CO.
|
|||||||||||||
Unaudited Pro Forma Consolidated Statements of Operations
|
|||||||||||||
For the Fiscal Year Ended July 31, 2014
|
|||||||||||||
Adjusted
|
|||||||||||||
Gold
|
Amazing
|
Combined
|
Pro Forma
|
Pro Forma
|
|||||||||
Crest
|
Energy, Inc.
|
Totals
|
Adjustments
|
REF
|
Totals
|
||||||||
OIL & GAS SALES
|
1,414,276
|
1,414,276
|
1,414,276
|
||||||||||
OPERATING EXPENSES
|
|||||||||||||
Lease Operating Expenses
|
449,960
|
449,960
|
449,960
|
||||||||||
Selling, General, & Administrative Expenses
|
97,652
|
671,873
|
769,525
|
769,525
|
|||||||||
Depreciation Expense
|
10,828
|
10,828
|
10,828
|
||||||||||
Depletion Expense
|
500,355
|
500,355
|
500,355
|
||||||||||
Accretion Expense
|
12,605
|
12,605
|
12,605
|
||||||||||
Gain on Sale of Assets
|
-
|
||||||||||||
TOTAL OPERATING EXPENSES
|
97,652
|
1,645,621
|
1,743,273
|
1,743,273
|
|||||||||
INCOME (LOSS) FROM OPERATIONS
|
(97,652)
|
(231,345)
|
(328,997)
|
(328,997)
|
|||||||||
OTHER INCOME (EXPENSE)
|
|||||||||||||
Interest Expense
|
(192,313)
|
(192,313)
|
(192,313)
|
||||||||||
TOTAL OTHER INCOME (EXPENSE)
|
(192,313)
|
(192,313)
|
(192,313)
|
||||||||||
NET INCOME (LOSS)
|
(97,652)
|
(423,658)
|
(521,310)
|
(521,310)
|
Unaudited Pro Forma Consolidated Statements of Operations
|
|||||||||||||
For the Three Months Periods Ended October 31, 2014
|
|||||||||||||
Adjusted
|
|||||||||||||
Gold
|
Amazing
|
Combined
|
Pro Forma
|
Pro Forma
|
|||||||||
Crest
|
Energy, Inc.
|
Totals
|
Adjustments
|
REF
|
Totals
|
||||||||
OIL & GAS SALES
|
324,317
|
324,317
|
324,317
|
||||||||||
OPERATING EXPENSES
|
|||||||||||||
Lease Operating Expenses
|
218,000
|
218,000
|
218,000
|
||||||||||
Selling, General, & Administrative Expenses
|
95,462
|
185,614
|
281,076
|
281,076
|
|||||||||
Depreciation Expense
|
1,768
|
1,768
|
1,768
|
||||||||||
Depletion Expense
|
110,324
|
110,324
|
110,324
|
||||||||||
Accretion Expense
|
3,441
|
3,441
|
3,441
|
||||||||||
Gain on Sale of Assets
|
|||||||||||||
TOTAL OPERATING EXPENSES
|
95,462
|
519,147
|
614,609
|
614,609
|
|||||||||
INCOME (LOSS) FROM OPERATIONS
|
(95,462)
|
(194,830)
|
(290,292)
|
(290,292)
|
|||||||||
OTHER INCOME (EXPENSE)
|
|||||||||||||
Interest Income
|
104
|
104
|
104
|
||||||||||
Interest Expense
|
(48,111)
|
(48,111)
|
(48,111)
|
||||||||||
TOTAL OTHER INCOME (EXPENSE)
|
(48,007)
|
(48,007)
|
(48,007)
|
||||||||||
NET INCOME (LOSS)
|
(95,462)
|
(242,837)
|
(338,299)
|
(338,299)
|
a)
|
An unaudited pro forma consolidated balance sheet combining the audited balance sheet of Amazing Energy, Inc. as of July 31, 2014, with the unaudited balance sheet of Gold Crest Mines, Inc. as of July 31, 2014, giving the effect to the transaction is if it occurred on July 31, 2014.
|
b)
|
An unaudited pro forma consolidated statement of operations combining the audited statement of operations of Amazing Energy, Inc. for the year ended July 31, 2014, with the unaudited statement of operations of Gold Crest Mines, Inc. for the year ended July 31, 2014, giving effect to the transaction as if it occurred on July 31, 2014.
|
c)
|
An unaudited pro forma consolidated statement of operations combining the unaudited statement of operations of Amazing Energy, Inc. for the three months ended October 31, 2014, with the unaudited statement of operations of Gold Crest Mines, Inc. for the three months ended October 31, 2014, giving effect to the transaction as if it occurred on July 31, 2014.
|
REF
|
Acct Name
|
Description
|
|
|
1
|
Common Stock
|
Exchange 12,829,000 shares of Amazing Energy for
|
128
|
|
1
|
Additional Paid-in Capital
|
384,848,508 shares of Gold Crest Mines
|
(128)
|
|
2
|
Common Stock
|
Exchange 12,829,000 shares of Amazing Energy for
|
(384,849)
|
|
2
|
Additional Paid-in Capital
|
384,848,508 shares of Gold Crest
|
384,849
|
|
3
|
Preferred Stock
|
Issue 79,755 preferred shares of Gold Crest convertible
|
(79,755)
|
|
3
|
Additional Paid-in Capital
|
into common at 10,000 to 1
|
79,755
|
|
4
|
Common Stock
|
Unconverted shares of Amazing Energy of
|
92
|
|
4
|
Minority Interest
|
9,181,843 shares; will convert into 844,254,382
|
(92)
|
|
5
|
Common Stock
|
To convert Series A Preferred to
|
(13)
|
|
5
|
Preferred Stock
|
1,250,000 shares of Amazing Energy common and
|
10,000
|
|
5
|
Additional Paid-in Capital
|
will convert into 115,207,587 of Gold Crest
|
(9,987)
|
|
6
|
Common Stock
|
To convert Series B Preferred to
|
(12)
|
|
6
|
Preferred Stock
|
1,182,000 shares of Amazing Energy common and
|
10,000
|
|
6
|
Additional Paid-in Capital
|
will convert into 108,940,294 of Gold Crest
|
(9,988)
|
|
7
|
Common Stock
|
To convert Series C Preferred to
|
(12)
|
|
7
|
Preferred Stock
|
1,150,000 shares of Amazing Energy common and
|
10,000
|
|
7
|
Additional Paid-in Capital
|
will convert into 105,990,980 of Gold Crest
|
(9,988)
|
|
8
|
Common Stock
|
To convert Series D Preferred to
|
(11)
|
|
8
|
Preferred Stock
|
1,100,000 shares of Amazing Energy common and
|
10,000
|
|
8
|
Additional Paid-in Capital
|
will convert into 101,382,677 of Gold Crest
|
(9,989)
|
|
9
|
Common Stock
|
To convert Series E Preferred to
|
(10)
|
|
9
|
Preferred Stock
|
1,036,378 shares of Amazing Energy common and
|
9,870
|
|
9
|
Additional Paid-in Capital
|
will convert into 95,518,887 of Gold Crest
|
(9,860)
|
|
10
|
Treasury Stock
|
Eliminate Treasury Shares of Amazing Energy
|
(90,998)
|
|
10
|
Additional Paid-in Capital
|
90,998
|
||
11
|
Deficit
|
Eliminate Gold Crest Deficit
|
(9,772,110)
|
|
11
|
Additional Paid-in Capital
|
9,772,110
|