XOTC:DUMA Quarterly Report 10-Q Filing - 1/31/2012

Effective Date 1/31/2012

form10q.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 10-Q
 
x
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934: For the quarterly period ended January 31, 2012
 
or

o
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934: For the transition period from _______ to _________
 
Commission file number: 000-53313
 
STRATEGIC AMERICAN OIL CORPORATION
(Exact name of registrant as specified in its charter)
 
NEVADA
 
98-0454144
(State or other jurisdiction of incorporation or organization)
 
(IRS Employer Identification No.)
 
800 Gessner, Suite 200
Houston, Texas  77024
(Address of principal executive offices, including zip code)

361-884-7474
(registrant’s principal executive office telephone number)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x   No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x    Noo
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
 
Large accelerated filer      o
 
Accelerated filer                        o
 
 
 
Non-accelerated filer         o
 
Smaller reporting company     x
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes o   No x

As of March 16, 2012, 269,742,986 shares of common stock, $0.001 par value, were outstanding.
 


 
 

 

 
Part I. Financial Information
 
 
 
Part I. Financial Information
 
Item 1. Financial Statements
 
1.  Consolidated Balance Sheets (unaudited)
 
2.  Consolidated Statements of Operations and Comprehensive Income (unaudited)
 
3.  Consolidated Statements of Cash Flows (unaudited)
 
4.  Notes to Consolidated Financial Statements (unaudited)
 

STRATEGIC AMERICAN OIL CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)

 
 
January 31, 2012
 
 
July 31, 2011
 
Assets
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
Cash and cash equivalents
 
$
3,073,078
 
 
$
1,082,099
 
Oil and gas revenues receivable
 
 
520,876
 
 
 
875,918
 
Accounts receivable – related party
 
 
100,963
 
 
 
69,880
 
Available for sale securities
 
 
1,079,524
 
 
 
-
 
Other receivables, net
 
 
40,176
 
 
 
225,057
 
Other current assets
 
 
964,840
 
 
 
292,973
 
Total current assets
 
 
5,779,457
 
 
 
2,545,927
 
 
 
 
 
 
 
 
 
 
Oil and Gas Property, accounted for using the full cost method of accounting
 
 
 
 
 
 
 
 
Evaluated property, net of accumulated depletion of $945,739 and $567,189, respectively; and accumulated impairment of $373,335 and $373,335, respectively
 
 
11,500,874
 
 
 
7,395,198
 
Unevaluated property
   
37,120
 
 
 
-
 
Restricted cash
 
 
6,650,000
 
 
 
6,716,850
 
Other assets
 
 
338,085
 
 
 
255,942
 
Property and equipment, net of accumulated depreciation of $24,451 and $11,158, respectively
 
 
46,145
 
 
 
22,857
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
24,351,681
 
 
$
16,936,774
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
Accounts payable and accrued expenses
 
$
2,398,802
 
 
$
1,676,816
 
Line of credit
 
 
-
 
 
 
1,360,573
 
Notes payable
 
 
-
 
 
 
255,596
 
Advances
 
 
1,438,679
 
 
 
-
 
Asset retirement obligations – short term
 
 
648,396
 
 
 
468,500
 
Derivative warrant liability
 
 
1,557,392
 
 
 
2,543,223
 
Due to related parties
 
 
-
 
 
 
14,723
 
Total current liabilities
 
 
6,043,269
 
 
 
6,319,431
 
 
 
 
 
 
 
 
 
 
Asset retirement obligations – long term
 
 
5,553,920
 
 
 
3,987,428
 
Total liabilities
 
 
11,597,189
 
 
 
10,306,859
 
 
 
 
 
 
 
 
 
 
Stockholders’ equity:
 
 
 
 
 
 
 
 
Common stock, $.001 par; 500,000,000 shares authorized shares; 269,836,317 and 169,770,770 shares issued and outstanding
 
 
269,836
 
 
 
169,771
 
Additional paid in capital
 
 
38,336,554
 
 
 
27,807,540
 
Accumulated other comprehensive loss
 
 
(13,434)
 
 
 
-
 
Accumulated deficit
 
 
(25,838,464
)
 
 
(21,347,396
)
Total stockholders’ equity
 
 
12,754,492
 
 
 
6,629,915
 
 
 
 
 
 
 
 
 
 
Total liabilities and stockholders’ equity
 
$
24,351,681
 
 
$
16,936,774
 
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
 

STRATEGIC AMERICAN OIL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
 
   
Three months ended January 31,
 
Six months ended January 31,
 
 
 
2012
   
2011
   
2012
   
2011
 
                         
Revenues
  $ 1,839,961     $ 116,261     $ 3,402,840     $ 229,134  
                                 
Operating expenses
                               
Lease operating expense
    1,062,202       39,124       1,867,574       140,388  
Depreciation, depletion, and amortization
    213,833       28,925       391,843       51,925  
Accretion
    145,912       1,270       283,794       3,664  
Impairment
    -       140,029       -       140,029  
Consulting fees – related party
    44,856       -       92,613       -  
Acquisition cost – related party
    -       -       4,367,750       -  
Other general and administrative expense
    928,787       378,006       2,336,840       1,218,719  
Total operating expenses
    2,395,590       587,354       9,340,414       1,554,725  
                                 
Loss from operations
    (555,629 )     (471,093 )     (5,937,574 )     (1,325,591 )
                                 
Interest income (expense), net
    (35,182 )     11,806       (102,676 )     (14,779 )
Gain (loss) on derivative warrant liability
    126,803       (191,988 )     985,831       (276,549 )
Gain on sale of available for sale securities
    -       -       433,168       -  
Net loss before income taxes
    (464,008 )     (651,275 )     (4,621,251 )     (1,616,919 )
Income tax benefit
    172,131       -       130,183       -  
Net Loss
  $ (291,877 )   $ (651,275 )   $ (4,491,068 )   $ (1,616,919 )
Other comprehensive income, net of tax:
                               
Net unrealized loss from available for sale securities, net of income tax benefit of $32,443, $0, $0 and $0 respectively
    (73,685 )     -       (13,434 )     -  
                                 
Comprehensive Loss
  $ (365,562 )   $ (651,275 )   $ (4,504,502 )   $ (1,616,919 )
                                 
Basic and diluted loss per common share
  $ (0.00 )   $ (0.01 )   $ (0.02 )   $ (0.03 )
                                 
Weighted average shares outstanding (basic and diluted)
    269,708,784       53,601,127       241,317,016       53,408,220  
 
 The accompanying notes are an integral part of these unaudited consolidated financial statements.
 

STRATEGIC AMERICAN OIL CORPORATION
 CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

 
 
Six months ended
 January 31,
 
 
 
2012
 
 
2011
 
Cash Flows From Operating Activities
 
 
 
 
 
 
Net loss
 
$
(4,491,068
)
 
$
(1,616,919
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 
 
 
Depreciation, depletion and amortization
 
 
391,843
 
 
 
51,925
 
Impairment
 
 
-
 
 
 
140,029
 
Accretion
 
 
283,794
 
 
 
3,664
 
Change in deferred taxes
 
 
(130,200)
 
 
 
-
 
Amortization of debt discount
 
 
-
 
 
 
3,886
 
Amortization of  loan origination fees and prepaid interest expense
 
 
73,761
 
 
 
-
 
Gain on sale of available for sale securities
 
 
(433,168
)
 
 
-
 
Warrants amortization – related party
 
 
92,613
 
 
 
-
 
Common stock granted for services and for investor relations
 
 
620,156
 
 
 
62,008
 
Share based compensation – amortization of the fair value of  stock options
 
 
416,310
 
 
 
158,559
 
Acquisition cost – related party
 
 
4,367,750
 
 
 
-
 
(Gain) loss on warrant derivative liability
 
 
(985,831
)
 
 
276,549
 
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
Accounts receivable
 
 
539,923
 
 
 
7,898
 
Accounts receivable – related party
 
 
(31,083
)
 
 
(23,924)
 
Accounts payable and accrued expenses
 
 
(825,015
)
 
 
36,505
 
Advances
 
 

XOTC:DUMA Quarterly Report 10-Q Filling

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XOTC:DUMA Quarterly Report 10-Q Filing - 1/31/2012
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