x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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14-1818394
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification No.)
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16427 North Scottsdale Road, Suite 410, Scottsdale, AZ
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85254
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer o
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Accelerated filer o
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Non-accelerated filer o
(Do not check if a smaller reporting company)
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Smaller reporting company x
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Page
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Part I. Financial Information
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1
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Item 1. Financial Statements.
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1
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Consolidated Balance Sheets as of June 30, 2013 (unaudited) and December 31, 2012 (unaudited)
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2
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Consolidated Statements of Operations for the three and six months Ended June 30, 2013 and 2012 (unaudited)
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3
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Consolidated Statements of Cash Flows for the six months Ended June 30, 2013 and 2012 (unaudited)
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5
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Notes to Unaudited Consolidated Financial Statements
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6
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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9
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Item 3. Quantitative and Qualitative Disclosures About Market Risk.
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14
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Item 4.Controls and Procedures.
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14
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Part II. Other Information
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14
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Item 6. Exhibits.
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15
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Signatures
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16
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June 30,
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December 31,
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|||||||
2013
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2012
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|||||||
ASSETS
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||||||||
Current Assets:
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||||||||
Cash
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$ | 2,201,359 | $ | 1,949,896 | ||||
Receivable from sale of bidding rights and oil and gas properties
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3,500,042 | 4,000,042 | ||||||
Total current assets
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5,701,401 | 5,949,938 | ||||||
Investment in mineral properties
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160,792 | 160,144 | ||||||
Investments in unproved oil and gas properties
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1,854,327 | 1,995,024 | ||||||
Investment in oil refinery
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132,771 | 145,494 | ||||||
Property and equipment
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71,540 | 76,293 | ||||||
Other assets
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8,632 | 8,849 | ||||||
TOTAL ASSETS
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$ | 7,929,463 | $ | 8,335,743 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
Current Liabilities:
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||||||||
Accounts payable
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$ | 22,106 | $ | 141,582 | ||||
Accrued expenses
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128,007 | 221,809 | ||||||
Notes payable
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75,000 | 75,000 | ||||||
Notes payable to related parties
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- | 623,970 | ||||||
Liabilities for uncertain tax positions
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91,255 | 100,000 | ||||||
Income taxes payable
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633,590 | 633,590 | ||||||
Total current liabilities
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949,958 | 1,795,951 | ||||||
Long-term debt payable to related parties
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150,655 | 150,655 | ||||||
Total liabilities
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1,100,613 | 1,946,606 | ||||||
Commitments and Contingencies
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||||||||
Stockholders' Equity:
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||||||||
Preferred stock $0.0001 par value-authorized 10,000,000 shares; no shares issued and outstanding at June 30, 2013 and
December 31, 2012, respectively |
- | - | ||||||
Common stock $0.0001 par value - authorized 250,000,000 shares; 32,086,826 and 32,010,826 shares issued and outstanding at
June 30, 2013 and December 31, 2012, respectively |
3,208 | 3,201 | ||||||
Additional paid-in capital
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6,931,539 | 6,900,096 | ||||||
Retained earnings (accumulated deficit)
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251,272 | (311,237 | ) | |||||
Accumulated other comprehensive loss
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(357,169 | ) | (202,923 | ) | ||||
Total stockholders' equity
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6,828,850 | 6,389,137 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ | 7,929,463 | $ | 8,335,743 |
Three Months ending June 30,
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Six Months ending June 30,
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|||||||||||||||
2013
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2012
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2013
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2012
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|||||||||||||
Sales
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$ | - | $ | - | $ | - | $ | 1,789 | ||||||||
Costs and Expenses:
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||||||||||||||||
General and administrative
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177,671 | 309,502 | 359,001 | 793,260 | ||||||||||||
177,671 | 309,502 | 359,001 | 793,260 | |||||||||||||
Loss from operations
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(177,671 | ) | (309,502 | ) | (359,001 | ) | (791,471 | ) | ||||||||
Other Income (Expense):
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||||||||||||||||
Foreign exchange gain (loss)
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73,386 | 205,687 | (53,544 | ) | 221,593 | |||||||||||
Interest expense
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(12,597 | ) | (12,597 | ) | (25,195 | ) | (24,915 | ) | ||||||||
Life insurance proceeds
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1,000,249 | 1,000,249 | - | |||||||||||||
Gain on sale of bidding right and unvevaluated oil and gas property
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- | - | - | 7,244,716 | ||||||||||||
Net other income (expense)
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1,061,038 | 193,090 | 921,510 | 7,441,394 | ||||||||||||
Income (loss) before income taxes
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883,367 | (116,412 | ) | 562,509 | 6,649,923 | |||||||||||
Provision for (benefit from ) income taxes
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- | (13,484 | ) | - | 770,106 | |||||||||||
Net earnings (loss)
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$ | 883,367 | $ | (102,928 | ) | $ | 562,509 | $ | 5,879,817 | |||||||
Net earnings (loss) per common share:
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||||||||||||||||
Basic
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$ | 0.03 | $ | (0.00 | ) | $ | 0.02 | $ | 0.18 | |||||||
Diluted
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$ | 0.03 | $ | (0.00 | ) | $ | 0.02 | $ | 0.17 | |||||||
Weighted average common shares - Basic
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32,086,826 | 32,008,967 | 32,080,528 | 31,807,145 | ||||||||||||
Weighted average common shares - Diluted
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32,428,557 | 32,008,967 | 32,389,517 | 35,465,834 |
Three Months ending June 30,
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Six Months ending June 30,
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|||||||||||||||
2013
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2012
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2013
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2012
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|||||||||||||
Net earnings
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$ | 883,367 | $ | (102,928 | ) | $ | 562,509 | $ | 5,879,817 | |||||||
Other comprehensive income (loss):
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||||||||||||||||
Foreign currency translation adjustment
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(196,670 | ) | (256,811 | ) | (154,246 | ) | (303,607 | ) | ||||||||
Net change in other comprehensive income (loss)
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(196,670 | ) | (256,811 | ) | (154,246 | ) | (303,607 | ) | ||||||||
Comprehensive income (loss)
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$ | 686,697 | $ | (359,738 | ) | $ | 408,263 | $ | 5,576,210 |
Six Months ending June 30,
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||||||||
2013
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2012
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|||||||
Cash flows from Operating Activities:
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||||||||
Net earnings
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$ | 562,509 | $ | 5,879,817 | ||||
Adjustments to reconcile net earnings to net cash used in operating activities:
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||||||||
Gain on sale of bidding rights and unevaluated oil and gas properties
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- | (7,244,716 | ) | |||||
Loss on settlement of note payable
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- | 9,133 | ||||||
Issuance of warrants for services
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16,250 | - | ||||||
Issuance of common stock for services
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- | 3,500 | ||||||
Changes in operating assets and liabilities
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(213,279 | ) | 747,093 | |||||
Net cash provided by (used in) operating activities
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365,480 | (605,173 | ) | |||||
Cash flows from investing activities:
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||||||||
Oil and gas properties exploration and development costs
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(28,389 | ) | (313,938 | ) | ||||
Investment in oil refinery
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- | (125,460 | ) | |||||
Purchases of furniture and equipment
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- | (30,253 | ) | |||||
Proceeds from sales of oil and gas properties and bidding rights
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500,000 | 2,999,979 | ||||||
Investment in mineral properties
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- | (6,820 | ) | |||||
Net cash provided by investing activities
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471,611 | 2,523,508 | ||||||
Cash flows from financing activities:
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||||||||
Settlement of notes payable to related parties
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(623,970 | ) | - | |||||
Net cash used in financing activities
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(623,970 | ) | - | |||||
Effect of Exchange Rates on Cash
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38,342 | 38,437 | ||||||
Net increase in cash
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251,463 | 1,956,772 | ||||||
Cash - Beginning of period
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1,949,896 | 211,303 | ||||||
Cash - End of period
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$ | 2,201,359 | $ | 2,168,075 | ||||
Changes in operating assets and liabilities consists of:
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||||||||
(Increase) decrease in advances and other receivables
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$ | - | $ | (1,789 | ) | |||
(Increase) decrease in other assets
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- | - | ||||||
Increase (decrease) in accounts payable and accrued expenses
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(213,279 | ) | (21,659 | ) | ||||
Increase (decrease) in income taxes payable
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- | 770,541 | ||||||
Changes in assets and liabilities
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$ | (213,279 | ) | $ | 747,093 | |||
Supplemental disclosure of cash flow information:
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||||||||
Cash paid for interest
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$ | 130,686 | $ | - | ||||
Cash paid for income taxes
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$ | - | $ | - | ||||
Supplementary information:
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||||||||
Issuance of common stock for services
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$ | - | $ | 3,500 | ||||
Issuance of common stock for investment in mineral properties
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$ | 15,200 | $ | - | ||||
Issuance of common stock for debt
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$ | - | $ | 213,750 | ||||
Issuance of warrants for unproved oil and gas properties
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$ | - | $ | 9,995 |
As Reported
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Adjustments
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As Restated
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||||||||||
Sales
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$
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1,789
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$
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$
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1,789
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|||||||
Costs and Expenses:
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||||||||||||
General and Administrative
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712,108
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81,152
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(1)
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793,260
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||||||||
Loss from Operations
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(710,319
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)
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(791,471
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)
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||||||||
Other income (expense):
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||||||||||||
Foreign exchange gain (loss)
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221,593
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221,593
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||||||||||
Interest expense
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(24,915
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)
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(24,915
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)
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||||||||
Gain on sale of bidding rights and unevaluated oil and gas property
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6,500,000
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744,716
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(1)
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7,244,716
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||||||||
6,696,678
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7,441,394
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|||||||||||
Income (loss) before income taxes
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5,986,358
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6,649,923
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||||||||||
Provision for income taxes
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349,308
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421,233
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(1)
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770,541
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||||||||
Net earnings (loss)
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$
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5,637,050
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$
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5,879,381
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||||||||
Net earnings (loss) per common shares
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||||||||||||
Basic
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$
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0.18
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$
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0.18
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||||||||
Diluted
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0.16
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0.17
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||||||||||
Weighted Average Common Shares - Basic
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31,807,145
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31,807,145
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||||||||||
Weighted Average Common Shares - Diluted
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35,465,834
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35,465,834
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As Reported
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Adjustments
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As Restated
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||||||||||
Sales
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$
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--
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$
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$
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--
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|||||||
Costs and Expenses:
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||||||||||||
General and Administrative
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277,893
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31,609
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(1)
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309,502
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||||||||
Loss from Operations
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(277,893
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)
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(309,502
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)
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||||||||
Other income (expense):
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||||||||||||
Foreign exchange gain (loss)
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205,687
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205,687
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||||||||||
Interest expense
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(12,597
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)
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(12,597
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)
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||||||||
193,090
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193,090
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|||||||||||
Income (loss) before income taxes
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(84,803)
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(116,412)
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||||||||||
Provision for income taxes
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(5,673)
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(7,816)(
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1)
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(13,489)
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||||||||
Net earnings (loss)
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$
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(79,130)
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$
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(102,923)
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||||||||
Net earnings (loss) per common shares
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||||||||||||
Basic
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$
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0.00
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$
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0.00
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||||||||
Diluted
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0.00
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0.00
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||||||||||
Weighted Average Common Shares - Basic
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32,008,967
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32,008,967
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||||||||||
Weighted Average Common Shares - Diluted
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32,008,967
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32,008,967
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ITEM 2.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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●
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Proved oil and gas reserves;
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●
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Expected future cash flow from proved oil and gas properties;
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●
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Future exploration and development costs; and
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●
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Future dismantlement and restoration costs.
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Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
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32
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Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.
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SEC Ref. No.
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Title of Document
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101.INS
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XBRL Instance Document
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101.SCH
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XBRL Taxonomy Extension Schema Document
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101.CAL
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XBRL Taxonomy Calculation Linkbase Document
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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101.LAB
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XBRL Taxonomy Label Linkbase Document
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101.PRE
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XBRL Taxonomy Presentation Linkbase Document
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DELTA MUTUAL, INC.
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|||
BY:
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/s/ Malcolm W. Sherman
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Malcolm W. Sherman
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|||
President, Chief Executive Officer and
Principal Financial Officer
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31
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Certification of Chief Executive Officer and Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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32
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Certification of Chief Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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SEC Ref. No.
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Title of Document
|
|
101.INS
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XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
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XBRL Taxonomy Calculation Linkbase Document
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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101.LAB
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XBRL Taxonomy Label Linkbase Document
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101.PRE
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XBRL Taxonomy Presentation Linkbase Document
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1.
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I have reviewed this Quarterly Report on Form 10-Q of Delta Mutual, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a.
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a.
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b.
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting;
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DATE: August 15, 2013
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/s/ Malcolm W. Sherman
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Malcolm W. Sherman, President and
Chief Executive Officer, Principal Financial Officer
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/s/ Malcolm W. Sherman
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Malcolm W. Sherman
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Chief Executive Officer
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Significant Events (Details) (Subsequent Event [Member], USD $)
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0 Months Ended | 6 Months Ended | 0 Months Ended |
---|---|---|---|
May 10, 2013
Phillips W. Smith, Director [Member]
Warrant [Member]
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Jun. 30, 2013
Phillips W. Smith, Director [Member]
Warrant [Member]
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May 13, 2013
Daniel R. Peralta, Former CEO [Member]
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Significant Events (Textual) | |||
Number of securities called by warrants | 1,000,000 | ||
Date from which warrants exercisable | May 01, 2013 | ||
Warrants exercise price | $ 0.20 | ||
Term of the warrant | Warrant is exercisable vests in 24 monthly installments on the final day of each month during the term of the warrant, commencing May 31, 2013, and is vested in full as of April 30, 2015. If Mr. Smith ceases to be an active member of the Company's Board of Directors at any time in the two-year period May 1, 2013 through April 30, 2015, vesting will cease as of the last full month during which he was an active member of the Board. | ||
Award requisite service period | 2 years | ||
Fair value of warrants | $ 195,000 | ||
Exercise price | $ 0.20 | ||
Expected term | 5 years | ||
Stock price | $ 0.20 | ||
Volatility rate | 195.00% | ||
Discount rate | 5.00% | ||
Expected dividend | |||
Company expensed related to award | 16,250 | ||
Proceeds from life insurance policies | $ 1,000,000 |
Consolidated Statements of Operations (Unaudited) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
|
|
Statements of Operations [Abstract] | ||||
Sales | $ 1,789 | |||
Costs and Expenses: | ||||
General and administrative | 177,671 | 309,502 | 359,001 | 793,260 |
Total cost and expenses | 177,671 | 309,502 | 359,001 | 793,260 |
Loss from operations | (177,671) | (309,502) | (359,001) | (791,471) |
Other Income (Expense): | ||||
Foreign exchange gain (loss) | 73,386 | 205,687 | (53,544) | 221,593 |
Interest expense | (12,597) | (12,597) | (25,195) | (24,915) |
Life insurance proceeds | 1,000,249 | 1,000,249 | ||
Gain on sale of bidding right and unvevaluated oil and gas property | 7,244,716 | |||
Net other income (expense) | 1,061,038 | 193,090 | 921,510 | 7,441,394 |
Income (loss) before income taxes | 883,367 | (116,412) | 562,509 | 6,649,923 |
Provision for (benefit from ) income taxes | (13,484) | 770,106 | ||
Net earnings (loss) | $ 883,367 | $ (102,928) | $ 562,509 | $ 5,879,817 |
Net earnings (loss) per common share: | ||||
Basic | $ 0.03 | $ 0.00 | $ 0.02 | $ 0.18 |
Diluted | $ 0.03 | $ 0.00 | $ 0.02 | $ 0.17 |
Weighted average common shares - Basic | 32,086,826 | 32,008,967 | 32,080,528 | 31,807,145 |
Weighted average common shares - Diluted | 32,428,557 | 32,008,967 | 32,389,517 | 35,465,834 |
Reclassification
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Reclassification [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RECLASSIFICATION | 4. RECLASSIFICATION
In accordance with the SEC’s Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” (“SAB 108”), the Company recorded a reclassification adjustments for the three and six months ended June 30, 2012 of $(23,793) and $242,331 which served to increase the gain on sale of bidding rights and unevaluated oil and gas property, Provision for income taxes and General and Administrative expenses. This non-cash adjustment resulted from incorrectly recognizing revenue on the sale of bidding rights from a third party and from capitalizing certain general and administrative expenses as investments in unproved oil and gas properties. As a result of the Company’s evaluation of this error under SAB 108, the Company determined that this error was not material in relation to the current year, but was material to the three and six months ended June 30, 2012. Consequently, the June 30, 2012 statement of operations was adjusted to reflect the correction of this error. In evaluating materiality and determining the appropriateness of applying SAB 108 to this error, the Company considered materiality both qualitatively and quantitatively as prescribed by the SEC’s Staff Accounting Bulletin No. 99. The table noted below reflects the impact of the above error to the consolidated statements of operations for the six months ended June 30, 2012.
(1) Adjustment on gain on sale of bidding rights and to reverse capitalized costs on unproved oil and gas properties.
The table noted below reflects the impact of the above error to the consolidated statements of operations for the three months ended June 30, 2012.
(1) To reverse capitalized costs on unproved oil & gas properties. |
Receivable from Sale of Bidding Rights and Oil and Gas Properties
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6 Months Ended |
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Jun. 30, 2013
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Receivable from Sale of Bidding Rights and Oil and Gas Properties [Abstract] | |
RECEIVABLE FROM SALE OF BIDDING RIGHTS AND OIL AND GAS PROPERTIES | 2. RECEIVABLE FROM SALE OF BIDDING RIGHTS AND OIL AND GAS PROPERTIES
On March 30, 2012 the Company entered into the Cooperation Agreement with PPL. Under the Cooperation Agreement, PPL agreed to pay us $7,000,000 for certain exploration and exploitation rights to oil and gas deposits and certain bidding rights held by Delta on the following areas: Valle de Lerma in the province of Salta; San Salvador de Jujuy; Libertador General San Martin in the province of Jujuy; and Selva Maria in the province of Formosa. During the six months ended June 30, 2013, the Company received $500,000 under this agreement. |
Significant Events
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6 Months Ended |
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Jun. 30, 2013
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Significant Events [Abstract] | |
SIGNIFICANT EVENTS | 5. SIGNIFICANT EVENTS
On May 10, 2013, the Board of Directors of the Company authorized the issuance of a common stock purchase warrant effective May 1, 2013, to purchase 1,000,000 shares of common stock, on or before April 30, 2018, at an exercise price of $0.20 per share, to Phillips W. Smith, a director of the Company. The number of shares of common stock as to which the warrant is exercisable vests in 24 monthly installments on the final day of each month during the term of the warrant, commencing May 31, 2013, and is vested in full as of April 30, 2015. If Mr. Smith ceases to be an active member of the Company’s Board of Directors at any time in the two-year period May 1, 2013 through April 30, 2015, vesting will cease as of the last full month during which he was an active member of the Board. The fair value of these warrants was $195,000 on the date of grant determined using the Black-Scholes option pricing model with the following inputs: Exercise price of $0.20, expected term of 5 years, stock price of $0.20, volatility of 195%, discount rate of 5% and no expected dividends. During the six months ended June 30, 2013, the Company expensed $16,250 related to this award.
On May 13, 2013, the Company received the payment of the proceeds of $1,000,000 from its key-man life insurance policy of the life of Daniel R. Peralta, our former CEO. |
Related Party Transactions
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6 Months Ended |
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Jun. 30, 2013
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Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 3. RELATED PARTY TRANSACTIONS
The Company has issued notes to related parties. As of June 30, 2013 and December 31, 2012, the Company owed $-0- and $623,970, respectively, to certain directors of the Company. As of June 30, 2013 and December 31, 2012, the Company owes three shareholders $150,655. Interest expense to related parties for the six months ended June 30, 2013 and 2012 amounted to $12,597 and $25,195, respectively. On May 13 and 20, 2013, the Company repaid to Malcolm Sherman, Egani, Inc. and certain other shareholders all outstanding advances by such shareholders to the Company, together with accrued interest, in the aggregate amount of $754,856. |
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