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UNITED STATES FORM 10-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: February 28, 2010
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________to
__________________ STRIKER ENERGY CORP. 901 360 Bay Street, Toronto, ON, Canada M5H
2V6 Securities registered pursuant to Section 12(g) of the Act Common Stock, par value $0.0001 per
share Indicate by check mark if the registrant is a well-known
seasoned issuer, as defined in Rule 405 of the Securities Act. Indicate by check mark if the registrant is not required to file
reports pursuant to Section 13 or of the Act. Section 15(d) Note Checking the box above will not relieve any
registrant required to file reports pursuant to Section 13 or 15(d) of the
Exchange Act from their obligations under those Sections. 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. 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 (§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). Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not
contained herein, and will not be contained, to the best of registrants
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form
10-K. 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 Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Act). State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the price at which
the common equity was last sold, or the average bid and asked price of such
common equity, as of the last business day of the registrants most recently
completed second fiscal quarter. 10,106,000 shares of common stock at a price of $0.20 per share
for an aggregate market value of $2,021,200.1 1 The aggregate market value of the voting stock held
by non-affiliates is computed by reference to the price of the last business day
of our most recently completed second fiscal quarter. Note.If a determination as to whether a particular person or
entity is an affiliate cannot be made without involving unreasonable effort and
expense, the aggregate market value of the common stock held by non-affiliates
may be calculated on the basis of assumptions reasonable under the
circumstances, provided that the assumptions are set forth in this Form. APPLICABLE ONLY TO CORPORATE REGISTRANTS Indicate the number of shares outstanding of each of the
registrants classes of common stock, as of the latest practicable date:
20,506,000 shares of common stock are issued and outstanding as of May 5,
2010. DOCUMENTS INCORPORATED BY REFERENCE Not Applicable ii TABLE OF CONTENTS iii PART I ITEM 1. BUSINESS Forward-Looking Statements This report contains forward-looking statements.
Forward-looking statements are projections in respect of future events or our
future financial performance. In some cases, you can identify forward-looking
statements by terminology such as may, should, expects, plans,
anticipates, believes, estimates, predicts, potential or continue or
the negative of these terms or other comparable terminology. Forward-looking
statements made in this annual report on Form 10-K include statements about: our plans to identify and acquire properties that we believe will be
prospective for natural gas and crude oil; our plans to hire veteran industry experts and expand our management team;
our expectation that the demand and market price for natural gas and crude
oil will eventually increase; our expectation that we will be able to raise capital when we need it.
These statements are only predictions and involve known and
unknown risks, uncertainties and other factors, including the risks in the
section entitled Risk Factors and the risks set out below, any of which may
cause our or our industrys actual results, levels of activity, performance or
achievements to be materially different from any future results, levels of
activity, performance or achievements expressed or implied by these
forward-looking statements. These risks include, by way of example and not in
limitation: general economic and business conditions; our ability to identify attractive properties and negotiate their
acquisition; our ability to establish or find reserves on any property that we acquire;
volatility in market prices for natural gas and crude oil; risks inherent in natural gas and crude oil operations; competition for, among other things, capital, oil and natural gas
properties and skilled personnel; political instability or changes of laws in the countries in which we
operate or propose to operate and risks of terrorist attacks; other factors discussed under ITEM 1A. RISK FACTORS of this Form 10-K,
beginning on page 3. These risks may cause our or our industry's actual results,
levels of activity or performance to be materially different from any future
results, levels of activity or performance expressed or implied by these forward
looking statements. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity or performance. Except as required by applicable law,
including the securities laws of the United States, we do not intend to update
any of the forward-looking statements to conform these statements to actual
results. As used in this report and unless otherwise indicated, the
terms "we", "us" and "our" refer to Striker Energy Corp. Unless otherwise
specified, all dollar amounts are expressed in United States dollars and all
references to "common shares" refer to the common shares in our capital
stock. 1 Corporate Overview Our company was incorporated under the laws of Nevada on March
18, 2005. Effective September 12, 2008, we amended our Articles of Incorporation
to effect a two-for-one forward split of both our issued and outstanding common
stock and our authorized capital. After giving effect to this split, we are
authorized to issue up to 150,000,000 shares of common stock, par value of
$0.0001. Unless otherwise noted, all references in this annual report on Form
10-K to number of shares, price per share or weighted average number of shares
outstanding have been adjusted to reflect this stock split on a retroactive
basis. On August 18, 2008, our former president, chief executive
officer, principal accounting officer, treasurer and director sold 10,000,000
shares of our common stock to Opex Energy Corp., a privately held Alberta
company. Although our company was not a party to this transaction, it resulted
in a change of control of our company as, at the completion of this transaction,
Opex Energy Corp. owned approximately 49.9% of our issued and outstanding common
stock. Also on August 18, 2008, Konstantin Gregovic resigned from our board of
directors, and Shawn Perger and Brian Cole resigned from all offices held by
them in our company. Joseph Carusone, the president and a director of Opex
Energy Corp., was appointed to our board to fill the vacancy created by Mr.
Gregovics resignation, and he was appointed to serve as our president,
secretary and treasurer. On August 28, 2008, Messrs. Perger and Cole resigned from our
Board of Directors, leaving Mr. Carusone as our sole officer and director. From inception until the summer of 2008, we were engaged in the
mineral exploration business. During the summer of 2008, we abandoned our
mineral exploration properties. We have now transitioned from the mineral
exploration business to the oil and natural gas business and we are currently
searching for oil and gas exploration opportunities. We have begun to look for oil and gas opportunities in emerging
North American shale plays such as the Marcellus Shale, the Mowry Shale, the
Utica Shale and the Bakken Formation, among other as yet unidentified
opportunities. We have also begun to look to hire veteran industry experts to
expand our management team and better position our company in the oil and gas
business. We believe that developments in technology and increasing
energy prices made development of gas shales in North America a priority among
exploration and production companies. Although the recent decline in the price
of oil and gas represents a reversal of this trend, we believe that the trend
towards increasing prices for energy will eventually be reinstated. We intend to
continue our search for large footprint oil and gas rights in less developed
shale plays that offer a similar prospect for appreciation in value, and are
prospective for large scale development. We intend to add experts in finance, geology, engineering, and
land management to better capitalize on the specific opportunities available to
us. Our CEO is an engineer by training with experience in finance and oil and
gas exploration and production. We intend to attract and retain additional
specialists to address the specific market segment already identified and to
cultivate additional value for shareholders. Specialists include geologists with
experience identifying regions prospective for oil and gas in place, land
managers capable of acquiring large contiguous blocks of land, and engineers who
know how to advance exploration into production. Research and Development Expenditures We did not incur expenditures in research and development over
the last fiscal year. Employees At present, we have no employees, other than our sole director
and officer, who devotes his time as required to our business operations. Our
President is not presently compensated for his services and does not have an
employment agreement with us. We presently do not have pension, health, annuity,
insurance, stock options, profit sharing or similar benefit plans; however, may
adopt such plans in the future. There are presently no personal benefits
available to any officers or directors. 2 Subsidiaries We do not have any subsidiaries. Intellectual Property We do not own, either legally or beneficially, any patent or
trademark. ITEM 1A. RISK FACTORS An investment in our common stock involves a number of very
significant risks. You should carefully consider the following risks and
uncertainties in addition to other information in this report in evaluating our
company and its business before purchasing shares of our companys common stock.
Our business, operating results and financial condition could be seriously
harmed due to any of the following risks. You could lose all or part of your
investment due to any of these risks. An investment in our common stock involves a number of very
significant risks. You should carefully consider the following risks and
uncertainties in addition to other information in this report in evaluating our
company and its business before purchasing shares of our companys common stock.
Our business, operating results and financial condition could be seriously
harmed due to any of the following risks. You could lose all or part of your
investment due to any of these risks. Risks Related to our Company The recent global economic crisis resulted in reduced demand
worldwide for oil and natural gas which, in turn, has lead to lower commodity
prices. This has had an adverse impact on capital markets, making it more
difficult for companies like ours to raise money to fund our operations. If the
current global economic crisis continues, we may find it to be more difficult to
raise money to pay for acquisitions and exploration activities. Since October 2008, oil prices decreased by two thirds from
their highest prices and natural gas prices have decreased as much as 50% but
the costs of exploration, development and production have not yet adjusted to
current economic conditions or the reduction in commodity prices. Prolonged,
substantial decreases in oil and natural gas prices would likely have a material
adverse effect on our business, financial condition and results of operations.
Capital and credit markets experienced unprecedented volatility
and disruption during the last half of 2008 and the early part of 2009 and they
continue to be unpredictable. Given the current levels of market volatility and
disruption, the availability of funds from those markets has diminished
substantially. Further, concerns about the stability of financial markets
generally and the solvency of borrowers specifically has increased the cost of
accessing the credit markets, as many lenders have raised interest rates,
enacted tighter lending standards or altogether ceased to lend money. Due to these capital and credit market conditions, we cannot be
certain that funding will be available to us in amounts or on terms that we
believe are acceptable. Our independent auditors have expressed substantial doubt
about our ability to continue as a going concern. We have not generated any revenue from operations since our
incorporation. During the 12-month period ended February 28, 2010, we incurred a
net loss of $58,201. From inception through February 28, 2010, we incurred an
aggregate loss of $249,696. 3 We anticipate that we will continue to incur operating expenses
without generating any revenues unless and until we are able to identify,
acquire and develop an oil and gas opportunity. In addition, we expect that our
operating expenses will increase substantially over the next 12 months as we
ramp-up our proposed oil and gas business. We estimate our average monthly
expenses over the next 12 months to be approximately $4,000, including general
and administrative expenses but excluding property acquisition costs and the
cost of any exploration activities. On February 28, 2010, we had cash and cash
equivalents of approximately $6,760. In order to fund our anticipated budget for
the next 12 months, including property acquisition costs, we believe that we
will need to raise approximately $1.1 million. This amount could increase if we
encounter difficulties that we cannot anticipate at this time. As we cannot
assure a lender that we will be able to successfully acquire, explore and
exploit an oil or natural gas property, we will almost certainly find it
difficult to raise debt financing from traditional lending sources. We have
traditionally raised our operating capital from the sale of equity securities
but there can be no assurance that we will continue to be able to do so. If we
cannot raise the money that we need in order to continue to operate our
business, we will be forced to delay, scale back or eliminate some or all of our
proposed operations. If any of these were to occur, there is a substantial risk
that our business would fail. These circumstances raise substantial doubt about our ability
to continue as a going concern, as described in the explanatory paragraph to our
independent auditors report on our financial statements for the year ended
February 28, 2010, which are included in this annual report on Form 10-K.
Although our financial statements raise substantial doubt about our ability to
continue as a going concern, they do not reflect any adjustments that might
result if we are unable to continue our business. Our financial statements
contain additional note disclosure describing the circumstances that lead to
this disclosure by our independent auditors. We are an exploration stage company with a limited operating
history, which may hinder our ability to successfully meet our
objectives. We are an exploration stage company with only a limited
operating history upon which to base an evaluation of our current business and
future prospects. We have only recently transitioned our company to the oil and
gas business and we do not own any oil or gas properties, nor do we have an
established history of locating and developing properties that have oil and gas
reserves. As a result, the revenue and income potential of our business is
unproved. In addition, because of our limited operating history, we have limited
insight into trends that may emerge and affect our business. Errors may be made
in predicting and reacting to relevant business trends and we will be subject to
the risks, uncertainties and difficulties frequently encountered by early-stage
companies in evolving markets. We may not be able to successfully address any or
all of these risks and uncertainties. Failure to adequately do so could cause
our business, results of operations and financial condition to suffer. Our only director and executive officer is employed
elsewhere and his time and effort will not be devoted to our company
full-time. Our sole director and officer works for our company on an
as-needed basis and he is employed in other positions with other companies. As
a result, our company is and will continue to be managed on a part-time basis
unless and until we can identify and hire additional skilled management
personnel. Our business could be adversely impacted by the lack of full time
management. Because our sole director and officer is not a resident of
the United States, investors may find it difficult to enforce, within the United
States, any judgments obtained against our sole director and officer. Our sole director and officer is not a resident of the United
States, and all or a substantial portion of his assets are located outside the
United States. As a result, it may be difficult for investors to enforce within
the United States any judgments obtained against our sole officer and director,
including judgments predicated upon the civil liability provisions of the
securities laws of the United States or any state thereof. 4 If we are unable to successfully recruit qualified
managerial and field personnel having experience in oil and gas exploration, we
may not be able to continue our operations. In order to successfully implement and manage our business
plan, we will depend upon, among other things, successfully recruiting qualified
managerial and field personnel having experience in the oil and gas exploration
business. Competition for qualified individuals is intense. We may not be able
to find, attract and retain qualified personnel on acceptable terms. If we are
unable to find, attract and retain qualified personnel with technical expertise,
our business operations could suffer. Future growth could strain our resources, and if we are
unable to manage our growth, we may not be able to successfully implement our
business plan. We hope to experience rapid growth in our operations, which
will place a significant strain on our management, administrative, operational
and financial infrastructure. Our future success will depend in part upon the
ability of our executive officers to manage growth effectively. This will
require that we hire and train additional personnel to manage our expanding
operations. In addition, we must continue to improve our operational, financial
and management controls and our reporting systems and procedures. If we fail to
successfully manage our growth, we may be unable to execute upon our business
plan. Risks Relating to our Business and the Oil and Gas
Industry The oil and gas industry is highly competitive and there can
be no assurance that we will be able to compete effectively. The oil and gas industry is highly competitive. Although we do
not believe that we will compete with other oil and gas companies for the sale
of any oil and gas that we may produce, as there is sufficient demand in the
world market for these products, we will compete with other oil and natural gas
companies and other individuals for desirable oil and natural gas leases,
drilling equipment, personnel and funds. Many of the companies that we will
compete with have longer operating histories and substantially greater financial
and other resources than we do. These larger or more experienced competitors may
be able to more easily access capital markets than we can and may enjoy a
competitive advantage in the recruitment of qualified personnel. They may be
able to absorb the burden of any changes in laws and regulation in the
jurisdictions in which we do business and handle longer periods of reduced
prices for oil and gas more easily than we can. Our competitors may be able to
pay more for oil and gas leases and properties and may be able to define,
evaluate, bid for and purchase a greater number of leases and properties than we
can. Further, these companies may enjoy technological advantages and may be able
to implement new technologies more rapidly than we can. Our ability to acquire
additional properties in the future will depend upon our ability to conduct
efficient operations, evaluate and select suitable properties, implement
advanced technologies and consummate transactions in a highly competitive
environment. If we cannot compete, our business will fail and you could lose
your entire investment. There can be no assurance that we will identify and acquire
an oil and natural gas exploration property. Even if we do acquire such a
property, there can be no assurance that we will discover oil or natural gas in
any commercial quantity thereon. Exploration for economic reserves of oil and natural gas is
subject to a number of risks. Even if we are able to acquire an oil or natural
gas exploration property, few properties that are explored are ultimately
developed into producing oil and/or natural gas wells. If we cannot acquire one
or more oil or natural gas opportunities and discover or develop oil or natural
gas in any commercial quantity thereon, our business will fail. 5 Oil and natural gas operations are subject to comprehensive
regulation which may cause substantial delays or require capital outlays in
excess of those anticipated. Oil and natural gas operations are subject to federal, state,
and local laws relating to the protection of the environment, including laws
regulating removal of natural resources from the ground and the discharge of
materials into the environment. Oil and natural gas operations are also subject
to federal, state, and local laws and regulations which seek to maintain health
and safety standards by regulating the design and use of drilling methods and
equipment. Various permits from government bodies are required for drilling
operations to be conducted; no assurance can be given that standards imposed by
federal, provincial, or local authorities may be changed and any such changes
may have material adverse effects on our proposed activities. Moreover,
compliance with such laws may cause substantial delays or require capital
outlays in excess of those anticipated, which could have an adverse effect on
us. Additionally, we may be subject to liability for pollution or other
environmental damages. To date, we have not been required to spend any money on
compliance with environmental regulations. However, we may be required to do so
in the future and this may affect our ability to begin, expand or maintain our
operations. Exploratory drilling involves many risks and we may become
liable for pollution or other liabilities which may have an adverse effect on
our financial position. Drilling operations generally involve a high degree of risk.
Hazards such as unusual or unexpected geological formations, power outages,
labor disruptions, blow-outs, sour natural gas leakage, fire, inability to
obtain suitable or adequate machinery, equipment or labor, and other risks are
involved. We may become subject to liability for pollution or hazards against
which we cannot adequately insure or which we may elect not to insure. Incurring
any such liability may have a material adverse effect on our financial position
and operations. Even if we acquire an oil and natural gas exploration
property and establish that it contains oil or natural gas in commercially
exploitable quantities, the potential profitability of oil and natural gas
ventures depends upon factors beyond the control of our company. Even if we are able to acquire an oil or gas property and
establish the presence of any oil or gas reserves, our ability to produce and
market oil and gas will be subject to: the availability of adequate pipeline transmission facilities or carrying
capacity; government regulation of natural gas and oil production; government transportation, tax and energy policies; changes in supply and demand; and general economic conditions. Our future performance is dependent upon our ability to
identify, acquire and develop oil and gas properties, the failure of which could
result in under use of capital and losses. Our future performance depends upon our ability to identify,
acquire and develop oil and gas reserves that are economically recoverable. Our
success will depend upon our ability to acquire working and revenue interests in
properties upon which oil and gas reserves are ultimately discovered in
commercial quantities, and our ability to develop prospects that contain proven
oil and gas reserves to the point of production. Without successful acquisition
and exploration activities, we will not be able to develop oil and gas reserves
or generate revenues. We cannot provide you with any assurance that we will be
able to identify and acquire oil and gas reserves on acceptable terms, or that
oil and gas deposits will be discovered in sufficient quantities to enable us to
recover our exploration and development costs or sustain our business. 6 Exploratory drilling involves many risks that are outside
our control which may result in a material adverse effect on our business,
financial condition or results of operations. The business of exploring for and producing oil and gas
involves a substantial risk of investment loss. Drilling oil and gas wells
involves the risk that the wells may be unproductive or that, although
productive, the wells may not produce oil or gas in economic quantities. Other
hazards, such as unusual or unexpected geological formations, pressures, fires,
blowouts, power outages, sour gas leakage, loss of circulation of drilling
fluids or other conditions may substantially delay or prevent completion of any
well. Adverse weather conditions can also hinder drilling operations. A
productive well may become uneconomic if water or other deleterious substances
are encountered that impair or prevent the production of oil or gas from the
well. In addition, production from any well may be unmarketable if it is
impregnated with water or other deleterious substances. Therefore, even if we
acquire an oil or gas property or interest, there can be no assurance that we
will be able to produce any oil or gas. Risks Relating to Our Common Stock If we issue additional shares in the future, it will result
in the dilution of our existing shareholders. Our articles of incorporation authorize the issuance of up to
150,000,000 shares of common stock with a par value of $0.0001 per share. Our
board of directors may choose to issue some or all of such shares to acquire one
or more properties, to fund our proposed exploration programs and to fund our
overhead and general operating requirements. The issuance of any such shares
will reduce the book value per share and may contribute to a reduction in the
market price of the outstanding shares of our common stock. If we issue any such
additional shares, such issuance will reduce the proportionate ownership and
voting power of all current shareholders. Further, such issuance may result in a
change of control of our corporation. Trading of our stock is restricted by the Securities
Exchange Commission's penny stock regulations, which may limit a stockholder's
ability to buy and sell our common stock. The Securities and Exchange Commission has adopted regulations
which generally define penny stock to be any equity security that has a market
price (as defined) less than $5.00 per share or an exercise price of less than
$5.00 per share, subject to certain exceptions. Our securities are covered by
the penny stock rules, which impose additional sales practice requirements on
broker-dealers who sell to persons other than established customers and
accredited investors. The term accredited investor refers generally to
institutions with assets in excess of $5,000,000 or individuals with a net worth
in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly
with their spouse. The penny stock rules require a broker-dealer, prior to a
transaction in a penny stock not otherwise exempt from the rules, to deliver a
standardized risk disclosure document in a form prepared by the Securities and
Exchange Commission, which provides information about penny stocks and the
nature and level of risks in the penny stock market. The broker-dealer also must
provide the customer with current bid and offer quotations for the penny stock,
the compensation of the broker-dealer and its salesperson in the transaction and
monthly account statements showing the market value of each penny stock held in
the customer's account. The bid and offer quotations, and the broker-dealer and
salesperson compensation information, must be given to the customer orally or in
writing prior to effecting the transaction and must be given to the customer in
writing before or with the customer's confirmation. In addition, the penny stock
rules require that prior to a transaction in a penny stock not otherwise exempt
from these rules, the broker-dealer must make a special written determination
that the penny stock is a suitable investment for the purchaser and receive the
purchaser's written agreement to the transaction. These disclosure requirements
may have the effect of reducing the level of trading activity in the secondary
market for the stock that is subject to these penny stock rules. Consequently,
these penny stock rules may affect the ability of broker-dealers to trade our
securities. We believe that the penny stock rules discourage investor interest
in and limit the marketability of our common stock. 7 FINRA sales practice requirements may also limit a
stockholder's ability to buy and sell our stock. In addition to the penny stock rules described above, the
Financial Industry Regulatory Authority (known as FINRA) has adopted rules
that require that in recommending an investment to a customer, a broker-dealer
must have reasonable grounds for believing that the investment is suitable for
that customer. Prior to recommending speculative low priced securities to their
non-institutional customers, broker-dealers must make reasonable efforts to
obtain information about the customers financial status, tax status, investment
objectives and other information. Under interpretations of these rules, FINRA
believes that there is a high probability that speculative low priced securities
will not be suitable for at least some customers. FINRA requirements make it
more difficult for broker-dealers to recommend that their customers buy our
common stock, which may limit your ability to buy and sell our stock and have an
adverse effect on the market for our shares. Our common stock is illiquid and the price of our common
stock may be negatively impacted by factors which are unrelated to our
operations. Although our common stock is currently listed for quotation on
the OTC Bulletin Board, none of our shares have yet been purchased or sold on
that market. Even when a market is established and trading begins, trading
through the OTC Bulletin Board is frequently thin and highly volatile. There is
no assurance that a sufficient market will develop in our stock, in which case
it could be difficult for shareholders to sell their stock. The market price of
our common stock could fluctuate substantially due to a variety of factors,
including market perception of our ability to achieve our planned growth,
quarterly operating results of our competitors, trading volume in our common
stock, changes in general conditions in the economy and the financial markets or
other developments affecting our competitors or us. In addition, the stock
market is subject to extreme price and volume fluctuations. This volatility has
had a significant effect on the market price of securities issued by many
companies for reasons unrelated to their operating performance and could have
the same effect on our common stock. We do not intend to pay dividends on any investment in the
shares of stock of our company. We have never paid any cash dividends and currently do not
intend to pay any dividends for the foreseeable future. Because we do not intend
to declare dividends, any gain on an investment in our company will need to come
through an increase in the stocks price. This may never happen and investors
may lose all of their investment in our company. ITEM 1B. UNRESOLVED STAFF COMMENTS Not Applicable. ITEM 2. PROPERTIES Executive Offices and Registered Agent Our executive and head office is located at 901 360 Bay
Street, Toronto, ON, Canada M5H 2V6. An officer and director of our company
provides office and related services to us at no cost. The value has been
estimated at $200 per month and under generally accepted accounting principles
is recorded as contributions to capital and rent expense. We believe that this
arrangement will be suitable for the next 12 months. Our registered office for service in the State of Nevada is
located at National Registered Agents, Inc. of NV, 1000 East William Street
Suite 204, Carson City NV 89701. Oil and Gas Properties We do not currently own any oil and gas properties. 8 ITEM 3. LEGAL PROCEEDINGS We know of no material, existing or pending legal proceedings
against our company, nor are we involved as a plaintiff in any material
proceeding or pending litigation. There are no proceedings in which any of our
directors, officers or affiliates, or any registered or beneficial shareholder,
is an adverse party or has a material interest adverse to our interest. ITEM 4. [REMOVED AND RESERVED] PART II ITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market information Our common shares are quoted on the OTC Bulletin Board of the
Financial Industry Regulatory Authority, Inc. Our symbol is SKRY, and our
CUSIP number is 86332T 203. There were no trades of our shares of common stock
made through the facilities of the OTC Bulletin Board during our fiscal years
ended February 28, 2010 and 2009. Transfer Agent Our shares of common stock are issued in registered form. The
transfer agent and registrar for our common stock is Transfer Online, Inc, 512
SE Salmon Street, Portland, OR 97214. Holders of Common Stock As of May 5, 2010, there were 25 holders of record of our
common stock. As of such date, 20,506,000 shares were issued and
outstanding. Dividends We have never declared or paid any cash dividends or
distributions on our capital stock. We currently intend to retain our future
earnings, if any, to support operations and to finance expansion and therefore
we do not anticipate paying any cash dividends on our common stock in the
foreseeable future. Securities authorized for issuance under equity
compensation plans. We do not have any stock compensation plans. Recent sales of unregistered securities; use of proceeds
from registered securities Since the beginning of the fourth quarter of our fiscal year
ended February 28, 2010, we have not sold any equity securities that were not
registered under the Securities Act of 1933 that were not previously reported in
a quarterly report on Form 10-Q or in a current report on Form 8-K, Purchases of Equity Securities by the Issuer and
Affiliated Purchasers The following table is a summary of purchases made by or on
behalf of our company or any affiliated purchaser, of shares or other units of
any class of our equity securities that is registered by the issuer pursuant to
section 12 of the Exchange Act. Issuer Purchases of Equity Securities ITEM 6. SELECTED FINANCIAL DATA Not applicable. ITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with our
financial statements and the related notes that appear elsewhere in this annual
report. The following discussion contains forward-looking statements that
reflect our plans, estimates and beliefs. Our actual results could differ
materially from those discussed in the forward looking statements. Factors that
could cause or contribute to such differences include those discussed below and
elsewhere in this annual report on Form 10-K. Our audited financial statements are stated in United States
Dollars and are prepared in accordance with United States Generally Accepted
Accounting Principles. Liquidity and Capital Resources Our financial condition for the12 months ended February 28,
2010 and 2009 and the changes between those periods for the respective items are
summarized as follows: We have suffered recurring losses from inception. Our ability
to meet our financial liabilities and commitments is primarily dependent upon
the continued financial support of our directors and shareholders, the continued
issuance of equity to new or existing shareholders, and our ability to achieve
and maintain profitable operations. 10 Working Capital As of February 28, 2010 our working capital increased by 119%
due largely to more cash on hand and a decrease in our current liabilities at
February 28, 2010 versus February 28, 2009. We have incurred recurring losses
from inception. Our ability to meet our financial obligations and commitments is
primarily dependent upon continued financial support of our shareholders,
directors and the continued issuance of equity to new and existing shareholders.
Cash Used in Operating Activities As of February 28, 2010 our cash used in operating activities
decreased by 21% due largely to reduced expenses in the year ended February 28,
2010 over the year ended February 28, 2009 excluding a one time recovery from
mineral property acquisition costs recognized in the year ended February 28,
2009. Cash Provided by Financing Activities As of February 28, 2010 our cash provided by financing
activities decreased by 13% due largely to a higher cost of capital for
securities issued in the year ended February 28, 2010 versus those issued in the
year ended February 28, 2009. Cash Requirements We continue to look for oil and gas opportunities in emerging
North American shale plays such as the Marcellus Shale, the Mowry Shale, the
Utica Shale and the Bakken Formation, among other as yet unidentified
opportunities. We have also begun to look to hire veteran industry experts to
expand our management team and better position our company in the oil and gas
business. We believe that developments in technology and increasing
energy prices made development of gas shales in North America a priority among
exploration and production companies. Although the recent decline in the price
of oil and gas represents a reversal of this trend, we believe that the trend
towards increasing prices for energy will eventually be reinstated. We intend to
continue our search for large footprint oil and gas rights in less developed
shale plays that offer a similar prospect for appreciation in value, and are
prospective for large scale development. We intend to add experts in finance, geology, engineering, and
land management contemporaneously with our identification of a prospective
project to better capitalize on the specific opportunities available to us. Our
CEO is an engineer by training with experience in finance and oil and gas
exploration and production. We intend to attract and retain additional
specialists to address the specific market segment already identified and to
cultivate additional value for shareholders. Specialists include geologists with
experience identifying regions prospective for oil and gas in place, land
managers capable of acquiring large contiguous blocks of land, and engineers who
know how to advance exploration into production. 11 Our plan of operation over the next 12 months is to identify a
suitable natural gas, oil, or oil and natural gas opportunity and to raise
sufficient capital to initiate exploration or development, and in turn to deploy
capital to proceed with an exploration or development plan. Specifically, we estimate our operating expenses and working
capital requirements for the next 12 months to be as follows: There can be no assurance that additional financing will be
available to us when needed or, if available, that it can be obtained on
commercially reasonable terms. If we are not able to obtain the additional
financing on a timely basis, if and when it is needed, we will be forced to
scale down or perhaps even cease the operation of our business. Results of Operation Revenues We have had no operating revenues since our inception on March
18, 2005 through to the period ended February 28, 2010. We anticipate that we
will not generate any revenues for so long as we are an exploration stage
company. The following summary of our results of operations should be
read in conjunction with our audited financial statements. Expenses Our expenses for the 12 months ended February 28, 2010 and 2009
were as follows: 12 In the 12 months ended February 28, 2010 our expenses increased
8% relative to the 12 month period ended February 28, 2009 due to a one time
recovery from mineral property acquisition costs recognized in the year ended
February 28, 2009. Off-Balance Sheet Arrangements We have not entered into any transactions with unconsolidated
entities whereby we have financial guarantees or other contingent arrangements
that expose us to material continuing risks, contingent liabilities or any other
obligations that provide financing, liquidity, market risk or credit risk
support to us Going Concern Our audited financial statements and information for the period
ended February 28, 2010 have been prepared by our management on a going concern
basis, which contemplates the realization of assets and the settlement of
liabilities and commitments in the normal course of business. We have generated
no revenues to date and have incurred net losses of approximately $58,201 during
the 12 month period ended February 28, 2010 and approximately $249,696 from
inception (March 18, 2005) through February 28, 2010. We cannot provide any
assurance that we will ultimately achieve profitable operations or become cash
flow positive, or raise additional funds through the sale of debt and/or equity.
On February 28, 2010 we had cash of $6,760. Our management does
not believe that our current capital resources will be adequate to continue
operating our company and maintaining our business strategy for more than three
months. If we are unable to raise additional capital in the near future, we
expect that we will need to curtail operations, liquidate any assets that we
might own, seek additional capital on less favorable terms and/or pursue other
remedial measures. Our financial statements do not include any adjustments
related to the recoverability and classification of assets or the amounts and
classification of liabilities that might be necessary should we be unable to
continue as a going concern. Application of Critical Accounting Policies The following is a summary of significant accounting policies
used in the preparation of these financial statements. Cash and cash equivalents Cash and cash equivalents include highly liquid investments
with original maturities of three months or less. Financial instruments Our financial instruments consist of cash and cash equivalents,
accounts payable, amounts due to related parties and promissory note. Unless
otherwise noted, it is managements opinion that we are not exposed to
significant interest or credit risks rising from these financial instruments.
The fair values of these financial instruments approximate their carrying
values, unless otherwise noted. Oil and gas property We follow the successful efforts method of accounting for its
natural gas and oil activities. Under the successful efforts method, lease
acquisition costs and all development costs are capitalized. Unproved properties
are reviewed quarterly to determine if there has been impairment of the carrying
value, and any such impairment is charged to expense in the period. Exploratory
drilling costs are capitalized until the results are determined. If proved
reserves are not discovered, the exploratory drilling costs are expensed. Other
exploratory costs, such as seismic costs and other geological and geophysical
expenses, are expensed as incurred. The provision for depreciation, depletion
and amortization is based on the capitalized costs as determined above.
Depreciation, depletion and amortization is on a cost center by cost center
basis using the unit of production method, with lease acquisition costs
amortized over total proved reserves and other costs amortized over proved
developed reserves. 13 When circumstances indicate that proved properties may be
impaired, we compare expected undiscounted future cash flows on a cost center
basis to the unamortized capitalized cost of the asset. If the future
undiscounted cash flows, based on our estimate of future natural gas and oil
prices and operating costs and anticipated production from proved reserves, are
lower than the unamortized capitalized cost, then the capitalized cost is
reduced to fair market value. We amortize and impair natural gas and oil properties on a
field-by-field cost center basis. Management believes this policy provides
greater comparability with other successful efforts natural gas and oil
companies by conforming to predominant industry practice. In addition, the field
level is consistent with our operational and strategic assessment of its natural
gas and oil investments. We are in the process of acquiring an oil and gas property and
have no property at this time. Reclamation costs Our policy for recording reclamation costs is to record a
liability for the estimated costs to reclaim mined land by recording charges to
production costs for each tonne of ore mined over the life of the mine. The
amount charged is based on managements estimation of reclamation costs to be
incurred. The accrued liability is reduced as reclamation expenditures are made.
Certain reclamation work is performed concurrently with mining and these
expenditures are charged to operations at that time. Fair value of financial instruments and derivative financial
instruments The carrying amounts of cash and cash equivalents and current
liabilities approximate fair value because of the short maturity of these items.
These fair value estimates are subjective in nature and involve uncertainties
and matters of significant judgment, and, therefore, cannot be determined with
precision. Changes in assumptions could significantly affect these estimates. We
do not hold or issue financial instruments for trading purposes, nor do we
utilize derivative instruments in the management of foreign exchange, commodity
price or interest rate market risks. Long-lived assets Our long-term assets are reviewed for impairment whenever
events or circumstances indicate that the carrying amount of assets may not be
recoverable, pursuant to guidance established in ASC 360-10-35-15,
Impairment or Disposal of Long-Lived Assets. Management considers assets to be impaired if the carrying
value exceeds the future projected cash flows from related operations
(undiscounted and without interest charges). If impairment is deemed to exist,
the assets will be written down to fair value. Fair value is generally
determined using a discounted cash flow analysis. Derivative financial instruments We have not, to the date of these financial statements, entered
into derivative instruments to offset the impact of foreign currency
fluctuations. Income taxes Deferred income taxes are reported for timing differences
between items of income or expense reported in the financial statements and
those reported for income tax purposes in accordance with ASC 740, Income
Taxes, which requires the use of the asset/liability method of accounting
for income taxes. Deferred income taxes and tax benefits are recognized for the
future tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their
respective tax bases, and for tax losses and credit carry-forwards. Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to
taxable income in the years in which those temporary differences are expected to
be recovered or settled. We provide for deferred taxes for the estimated future
tax effects attributable to temporary differences and carry-forwards when
realization is more likely than not. 14 Basic and diluted net loss per share We compute net loss per share in accordance with ASC 260,
Earnings per Share. ASC 260 requires presentation of both basic and
diluted earnings per share (EPS) on the face of the income statement. Basic
EPS is computed by dividing net loss available to common shareholders
(numerator) by the weighted average number of shares outstanding (denominator)
during the period. Diluted EPS gives effect to all dilutive potential common
shares outstanding during the period using the treasury stock method and
convertible preferred stock using the if-converted method. In computing diluted
EPS, the average stock price for the period is used in determining the number of
shares assumed to be purchased from the exercise of stock options or warrants.
Diluted EPS excluded all dilutive potential shares if their effect is
anti-dilutive. Comprehensive loss ASC 220, Comprehensive Income, establishes standards
for the reporting and display of comprehensive loss and its components in the
financial statements. As at 28 February 2010, 2009 and 2008, we have no items
that represent a comprehensive loss and, therefore, have not included a schedule
of comprehensive loss in the financial statements. Segments of an enterprise and related information ASC 280, Segment Reporting, establishes guidance for
the way that public companies report information about operating segments in
annual financial statements and requires reporting of selected information about
operating segments in interim financial statements issued to the public. It also
establishes standards for disclosures regarding products and services,
geographic areas and major customers. ASC 280 defines operating segments as
components of a company about which separate financial information is available
that is evaluated regularly by the chief operating decision maker in deciding
how to allocate resources and in assessing performance. We have evaluated this
Codification and do not believe it is applicable at this time. Start-up expenses We have adopted ASC 720-15, Start-Up Costs, which
requires that costs associated with start-up activities be expensed as incurred.
Accordingly, start-up costs associated with our formation have been included in
our general and administrative expenses for the period from the date of
inception on March 18, 2005 to February 28, 2010. Foreign currency translation Our functional and reporting currency is U.S. dollars. Our
financial statements are translated to U.S. dollars in accordance with ASC 830,
Foreign Currency Matters. Monetary assets and liabilities denominated
in foreign currencies are translated using the exchange rate prevailing at the
balance sheet date. Gains and losses arising on translation or settlement of
foreign currency denominated transactions or balances are included in the
determination of income. We have not, to the date of these financial statements,
entered into derivative instruments to offset the impact of foreign currency
fluctuations. Use of estimates The preparation of financial statements in conformity with U.S.
GAAP requires management to make estimates and assumptions that affect the
amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenditures during the reporting period. Actual results could
differ from these estimates. 15 Changes in accounting policies Fair Value Measurement and Disclosure In August 2009, the FASB issued ASU No. 2009-05, Fair Value
Measurement and Disclosure (Topic 820) Measuring Liabilities at Fair
Value, which provides valuation techniques to measure fair value in
circumstances in which a quoted price in an active market for the identical
liability is not available. The guidance provided in this update is effective 1
September 2009. The adoption of this guidance did not have a material impact on
our financial statements. The Accounting Standards Codification In June 2009, the FASB issued SFAS No. 168, The FASB
Accounting Standards Codification and the Hierarchy of Generally Accepted
Accounting Principle a replacement of FASB Statement No. 162. The
Codification reorganized existing U.S. accounting and reporting standards issued
by the FASB and other related private sector standard setter into a single
source of authoritative accounting principles arranged by topic. The
Codification supersedes all existing U.S. accounting standards; all other
accounting literature not included in the Codification (other than Securities
and Exchange Commission guidance for publicly-traded companies) is considered
non-authoritative. The Codification was effective on a prospective basis for
interim and annual reporting periods ending after 15 September 2009. The
adoption of the Codification changed our references to U.S. GAAP accounting
standards but did not impact our results of operations, financial position or
liquidity. Subsequent Events In May 2009, the FASB issued new guidance for accounting for
subsequent events. The new guidance, which is now part of ASC 855,
Subsequent Events, is intended to establish general standards of
accounting for and disclosure of events that occur after the balance sheet date,
but before financial statements are issued or are available to be issued. It
requires the disclosure of the date through which an entity has evaluated
subsequent events and the basis for that date. This disclosure should alert all
users of financial statements that an entity has not evaluated subsequent events
after that date in the set of financial statements being presented. The new
guidance was effective on a prospective basis for interim or annual reporting
periods ending after June 15, 2009. The adoption of this guidance did not have a
material impact on our financial statements. Convertible Debt In May 2008, the FASB issued new guidance for accounting for
convertible debt instruments that may be settled in cash. The new guidance,
which is now part of ASC 470-20, Debt with Conversion and Other Options
requires the liability and equity components to be separately accounted for in a
manner that will reflect the entitys nonconvertible debt borrowing rate. We
will allocate a portion of the proceeds received from the issuance of
convertible notes between a liability and equity component by determining the
fair value of the liability component using our nonconvertible debt borrowing
rate. The difference between the proceeds of the notes and the fair value of the
liability component will be recorded as a discount on the debt with a
corresponding offset to paid-in capital. The resulting discount will be accreted
by recording additional non-cash interest expense over the expected life of the
convertible notes using the effective interest rate method. The new guidance was
to be applied retrospectively to all periods presented upon those fiscal years.
The adoption of this guidance did not have a material impact on our financial
statements. 16 Useful Life of Intangible Assets In April 2008, the FASB issued new guidance for determining the
useful life of an intangible asset, the new guidance, which is now part of ASC
350, Intangibles Goodwill and Other. In determining the useful life
of intangible assets, ASC 350 removes the requirement to consider whether an
intangible asset can be renewed without substantial cost of material
modifications to the existing terms and conditions and, instead, requires an
entity to consider its own historical experience in renewing similar
arrangements. ASC 350 also requires expanded disclosure related to the
determination of intangible asset useful lives. The new guidance was effective
for financial statements issued for fiscal years beginning after 15 December
2008. The adoption of this guidance did not have a material impact on our
financial statements. Derivative Instruments and Hedging Activities In March 2008, the FASB issued new guidance on the disclosure
of derivative instruments and hedging activities. The new guidance, which is now
part of ASC 815, Derivatives and Hedging Activities, requires
qualitative disclosures about objectives and strategies for using derivatives,
quantitative disclosures about fair value amounts of, and gains and losses on,
derivative instruments, and disclosures about credit-risk-related contingent
features in derivative agreements. The new guidance was effective prospectively
for financial statements issued for fiscal years beginning after 15 November
2008, with early application encouraged. The adoption of this guidance did not
have a significant impact on our financial statements. Business Combinations In December 2007, the FASB issued revised guidance for
accounting for business combinations. The revised guidance, which is now part of
ASC 805, Business Combination, requires the fair value measurement of
assets acquired, liabilities assumed and any non-controlling interest in the
acquiree, at the acquisition date with limited exceptions. Previously, a cost
allocation approach was used to allocate the cost of the acquisition based on
the estimated fair value of the individual assets acquired and liabilities
assumed. The cost allocation approach treated acquisition-related costs and
restructuring costs that the acquirer expected to incur as a liability on the
acquisition date, as part of the cost of the acquisition. Under the revised
guidance, those costs are recognized in the statement of income separately from
the business combination. The revised guidance applies to business combinations
for which the acquisition date is on or after the beginning of the first annual
reporting period beginning on or after December 15, 2008. The adoption of this
guidance did not have a material impact on our financial statements. Recent accounting pronouncements From June 2009 to October 2009, the Financial Accounting
Standards Board (FASB) issued various updates, Accounting Standard Update
(ASU) No. 2009-2 through ASU No. 2009-15, which contain technical corrections
to existing guidance or affect guidance to specialized industries or entities.
These updates have no current applicability to us or their effect on the
financial statements is insignificant. In June 2009, the FASB issued Statement of Financial Accounting
Standards (SFAS) No. 167, Amendments to FASB Interpretation No.
46(R). SFAS No. 167, which amends ASC 810-10, Consolidation,
prescribes a qualitative model for identifying whether a company has a
controlling financial interest in a variable interest entity (VIE) and
eliminates the quantitative model. The new model identifies two primary
characteristics of a controlling financial interest: (1) provides a company with
the power to direct significant activities of the VIE, and (2) obligates a
company to absorb losses of and/or provides rights to receive benefits from the
VIE. SFAS No. 167 requires a company to reassess on an ongoing basis whether it
holds a controlling financial interest in a VIE. A company that holds a
controlling financial interest is deemed to be the primary beneficiary of the
VIE and is required to consolidate the VIE. SFAS No. 167, which is referenced in
ASC 105-10-65, has not yet been adopted into the Codification and remains
authoritative. SFAS No. 167 is effective 1 January 2010. We do not expect that
the adoption of SFAS No. 167 will have a material impact on our financial
statements. 17 In June 2009, the FASB issued SFAS No. 166, Accounting for
Transfer of Financial Assets an amendment of FASB Statement. SFAS No. 166
removes the concept of a qualifying special-purpose entity from ASC 860-10,
Transfers and Servicing, and removes the exception from applying ASC
810-10, Consolidation. These statements also clarify the requirements
for isolation and limitations on portions of financial assets that are eligible
for sale accounting. SFAS No. 166, which is referenced in ASC 105-10-65, has not
yet been adopted into the Codification and remains authoritative. This statement
is effective January 1, 2010. We do not expect that the adoption of SFAS No. 166
will have a material impact on our financial statements. International Financial Reporting Standards In November 2008, the Securities and Exchange Commission
(SEC) issued for comment a proposed roadmap regarding potential use of
financial statements prepared in accordance with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards
Board. Under the proposed roadmap, we would be required to prepare financial
statements in accordance with IFRS in fiscal year 2014, including comparative
information also prepared under IFRS for fiscal 2013 and 2012. We are currently
assessing the potential impact of IFRS on our financial statements and will
continue to follow the proposed roadmap for future developments. Mineral Property On September 28, 2005, We entered into a mineral property
option agreement with an unrelated third party, wherein we could acquire 50% of
the rights, title and interests in and to the Bald Mountain Claims in Nye
County, Nevada (the Bald Mountain Claims) by paying $5,000 in cash on signing
(paid), $5,000 on the second anniversary of the agreement (accrued), $10,000 on
the third anniversary of the agreement and to complete exploration expenditures
totalling $500,000 by September 28, 2010. During the year ended February 28, 2009, we abandoned its
interest in the Bald Mountain Claims and recorded a recovery of mineral property
acquisition costs of $5,000. This amount was previously recorded as payable on
September 28, 2007. ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK Not Applicable ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY
DATA 18 Striker Energy Corp. Financial Statements 19 Report of Independent Registered Public Accounting
Firm To the Board of Directors and Stockholders of We have audited the balance sheets of Striker Energy Corp.
(An Exploration Stage Company) (the Company) as at 28 February 2010 and
2009, and the related statements of operations, cash flows and changes in
stockholders deficiency for each of the years in the three-year period ended 28
February 2010 and for the period from the date of inception on 18 March 2005 to
28 February 2010. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States of America). Those
standards require that we plan and perform an audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position of the Company
as of 28 February 2010 and 2009 and the results of its operations, its cash
flows and its changes in stockholders deficiency for each of the years in the
three-year period ended 28 February 2010 and for the period from the date of
inception on 18 March 2005 to 28 February 2010 in conformity with accounting
principles generally accepted in the United States of America. The accompanying financial statements have been prepared
assuming that the Company will continue as a going concern. As discussed in Note
1 to the financial statements, conditions exist which raise substantial doubt
about the Companys ability to continue as a going concern unless it is able to
generate sufficient cash flows to meet its obligations and sustain its
operations. Managements plans in regard to these matters are also described in
Note 1. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty. 26 April 2010, except for Note 11, as to which the date is 4 May
2010. 20 Nature and Continuance of Operations (Note 1) and
Subsequent Event (Note 11) On behalf of the Board: Joseph Carusone Director The accompanying notes are an integral part of these financial
statements. 21 The accompanying notes are an integral part of these financial
statements. 22 Supplemental Disclosures with Respect to Cash Flows
(Note 10) The accompanying notes are an integral part of these financial
statements. 23 The accompanying notes are an integral part of these financial
statements. 24 Nature and Continuance of
Operations Striker Energy Corp. (the Company)
was incorporated under the laws of the State of Nevada on 18 March 2005 and the
Company intended to engage in the acquisition and exploration of mineral
properties. On 28 September 2005, the Company entered into a mineral property
option agreement with an unrelated third party (the Seller), wherein the
Company would acquire 50% of the rights, title and interests in and to the Bald
Mountain Claims in Nevada. Early in the summer of 2008, the Company abandoned
its efforts to acquire the Bald Mountain Claims with a notice to the Seller. The
Company has transitioned its business from mineral property exploration to oil
and natural gas exploration and is currently searching for oil and gas
exploration opportunities. The Company is an exploration stage
enterprise, as defined in Accounting Standards Codification (the Codification
or ASC) 915-10, Development Stage Entities. The Company is devoting
all of its present efforts in securing and establishing a new business, and its
planned principle operations have not commenced, and, accordingly, no revenue
has been derived during the organization period. The Companys financial statements as
at 28 February 2010 and for the year then ended have been prepared on a going
concern basis, which contemplates the realization of assets and the settlement
of liabilities and commitments in the normal course of business. The Company has
a loss of $58,201 for the year ended 28 February 2010 (28 February 2009
$53,957, 29 February 2008 $65,411) and working capital at 28 February 2010 of
$1,260 (28 February 2009 working capital deficit of $6,715). Effective 12 September 2008, the
Company completed a forward stock split by the issuance of two new common shares
for each one outstanding common share of the Company. Unless otherwise noted,
all references herein to number of shares, price per share or weighted average
number of shares outstanding have been adjusted to reflect this stock split on
retroactive basis (Note 8). Management cannot provide assurance
that the Company will ultimately achieve profitable operations or become cash
flow positive, or raise additional debt and/or equity capital. As at 28 February
2010, the Companys assets only consisted of cash and cash equivalents in the
amount of $6,760. Management believes that the Companys capital resources are
not adequate to continue operating and maintaining its business strategy for the
fiscal year ending 28 February 2011. Because the Company does not have any
assets or revenue from operations, it does not believe it will be able to raise
capital from traditional lending sources. Although the Company has historically
raised capital from sales of equity, there is no assurance that it will be able
to continue to do so. If the Company is unable to raise additional capital in
the near future, due to the Companys liquidity problems, management expects
that the Company will need to curtail or cease operations. These financial
statements do not include any adjustments related to the recoverability and
classification of assets or the amounts and classification of liabilities that
might be necessary should the Company be unable to continue as a going
concern. 25 As at 28 February 2010, the Company was
not currently fully engaged in an operating business and expects to incur
exploration stage operating losses for the next year to eighteen months. It
intends to rely on officers and directors to perform essential functions with
minimal compensation until a business operation can be fully commenced.
Management believes the Company will be able to raise sufficient capital to
implement its business plan, and thus will continue as a going concern during
this period while its plans are implemented. Significant Accounting Policies and Recent Accounting
Pronouncements The following is a summary of
significant accounting policies used in the preparation of these financial
statements. Basis of presentation The accounting and reporting policies
of the Company conform to accounting principles generally accepted in the United
States of America applicable to exploration stage enterprises (U.S. GAAP). The
functional currency is the U.S. dollar and the financial statements are
presented in U.S. dollars. Cash and cash equivalents Cash and cash equivalents include
highly liquid investments with original maturities of three months or less. Financial instruments The Companys financial instruments
consist of cash and cash equivalents, accounts payable, amounts due to related
parties and promissory note. Unless otherwise noted, it is managements opinion
that the Company is not exposed to significant interest or credit risks rising
from these financial instruments. The fair values of these financial instruments
approximate their carrying values, unless otherwise noted. Oil and gas property The Company follows the successful
efforts method of accounting for its natural gas and oil activities. Under the
successful efforts method, lease acquisition costs and all development costs are
capitalized. Unproved properties are reviewed quarterly to determine if there
has been impairment of the carrying value, and any such impairment is charged to
expense in the period. Exploratory drilling costs are capitalized until the
results are determined. If proved reserves are not discovered, the exploratory
drilling costs are expensed. Other exploratory costs, such as seismic costs and
other geological and geophysical expenses, are expensed as incurred. The
provision for depreciation, depletion and amortization is based on the
capitalized costs as determined above. Depreciation, depletion and amortization
is on a cost center by cost center basis using the unit of production method,
with lease acquisition costs amortized over total proved reserves and other
costs amortized over proved developed reserves. 26
When circumstances indicate that proved
properties may be impaired, the Company compares expected undiscounted future
cash flows on a cost center basis to the unamortized capitalized cost of the
asset. If the future undiscounted cash flows, based on the Companys estimate of
future natural gas and oil prices and operating costs and anticipated production
from proved reserves, are lower than the unamortized capitalized cost, then the
capitalized cost is reduced to fair market value. The Company amortizes and impairs
natural gas and oil properties on a field-by-field cost center basis. Management
believes this policy provides greater comparability with other successful
efforts natural gas and oil companies by conforming to predominant industry
practice. In addition, the field level is consistent with the Companys
operational and strategic assessment of its natural gas and oil investments. The Company is in the process of
acquiring an oil and gas property and has no property at this time. Reclamation costs The Companys policy for recording
reclamation costs is to record a liability for the estimated costs to reclaim
mined land by recording charges to production costs for each tonne of ore mined
over the life of the mine. The amount charged is based on managements
estimation of reclamation costs to be incurred. The accrued liability is reduced
as reclamation expenditures are made. Certain reclamation work is performed
concurrently with mining and these expenditures are charged to operations at
that time. Fair value of financial instruments
and derivative financial instruments The carrying amounts of cash and cash
equivalents and current liabilities approximate fair value because of the short
maturity of these items. These fair value estimates are subjective in nature and
involve uncertainties and matters of significant judgment, and, therefore,
cannot be determined with precision. Changes in assumptions could significantly
affect these estimates. The Company does not hold or issue financial instruments
for trading purposes, nor does it utilize derivative instruments in the
management of foreign exchange, commodity price or interest rate market
risks. Long-lived assets Long-term assets of the Company are
reviewed for impairment whenever events or circumstances indicate that the
carrying amount of assets may not be recoverable, pursuant to guidance
established in ASC 360-10-35-15, Impairment or Disposal of Long-Lived
Assets. Management considers assets to be
impaired if the carrying value exceeds the future projected cash flows from
related operations (undiscounted and without interest charges). If impairment is
deemed to exist, the assets will be written down to fair value. Fair value is
generally determined using a discounted cash flow analysis. 27
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
or
Commission file number: 000-52218
(Exact
name of registrant as specified in its charter)
Nevada
20-2590810
State or other jurisdiction of
(I.R.S. Employer
incorporation or organization
Identification No.)
(Address of principal executive offices and Zip Code)
Registrant's telephone number, including area code: (416) 489-0093
Securities registered pursuant to Section 12(b) of the Act
Title of Each Class
Name of each Exchange on which registered
Nil
N/A
(Title of Class)
Yes [ ]
No [X]
Yes [ ] No [X]
Yes [X] No [ ]
Yes [ ] No [ ]
[X]
Large accelerated filer
[ ]
Accelerated filer
[ ]
Non-accelerated filer
[ ]
(Do not check if a smaller reporting company)
Smaller reporting company
[X]
Yes [X] No [ ]
Number of securities
remaining available for
future issuance under
Number of securities to
Weighted-average
equity compensation
be issued upon exercise
exercise price of
plans (excluding
of outstanding options,
outstanding options,
securities reflected in
Plan category
warrants and rights
warrants and rights
column (a))
(a)
(b)
(c)
Equity compensation plans approved by
security holders
Nil
Nil
Nil
Equity compensation plans not approved by security holders
Nil
Nil
Nil
Total
Nil
Nil
Nil
9
(a)
(b)
(c)
(d)
Period
Total number of
shares (or units)
purchased
Average price paid
per share (or unit)
Total number of
shares
(or units)
purchased as part of
publicly
announced
plans or programs Maximum number
(or
approximate
dollar value) of
shares (or units)
that
may yet be
purchased under the
plans
or programs
None
February 28,
February 28,
2010
2009
Current Assets
$
6,760
$
2,448
Current
Liabilities
5,500
9,163
Working Capital (deficit)
$
1,260
$
(6,715
)
Cash Flows
12 months
12 months
ended
ended
February 28,
February 28,
2010
2009
Cash flow used in operating activities
$
(44,560
)
$
(53,958
)
Cash flow used in
investing activities
-
-
Cash provided by financing activities
48,872
56,154
Net increase in
cash
$
4,312
$
2,196
Expense
Amount
Bank charges and interest
$
500
Filing fees
$
3,000
Investor relations
$
1,000
Legal and accounting fees
$
36,000
Licenses and permits
$
1,000
Mineral property expenditures
$
1,000,000
Transfer agent fees
$
4,000
Total:
$
1,045,500
Year Ended
Year Ended
February 28, 2010
February 28, 2009
Expenses
Bank charges and interest
$
294
$
366
Consulting fees
-
-
Filing fees
1,915
3,004
Interest expense
1,777
-
Investor relations
-
730
Legal and accounting fees
36,394
35,021
Licenses and permits
-
763
Management fees
12,000
12,000
Mineral property expenditures
-
-
Office expense
46
443
Recovery from mineral property acquisition
costs
-
(5,000
)
Rent
2,400
2,400
Transfer agent fees
3,375
4,230
Web site development
-
-
Write down of mineral property acquisition
costs
-
-
Total
$
58,201
$
53,957
(An Exploration Stage Company)
(Expressed in U.S.
Dollars)
28 February 2010
JAMES STAFFORD
James Stafford, Inc.
Chartered Accountants
Suite 350 1111 Melville Street
Vancouver, British Columbia
Canada V6E 3V6
Telephone +1 604 669 0711
Facsimile +1 604 669 0754
Striker Energy
Corp.
(An Exploration Stage Company)
/s/ James Stafford
Vancouver, Canada
Chartered Accountants
Striker Energy Corp.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S.
Dollars)
As at 28
As at 28
February
February
2010
2009
$
$
Assets
Current
Cash and cash equivalents
6,760
2,448
Liabilities
Current
Accounts payable and accrued liabilities (Note 4)
5,500
8,035
Due to related parties (Note 6)
-
1,128
5,500
9,163
Promissory note (Note 5)
51,777
-
57,277
9,163
Stockholders deficiency
Capital stock (Note 8)
Authorized
150,000,000 common shares, par value $0.0001
Issued and outstanding
28 February 2010 20,506,000 common shares,
par value $0.0001
28 February 2009 20,506,000 common
shares, par value $0.0001
2,056
2,056
Additional paid-in capital
197,123
182,724
Deficit, accumulated during the exploration stage
(249,696
)
(191,495
)
(50,517
)
(6,715
)
6,760
2,448
Joseph
Carusone
Striker Energy Corp.
(An Exploration Stage Company)
Statements of Operations
(Expressed in U.S.
Dollars)
Cumulative
amounts
from the
date of
For the
For the
For the
inception on
year
year
year
18 March
ended
ended
ended
2005 to 28
28
28
29
February
February
February
February
2010
2010
2009
2008
$
$
$
$
Expenses
Bank charges and interest
1,327
294
366
250
Consulting fees
10,176
-
-
-
Filing fees
8,769
1,915
3,004
2,450
Interest expense (Note 5)
1,777
1,777
-
-
Investor relations
730
-
730
-
Legal and accounting fees
128,032
36,394
35,021
24,449
Licenses and permits
8,068
-
763
2,650
Management fees (Notes 7, 8 and 10)
45,000
12,000
12,000
12,000
Mineral property expenditures
15,124
-
-
12,124
Office expense
618
46
443
101
Recovery from mineral property acquisition
costs (Notes 3 and 10)
(5,000
)
-
(5,000
)
-
Rent (Notes 7, 8 and 10)
10,200
2,400
2,400
2,400
Transfer agent fees
13,036
3,375
4,230
3,579
Web site development
1,839
-
-
408
Write down of mineral property acquisition
costs (Note 3)
10,000
-
-
5,000
Net loss for the period
(249,696
)
(58,201
)
(53,957
)
(65,411
)
Basic and diluted loss per common
share
(0.003
)
(0.003
)
(0.003
)
Weighted average number of common
shares used in per share calculations
20,506,000
20,162,164
19,967,748
Striker Energy Corp.
(An Exploration Stage Company)
Statements of Cash Flows
(Expressed in U.S.
Dollars)
Cumulative
amounts from
the date of
For the
For the
For the
inception on
year
year
year
18 March
ended
ended
ended
2005 to
28
28
29
28 February
February
February
February
2010
2010
2009
2008
$
$
$
$
Cash flows used in operating activities
Net loss for the period
(249,696
)
(58,201
)
(53,957
)
(65,411
)
Adjustments to reconcile loss to net
cash used by operating activities
Contributions to capital by related parties expenses (Notes 7, 8 and 10)
55,200
14,399
14,400
14,400
Contributions to
capital by related party forgiveness of debt (Notes 6, 7 and 10)
38,950
-
-
-
Common shares
issued for services (Note 8)
30
-
-
-
Accrued interest (Note 5)
1,777
1,777
-
-
Recovery from mineral property acquisition cost (Notes 3 and 10)
(5,000
)
-
(5,000
)
-
Write down of
mineral property acquisition costs (Note 3)
10,000
-
-
5,000
Increase
(decrease) in accounts payable and accrued liabilities
10,499
(2,535
)
(9,401
)
7,671
(138,240
)
(44,560
)
(53,958
)
(38,340
)
Cash flows used in financing
activities
Increase (decrease) in due to related parties (Notes 6 and
7)
-
(1,128
)
6,154
19,224
Promissory note (Note 5)
50,000
50,000
-
-
Common shares returned to treasury (Note 8)
(5,000
)
-
-
(5,000
)
Common shares issued for cash (Note 8)
110,000
-
50,000
5,000
155,000
48,872
56,154
19,224
Cash flows from investing activities
Acquisition of mineral property interest (Note 3)
(10,000
)
-
-
(5,000
)
Increase (decrease) in cash and cash equivalents
6,760
4,312
2,196
(24,116
)
Cash and cash equivalents, beginning of period
-
2,448
252
24,368
Cash and cash equivalents, end of period
6,760
6,760
2,448
252
Striker Energy Corp.
(An Exploration Stage Company)
Statements of Changes in Stockholders Deficiency
(Expressed in U.S.
Dollars)
Deficit,
accumulated
Number of
Additional
during the
Total
shares
Capital
paid-in
exploration
stockholders
issued
stock
capital
stage
deficiency
$
$
$
$
Balance at 18 March 2005 (inception)
Restricted common shares
issued for cash ($0.0005 per share) September 2005 (Note 8)
10,000,000
1,000
4,000
-
5,000
Contributions to capital by related parties
expenses (Notes 7, 8 and 10)
-
-
600
-
600
Net loss for the period
-
-
-
(21,237
)
(21,237
)
Balance at 28 February 2006
10,000,000
1,000
4,600
(21,237
)
(15,637
)
Common shares issued for cash ($0.005 per
share) May 2006 (Note 8)
10,000,000
1,000
49,000
-
50,000
Common shares issued for
services ($0.005 per share) August 2006 and February 2007 (Note 8)
6,000
6
24
-
30
Contributions to capital by related parties
expenses (Notes 7, 8 and 10)
-
-
11,400
-
11,400
Net loss for the year
-
-
-
(50,890
)
(50,890
)
Balance at 28 February 2007
20,006,000
2,006
65,024
(72,127
)
(5,097
)
Contributions to capital by related parties
expenses (Notes 7, 8 and 10)
-
-
14,400
-
14,400
Common shares returned to
treasury and cancelled for cash ($0.005 per share) April 2007 (Note 8)
(1,000,000
)
(100
)
(4,900
)
-
(5,000
)
Common shares issued for cash ($0.01 per
share) May 2007 (Note 8)
1,000,000
100
4,900
-
5,000
Net loss for the year
-
-
-
(65,411
)
(65,411
)
Balance at 29 February 2008
20,006,000
2,006
79,424
(137,538
)
(56,108
)
Contributions to capital by related parties
expenses (Notes 7, 8 and 10)
-
-
14,400
-
14,400
Contributions to capital by
related parties loan forgiveness (Notes 6, 7 and 10)
-
-
38,950
-
38,950
Common shares issued for cash ($0.10 per
share) November 2008 (Note 8)
500,000
50
49,950
-
50,000
Net loss for the year
-
-
-
(53,957
)
(53,957
)
Balance at 28 February 2009
20,506,000
2,056
182,724
(191,495
)
(6,715
)
Contributions to capital by related parties
expenses (Notes 7, 8 and 10)
-
-
14,399
-
14,399
Net loss for the year
-
-
-
(58,201
)
(58,201
)
Balance at 28 February 2010
20,506,000
2,056
197,123
(249,696
)
(50,517
)
Striker Energy Corp.
(An Exploration Stage Company)
Notes to Financial Statements
(Expressed in U.S. Dollars)
28 February
2010
1.
Striker Energy Corp.
(An Exploration Stage Company)
Notes to Financial Statements
(Expressed in U.S. Dollars)
28 February
2010
2.
Striker Energy Corp.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S.
Dollars)
Striker Energy Corp.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S.
Dollars)
Derivative financial instruments
The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.
Income taxes
Deferred income taxes are reported for timing differences between items of income or expense reported in the financial statements and those reported for income tax purposes in accordance with ASC 740, Income Taxes, which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax losses and credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not.
Basic and diluted net loss per share
The Company computes net loss per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excluded all dilutive potential shares if their effect is anti-dilutive.
Comprehensive loss
ASC 220, Comprehensive Income, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at 28 February 2010, 2009 and 2008, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.
28
Striker Energy Corp.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S.
Dollars)
Segments of an enterprise and related information
ASC 280, Segment Reporting, establishes guidance for the way that public companies report information about operating segments in annual financial statements and requires reporting of selected information about operating segments in interim financial statements issued to the public. It also establishes standards for disclosures regarding products and services, geographic areas and major customers. ASC 280 defines operating segments as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company has evaluated this Codification and does not believe it is applicable at this time.
Start-up expenses
The Company has adopted ASC 720-15, Start-Up Costs, which requires that costs associated with start-up activities be expensed as incurred. Accordingly, start-up costs associated with the Companys formation have been included in the Companys general and administrative expenses for the period from the date of inception on 18 March 2005 to 28 February 2010.
Foreign currency translation
The Companys functional and reporting currency is U.S. dollars. The financial statements of the Company are translated to U.S. dollars in accordance with ASC 830, Foreign Currency Matters. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.
Use of estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from these estimates.
Changes in accounting policies
Fair Value Measurement and Disclosure
In August 2009, the FASB issued ASU No. 2009-05, Fair Value Measurement and Disclosure (Topic 820) Measuring Liabilities at Fair Value, which provides valuation techniques to measure fair value in circumstances in which a quoted price in an active market for the identical liability is not available. The guidance provided in this update is effective 1 September 2009. The adoption of this guidance did not have a material impact on the Companys financial statements.
29
Striker Energy Corp.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S.
Dollars)
The Accounting Standards Codification
In June 2009, the FASB issued SFAS No. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principle a replacement of FASB Statement No. 162. The Codification reorganized existing U.S. accounting and reporting standards issued by the FASB and other related private sector standard setter into a single source of authoritative accounting principles arranged by topic. The Codification supersedes all existing U.S. accounting standards; all other accounting literature not included in the Codification (other than Securities and Exchange Commission guidance for publicly-traded companies) is considered non-authoritative. The Codification was effective on a prospective basis for interim and annual reporting periods ending after 15 September 2009. The adoption of the Codification changed the Companys references to U.S. GAAP accounting standards but did not impact the Companys results of operations, financial position or liquidity.
Subsequent Events
In May 2009, the FASB issued new guidance for accounting for subsequent events. The new guidance, which is now part of ASC 855, Subsequent Events, is intended to establish general standards of accounting for and disclosure of events that occur after the balance sheet date, but before financial statements are issued or are available to be issued. It requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date. This disclosure should alert all users of financial statements that an entity has not evaluated subsequent events after that date in the set of financial statements being presented. The new guidance was effective on a prospective basis for interim or annual reporting periods ending after 15 June 2009. The adoption of this guidance did not have a material impact on the Companys financial statements.
Convertible Debt
In May 2008, the FASB issued new guidance for accounting for convertible debt instruments that may be settled in cash. The new guidance, which is now part of ASC 470-20, Debt with Conversion and Other Options requires the liability and equity components to be separately accounted for in a manner that will reflect the entitys nonconvertible debt borrowing rate. The Company will allocate a portion of the proceeds received from the issuance of convertible notes between a liability and equity component by determining the fair value of the liability component using the Companys nonconvertible debt borrowing rate. The difference between the proceeds of the notes and the fair value of the liability component will be recorded as a discount on the debt with a corresponding offset to paid-in capital. The resulting discount will be accreted by recording additional non-cash interest expense over the expected life of the convertible notes using the effective interest rate method. The new guidance was to be applied retrospectively to all periods presented upon those fiscal years. The adoption of this guidance did not have a material impact on the Companys financial statements.
30
Striker Energy Corp.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S.
Dollars)
Useful Life of Intangible Assets
In April 2008, the FASB issued new guidance for determining the useful life of an intangible asset, the new guidance, which is now part of ASC 350, Intangibles Goodwill and Other. In determining the useful life of intangible assets, ASC 350 removes the requirement to consider whether an intangible asset can be renewed without substantial cost of material modifications to the existing terms and conditions and, instead, requires an entity to consider its own historical experience in renewing similar arrangements. ASC 350 also requires expanded disclosure related to the determination of intangible asset useful lives. The new guidance was effective for financial statements issued for fiscal years beginning after 15 December 2008. The adoption of this guidance did not have a material impact on the Companys financial statements.
Derivative Instruments and Hedging Activities
In March 2008, the FASB issued new guidance on the disclosure of derivative instruments and hedging activities. The new guidance, which is now part of ASC 815, Derivatives and Hedging Activities, requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of, and gains and losses on, derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. The new guidance was effective prospectively for financial statements issued for fiscal years beginning after 15 November 2008, with early application encouraged. The adoption of this guidance did not have a significant impact on the Companys financial statements.
Business Combinations
In December 2007, the FASB issued revised guidance for accounting for business combinations. The revised guidance, which is now part of ASC 805, Business Combination, requires the fair value measurement of assets acquired, liabilities assumed and any noncontrolling interest in the acquiree, at the acquisition date with limited exceptions. Previously, a cost allocation approach was used to allocate the cost of the acquisition based on the estimated fair value of the individual assets acquired and liabilities assumed. The cost allocation approach treated acquisition-related costs and restructuring costs that the acquirer expected to incur as a liability on the acquisition date, as part of the cost of the acquisition. Under the revised guidance, those costs are recognized in the statement of income separately from the business combination. The revised guidance applies to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 15 December 2008. The adoption of this guidance did not have a material impact on the Companys financial statements.
Recent accounting pronouncements
From June 2009 to October 2009, the Financial Accounting Standards Board (FASB) issued various updates, Accounting Standard Update (ASU) No. 2009-2 through ASU No. 2009-15, which contain technical corrections to existing guidance or affect guidance to specialized industries or entities. These updates have no current applicability to the Company or their effect on the financial statements is insignificant.
31
Striker Energy Corp.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S.
Dollars)
In June 2009, the FASB issued Statement of Financial Accounting Standards (SFAS) No. 167, Amendments to FASB Interpretation No. 46(R). SFAS No. 167, which amends ASC 810-10, Consolidation, prescribes a qualitative model for identifying whether a company has a controlling financial interest in a variable interest entity (VIE) and eliminates the quantitative model. The new model identifies two primary characteristics of a controlling financial interest: (1) provides a company with the power to direct significant activities of the VIE, and (2) obligates a company to absorb losses of and/or provides rights to receive benefits from the VIE. SFAS No. 167 requires a company to reassess on an ongoing basis whether it holds a controlling financial interest in a VIE. A company that holds a controlling financial interest is deemed to be the primary beneficiary of the VIE and is required to consolidate the VIE. SFAS No. 167, which is referenced in ASC 105-10-65, has not yet been adopted into the Codification and remains authoritative. SFAS No. 167 is effective 1 January 2010. The Company does not expect that the adoption of SFAS No. 167 will have a material impact on its financial statements.
In June 2009, the FASB issued SFAS No. 166, Accounting for Transfer of Financial Assets an amendment of FASB Statement. SFAS No. 166 removes the concept of a qualifying special-purpose entity from ASC 860-10, Transfers and Servicing, and removes the exception from applying ASC 810-10, Consolidation. These statements also clarifies the requirements for isolation and limitations on portions of financial assets that are eligible for sale accounting. SFAS No. 166, which is referenced in ASC 105-10-65, has not yet been adopted into the Codification and remains authoritative. This statement is effective 1 January 2010. The Company does not expect that the adoption of SFAS No. 166 will have a material impact on its financial statements.
International Financial Reporting Standards
In November 2008, the Securities and Exchange Commission (SEC) issued for comment a proposed roadmap regarding potential use of financial statements prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. Under the proposed roadmap, the Company would be required to prepare financial statements in accordance with IFRS in fiscal year 2014, including comparative information also prepared under IFRS for fiscal 2013 and 2012. The Company is currently assessing the potential impact of IFRS on its financial statements and will continue to follow the proposed roadmap for future developments.
3. |
Mineral Property |
On 28 September 2005, the Company entered into a mineral property option agreement with an unrelated third party, wherein the Company could acquire 50% of the rights, title and interests in and to the Bald Mountain Claims in Nye County, Nevada (the Bald Mountain Claims) by paying $5,000 in cash on signing (paid), $5,000 on the second anniversary of the agreement (accrued), $10,000 on the third anniversary of the agreement and to complete exploration expenditures totalling $500,000 by 28 September 2010.
During the year ended 28 February 2009, the Company abandoned its interest in the Bald Mountain Claims and recorded a recovery of mineral property acquisition costs of $5,000. This amount was previously recorded as payable on 28 September 2007 (Note 10).
32
Striker Energy Corp.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S.
Dollars)
4. |
Accounts Payable and Accrued Liabilities |
Accounts payable and accrued liabilities are non-interest bearing, unsecured and have settlement dates within one year. | |
5. |
Promissory Note |
Issued on 15 June 2009, the promissory note demand bears interest at five percent (5%) per annum on the principal balance and is secured by a general charge on the assets of the Company. The principal amount or such portion thereof as shall remain outstanding from time to time shall accrue simple interest, calculated monthly in arrears, at a rate of 5% per annum commencing on the date of this promissory note and payable at maturity. When not in default the promissory note and accrued interest can be repaid in whole or in part without notice or bonus. During the year ended 28 February 2010, the Company accrued interest expense of $1,777. The balance as at 28 February 2010 consists of principal and accrued interest of $50,000 (28 February 2009 $Nil) and $1,777 (28 February 2009 $Nil), respectively. | |
6. |
Due to Related Parties |
The amount due to related party at 28 February 2010 was $Nil (28 February 2009 $1,128). During the year ended 28 February 2010, the Company repaid $1,128 owed to an officer and director of the Company (Note 7). | |
During the year ended 28 February 2010, two former officers and directors of the Company forgave loans to the Company totaling $Nil (28 February 2009 $38,950). This loan forgiveness has been recorded as contributions to capital of the Company (Notes 7 and 10). | |
7. |
Related Party Transactions |
During the year ended 28 February 2010, an officer and director of the Company made contributions to capital for management fees in the amount of $12,000 (28 February 2009 $12,000, 29 February 2008 $12,000, cumulative $45,000) and for rent in the amount of $2,400 (28 February 2009 $2,400, 29 February 2008 $2,400, cumulative $10,200) (Notes 6, 8 and 10). | |
During the year ended 28 February 2010, the Company repaid $1,128 owed to an officer and director of the Company (Note 6). | |
During the year ended 28 February 2010, two former officers and directors of the Company forgave loans to the Company totaling $Nil (28 February 2009 $38,950). This loan forgiveness has been recorded as contributions to capital of the Company (Notes 6 and 10). |
33
Striker Energy Corp.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S.
Dollars)
8. |
Capital Stock |
Authorized
The total authorized capital is 150,000,000 common shares with a par value of $0.0001.
Issued and outstanding
The total issued and outstanding capital stock is 20,506,000 common shares with a par value of $0.0001 per common share.
On 1 September 2005, 10,000,000 common shares of the Company were issued to an officer and director of the Company for cash proceeds of $5,000.
On 2 May 2006, the Company completed a public offering of securities pursuant to an exemption provided by Rule 504 of Regulation D, registered in the State of Nevada, and issued 10,000,000 common shares for total cash proceeds of $50,000.
On 29 August 2006, 4,000 common shares valued at $0.005 per share of the Company were issued to an officer and director of the Company for services rendered.
On 1 February 2007, 2,000 common shares valued at $0.005 per share of the Company were issued to a director of the Company for services rendered.
On 30 April 2007, 1,000,000 common shares of the Company were returned to treasury and cancelled; $5,000 was returned to the investors.
On 14 May 2007, 1,000,000 common shares valued at $0.005 per share of the Company were issued for total cash proceeds of $5,000.
Effective 12 September 2008, the Company completed a 2 to 1 forward stock split and increased the authorized share capital from 75,000,000 common shares to 150,000,000 common shares with the same par value of $0.0001. Unless otherwise noted, all references herein to number of shares, price per share or weighted average number of shares outstanding have been adjusted to reflect this stock split on retroactive basis (Note 1).
On 6 November 2008, 500,000 common shares valued at $0.10 per share of the Company were issued for total cash proceeds of $50,000.
During the year ended 28 February 2010, an officer and director of the Company made contributions to capital for management fees in the amount of $12,000 (28 February 2009 $12,000, cumulative $45,000) and for rent in the amount of $2,400 (28 February 2009 $2,400, cumulative $10,200) (Notes 6, 7 and 10).
34
Striker Energy Corp.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S.
Dollars)
9. |
Income Taxes |
The Company has losses carried forward for income tax purposes to 28 February 2010. There are no current or deferred tax expenses for the year ended 28 February 2010 due to the Companys loss position. The Company has fully reserved for any benefits of these losses. The deferred tax consequences of temporary differences in reporting items for financial statement and income tax purposes are recognized, as appropriate. Realization of the future tax benefits related to the deferred tax assets is dependent on many factors, including the Companys ability to generate taxable income within the net operating loss carryforward period. Management has considered these factors in reaching its conclusion as to the valuation allowance for financial reporting purposes.
The provision for refundable federal income tax consists of the following:
For the | For the | ||||||
year ended | year ended | ||||||
28 February | 28 February | ||||||
2010 | 2009 | ||||||
$ | $ | ||||||
Refundable federal tax asset attributable to: | |||||||
Current operations | 19,788 | 18,345 | |||||
Contributions to capital by related parties | (4,896 | ) | (4,896 | ) | |||
Forgiveness of related party debt (Notes 6, 7 and 10) | - | (13,243 | ) | ||||
Less: Change in valuation allowance | (14,892 | ) | (206 | ) | |||
Net refundable amount | - | - |
35
Striker Energy Corp.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S.
Dollars)
The composition of the Companys deferred tax assets as at 28 February 2010 and 2009 is as follows:
28 February | 28 February | ||||||
2010 | 2009 | ||||||
$ | $ | ||||||
Net operating loss carryforward | 155,516 | 111,715 | |||||
Statutory federal income tax rate | 34% | 34% | |||||
Effective income tax rate | 0% | 0% | |||||
Deferred tax asset | 52,875 | 37,983 | |||||
Less: Valuation allowance | (52,875 | ) | (37,983 | ) | |||
Net deferred tax asset | - | - |
The potential income tax benefit of these losses has been offset by a full valuation allowance.
As at 28 February 2010, the Company has an unused net operating loss carry-forward balance of approximately $155,516 that is available to offset future taxable income. This unused net operating loss carry-forward balance expires through 2026 and 2030.
10. |
Supplemental Disclosures with Respect to Cash Flows |
Cumulative | |||||||||||||
amounts from | |||||||||||||
the date of | |||||||||||||
inception on | |||||||||||||
18 March | For the year | For the year | For the year | ||||||||||
2005 to | ended | ended | ended | ||||||||||
28 February | 28 February | 28 February | 29 February | ||||||||||
2010 | 2010 | 2009 | 2008 | ||||||||||
$ | $ | $ | $ | ||||||||||
Cash paid during the period for interest | - | - | - | - | |||||||||
Cash paid during the period for income taxes | - | - | - | - |
On 29 August 2006, 4,000 common shares valued at $0.005 per share of the Company were issued to an officer and director of the Company for services rendered (Note 8).
On 1 February 2007, 2,000 common shares valued at $0.005 per share of the Company were issued to a director of the Company for services rendered (Note 8).
36
Striker Energy Corp.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S.
Dollars)
On 30 April 2007, 1,000,000 common shares of the Company were returned to treasury and cancelled; $5,000 was returned to the investors (Note 8).
During the year ended 28 February 2009, two former officers and directors of the Company forgave loans to the Company totaling $38,950. This loan forgiveness has been recorded as contributions to capital (Notes 6 and 7).
During the year ended 28 February 2009, the Company abandoned it interest in the Bald Mountain Claims and recorded a recovery of mineral property acquisition costs of $5,000. This amount was previously recorded as payable on 28 September 2007 (Note 3).
During the year ended 28 February 2010, an officer and director of the Company made contributions to capital for management fees in the amount of $12,000 (28 February 2009 $12,000, cumulative $45,000) and for rent in the amount of $2,400 (28 February 2009 $2,400, cumulative $10,200) (Notes 7 and 8).
11. |
Subsequent Event |
There are no subsequent events during the period from the year ended 28 February 2010 to the date the financial statements were available to be issued on 4 May 2010.
37
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A(T). CONTROLS AND PROCEDURES
Disclosure controls and procedures
We maintain disclosure controls and procedures, as that term is defined in Rule 13a-15(e), promulgated by the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our company's reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commissions rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal accounting officer to allow timely decisions regarding required disclosure.
As required by paragraph (b) of Rules 13a-15 under the Securities Exchange Act of 1934, our management, with the participation of our principal executive officer and principal financial officer, evaluated our companys disclosure controls and procedures as of the end of the period covered by this annual report on Form 10-K. Based on this evaluation, our management concluded that as of the end of the period covered by this annual report on Form 10-K, our disclosure controls and procedures were effective.
Internal control over financial reporting
Management's annual report on internal control over financial reporting
Our management, including our principal executive officer, principal financial officer and our Board of Directors, is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934).
Our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our internal control over financial reporting as of February 28, 2010. Our managements evaluation of our internal control over financial reporting was based on the framework in Internal ControlIntegrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of February 28, 2010 and that there were no material weaknesses in our internal control over financial reporting.
A material weakness is a deficiency or a combination of control deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.
This annual report does not include an attestation report of our companys independent registered public accounting firm regarding internal control over financial reporting. Managements report was not subject to attestation by our companys independent registered public accounting firm pursuant to temporary rules of the SEC that permit our company to provide only managements report in this annual report.
38
Limitations on Effectiveness of Controls
Our principal executive officer and principal financial officer do not expect that our disclosure controls or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additional controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.
Changes in internal control over financial reporting
There were no changes in our internal control over financial reporting during the fourth quarter of our fiscal year ended February 28, 2010 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.
Certifications
Certifications with respect to disclosure controls and procedures and internal control over financial reporting under Rules 13a-14(a) or 15d-14(a) of the Exchange Act are attached to this annual report on Form 10-K.
ITEM 9B. OTHER INFORMATION
None
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Directors and Executive Officers
As at May 5, 2010, our directors and executive officers, their age, positions held, and duration of such, are as follows:
Name | Position Held with our Company | Age | Date First Elected or Appointed |
Joseph Carusone | President, Chief Executive Officer, Chief Financial Officer, Treasurer and Director |
45 | August 18, 2008 |
Family Relationships
There are no family relationships between any director or executive officer.
39
Business Experience
The following is a brief account of the education and business experience of directors and executive officers during at least the past five years, indicating their principal occupation during the period, and the name and principal business of the organization by which they were employed
Joseph Carusone
Mr. Carusone was appointed as president, secretary, treasurer and a director of our company on August 18, 2008. For more than 10 years, Mr. Carusone has been involved in the founding of and management of private companies and partnerships including those in the oil and gas industry. His experience as a liaison between management and shareholders is extensive. He has been the president of Opex Energy Corp. since its inception on August 22, 2007. Since 2001, Mr. Carusone has been founder and president of the investor relations firm Primoris Group Inc. Between 1999 and 2001, Mr. Carusone was vice-president of operations of StockHouse Media Corporation. For eight years following his graduation from the University of Toronto with a degree in Engineering and Applied Science (1987), Mr. Carusone managed research activities in University of Torontos Institute for Aerospace Studies Space Robotics Group.
We believe Mr. Carusone is qualified to serve on our board of directors because of his knowledge of our companys history and current operations, which he gained from working for our company as described above, in addition to his education and business experiences as described above.
Involvement in Certain Legal Proceedings
Our director and executive officer has not been involved in any of the following events during the past ten years:
1. |
any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; | |
2. |
any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offences); | |
3. |
being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; | |
4. |
being found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated; | |
5. |
being the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of: (i) any federal or state securities or commodities law or regulation; or (ii) any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease- and-desist order, or removal or prohibition order; or (iii) any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or | |
6. |
being the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Securities Exchange Act of 1934), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member. |
40
Compliance with section 16(a) of the Exchange Act
Section 16(a) of the Securities Exchange Act requires our executive officers and directors, and persons who own more than 10% of our common stock, to file reports regarding ownership of, and transactions in, our securities with the Securities and Exchange Commission and to provide us with copies of those filings. Based solely on our review of the copies of such forms received by us, or written representations from certain reporting persons, we believe that during fiscal year ended February 28, 2010, all filing requirements applicable to its officers, directors and greater than ten percent beneficial owners were complied with.
Code of Ethics
We have not yet adopted a Code of Ethics.
At such time as we initiate operations, we will carefully consider adopting a Code of Ethics consistent with the standards proscribed by pertinent authorities.
Corporate Governance
Term of Office
Each director of our company is to serve for a term of one year ending on the date of subsequent annual meeting of stockholders following the annual meeting at which such director was elected. Notwithstanding the foregoing, each director is to serve until his successor is elected and qualified or until his death, resignation or removal. Our board of directors is to elect our officers and each officer is to serve until his successor is elected and qualified or until his death, resignation or removal.
Committees of the Board
Our board of directors held no formal meetings during the year ended February 28, 2010. All proceedings of our board of directors were conducted by resolutions consented to in writing by all the directors and filed with the minutes of the proceedings of the directors. Such resolutions consented to in writing by the directors entitled to vote on that resolution at a meeting of the directors are, according to the corporate laws of the State of Nevada and our By-laws, as valid and effective as if they had been passed at a meeting of our directors duly called and held.
We currently do not have nominating or compensation committees or committees performing similar functions nor do we have a written nominating or compensation committee charter. Our board of directors does not believe that it is necessary to have such committees because it believes that the functions of such committees can be adequately performed by our board of directors.
We do not have any defined policy or procedure requirements for shareholders to submit recommendations or nominations for directors. We do not currently have any specific or minimum criteria for the election of nominees to our board of directors and we do not have any specific process or procedure for evaluating such nominees. Our board of directors assesses all candidates, whether submitted by management or shareholders, and makes recommendations for election or appointment.
A shareholder who wishes to communicate with our board of directors may do so by directing a written request to the address appearing on the first page of this annual report.
Audit Committee and Audit Committee Financial Expert
We do not have a standing audit committee at the present time. Our board of directors has determined that we do not have a board member that qualifies as an audit committee financial expert as defined in Item 401(h) of Regulation S-K, nor do we have a board member that qualifies as independent as the term is used in Item 7(d)(3)(iv) of Schedule 14A under the Securities Exchange Act of 1934, as amended.
41
We believe that our board of directors is capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting. The board of directors of our company does not believe that it is necessary to have an audit committee because we believe that the functions of an audit committee can be adequately performed by the board of directors. In addition, we believe that retaining an independent director who would qualify as an audit committee financial expert would be overly costly and burdensome and is not warranted in our circumstances given the early stages of our development and the fact that we have not generated any revenues from operations to date.
Director Independence
Under NASDAQ Marketplace Rule 5605(a)(2), a director is not considered to be independent if he is also an executive officer or employee of the company. Because Joseph Carusone, our sole director, is also our executive officer, we determined that we do not have an independent director as that term is defined by NASDAQ Marketplace Rule 5605(a)(2).
ITEM 11. EXECUTIVE COMPENSATION
Summary Compensation
The particulars of compensation paid to the following persons:
(a) |
our principal executive officer; | |
(b) |
each of our two most highly compensated executive officers who were serving as executive officers at the end of the year ended February 28, 2010; and | |
(c) |
up to two additional individuals for whom disclosure would have been provided under (b) but for the fact that the individual was not serving as our executive officer at the end of the most recently completed financial year, |
who we will collectively refer to as the named executive officers, for our years ended February 28, 2010 and 2009, are set out in the following summary compensation table:
Name and principal position | Year | Salary ($) |
Bonus ($) |
Stock awards ($) |
Option awards ($) |
Non-equity incentive plan compensation ($) |
Change in pension value and nonqualified deferred compensation earnings ($) |
All other compensation ($) |
Total ($) |
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) |
Joseph
Carusone President, CEO, CFO, Secretary Treasurer, and Director |
2009 2008 |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Employment Agreements
We have not entered into any employment agreement or consulting agreement with our directors and executive officers.
42
Outstanding Equity Awards at Fiscal Year-End
The following table sets forth for each named executive officer certain information concerning the outstanding equity awards as of February 28, 2010.
Name | Option awards | Stock awards | |||||||
Number
of securities underlying unexercised options (#) exercisable |
Number
of securities underlying unexercised options (#) unexercisable |
Equity incentive plan awards: Number
of securities underlying unexercised unearned options (#) |
Option exercise price ($) |
Option expiration date | Number of shares or units of stock that have not vested (#) |
Market value
of shares of units of stock that have not vested ($) |
Equity incentive plan awards: Number of unearned shares, units or other rights that have not vested (#) |
Equity incentive plan awards: Market or payout value of unearned shares, units or other rights that have not vested ($) |
|
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) |
Joseph
Carusone President, CEO, CFO, Secretary Treasurer, and Director |
Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Compensation of Directors
Our board of directors has received no compensation to date and there are no plans to compensate them in the near future, unless and until we begin to realize revenues and become profitable in our business operations.
The table below shows the compensation of our directors for our last completed fiscal year ended February 28, 2010:
Name | Fees earned or paid
in cash ($) |
Stock awards ($) |
Option awards ($) |
Non-equity incentive plan compensation ($) |
Nonqualified deferred compensation earnings ($) |
All other compensation ($) |
Total ($) |
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) |
Joseph Carusone | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Long-Term Incentive Plans
There are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers, except that our directors and executive officers may receive stock options at the discretion of our board of directors. We do not have any material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the discretion of our board of directors.
43
We have no plans or arrangements in respect of remuneration received or that may be received by our executive officers to compensate such officers in the event of termination of employment (as a result of resignation, retirement, change of control) or a change of responsibilities following a change of control.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
In the following tables, we have determined the number and percentage of shares beneficially owned in accordance with Rule 13d-3 of the Exchange Act based on information provided to us by our controlling shareholders, executive officers and directors, and this information does not necessarily indicate beneficial ownership for any other purpose. In determining the number of shares of our common stock beneficially owned by a person and the percentage ownership of that person, we include any shares as to which the person has sole or shared voting power or investment power, as well as any shares subject to warrants or options held by that person that are currently exercisable or exercisable within 60 days.
Security ownership of management
(2) Name and address of | (3) Amount and nature of | (4) Percent of | |
(1) Title of class | beneficial owner | beneficial ownership | class 1 |
common stock | Joseph Carusone | 400,000 Direct | 1.95% |
901 - 360 Bay Street | |||
Toronto, ON M5H 2V6 | |||
common stock | Joseph Carusone | 10,000,000 2 Indirect | 48.76% |
901 - 360 Bay Street | |||
Toronto, ON M5H 2V6 |
1 Percentage of ownership is based on 20,506,000
common shares issued and outstanding as of May 5, 2010. Except as otherwise
indicated, we believe that the beneficial owners of the common stock listed
above, based on information furnished by such owners, have sole investment and
voting power with respect to such shares, subject to community property laws
where applicable. Beneficial ownership is determined in accordance with the
rules of the SEC and generally includes voting or investment power with respect
to securities. Shares of common stock subject to options or warrants currently
exercisable, or exercisable within 60 days, are deemed outstanding for purposes
of computing the percentage ownership of the person holding such option or
warrants, but are not deemed outstanding for purposes of computing the
percentage ownership of any other person.
2 Mr. Carusone is the
President and a director of OPEX Energy Inc. and holds voting and dispositive
control over these shares.
Changes in Control
We are unaware of any arrangement, the operation of which may at a subsequent date result in a change in control of our company.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
Transactions with related persons
There has been no transaction, since March 1, 2008, or currently proposed transaction, in which we were or are to be a participant and the amount involved exceeds the lesser of $120,000 or one percent of the average of our total assets at year end for the last two completed fiscal years, and in which any of the following persons had or will have a direct or indirect material interest:
(i) |
Any of our directors or officers; | |
(ii) |
Any person who beneficially owns, directly or indirectly, shares carrying more than 5% of the voting rights attached to our outstanding shares of common stock; and |
44
(iii) |
Any member of the immediate family (including spouse, parents, children, siblings and in-laws) of any of the foregoing persons. |
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Audit Fees
The following table sets forth the fees billed to our company for professional services rendered by James Stafford, Chartered Accountants, our independent registered public accounting firm, for the years ended February 28, 2010 and 2009:
Fees | 2010 | 2009 | ||||
Audit Fees | $ | 4,212 $ | 4,188 | |||
Audit Related Fees | 8,822 | 5,761 | ||||
Tax Fees | 834 | Nil | ||||
Other Fees | Nil | Nil | ||||
Total Fees | $ | 13,868 $ | 9,949 |
Policy on Pre-Approval by Audit Committee of Services Performed by Independent Auditors
We do not use James Stafford, for financial information system design and implementation. These services, which include designing or implementing a system that aggregates source data underlying the financial statements or generates information that is significant to our financial statements, are provided internally or by other service providers. We do not engage James Stafford to provide compliance outsourcing services.
Effective May 6, 2003, the Securities and Exchange Commission adopted rules that require that before James Stafford is engaged by us to render any auditing or permitted non-audit related service, the engagement be:
approved by our audit committee (the functions of which are performed by our entire board of directors); or
entered into pursuant to pre-approval policies and procedures established by the board of directors, provided the policies and procedures are detailed as to the particular service, the board of directors is informed of each service, and such policies and procedures do not include delegation of the board of directors' responsibilities to management.
Our entire board of directors pre-approves all services provided by our independent auditors. All of the above services and fees were reviewed and approved by our sole director before the respective services were rendered.
Our board of directors have considered the nature and amount of fees billed by James Stafford and believe that the provision of services for activities unrelated to the audit is compatible with maintaining James Staffords independence.
PART IV
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Exhibits required by Item 601 of Regulation S-K:
Exhibit No. |
Description |
3.1 | Articles of Incorporation (attached as an exhibit to our registration statement on Form 10-SB filed on September 8, 2006) |
3.2 | By-laws (attached as an exhibit to our registration statement on Form 10-SB filed on September 8, 2006) |
3.3 | Certificate of Change (attached as an exhibit to our current report on Form 8-K filed on September 15, 2008) |
10.1 | Option Agreement (attached as an exhibit to our registration statement on Form 10-SB filed on September 8, 2006) |
45
10.2 | Geological Summary Report (attached as an exhibit to our registration statement on Form 10-SB filed on September 8, 2006) |
10.3 | Form of Private Placement Subscription Agreement (attached as an exhibit to our current report on Form 8-K filed on November 6, 2008) |
10.4 | Form of Private Placement Subscription Agreement dated June 15, 2009 (attached as an exhibit to our quarterly report on Form 10-Q filed on June 16, 2009) |
10.5 | Form of promissory note dated June 15, 2009 (attached as an exhibit to our quarterly report on Form 10-Q filed on June 16, 2009) |
31.1* | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act Of 2002 |
32.1* | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act Of 2002 |
* Filed herewith.
46
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
STRIKER ENERGY CORP.
By:
/s/ Joseph Carusone
Joseph Carusone
President,
Chief Executive Officer Chief Financial Officer, Secretary, Treasurer and
Director
(Principal Executive Officer, Principal Financial Officer and
Principal Accounting Officer) Date: May 5, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/ Joseph Carusone
Joseph Carusone
President,
Chief Executive Officer Chief Financial Officer, Secretary, Treasurer and
Director
(Principal Executive Officer, Principal Financial Officer and
Principal Accounting Officer) Date: May 5, 2010
47
Exhibit 31.1
CERTIFICATIONS PURSUANT TO
SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Joseph Carusone, certify that:
1. |
I have reviewed this Form 10-K of Striker Energy Corp.; | |
2. |
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; | |
3. |
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; | |
4. |
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: | |
(a) |
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; | |
(b) |
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; | |
(c) |
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 | |
(d) |
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 fiscal 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 | |
5. |
I have disclosed, based on our 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): | |
(a) |
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 | |
(b) |
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. |
May 5, 2010
/s/ Joseph Carusone
Joseph Carusone
President,
CEO, CFO, Secretary, Treasurer and Director
(Principal Executive Officer,
Principal Financial Officer and Principal Accounting Officer)
Exhibit 32.1
CERTIFICATION PURSUANT TO
SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002
The undersigned, Joseph Carusone, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that
1. |
The annual report on Form 10-K of Striker Energy Inc. for the year ended February 28, 2010, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and | |
2. |
The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of Striker Energy Corp. |
/s/ Joseph Carusone | |
Joseph Carusone | |
President, Chief Executive Officer Chief Financial | |
Officer, Secretary, Treasurer and Director | |
(Principal Executive Officer, Principal Financial | |
Officer and Principal Accounting Officer) |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Striker Energy Corp. and will be retained by Striker Energy Corp. and furnished to the Securities and Exchange Commission or its staff upon request.