Delaware
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000-49760
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9800611188
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(State or other jurisdiction
of incorporation)
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(Commission File No.)
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(IRS Employer
Identification No.)
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55 5th Avenue, Suite 1702
New York, NY 10003
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(Address of principal executive offices)
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(347) 491-4011
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(Registrant’s Telephone Number)
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Not Applicable
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(Former name or address, if changed since last report)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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PETRO RIVER OIL CORP.
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Date: July 15, 2016
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By:
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/s/ Scot Cohen | ||
Scot Cohen
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Executive Chairman
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Exhibit No.
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Description
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99.1 |
Audited financial statements of Horizon I Investments, LLC
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99.2 |
The unaudited pro forma combined financial information of Petro River Oil Corp. and Horizon I Investments, LLC as of January 31, 2016 and for the nine month ended January 31, 2016.
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Page | |
Report of Independent Registered Public Accounting Firm | 1 |
Audited Financial Statements for the Period from October 22, 2015 (Inception) to December 31, 2015 | |
Balance Sheet | 2 |
Statement of Operations | 3 |
Statement of Changes in Members' Equity | 4 |
Statement of Cash Flows | 5 |
Notes to Financial Statements | 6 |
Unaudited Financial Statements for the Three Months Ended March 31, 2016 | |
Balance Sheets | 9 |
Statement of Operations | 10 |
Statement of Cash Flows | 11 |
Notes to Financial Statements | 12 |
ASSETS
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Current Assets:
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Cash
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$ |
4,073,447
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||
Notes receivable - related party
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750,000
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|||
Total Current Assets
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4,823,447
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Cost method investment in Horizon Energy Partners LLC
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688,000
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Total Assets
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$ |
5,511,447
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||
LIABILITIES AND MEMBERS' EQUITY
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Current Liabilities:
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||||
Escrow deposits payable
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$ |
690,000
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||
Total Current Liabilities
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690,000
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|||
Commitments and contingencies
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||||
Members' Equity:
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||||
Members' equity
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4,876,000
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|||
Accumulated deficit
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(54,553)
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|||
Total Members' Equity | 4,821,447 | |||
Total Liabilities and Members' Equity | $ | 5,511,447 |
Revenues
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$ | - | ||
Operating Expenses
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||||
General and administrative
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54,553 | |||
Total Expenses
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54,553 | |||
Net Loss
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$ | (54,553 | ) |
Members' Equity
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Accumulated
Deficit |
Total
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||||||||||
Balance - October 22, 2015 (Inception)
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$ | - | $ | - | $ | - | ||||||
Units issued for cash
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5,311,000 | - | 5,311,000 | |||||||||
Offering costs
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(285,000 | ) | - | (285,000 | ) | |||||||
Return of capital
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(150,000 | ) | - | (150,000 | ) | |||||||
Net loss
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- | (54,553 | ) | (54,553 | ) | |||||||
Balance - December 31, 2015
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$ | 4,876,000 | $ | (54,553 | ) | $ | 4,821,447 |
Cash Flows From Operating Activities:
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||||
Net loss
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$ | (54,553 | ) | |
Net Cash Used in Operating Activities
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(54,553 | ) | ||
Cash Flows From Investing Activities:
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Issuance of notes receivable - related party
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(750,000 | ) | ||
Cash paid for cost method investment in Horizon Energy Partners LLC
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(688,000 | ) | ||
Net Cash Used in Investing Activities
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(1,438,000 | ) | ||
Cash Flows From Financing Activities:
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Escrow deposits
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690,000 | |||
Capital contributions by members less offering costs
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5,026,000 | |||
Return of capital
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(150,000 | ) | ||
Net Cash Provided by Financing Activities
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5,566,000 | |||
Net increase in cash
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4,073,447 | |||
Cash - beginning of the period
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- | |||
Cash - end of the period
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$ | 4,073,447 | ||
Supplemental disclosure of cash flow information:
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Interest
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$ | - | ||
Income taxes
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$ | - |
March 31, 2016
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December 31, 2015
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|||||||
ASSETS
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Current Assets:
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Cash
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$ | 3,323,369 | $ | 4,073,447 | ||||
Notes receivable - related party
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1,500,000 | 750,000 | ||||||
Total Current Assets
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4,823,369 | 4,823,447 | ||||||
Cost method investment in Horizon Energy Partners LLC
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688,000 | 688,000 | ||||||
Total Assets
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$ | 5,511,369 | $ | 5,511,447 | ||||
LIABILITIES AND MEMBERS' EQUITY
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Current Liabilities:
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Escrow deposits payable
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$ | 690,000 | $ | 690,000 | ||||
Total Current Liabilities
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690,000 | 690,000 | ||||||
Commitments and contingencies
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||||||||
Members' Equity:
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||||||||
Members' equity
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4,876,000 | 4,876,000 | ||||||
Accumulated deficit
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(54,631 | ) | (54,553 | ) | ||||
Total Members' Equity
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4,821,369 | 4,821,447 | ||||||
Total Liabilities and Members' Equity
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$ | 5,511,369 | $ | 5,511,447 |
Revenues
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$ | - | ||
Operating Expenses
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General and administrative
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78 | |||
Total Expenses
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78 | |||
Net Loss
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$ | (78 | ) |
Cash Flows From Operating Activities:
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Net loss
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$ | (78 | ) | |
Net Cash Used in Operating Activities
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(78 | ) | ||
Cash Flows From Investing Activities:
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Issuance of notes receivable - related party
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(750,000 | ) | ||
Net Cash Used in Investing Activities
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(750,000 | ) | ||
Net decrease in cash
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(750,078 | ) | ||
Cash - beginning of the period
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4,073,447 | |||
Cash - end of the period
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$ | 3,323,369 | ||
Supplemental disclosure of cash flow information:
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||||
Interest
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$ | - | ||
Income taxes
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$ | - |
Petro River Oil Corp.
As of January 31, 2016 |
Horizon I Investments,
LLC |
Combined
As of January 31, 2016 |
Pro Forma
Adjustments DR (CR) |
# |
Pro Forma Consolidated As of January 31, 2016
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Assets
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Current Assets:
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Cash and cash equivalents
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$ | 1,324,288 | $ | 3,383,447 | $ | 4,707,735 | $ | 690,000 | 4 | $ | 4,647,735 | |||||||||||
(750,000 | ) | 5 | ||||||||||||||||||||
Certificate of deposit - restricted
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125,00 | - | 125,000 | 125,000 | ||||||||||||||||||
Cash in escrow
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- | 690,000 | 690,000 | (690,000 | ) | 4 | - | |||||||||||||||
Accounts receivable - oil and gas
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8,044 | - | 8,044 | 8,044 | ||||||||||||||||||
Accounts receivable - related party
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5,980,339 | - | 5,980,339 | 5,980,339 | ||||||||||||||||||
Accrued interest on notes receivable - related party
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44,095 | - | 44,095 | 44,095 | ||||||||||||||||||
Note receivable from PTRC
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- | 750,000 | 750,000 | (750,000 | ) | 3 | - | |||||||||||||||
Real estate - held for sale
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3,282,292 | - | 3,282,292 | 3,282,292 | ||||||||||||||||||
Prepaid expenses and other current assets
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45,964 | - | 45,964 | 45,964 | ||||||||||||||||||
Prepaid oil and gas asset development costs
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735,798 | - | 735,798 | 735,798 | ||||||||||||||||||
Total Current Assets
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11,545,820 | 4,823,447 | 16,369,267 | (1,500,000 | ) | 14,869,267 | ||||||||||||||||
Oil and gas assets, full cost method
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Costs subject to amortization, net
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690,420 | - | 690,420 | 690,420 | ||||||||||||||||||
Costs not being amortized, net
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100,000 | - | 100,000 | 100,000 | ||||||||||||||||||
Property, plant and equipment, net of accumulated depreciation
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||||||||||||||||||||||
of $308,032
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2,532 | - | 2,532 | 2,532 | ||||||||||||||||||
Intangible assets, net of accumulated amortization of $110,632
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2,113,054 | - | 2,113,054 | 2,113,054 | ||||||||||||||||||
Notes receivable - related party
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16,348,000 | - | 16,348,000 | 16,348,000 | ||||||||||||||||||
Other assets
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28,132 | - | 26,132 | 28,132 | ||||||||||||||||||
Investment in Horizon Energy Partners, LLC
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- | 688,000 | 688,000 | 688,000 | ||||||||||||||||||
Total Other Assets
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19,282,138 | 688,000 | 19,970,138 | - | 19,970,138 | |||||||||||||||||
Total Assets
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$ | 30,827,958 | $ | 5,511,447 | $ | 36,339,405 | $ | (1,500,000 | ) | $ | 34,839,405 | |||||||||||
Liabilities and Equity
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Current Liabilities:
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||||||||||||||||||||||
Accounts payable and accrued expenses
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$ | 137,028 | $ | - | $ | 137,028 | $ | $ | 137,028 | |||||||||||||
Accrued income tax liability
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1,330,755 | - | 1,330,755 | 1,330,755 | ||||||||||||||||||
Deposits on real estate sales
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363,750 | - | 363,750 | 363,750 | ||||||||||||||||||
Escrow deposits payable
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- | 690,000 | 690,000 | (690,000 | ) | 4 | - | |||||||||||||||
Notes payable Horizon
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1,500,000 | - | 1,500,000 | 750,000 | 3 | - | ||||||||||||||||
750,000 | 5 | |||||||||||||||||||||
Asset retirement obligations, current portion
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541,959 | - | 541,959 | 541,959 | ||||||||||||||||||
Total Current Liabilities
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3,873,492 | 690,000 | 4,563,492 | 810,000 | 2,373,492 | |||||||||||||||||
Long-term liabilities:
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Asset retirement obligations, net of current portion
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216,964 | - | 216,964 | 216,964 | ||||||||||||||||||
Total Long-term Liabilities
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216,964 | - | 216,964 | - | 216,964 | |||||||||||||||||
Total Liabilities
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4,090,456 | 690,000 | 4,780,456 | 810,000 | 2,590,456 |
Commitments and contingencies
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Equity:
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Preferred shares - 5,000,000 authorized; par value $0.00001; 0 shares issued and outstanding
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- | - | - | - | ||||||||||||||||||
Preferred B shares - 29,500 authorized; par value $0.00001; 0 shares issued and outstanding
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- | - | - | - | ||||||||||||||||||
Common shares - 100,000,000 authorized; par value $0.00001; 4,263,671 issued and outstanding
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43 | - | 43 | 116 | 1 | 159 | ||||||||||||||||
Members' equity
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- | 4,876,000 | 4,876,000 | (4,876,000 | ) | 1 | - | |||||||||||||||
Additional paid-in capital
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38,749,173 | - | 38,749,173 | 5,565,884 | 1,4 | 44,260,504 | ||||||||||||||||
(54,553 | ) | 2 | ||||||||||||||||||||
Accumulated deficit
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(24,268,505 | ) | (54,553 | ) | (24,323,058 | ) | 54,553 | 2 | (24,268,505 | ) | ||||||||||||
Total Petro River Oil Corp. Equity
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14,480,711 | 4,821,447 | 19,302,158 | 690,000 | 19,992,158 | |||||||||||||||||
Non-controlling interest
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12,256,791 | - | 12,256,791 | 12,256,791 | ||||||||||||||||||
Total Equity
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26,737,502 | 4,821,447 | 31,558,949 | 690,000 | 32,248,949 | |||||||||||||||||
Total Liabilities and Equity
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$ | 30,827,958 | $ | 5,511,447 | $ | 36,339,405 | $ | 1,500,000 | $ | 34,839,405 |
1
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Issuance of the share consideration of 11,564,250 shares of Company's common stock to Horizon;
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2
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Reclassification of Horizon's accumulated deficit as additional pain-in capital upon consummation of the Horizon transaction.
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3
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Cancellation of the promissory note payable to Horizon from the Company of $750,000;
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4
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To record release of cash of $690,000 from escrow at closing;
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5
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To eliminate the advance from Horizon to the Company in 2016.
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Petro River Oil Corp.
For the Nine Month Ended |
Horizon I Investments, LLC
For the Period from October 22, 2015(Inception) through |
Pro-Forma
Consolidation For the Nine Months Ended |
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January 31, 2016
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December 31, 2015
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January 31, 2016
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REVENUES
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Oil and natural gas sales
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$ | 72,723 | $ | - | $ | 72,723 | ||||||
Sales of real estate
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23,701,524 | - | 23,701,524 | |||||||||
Total Revenues
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23,774,247 | - | 23,774,247 | |||||||||
OPERATING EXPENSES:
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Cost of revenue - sales of real estate
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13,463,025 | - | 13,463,025 | |||||||||
Lease operating expenses
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328,457 | - | 328,457 | |||||||||
Depreciation, depletion and accretion
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149,218 | - | 149,218 | |||||||||
Amortization of intangibles
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90,339 | - | 90,339 | |||||||||
Gain on sale of equipment
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(5,519 | ) | - | (5,519 | ) | |||||||
Loss on sale of oil and gas assets
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7,519,460 | - | 7,519,460 | |||||||||
Impairment of oil and gas assets
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6,870,613 | - | 6,870,613 | |||||||||
General & administrative
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2,483,990 | 54,553 | 2,538,543 | |||||||||
Total Operating Expenses
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30,899,583 | 54,553 | 30,954,136 | |||||||||
Operating Loss
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(7,125,336 | ) | (54,553 | ) | (7,179,889 | ) | ||||||
Other Income
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46,719 | - | 46,719 | |||||||||
Net Loss Before Income Tax Provision
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(7,078,617 | ) | (54,553 | ) | (7,133,170 | ) | ||||||
Income Tax Provision
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1,330,755 | - |
1,330,755
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Net Loss
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(8,409,372 | ) | (54,553 | ) | (8,463,925 | ) | ||||||
Net Loss Attributable to Non-controlling Interest
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(791,353 | ) | - | (791,353 | ) | |||||||
Net Loss Attributable to Petro River Oil Corp. and Subsidiaries | $ | (7,618,019 | ) | $ | - | $ | (7,672,572 | ) | ||||
Net loss per common share - basic & diluted
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$ | (1.79 | ) | $ | (0.48 | ) | ||||||
Weighted average common shares outstanding - basic & diluted
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4,259,687 | 15,823,936 | 1 |
1
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The pro forma weighted average number of shares outstanding includes the weighted average shares outstanding of Petro River for the nine months ended January 31, 2016 of 4,259,687 and the weighted average shares outstanding of Horizon for the period from October 22, 2015 (inception) through December 31, 2015 of 11,564,250.
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