0001463208
2014-04-01
2014-06-30
0001463208
2014-06-30
0001463208
2014-03-31
0001463208
2013-04-01
2013-06-30
0001463208
2008-07-25
2014-06-30
0001463208
2012-03-31
0001463208
2008-07-24
0001463208
2014-08-14
0001463208
2012-01-01
2012-01-03
0001463208
2008-11-27
2008-11-28
0001463208
2008-12-03
2008-12-04
0001463208
2008-12-10
2009-03-19
0001463208
2008-07-25
2009-03-31
0001463208
2011-12-13
2011-12-14
0001463208
2011-12-14
0001463208
2013-12-17
2013-12-18
0001463208
us-gaap:MaximumMember
2014-06-30
0001463208
us-gaap:MinimumMember
2014-06-30
0001463208
us-gaap:MinimumMember
2013-12-20
0001463208
us-gaap:MaximumMember
2013-12-20
0001463208
2013-12-20
0001463208
fil:ArdmoreAndPioneerOilAndGasMember
2013-11-17
2013-11-18
0001463208
fil:ArdmoreMember
2013-11-17
2013-11-18
0001463208
2013-12-11
2013-12-12
0001463208
2014-02-11
2014-02-12
0001463208
fil:MrJohnBartonMember
2014-04-01
2014-06-30
0001463208
2013-10-30
2013-11-01
0001463208
2013-11-19
2013-11-20
0001463208
2013-12-17
2013-12-19
0001463208
us-gaap:ChiefExecutiveOfficerMember
2013-10-01
2013-10-02
0001463208
fil:ArdmoreMember
fil:AprilTwelveTwoThousandFourteenMember
2014-04-01
2014-06-30
0001463208
fil:MrJohnBartonMember
2013-10-02
0001463208
us-gaap:CommonStockMember
2009-03-31
0001463208
us-gaap:AdditionalPaidInCapitalMember
2009-03-31
0001463208
us-gaap:RetainedEarningsMember
2009-03-31
0001463208
2009-03-31
0001463208
us-gaap:CommonStockMember
2010-03-31
0001463208
us-gaap:AdditionalPaidInCapitalMember
2010-03-31
0001463208
us-gaap:RetainedEarningsMember
2009-04-01
2010-03-31
0001463208
us-gaap:RetainedEarningsMember
2010-03-31
0001463208
us-gaap:CommonStockMember
2011-03-31
0001463208
us-gaap:AdditionalPaidInCapitalMember
2011-03-31
0001463208
us-gaap:RetainedEarningsMember
2010-04-01
2011-03-31
0001463208
us-gaap:RetainedEarningsMember
2011-03-31
0001463208
us-gaap:CommonStockMember
2011-04-01
2012-03-31
0001463208
us-gaap:CommonStockMember
2012-03-31
0001463208
us-gaap:AdditionalPaidInCapitalMember
2011-04-01
2012-03-31
0001463208
us-gaap:AdditionalPaidInCapitalMember
2012-03-31
0001463208
us-gaap:RetainedEarningsMember
2011-04-01
2012-03-31
0001463208
us-gaap:RetainedEarningsMember
2012-03-31
0001463208
2011-04-01
2012-03-31
0001463208
2011-03-31
0001463208
us-gaap:CommonStockMember
2012-04-01
2013-03-31
0001463208
us-gaap:CommonStockMember
2013-03-31
0001463208
us-gaap:AdditionalPaidInCapitalMember
2012-04-01
2013-03-31
0001463208
us-gaap:AdditionalPaidInCapitalMember
2013-03-31
0001463208
us-gaap:RetainedEarningsMember
2012-04-01
2013-03-31
0001463208
us-gaap:RetainedEarningsMember
2013-03-31
0001463208
fil:CommonStockPayableMember
2013-04-01
2014-03-31
0001463208
fil:CommonStockPayableMember
2014-03-31
0001463208
us-gaap:CommonStockMember
2013-04-01
2014-03-31
0001463208
us-gaap:CommonStockMember
2014-03-31
0001463208
us-gaap:AdditionalPaidInCapitalMember
2013-04-01
2014-03-31
0001463208
us-gaap:AdditionalPaidInCapitalMember
2014-03-31
0001463208
us-gaap:RetainedEarningsMember
2013-04-01
2014-03-31
0001463208
us-gaap:RetainedEarningsMember
2014-03-31
0001463208
2009-04-01
2010-03-31
0001463208
2010-04-01
2011-03-31
0001463208
2010-03-31
0001463208
us-gaap:ComputerEquipmentMember
2014-04-01
2014-06-30
0001463208
us-gaap:TechnologyEquipmentMember
2014-04-01
2014-06-30
0001463208
us-gaap:IntellectualPropertyMember
2014-04-01
2014-06-30
0001463208
2014-02-13
2014-02-14
0001463208
2014-03-09
2014-03-10
0001463208
2014-03-24
2014-03-25
0001463208
2014-04-23
2014-04-24
0001463208
fil:ThirdPartyEntityForConsultingServicesMember
2014-03-05
2014-03-06
0001463208
fil:ThirdPartyEntityForConsultingServicesMember
2014-03-31
0001463208
us-gaap:ChiefExecutiveOfficerMember
2013-10-02
0001463208
2012-04-01
2013-03-31
0001463208
2013-03-31
0001463208
2013-04-01
2014-03-31
0001463208
us-gaap:CommonStockMember
2014-04-01
2014-06-30
0001463208
us-gaap:CommonStockMember
2014-06-30
0001463208
us-gaap:AdditionalPaidInCapitalMember
2014-04-01
2014-06-30
0001463208
us-gaap:AdditionalPaidInCapitalMember
2014-06-30
0001463208
fil:CommonStockPayableMember
2014-04-01
2014-06-30
0001463208
fil:CommonStockPayableMember
2014-06-30
0001463208
us-gaap:RetainedEarningsMember
2014-04-01
2014-06-30
0001463208
us-gaap:RetainedEarningsMember
2014-06-30
0001463208
2014-04-11
2014-04-12
0001463208
fil:ArdmoreMember
2014-04-11
2014-04-12
0001463208
us-gaap:SubsequentEventMember
2014-08-01
2014-08-18
0001463208
2013-06-30
0001463208
2014-01-01
2014-06-30
0001463208
2013-01-01
2013-06-30
0001463208
us-gaap:CommonStockMember
2008-07-25
2009-03-31
0001463208
us-gaap:AdditionalPaidInCapitalMember
2008-07-25
2009-03-31
0001463208
us-gaap:RetainedEarningsMember
2008-07-25
2009-03-31
xbrli:shares
iso4217:USD
iso4217:USD
xbrli:shares
xbrli:pure
utr:acre
10-Q
2014-06-30
false
PETROTERRA CORP.
0001463208
--03-31
Smaller Reporting Company
2015
Q1
172500
621800
900
2000
18900
75000
150000
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>1. ORGANIZATION AND BUSINESS OPERATIONS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">PetroTerra Corp. (the “Company”)
was incorporated under the laws of the State of Nevada, on July 25, 2008. The Company is in the development stage as defined under
Accounting Codification Standard or ACS, Development Stage Entities (“ASC-915”) and plans to identify, evaluate and
acquire oil and gas exploration and development opportunities primarily within the United States. The Company has not generated
any revenue to date and consequently its operations are subject to all risks inherent in the establishment of a new business enterprise.
For the period from inception on July 25, 2008 through June 30, 2014, the Company has accumulated losses of $452,430.</p>
764949
487529
696055
424850
-34728
76640
-54840
-1238
20562
76640
-54840
-28937
76640
-54840
-39373
53024
-31064
-56688
-17573
53024
-31064
-72235
90000
63699
634786
-363635
-7137
-50275
64299
1084186
-452430
-452430
-363635
1084186
634786
64299
63699
68894
62679
68894
62679
10118
10118
31525
764949
487529
1282
9037
0.001
0.001
10000000
10000000
20000000
10000000
0
0
0
0
0
0.001
0.001
0.001
100000000
100000000
200000000
100000000
64299000
63699000
63349000
126698000
64299000
63699000
63349000
126698000
0.00
0.00
64107791
53024000
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>2. GOING CONCERN</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial statements have been prepared
on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal
course of business for the foreseeable future. The Company has incurred losses since inception resulting in an accumulated deficit
of $452,430 as of June 30, 2014 and further losses are anticipated in the development of its business raising substantial doubt
about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon
the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and
repay its liabilities which have arisen from normal business operations as they come due. Management intends to finance operating
costs over the next twelve months with existing cash on hand loans from our director and/or private placements of common stock.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Basis of Presentation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial statements of the Company have
been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in
US dollars.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These statements reflect all adjustments, including
of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained
therein. It is suggested that these unaudited interim financial statements be read in conjunction with the financial statements
of the Company for the year ended March 31, 2014 and notes thereto included in the Company’s annual report on Form 10-K.
The Company follows the same accounting policies in the preparation of its annual and interim reports.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Cash and Cash Equivalents</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid instruments
with a maturity of three months or less at the time of issuance to be cash equivalents.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Use of Estimates and Assumptions</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in
conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates. In management’s opinion, all adjustments necessary for a fair statement of the results for the interim
periods have been made and all adjustments are of a normal recurring nature.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Foreign Currency Translation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company’s functional currency and its reporting currency
is the United States dollar.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Stock Split</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
December 18, 2013, the Company<b> </b>filed a Certificate of Change with the Secretary of State of the State of Nevada to effect
a reverse stock split of its outstanding and authorized shares of common stock at a ratio of one for two (the “Reverse Stock
Split”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">As
a result of the Reverse Stock Split, the Company’s authorized shares of common stock were decreased from 200,000,000 to 100,000,000
shares and its authorized shares of preferred stock were decreased from 20,000,000 to 10,000,000 shares. Upon the effectiveness
of the Reverse Stock Split, which occurred on December 20, 2013, the Company’s issued and outstanding shares of common stock
was decreased from 126,698,000 to 63,349,000 shares, all with a par value of $0.001. The Company has no outstanding shares of preferred
stock. Accordingly, all share and per share information has been restated to retroactively show the effect of the Reverse Stock
Split.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Stock-based Compensation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">In September 2009,
the FASB issued ASC-718, “Stock Compensation”. ASC-718 requires all share-based payments to employees, including grants
of employee stock options, to be recognized in the financial statements based on the grant date fair value of the award. Under
ASC-718, the Company must determine the appropriate fair value model to be used for valuing share-based payments, the amortization
method for compensation cost and the transition method to be used at date of adoption.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Income Taxes</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Income taxes are accounted
for under the assets and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax bases and operating losses and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax
rates in effect for the year in which those temporary differences are expected to be recovered or settled.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Basic and Diluted Loss Per Share</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company computes
loss per share in accordance with ASC-260, “Earnings per Share” which requires presentation of both basic and diluted
earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available
to common stockholders by the weighted average number of outstanding shares of common stock during the period. Diluted loss per
share gives effect to all dilutive potential shares of common stock outstanding during the period. Dilutive loss per share excludes
all potential shares of common stock if their effect is anti-dilutive. The Company has no potential dilutive instruments and accordingly
basic loss and diluted loss per share are equal.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Fiscal Periods</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company’s fiscal year end is March 31.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Recent accounting pronouncements</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have reviewed all the recent accounting
pronouncements issued to date, and we do not believe any of these pronouncements will have a material impact on the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Revenue Recognition</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company will recognize revenue in accordance
with ACS - 605, “Revenue recognition”, ASC-605 requires that four basic criteria be met before revenue can be recognized:
(1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and
(4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding
the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts
and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related
sales are recorded. The Company will defer any revenue for which the product has not been delivered or is subject to refund until
such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Oil and Gas</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company complies with ASC 932, “Extractive
Activities - Oil and Gas”. The Company has capitalized exploratory well costs, and has determined that there are no suspended
well costs that should be impaired. The Company reviews its long-lived assets for impairments when events or changes in circumstances
indicate that impairment may have occurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Website</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company capitalizes the costs associated
with the development of the Company’s website pursuant to ASC - 350, “Goodwill and Other”. Other costs related
to the maintenance of the website are expensed as incurred. Amortization is provided over the estimated useful lives of three years
using the straight-line method for financial statement purposes. The Company commenced amortization upon completion of the Company’s
fully operational website. Amortization expense for the six months ended June 30, 2014 and 2013 totaled $2,192 and $0, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Property and Equipment</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">Property
and equipment are carried at cost. Expenditures for major renewals and betterments that extend the useful lives of property and
equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation and amortization
of property and equipment is provided using the straight-line method for financial reporting purposes at rates based on the following
estimated useful lives:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 82%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">Classification</font></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 17%; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Useful Life</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Computer equipment</font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"><font style="font-size: 10pt">3 Years</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Website design</font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"><font style="font-size: 10pt">3 Years</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Patents and trademarks</font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"><font style="font-size: 10pt">15 Years</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Advertising</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows the policy of charging
the costs of advertising to expenses incurred. The Company incurred $0 in advertising costs during the period July 25, 2008 (inception)
to June 30, 2014.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Basis of Presentation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial statements of the Company have
been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in
US dollars.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These statements reflect all adjustments,
including of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information
contained therein. It is suggested that these unaudited interim financial statements be read in conjunction with the financial
statements of the Company for the year ended March 31, 2014 and notes thereto included in the Company’s annual report on
Form 10-K. The Company follows the same accounting policies in the preparation of its annual and interim reports.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Cash and Cash Equivalents</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid instruments
with a maturity of three months or less at the time of issuance to be cash equivalents.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Use of Estimates and Assumptions</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in
conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates. In management’s opinion, all adjustments necessary for a fair statement of the results for the interim
periods have been made and all adjustments are of a normal recurring nature.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Foreign Currency Translation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company’s functional currency and its reporting currency
is the United States dollar.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Stock-based Compensation</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">In September 2009,
the FASB issued ASC-718, “Stock Compensation”. ASC-718 requires all share-based payments to employees, including grants
of employee stock options, to be recognized in the financial statements based on the grant date fair value of the award. Under
ASC-718, the Company must determine the appropriate fair value model to be used for valuing share-based payments, the amortization
method for compensation cost and the transition method to be used at date of adoption.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Income Taxes</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Income taxes are
accounted for under the assets and liability method. Deferred tax assets and liabilities are recognized for the estimated future
tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax bases and operating losses and tax credit carry forwards. Deferred tax assets and liabilities are measured
using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Basic and Diluted Loss Per Share</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Company computes
loss per share in accordance with ASC-260, “Earnings per Share” which requires presentation of both basic and diluted
earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available
to common stockholders by the weighted average number of outstanding shares of common stock during the period. Diluted loss per
share gives effect to all dilutive potential shares of common stock outstanding during the period. Dilutive loss per share excludes
all potential shares of common stock if their effect is anti-dilutive. The Company has no potential dilutive instruments and accordingly
basic loss and diluted loss per share are equal.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Fiscal Periods</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company’s fiscal year end is March 31.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Recent accounting pronouncements</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have reviewed all the recent accounting
pronouncements issued to date, and we do not believe any of these pronouncements will have a material impact on the Company.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Revenue Recognition</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company will recognize revenue in accordance
with ACS - 605, “Revenue recognition”, ASC-605 requires that four basic criteria be met before revenue can be recognized:
(1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable;
and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments
regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions
for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period
the related sales are recorded. The Company will defer any revenue for which the product has not been delivered or is subject
to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund
will be required.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Advertising</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows the policy of charging
the costs of advertising to expenses incurred. The Company incurred $0 in advertising costs during the period July 25, 2008 (inception)
to June 30, 2014.</p>
0
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>5. COMMON STOCK</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Company’s authorized capital consist of 100,000,000 shares of common stock and 10,000,000 shares of preferred stock, both
with a par value of $0.001 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">This
gives effect to the Company’s 32 for 1 forward stock split that was effected on January 3, 2012 and the Company’s
subsequent Reverse Stock Split that was effected on December 18, 2013. All share and per share information has been restated in
this Report to retroactively show the effect of the two stock splits.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
December 18, 2013, the Company effectuated a Reverse Stock Split of its outstanding and authorized shares of common stock at a
ratio of one for two. As a result of the Reverse Stock Split, the Company’s authorized shares of common stock were decreased
from 200,000,000 to 100,000,000 shares and its authorized shares of preferred stock were decreased from 20,000,000 to 10,000,000
shares. Upon the effectiveness of the Reverse Stock Split, which occurred on December 20, 2013, the Company’s issued and
outstanding shares of common stock was decreased from 126,698,000 to 63,349,000 shares, all with a par value of $0.001. The Company
has no outstanding shares of preferred stock. Accordingly, all share and per share information has been restated to retroactively
show the effect of the Reverse Stock Split.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
November 28, 2008, the Company issued 14,400,000 shares of common stock at a price of $0.0000625 per share for total cash proceeds
of $900.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
December 4, 2008, the Company issued 32,000,000 shares of common stock at a price of $0.0000625 per share for total cash proceeds
of $2,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">During
the period December 10, 2008 to March 19, 2009, the Company issued 30,240,000 shares of common stock at a price of $0.000625 per
share for total cash proceeds of $18,900.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
December 14, 2011, in connection with a change in the Company’s directors, two controlling stockholders cancelled an aggregate
of 23,872,000 shares of common stock. On the same day, 256,000 shares of common stock were issued to a director for services rendered.
The common stock was valued at $0.000625 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
October 2, 2013, John Barton purchased 43.0% of the issued and outstanding shares of common stock of the Company from former stockholders.
Concurrently with Mr. Barton’s purchase, the Board of Directors of the Company determined that it was in the best interest
of the Company to settle a portion of an outstanding loan from Mr. Barton to the Company. In exchange for the settlement of the
outstanding debt, the Company issued Mr. Barton 10,000,000 shares of common stock. Upon completion of the above transactions, Mr.
Barton became the beneficial owner of 52.01% of the issued and outstanding shares of common stock .</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
November 1, 2013, the Company sold a total of 75,000 shares of common stock for gross proceeds of $75,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
November 20, 2013, the Company issued 250,000 shares of common stock in conjunction with a land lease assignment with a value of
$250,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
December 19, 2013, the Company sold a total of 150,000 shares of common stock for gross proceeds of $150,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
February 14, 2014, the Company sold a total of 200,000 shares of common stock for gross proceeds of $150,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
March 6, 2014, the Company authorized the issuance of 50,000 shares of common stock to a third party entity for consulting services.
The fair value of the shares of common stock was $37,500. On March 31, 2014, the $37,500 was recorded to common stock payable and
a stock certificate representing the shares of common stock was issued on June 30, 2014.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
March 10, 2014, the Company entered into a private placement for 100,000 shares of common stock for gross proceeds of $75,000.
On March 10, 2014 and March 25, 2014, the Company received an aggregate of $52,500 of the proceeds. The remaining $22,500 of proceeds
was received on April 24, 2014. A certificate representing the shares of common stock payable was issued on April 24 2014.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
April 12, 2014, in connection with the Agreement, the Company issued to Ardmore 250,000 shares of our common stock.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
May 7, 2014, the Company sold a total of 200,000 shares of common stock for gross proceeds of $150,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">As
of June 30, 2014, the Company had 64,299,000 shares of common stock issued and outstanding.</p>
256000
256000
50000
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>6. INCOME TAXES</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 30, 2014, the Company had net operating
loss carry forwards of approximately $452,430 that may be available to reduce future years’ taxable income through 2033.
Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their
realization is determined not likely to occur. Accordingly, the Company has recorded a valuation allowance for the deferred tax
asset relating to these tax loss carry-forwards.</p>
452430
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>7. RELATED PARTY TRANSACTIONS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Company has received advances from certain of its officers and other related parties to meet short term working capital needs.
These advances may not have formal repayment terms or arrangements. As of June 30, 2014 and March 31, 2014, the total amount loaned
to the Company by a director was $10,118. The loan is non-interest bearing, due upon demand and unsecured.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
October 2, 2013, the Company settled an outstanding loan with a principal amount of $51,525 by exchanging 10,000,000 shares of
common stock for conversion of outstanding debt of $20,000 due to the Company’s chief executive officer and the remaining
$31,525 of outstanding debt due to the previous chief executive officer was extinguished to Additional paid-in capital.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
October 2, 2013, the Company settled an outstanding loan with a principal amount of $20,000 due to the Company’s Chief Executive
Officer in exchange for 10,000,000 shares of common stock.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>8. SUBSEQUENT EVENT</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has evaluated subsequent events
from June 30, 2014 through the filing of these financial statements. There are no significant subsequent events, except as disclosed
below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Common Stock</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August, 2014 the Company sold 483,871 shares of common stock for gross proceeds of $150,000.</p>
75000
150000
250000
200000
100000
483871
0.5201
2033
23872000
150000
150000
0.75
0.0000625
0.0000625
0.000625
0.0000625
0.000625
0.0000625
1.00
-88795
-4040
-452430
-88795
-4040
-452430
-1238
-27699
-10436
-17315
-17315
-15547
-291400
-27699
-10436
-15547
-291400
-88795
-1238
-80255
-309615
172500
0
642300
-7755
1282
1282
9037
1290
1423
737500
450000
310
177
39179
4040
203145
160
256
-96
160
2325
5236
-5000
10000
6835
41143
100000
300000
-100000
-331403
1282
9037
37500
37500
24877
27069
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Stock Split</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
December 18, 2013, the Company<b> </b>filed a Certificate of Change with the Secretary of State of the State of Nevada to effect
a reverse stock split of its outstanding and authorized shares of common stock at a ratio of one for two (the “Reverse Stock
Split”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">As
a result of the Reverse Stock Split, the Company’s authorized shares of common stock were decreased from 200,000,000 to
100,000,000 shares and its authorized shares of preferred stock were decreased from 20,000,000 to 10,000,000 shares. Upon the
effectiveness of the Reverse Stock Split, which occurred on December 20, 2013, the Company’s issued and outstanding shares
of common stock was decreased from 126,698,000 to 63,349,000 shares, all with a par value of $0.001. The Company has no outstanding
shares of preferred stock. Accordingly, all share and per share information has been restated to retroactively show the effect
of the Reverse Stock Split.</p>
ratio of 1 for 2
2192
0
14400000
32000000
30240000
500000
2014-04-12
100000
100000
100000
10000000
250000
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Oil and Gas</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company complies with ASC 932, “Extractive
Activities - Oil and Gas”. The Company has capitalized exploratory well costs, and has determined that there are no suspended
well costs that should be impaired. The Company reviews its long-lived assets for impairments when events or changes in circumstances
indicate that impairment may have occurred.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Website</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company capitalizes the costs associated
with the development of the Company’s website pursuant to ASC - 350, “Goodwill and Other”. Other costs related
to the maintenance of the website are expensed as incurred. Amortization is provided over the estimated useful lives of three
years using the straight-line method for financial statement purposes. The Company commenced amortization upon completion of the
Company’s fully operational website. Amortization expense for the six months ended June 30, 2014 and 2013 totaled $2,192
and $0, respectively.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>4. ACQUISITION OF OIL AND GAS PROPERTIES</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">On
November 18, 2013, the Company entered into an assignment of lease (the “Agreement”) whereby Ardmore Investments Inc.
(“Ardmore”) assigned to the Company its rights under a certain purchase agreement (the “Purchase Agreement”),
dated August 8, 2013, between Ardmore and Pioneer Oil and Gas (“Pioneer”) involving the sale of 5,905.54 acres of oil
and gas leases located in the Central Utah Thrust Belt in Beaver County and Sevier County, Utah and currently owned by Pioneer
(the “Leases”). Per the terms of the Agreement, we issued to Ardmore an aggregate 500,000 shares (250,000 share installments)
of our common stock on November 18, 2013, and April 12, 2014, in order to complete the assignment. Furthermore, on December 12,
2013, February 12, 2014, and April 12, 2014, the Company made three installment payments of $100,000 each to Pioneer. Upon completion
of the final installment the leases were conveyed to the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">Due
to the lack of an active market of the Company’s common stock, the fair value of the common stock issued to Ardmore was
determined based on the price at which the Company’s shares were most recently sold in a private placement transaction.</p>
0.43
31403
20500
20000
10000000
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">every pre-split share of common stock is exchangeable
for 32 shares of post-split common stock.</font></p>
5905.54
4926
2734
37776
22873
11000
14688
10000
15000
10118
10118
90000
37500
16830
67775
32786
143850
37660
37500
-3687
11000
51525
P3Y
P3Y
P15Y
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">Depreciation
and amortization of property and equipment is provided using the straight-line method for financial reporting purposes at rates
based on the following estimated useful lives:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 82%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">Classification</font></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 17%; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Useful Life</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Computer equipment</font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"><font style="font-size: 10pt">3 Years</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Website design</font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"><font style="font-size: 10pt">3 Years</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Patents and trademarks</font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"><font style="font-size: 10pt">15 Years</font></td></tr>
</table>
<p style="margin: 0pt"></p>
75000
52500
22500
150000
37500
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><u>Property and Equipment</u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">Property
and equipment are carried at cost. Expenditures for major renewals and betterments that extend the useful lives of property and
equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation and amortization
of property and equipment is provided using the straight-line method for financial reporting purposes at rates based on the following
estimated useful lives:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 82%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">Classification</font></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 17%; border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Useful Life</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Computer equipment</font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"><font style="font-size: 10pt">3 Years</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Website design</font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"><font style="font-size: 10pt">3 Years</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt">Patents and trademarks</font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"><font style="font-size: 10pt">15 Years</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><b> </b></p>
900
14400
-13500
14400000
2000
32000
-30000
32000000
18900
30240
-11340
30240000
76640000
76640000
76640000
53024000
53024000
63699000
64299000
-23872
23872
-23872000
10000
41525
51525
10000000
75
74925
75000
75000
250
249750
250000
250000
150
149850
150000
150000
22500
52500
52500
100
74900
-52500
0.75
0.0000625
1.00
0.0000625
1.00
0.75
0.75
187500
250
187250
250000
150000
200
149800
150000
200
149800
200000
200000
100000
37500
37500
50
37450
-37500
50000
14902
-2795
37775
187500
437500
250000
250000
64299000
51525