0001477932-17-002291.txt : 20170515 0001477932-17-002291.hdr.sgml : 20170515 20170515163316 ACCESSION NUMBER: 0001477932-17-002291 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 28 CONFORMED PERIOD OF REPORT: 20170331 FILED AS OF DATE: 20170515 DATE AS OF CHANGE: 20170515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Barrel Energy Inc. CENTRAL INDEX KEY: 0001631463 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 471963189 STATE OF INCORPORATION: NV FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-201740 FILM NUMBER: 17844808 BUSINESS ADDRESS: STREET 1: 14890 66A AVE CITY: SURREY STATE: A1 ZIP: V3S 2W4 BUSINESS PHONE: (604) 375-6005 MAIL ADDRESS: STREET 1: 14890 66A AVE CITY: SURREY STATE: A1 ZIP: V3S 2W4 10-Q 1 barrel_10q.htm FORM 10-Q barrel_10q.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: March 31, 2017

 

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

From transition period from ____ to ____

 

Commission File No.: 333-201740

 

BARREL ENERGY, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

 

47-1963189

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

14890 66a Avenue, Surrey, B.C. Canada

 

V3S 0Y6

(Address of principal executive offices)

 

(Zip Code)

 

(604) 375-6005

(Registrant’s telephone number, including area code)

 

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

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No x

 

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.:

 

Large accelerated filer

o

Accelerated filer

o

Non-accelerated filer

o

Smaller reporting company

x

 

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

 

As of May 15, 2017 the registrant had 10,804,000 shares of common stock outstanding.

 

 
 
 
 

 

TABLE OF CONTENTS

 

PART I – FINANCIAL INFORMATION

 

 

 

 

 

 

Item 1:

Financial Statements

 

 

3

 

 

Balance Sheets as of March 31, 2017, and September 30, 2016- (Unaudited)

 

 

4

 

 

Statements of Operations and Comprehensive loss for the Three and Six Months Ended March 31, 2017 and 2016 – (Unaudited)

 

 

5

 

 

Statements of Cash Flows for the Six Months Ended March 31, 2017 and 2016 (Unaudited)

 

 

6

 

 

Notes to Financial Statements (Unaudited)

 

 

7

 

Item 2:

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

 

9

 

Item 3:

Quantitative and Qualitative Disclosures about Market Risk

 

 

10

 

Item 4T:

Controls and Procedures

 

 

10

 

 

 

 

 

PART II – OTHER INFORMATION

 

 

 

 

 

11

 

Item 1:

Legal Proceedings

 

 

11

 

Item 1A:

Risk Factors

 

 

11

 

Item 2:

Unregistered Sales of Securities and Use of Proceeds

 

 

11

 

Item 3:

Default upon Senior Securities

 

 

11

 

Item 4:

Mine Safety Information

 

 

11

 

Item 5:

Other information

 

 

11

 

Item 6:

Exhibits

 

 

11

 

Signatures

 

 

12

 

 

 
2
 
 

  

Reference in this report to “BARREL ENERGY” “we,” “us,” and “our” refer to BARREL ENERGY, Inc.

 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

The Securities and Exchange Commission (“SEC”) encourages companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions. This report contains these types of statements. Words such as “may,” “expect,” “believe,” “anticipate,” “estimate,” “project,” or “continue” or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

   

PART I – FINANCIAL INFORMATION

 

ITEM 1: FINANCIAL STATEMENTS

 

The financial information set forth below with respect to our statements of operations for the three and six months period ended March 31, 2017 and 2016 is unaudited. This financial information, in the opinion of management, includes all adjustments consisting of normal recurring entries necessary for the fair presentation of such data. The results of operations for the three and six months ended March 31, 2017, are not necessarily indicative of results to be expected for any subsequent period. Our year end is September 30.

 

 
3
 
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BARREL ENERGY INC

BALANCE SHEETS

(Unaudited)

 

 

 

March 31,
2017

 

 

September 30,
2016

 

 

 

 

 

 

 

 

ASSETS

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$ 232

 

 

$ 330

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 

232

 

 

 

330

 

 

 

 

 

 

 

 

 

 

Oil lease - unproved

 

 

-

 

 

 

45,583

 

Total assets

 

$ 232

 

 

$ 45,913

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$ 31,934

 

 

$ 24,656

 

Advances from shareholder

 

 

29,826

 

 

 

19,023

 

Convertible note – related party

 

 

2,102

 

 

 

2,127

 

Convertible notes payable

 

 

73,159

 

 

 

74,037

 

Total current liabilities

 

 

137,021

 

 

 

119,843

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

137,021

 

 

 

119,843

 

 

 

 

 

 

 

 

 

 

Stockholders’ deficit:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value, 5,000,000 authorized, zero issued and outstanding

 

 

-

 

 

 

-

 

Common stock, $0.001 par value, 70,000,000 authorized, 10,804,000 issued and outstanding as of March 31, 2017 and September 30, 2016, respectively

 

 

9,775

 

 

 

9,775

 

Additional paid in capital

 

 

19,064

 

 

 

19,064

 

Accumulated other comprehensive income

 

 

7,054

 

 

 

4,603

 

Accumulated deficit

 

 

(172,682 )

 

 

(107,372 )

Total stockholders’ deficit

 

 

(136,789 )

 

 

(73,930 )

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ deficit

 

$ 232

 

 

$ 45,913

 

 

The accompanying notes are an integral part of these unaudited interim financial statements.

 

 
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BARREL ENERGY INC

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

 

 

 

For the Three Months
Ended

March 31,

 

 

For the Six Months
Ended

March 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expense

 

$ 11,376

 

 

$ 3,094

 

 

$ 16,738

 

 

 

12,013

 

Impairment of unproved property

 

 

45,042

 

 

 

-

 

 

 

45,042

 

 

 

-

 

Loss from operations

 

 

(56,418 )

 

 

(3,094 )

 

 

(61,780 )

 

 

(12.013 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Currency gain

 

 

-

 

 

 

430

 

 

 

-

 

 

 

430

 

Interest expense

 

 

(1,778 )

 

 

(1,555 )

 

 

(3,530 )

 

 

(3,158 )

Total other expense

 

 

(1,778 )

 

 

(1,125 )

 

 

(3,530 )

 

 

(2,728 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(58,196 )

 

 

(4,219 )

 

 

(65,310 )

 

 

(14,741 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

1,395

 

 

 

(2,768 )

 

 

2,451

 

 

 

(2,264 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

$ (56,801 )

 

$ (6,987 )

 

 

(62,859 )

 

 

(17,005 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share, Basic and Diluted

 

$ (0.01 )

 

$ (0.00 )

 

$ (0.01 )

 

$ (0.00 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding, Basic and Diluted

 

 

10,804,000

 

 

 

10,338,440

 

 

 

10,804,000

 

 

 

10,178,732

 

 

The accompanying notes are an integral part of these unaudited interim financial statements.

 

 
5
 
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BARREL ENGERGY INC

STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

For the Six Months Ended
March 31,

 

 

 

2017

 

 

2016

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$ (65,310 )

 

$ (14,741 )

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Stock issued for services

 

 

-

 

 

 

900

 

Impairment of unproved property

 

 

45,042

 

 

 

-

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

 

14,597

 

 

 

950

 

Accrued interest

 

 

3,122

 

 

 

3,507

 

Net cash used in operating activities

 

 

(2,549 )

 

 

(9,384 )

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from sale of common stock

 

 

-

 

 

 

13,550

 

Advances from related party

 

 

-

 

 

 

4,731

 

Repayment of related party advances

 

 

-

 

 

 

(2,019 )

Net cash provided by financing activities

 

 

-

 

 

 

16,262

 

 

 

 

 

 

 

 

 

 

Effects of currency translation

 

 

2,451

 

 

 

(1,436 )

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

 

 

(98 )

 

 

5,442

 

Cash – beginning of period

 

 

330

 

 

 

455

 

Cash – end of period

 

$ 232

 

 

$ 5,897

 

 

 

 

 

 

 

 

 

 

SUPPLEMENT DISCLOSURES:

 

 

 

 

 

 

 

 

Interest paid

 

$ -

 

 

$ -

 

Income taxes paid

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Noncash Investing and Financing Activities:

 

 

 

 

 

 

 

 

Expenses paid by related party on behalf of Company

 

$ 10,803

 

 

$ -

 

 

The accompanying notes are an integral part of these unaudited interim financial statements.

 

 
6
 
Table of Contents

 

BARREL ENERGY INC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

 

NOTE 1 – NATURE OF BUSINESS

 

Barrel Energy Inc (“we”, “our”, the “Company”, “Barrel”) was incorporated on January 27, 2014 under the laws of the State of Nevada. The Company was formed to invest in producing oil and gas properties. On September 26, 2014, the Company leased a non-producing oil and gas property in the province of Alberta, Canada.

 

BASIS OF PRESENTATION

 

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required to be included in a complete set of financial statements in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2017. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. The accompanying unaudited financial statements should be read in conjunction with the audited September 30, 2016 financial statements and related notes included in the Company’s form 10-K filed with the SEC on December 29, 2016.

 

NOTE 2 – GOING CONCERN

 

The Company’s unaudited interim financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company, as shown in the accompanying balance sheets, has a working capital deficit of $136,789 and an accumulated deficit of $172,682 as of March 31, 2017, The Company has not established any source of revenue to cover its operating costs. These factors raise substantial doubt about the company’s ability to continue as a going concern. The unaudited interim financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company will engage in very limited activities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

 

NOTE 3 – CONVERTIBLE NOTE

 

On July 1, 2014, the Company issued a USD $55,681 (CAD $75,000) convertible note for cash. The note bears an interest rate of 9.5% and matured on December 31, 2015. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid.

 

 
7
 
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On October 20, 2014, the Company issued a USD $14,848 (CAD $22,454) convertible note for cash. The note bears an interest rate of 9.5% and matured on December 31, 2016. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid

 

On December 31, 2014, the Company issued to a related party, who is an officer and director of the Company, a convertible note for US$2,079 (CAD $2,800). The note bears an interest rate of 5% per annum and matured on December 31, 2015. The note holder may until the date of maturity convert the principal and accrued interest into common stock of the Company at the rate of $0.025 CAD per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid

 

As of March 31, 2017, the convertible debt outstanding was US $75,261 plus accrued interest of US $18,329 for a total liability of $93,590.

 

The Company analyzed the conversion option under ASC for “Derivatives and Hedging” and “Convertible Securities with Beneficial Conversion Features” and concluded that none applied

 

NOTE 4 – RELATED PARTY

 

During the six months ended March 31, 2017, an officer and director of the Company paid $10,803 of operating expenses on behalf of the Company. As of March 31, 2017 and September 30, 2016, the total amount due to the officer and director is US$ 29,826 and $19,023, respectively. The funds are unsecured, payable on demand, and bear no interest.

 

On December 1, 2014, the Company issued to a related party, who is an officer and director of the Company, a convertible note for US$ 2,079 (CAD $2,800). The note bears an interest rate of 5% per annum and matured on December 31, 2015. The note holder may until the date of maturity convert the principal and accrued interest into common stock of the Company at the rate of $0.025 CAD per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid.

 

Our operations are currently being conducted out of the premises at 14890 66a Ave., Surrey, B.C. V3S 9Y6 Canada. Mr. Sangha makes these premises available to us rent-free. We consider our current principal office space arrangement adequate and will reassess our needs based upon the future growth of the Company.

 

NOTE 5 – IMPAIRMENT OF UNPROVED PROPERTY

 

The Company reviewed the status of its asset which is an unimproved oil property under lease. From this review the Company determined it does not have the adequate resources combined with the present market price of oil to develop it into a producing property. As of March 31, 2017 the Company elected to impair the asset and reduce its value to zero. The Company had impairment expense of $45,042 and $0 for the six months ended March 31, 2017 and 2016, respectively.

 

 
8
 
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ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Executive Overview

 

Barrel Energy Inc (Barrel) was incorporated on January 27, 2014 under the laws of the State of Nevada. The Company was formed to invest in producing oil and gas properties. On September 26, 2014, the Company leased an unproven oil and gas property in the province of Alberta, Canada.

 

As of the date of this filing we have no operations and have recorded no revenues for the past two years. Our focus for the next twelve months will be to obtain additional funding to develop and expand our operations and new projects. Our success will depend on our ability to obtain funding through equity and/or debt transactions. However, with the downturn of the United States and world economies, we will encounter substantial competition for the limited financing that will be available in the market place. If we are unable to obtain financing, then we will likely delay further development of our unimproved property which is an oil lease in Canada.

 

In summary, management continues to position the company in a way to best benefit from worldwide economic conditions, trends, events, and demand for new technologies.

 

Liquidity and Capital Resources

 

As of March 31, 2017, we had an accumulated deficit of $172,682. We recorded net loss of $58,196 and $65,310 for the three and six months ending March 31, 2017 and $4,219 and $14,741 for the same period in 2016, respectively. Based on these numbers there is substantial doubt that we can continue as a going concern unless we obtain external funding. Management plans to continue limited operations until we obtain additional funding to expand our operations.

 

Working capital was a deficit of $136,789 as of March 31, 2017, compared to a deficit of $119,513 as of September 30, 2016, Cash used in operations totaled $2,549 during the six months ended March 31, 2017 compared to cash used in operations of $9,384 during the same period in 2016. Funds provided from financing activities was $0 during the six months ended March 31, 2017 compared to $16,262 during the same period in 2016. The effect of foreign currency translation on cash flows was $2,451 for the six months ending March 31,2017 compared to a negative $2,264 in the same period in 2016.

 

Management expects to continue to issue common stock to pay for the future development of our oil lease in Canada. The purchasers and manner of issuance will be determined according to our financial needs and the available exemptions. We also note that if we issue more shares of our common stock our shareholders may experience dilution in the value per share of their common stock.

 

We intend to rely on debt and equity financing, capital contributions from management and sales of our common stock to pay for costs, services, operating leases, litigation expense and future development of our business opportunities. Accordingly, our focus for the next twelve months will be to obtain additional funding through debt or equity financing. Our success in obtaining funding will depend upon our ability to sell our common stock or borrow on terms that are financially advantageous to us. If we are unable to obtain financing, then expansion of our operations will be delayed.

 

 
9
 
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Results of Operations

 

The Company recorded no revenue during the three months ended March 31, 2017 and 2016.

 

General and administrative expenses for the three and six months ended March 31, 2017 totaled $ and $16,738, compared to $3,094 and $12,013 for the same periods in 2016. The Company incurred an impairment of unproven property for both the three and six months ended March 31, 2017 of $45,042 compared to zero for the same periods in 2016. The increase loss from operations for the six months in 2017 compared to 2016 was due to the impairment of the unproven property along with higher accounting, legal and consulting costs.

 

The Company incurred a net loss of $58,196 and $65,310 in the three and six months ended March 31, 2017, compared to $4,219 and $14,741 for the same period in 2016. The higher net loss was due to higher general and administrative cost and impairment of unproved property in the three and six months ended March 31, 2017 compared to the same period in 2016.

 

Off-Balance Sheet Arrangements

 

None

 

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.

 

ITEM 4: CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Based on their evaluation of our disclosure controls and procedures(as defined in Rule 13a-15e under the Securities Exchange Act of 1934 the "Exchange Act"), our principal executive officer and principal financial officer have concluded that as of the end of the period covered by this quarterly report on Form 10-Q such disclosure controls and procedures were not effective due to the lack of segregation of duties and lack of a formal review process that includes multiple levels of review to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms because of the identification of a material weakness in our internal control over financial reporting which we view as an integral part of our disclosure controls and procedures. The material weakness relates to the lack of segregation of duties in financial reporting, as our financial reporting and all accounting functions are performed by an external consultant with no oversight by a professional with accounting expertise. Our CEO /CFO do not possess accounting expertise and our company does not have an audit committee. This weakness is due to the Company’s lack of working capital to hire additional staff. To remedy this material weakness, we intend to engage another accountant to assist with financial reporting as soon as our finances will allow.

 

Changes in Internal Control over Financial Reporting

 

Except as noted above, there have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our first quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 
10
 
Table of Contents

  

PART II – OTHER INFORMATION

 

ITEM 1: LEGAL PROCEEDINGS.

 

None

 

ITEM 1A: RISK FACTORS

 

None

 

ITEM 2: SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

 

None

 

ITEM 3: DEFAULTS UPON SENIOR SECURITIES.

 

None

 

ITEM 4: MINE SAFETY INFORMATION

 

None

 

ITEM 5: OTHER INFORMATION.

 

None

 

ITEM 6. EXHIBITS

 

No.

 

Description

 

 

 

31

 

Chief Executive Officer Certification

 

 

 

32

 

Section 1350 Certification

 

 

 

101

 

XBRL Interactive Data Files

 

 
11
 
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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 

 

  BARREL ENERGY, INC.
       
Date: May 15, 2017 By: /s/ Gurm Sangha

 

 

Gurm Sangha  
    President  
   

Chief Executive Officer
Principal Financial and Accounting Officer

 

 

 

 

 

12

 

EX-31 2 barrel_ex31.htm CERTIFICATION barrel_ex31.htm

EXHIBIT 31

 

FORM OF CERTIFICATION 

PURSUANT TO RULE 13a-14 AND 15d-14

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

CERTIFICATION

 

I, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of BARREL ENERGY, Inc.;

 

 

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 are 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. The registrant's other certifying officer(s) and I are 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 has:

 

 

(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 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. The registrant’s other certifying officer(s) and 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 The 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 has a significant role in the registrant’s internal control over financial reporting.

 

 

Date: May 15, 2017

By:

/s/ Gurm Sangha

 

 

Gurm Sangha

 

 

 

Chief Executive Officer

 

 

EX-32 3 barrel_ex32.htm CERTIFICATION barrel_ex32.htm

 EXHIBIT 32

 

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

 

In connection with the Quarter Report of BARREL ENERGY, Inc. on Form 10-Q for the period ended March 31, 2017 as filed with the Securities and Exchange Commission (the "Report") Gurm Sangha, Chief Executive Officer and Chief Financial Officer of the Company, does hereby certify, pursuant to §906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. §1350), that to his knowledge:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

 

Dated May 15, 2017

By:

/s/ Gurm Sangha

 

 

Gurm Sangha

 

 

 

Chief Executive Officer

Chief Financial Officer

 

 

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

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Document and Entity Information - shares
6 Months Ended
Mar. 31, 2017
May 15, 2017
Document And Entity Information    
Entity Registrant Name Barrel Energy Inc.  
Entity Central Index Key 0001631463  
Document Type 10-Q  
Document Period End Date Mar. 31, 2017  
Amendment Flag false  
Current Fiscal Year End Date --09-30  
Is Entity a Well-known Seasoned Issuer? No  
Is Entity a Voluntary Filer? No  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   10,804,000
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2017  
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BALANCE SHEETS - USD ($)
Mar. 31, 2017
Sep. 30, 2016
Current assets:    
Cash and cash equivalents $ 232 $ 330
Total current assets 232 330
Oil lease - unproved 45,583
Total assets 232 45,913
Current liabilities:    
Accounts payable and accrued expenses 31,934 24,656
Advance from shareholder 29,826 19,023
Convertible note - related party 2,102 2,127
Convertible notes payable 73,159 74,037
Total current liabilities 137,021 119,843
Total liabilities 137,021 119,843
Stockholders' deficit:    
Preferred stock, $0.001 par value, 5,000,000 authorized, zero issued and outstanding
Common stock, $0.001 par value, 70,000,000 authorized, 10,804,000 issued and outstanding as of March 31, 2017 and September 30, 2016, respectively 9,775 9,775
Additional paid in capital 19,064 19,064
Accumulated other comprehensive income 7,054 4,603
Accumulated deficit (172,682) (107,372)
Total stockholders' deficit (136,789) (73,930)
Total liabilities and stockholders' deficit $ 232 $ 45,913
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BALANCE SHEETS (Parenthetical) - $ / shares
Mar. 31, 2017
Sep. 30, 2016
Stockholders' deficit:    
Preferred Stock, Par value $ 0.001 $ 0.001
Preferred Stock, Authorized 5,000,000 5,000,000
Preferred Stock, Issued 0 0
Preferred Stock, Outstanding 0 0
Common Stock, Par value $ 0.001 $ 0.001
Common Stock, Authorized 70,000,000 70,000,000
Common Stock, Issued 10,804,000 10,804,000
Common Stock, Outstanding 10,804,000 10,804,000
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STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Mar. 31, 2017
Mar. 31, 2016
Operating expenses:        
General and administrative expense $ 11,376 $ 3,094 $ 16,738 $ 12,013
Impairment of unproved property 45,042 45,042
Loss from operations (56,418) (3,094) (61,780) (12,013)
Other income (expense)        
Currency gain 430 430
Interest expense (1,778) (1,555) (3,530) (3,158)
Total other expense (1,778) (1,125) (3,530) (2,728)
Net loss (58,196) (4,219) (65,310) (14,741)
Foreign currency translation adjustment 1,395 (2,768) 2,451 (2,264)
Comprehensive loss $ (56,801) $ (6,987) $ (62,859) $ (17,005)
Net loss per common share, basic and diluted $ (0.01) $ 0.00 $ (0.01) $ 0.00
Weighted average number of common shares outstanding, basic and diluted 10,804,000 10,338,440 10,804,000 10,178,732
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STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
6 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash flows from operating activities:    
Net loss $ (65,310) $ (14,741)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock issued for services 900
Impairment of unproved property 45,042
Changes in operating assets and liabilities:    
Accounts payable 14,597 950
Accrued interest 3,122 3,507
Net cash used in operating activities (2,549) (9,384)
Cash flows from financing activities:    
Proceeds from sale of common stock 13,550
Advances from related party 4,731
Repayment of related party advances (2,019)
Net cash provided by financing activities 16,262
Effects of currency translation 2,451 (1,436)
Net increase (decrease) in cash (98) 5,442
Cash - beginning of period 330 455
Cash - end of period 232 5,897
SUPPLEMENT DISCLOSURES:    
Interest paid
Income taxes paid
Noncash Investing and Financing Activities:    
Expenses paid by related party on behalf of Company $ 10,803
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NATURE OF BUSINESS
6 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
NOTE 1 - NATURE OF BUSINESS

Barrel Energy Inc (“we”, “our”, the “Company”, “Barrel”) was incorporated on January 27, 2014 under the laws of the State of Nevada. The Company was formed to invest in producing oil and gas properties. On September 26, 2014, the Company leased a non-producing oil and gas property in the province of Alberta, Canada.

 

BASIS OF PRESENTATION

 

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required to be included in a complete set of financial statements in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2017. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. The accompanying unaudited financial statements should be read in conjunction with the audited September 30, 2016 financial statements and related notes included in the Company’s form 10-K filed with the SEC on December 29, 2016.

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GOING CONCERN
6 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
NOTE 2 - GOING CONCERN

The Company’s unaudited interim financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company, as shown in the accompanying balance sheets, has a working capital deficit of $136,789 and an accumulated deficit of $172,682 as of March 31, 2017, The Company has not established any source of revenue to cover its operating costs. These factors raise substantial doubt about the company’s ability to continue as a going concern. The unaudited interim financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company will engage in very limited activities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

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CONVERTIBLE NOTE
6 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
NOTE 3 - CONVERTIBLE NOTE

On July 1, 2014, the Company issued a USD $55,681 (CAD $75,000) convertible note for cash. The note bears an interest rate of 9.5% and matured on December 31, 2015. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid.

   

On October 20, 2014, the Company issued a USD $14,848 (CAD $22,454) convertible note for cash. The note bears an interest rate of 9.5% and matured on December 31, 2016. The note, plus accrued interest, is convertible by the holder, in part or whole, until the date of maturity into common stock of the Company at CAD one cent ($0.01) per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid

 

On December 31, 2014, the Company issued to a related party, who is an officer and director of the Company, a convertible note for US$2,079 (CAD $2,800). The note bears an interest rate of 5% per annum and matured on December 31, 2015. The note holder may until the date of maturity convert the principal and accrued interest into common stock of the Company at the rate of $0.025 CAD per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid

 

As of March 31, 2017, the convertible debt outstanding was US $75,261 plus accrued interest of US $18,329 for a total liability of $93,590.

 

The Company analyzed the conversion option under ASC for “Derivatives and Hedging” and “Convertible Securities with Beneficial Conversion Features” and concluded that none applied

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RELATED PARTY
6 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
NOTE 4 - RELATED PARTY

During the six months ended March 31, 2017, an officer and director of the Company paid $10,803 of operating expenses on behalf of the Company. As of March 31, 2017 and September 30, 2016, the total amount due to the officer and director is US$ 29,826 and $19,023, respectively. The funds are unsecured, payable on demand, and bear no interest.

 

On December 1, 2014, the Company issued to a related party, who is an officer and director of the Company, a convertible note for US$ 2,079 (CAD $2,800). The note bears an interest rate of 5% per annum and matured on December 31, 2015. The note holder may until the date of maturity convert the principal and accrued interest into common stock of the Company at the rate of $0.025 CAD per share. The note is in default. The Company by resolution has elected to allow conversion of any and all the notes outstanding principal and interest until the note is fully paid.

 

Our operations are currently being conducted out of the premises at 14890 66a Ave., Surrey, B.C. V3S 9Y6 Canada. Mr. Sangha makes these premises available to us rent-free. We consider our current principal office space arrangement adequate and will reassess our needs based upon the future growth of the Company.

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IMPAIRMENT OF UNPROVED PROPERTY
6 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
NOTE 5 - IMPAIRMENT OF UNPROVED PROPERTY

The Company reviewed the status of its asset which is an unimproved oil property under lease. From this review the Company determined it does not have the adequate resources combined with the present market price of oil to develop it into a producing property. As of March 31, 2017 the Company elected to impair the asset and reduce its value to zero. The Company had impairment expense of $45,042 and $0 for the six months ended March 31, 2017 and 2016, respectively.

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.7.0.1
GOING CONCERN (Details Narrative) - USD ($)
Mar. 31, 2017
Sep. 30, 2016
Going Concern Details Narrative    
Working capital deficit $ 136,789  
Accumulated deficit $ (172,682) $ (107,372)
XML 21 R12.htm IDEA: XBRL DOCUMENT v3.7.0.1
CONVERTIBLE NOTE (Details Narrative) - USD ($)
Mar. 31, 2017
Dec. 01, 2014
Oct. 20, 2014
Jul. 01, 2014
Convertible debt outstanding $ 75,261      
Accrued interest 18,329      
Total liability $ 93,590      
Convertible Note [Member]        
Company issued to a related party   $ 2,079 $ 14,848 $ 55,681
Interest rate   5.00% 9.50% 9.50%
XML 22 R13.htm IDEA: XBRL DOCUMENT v3.7.0.1
RELATED PARTY (Details Narrative) - USD ($)
6 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Sep. 30, 2016
Dec. 01, 2014
Oct. 20, 2014
Jul. 01, 2014
Advance from shareholder $ 29,826   $ 19,023      
Expenses paid by related party on behalf of Company $ 10,803        
Convertible Note [Member]            
Company issued to a related party       $ 2,079 $ 14,848 $ 55,681
Interest rate       5.00% 9.50% 9.50%
XML 23 R14.htm IDEA: XBRL DOCUMENT v3.7.0.1
IMPAIRMENT OF UNPROVED PROPERTY (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Mar. 31, 2017
Mar. 31, 2016
Notes to Financial Statements        
Impairment expense $ 45,042 $ 45,042
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