10-Q

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 December 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.)
1206 - 588 Broughton Street Vancouver, B.C. Canada	V6G 3E3
(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	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x
		Emerging Growth Company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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

As of February 13, 2018 the registrant had 12,301,332 shares of common stock outstanding.

 TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements	4
	Balance Sheets as of December 31, 2017, and September 30, 2017 - (Unaudited)	4
	Statements of Operations and Comprehensive loss for the Three Months Ended December 31, 2017 and 2016 – (Unaudited)	5
	Statements of Cash Flows for the Three Months Ended December 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.

3

PART I – FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

The financial information set forth below with respect to our statements of operations for the three months period ended December 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 months ended December 31, 2017, are not necessarily indicative of results to be expected for any subsequent period. Our year end is September 30.

BARREL ENERGY INC

BALANCE SHEETS

(Unaudited)

	December 31, 2017			September 30, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	165,908		$	250,160
Due from related party		685			--
Total current assets		166,593			250,160
Total assets	$	166,593		$	250,160
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	32,732		$	28,241
Advances from shareholder		--			62,994
Convertible note – related party		--			2,245
Convertible notes payable		54,053			54,515
Total current liabilities		86,785			147,995
Total liabilities		86,785			147,995
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 authorized, zero issued and outstanding	-			-
Common stock, $0.001 par value, 70,000,000 authorized, 12,301,332 issued and outstanding as of December 31, 2017 and September 30, 2017, respectively		12,301			12,301
Additional paid in capital		272,638			272,638
Accumulated other comprehensive loss		(1,942	)		(4,297	)
Accumulated deficit		(203,189	)		(178,477	)
Total stockholders’ equity		79,808			102,165
Total liabilities and stockholders’ equity	$	166,593		$	250,160

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

4

BARREL ENERGY INC

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

	For Three Months Ended December 31,
	2017			2016
Operating expenses:
General and administrative expense	$	23,395		$	5,362
Loss from operations		(23,395	)		(5,362	)
Other expense
Interest expense		(1,317	)		(1,752	)
Total other expense		(1,317	)		(1,752	)
Net loss		(24,712	)		(7,114	)
Foreign currency translation adjustment		2,355			1,056
Comprehensive loss	$	(22,357	)	$	(6,058	)
Net loss per common share, Basic and Diluted	$	(0.00	)	$	(0.00	)
Weighted average number of common shares outstanding, basic and diluted		12,301,332			10,804,000

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

5

BARREL ENGERGY INC

STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Three Months Ended December 31,
	2017			2016
Cash flows from operating activities:
Net loss	$	(24,712	)	$	(7,114	)
Adjustments to reconcile net loss to net cash used in operating activities:
Changes in operating assets and liabilities:
Accounts payable and accrued expense		17,909			7,048
Due to related party		(685	)		--
Net cash used in operating activities		(7,488	)		(66	)
Cash flows from financing activities:
Repayment of related party advances and note payable		(79,119	)		--
Net cash used in financing activities		(79,119	)		--
Effects of currency translation		2,355			(1	)
Net decrease in cash		(84,252	)		(67	)
Cash – beginning of period		250,160			330
Cash – end of period	$	165,908		$	263
SUPPLEMENT DISCLOSURES:
Interest paid	$	334		$	-
Income taxes paid		-			-
Noncash Investing and Financing Activities:
Expenses paid by related party on behalf of Company	$	12,223		$	3,000

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

6

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 months ended December 31, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2018. 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, 2017 financial statements and related notes included in the Company’s form 10-K filed with the SEC on December 29, 2017.

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 working capital of $79,808 and an accumulated deficit of $203,189 as of December 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 $67,215 (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 September 30, 2017 the Company issued 700,000 shares of common stock with a value of $5,612 (CDN $7,000) for partial conversion of the convertible note. As of December 31, 2017, the convertible debt outstanding was USD $54,053 plus accrued interest of USD $19,297 for a total liability of USD $73,309.

7

On December 1, 2014, the Company issued to a related party, who is an officer and director of the Company, a convertible note for USD $2,226 (CAD $2,800). The note bears an interest rate of 5% per annum and matured on December 31, 2015. On December 29, 2017 the Company paid the outstanding principal of $2,226 and interest of $334 for a total of $2,560.

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 three months ended December 31, 2017, an officer and director of the Company paid USD $12,223 of operating expenses on behalf of the Company while the Company repaid the related party $76,559. As of December 31, 2017, the related party was overpaid by the Company in the amount of $685 which is classified in the balance sheet as due from related party. The advances bear no interest and are payable on demand.

On December 1, 2014, the Company issued to a related party, who is an officer and director of the Company, a convertible note for USD $ 2,226 (CAD $2,800). The note bears an interest rate of 5% per annum and matured on December 31, 2015. On December 29, 2017 the Company paid the outstanding principal of $2,226 and interest of $334 for a total of $2,560.

Our operations are currently being conducted out of the premises at 1206 - 588 Broughton Street, Vancouver, B.C. V6G 3E3 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.

8

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

At December 31, 2017, we had an accumulated deficit of $203,189. We recorded a net loss of $24,712 for the three months ended December 31, 2017 and net loss of $7,114 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 $79,808 as of December 31, 2017, compared to $102,165 as of September 30, 2017.

Cash used in operations totaled $7,488 during the three months ended December 31, 2017 compared to cash used in operations of $66 during the same period in 2016.

Funds used in financing activities was $79,119 resulting from repayment of advances and note payable of a related party during the three months ended December 31, 2017 compared to zero during the same period in 2016.

The effect of foreign currency translation on cash flows was $2,355 for the three months ended December 31, 2017 compared to a negative $1 in the same period in 2016.

Management expects to continue to issue common stock to pay for the future development and needs. 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

Results of Operations

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

General and administrative expenses for the three months ended December 31, 2017 totaled $23,395, compared to $5,362 for the same periods in 2016. The increase loss from operations for the three months in 2017 compared to 2016 was due to the higher accounting, legal and consulting costs.

The Company incurred a net loss of $24,712 in the three months ended December 31, 2017, compared to net loss of $7,114 for the same period in 2016. The higher net loss was due to higher general and administrative cost in the three months ended December 31, 2017 compared to the same periods 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

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

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: February 13, 2018	By:	/s/ Gurm Sangha
		Gurm Sangha
		President
		Chief Executive Officer
		Principal Financial and Accounting Officer

12

EX-31

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 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.

Dated: February 13, 2018	By:	/s/ Gurm Sangha
		Gurm Sangha
		Chief Executive Officer
		Chief Financial Officer

EX-32

 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 December 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: February 13, 2018	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.

XML

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2017	Feb. 13, 2018
Document And Entity Information
Entity Registrant Name	Barrel Energy Inc.
Entity Central Index Key	0001631463
Document Type	10-Q
Document Period End Date	Dec. 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		12,301,332
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2018

XML

BALANCE SHEETS (Unaudited) - USD ($)	Dec. 31, 2017	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 165,908	$ 250,160
Due from related party	685
Total current assets	166,593	250,160
Total assets	166,593	250,160
Current liabilities:
Accounts payable and accrued expense	32,732	28,241
Advances from shareholder		62,994
Convertible note - related party		2,245
Convertible notes payable	54,053	54,515
Total current liabilities	86,785	147,995
Total liabilities	86,785	147,995
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 authorized, zero issued and outstanding
Common stock, $0.001 par value, 70,000,000 authorized, 12,301,332 issued and outstanding as of December 31, 2017 and September 30, 2017, respectively	12,301	12,301
Additional paid-in capital	272,638	272,638
Accumulated other comprehensive loss	(1,942)	(4,297)
Accumulated deficit	(203,189)	(178,477)
Total stockholders' equity	79,808	102,165
Total liabilities and stockholders' equity	$ 166,593	$ 250,160

XML

BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares	Dec. 31, 2017	Sep. 30, 2017
Stockholders' equity (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	12,301,332	12,301,332
Common Stock, Outstanding	12,301,332	12,301,332

XML

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Operating expenses:
General and administrative expense	$ 23,395	$ 5,362
Loss from operations	(23,395)	(5,362)
Other expense
Interest expense	(1,317)	(1,752)
Total other expense	(1,317)	(1,752)
Net loss	(24,712)	(7,114)
Foreign currency translation adjustment	2,355	1,056
Comprehensive loss	$ (22,357)	$ (6,058)
Net loss per common share, Basic and Diluted	$ (0.00)	$ (0.00)
Weighted average number of common shares outstanding, basic and diluted	12,301,332	10,804,000

XML

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net loss	$ (24,712)	$ (7,114)
Changes in operating assets and liabilities:
Accounts payable and accrued expense	17,909	7,048
Due to related party	(685)
Net cash used in operating activities	(7,488)	(66)
Cash flows from financing activities:
Repayment of related party advances and note payable	(79,119)
Net cash used in financing activities	(79,119)
Effects of currency translation	2,355	(1)
Net decrease in cash	(84,252)	(67)
Cash - beginning of year	250,160	330
Cash - end of year	165,908	263
SUPPLEMENT DISCLOSURES:
Interest paid	334
Income taxes paid
Noncash Investing and Financing Activities:
Expenses paid by related party on behalf of Company	$ 12,223	$ 3,000

XML

NATURE OF BUSINESS

3 Months Ended

Dec. 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 months ended December 31, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2018. 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, 2017 financial statements and related notes included in the Company’s form 10-K filed with the SEC on December 29, 2017.

XML

GOING CONCERN

3 Months Ended

Dec. 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 working capital of $79,808 and an accumulated deficit of $203,189 as of December 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.

XML

CONVERTIBLE NOTE

3 Months Ended

Dec. 31, 2017

Notes to Financial Statements

NOTE 3 - CONVERTIBLE NOTE

On July 1, 2014, the Company issued a USD $67,215 (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 September 30, 2017 the Company issued 700,000 shares of common stock with a value of $5,612 (CDN $7,000) for partial conversion of the convertible note. As of December 31, 2017, the convertible debt outstanding was USD $54,053 plus accrued interest of USD $19,297 for a total liability of USD $73,309.

On December 1, 2014, the Company issued to a related party, who is an officer and director of the Company, a convertible note for USD $2,226 (CAD $2,800). The note bears an interest rate of 5% per annum and matured on December 31, 2015. On December 29, 2017 the Company paid the outstanding principal of $2,226 and interest of $334 for a total of $2,560.

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

3 Months Ended

Dec. 31, 2017

Notes to Financial Statements

NOTE 4 - RELATED PARTY

During the three months ended December 31, 2017, an officer and director of the Company paid USD $12,223 of operating expenses on behalf of the Company while the Company repaid the related party $76,559. As of December 31, 2017, the related party was overpaid by the Company $685 which is classified in the balance sheet as due from related party. The advances bear no interest and are payable on demand.

On December 1, 2014, the Company issued to a related party, who is an officer and director of the Company, a convertible note for USD $ 2,226 (CAD $2,800). The note bears an interest rate of 5% per annum and matured on December 31, 2015. On December 29, 2017 the Company paid the outstanding principal of $2,226 and interest of $334 for a total of $2,560.

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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NATURE OF BUSINESS (Details Narrative)	3 Months Ended
	Dec. 31, 2017
Nature Of Business Details Narrative
State country name	State of Nevada
Date of Incorporation	Jan. 27, 2014

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GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2017	Sep. 30, 2017
Going Concern Details Narrative
Accumulated deficit	$ (203,189)	$ (178,477)
Working capital deficit	$ 79,808

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CONVERTIBLE NOTE (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Convertible debt outstanding		$ 54,053
Convertible note – related party	$ 2,245
Total liability		73,309
Accrued interest		19,297
Repayment of related party debt		79,119
December 29, 2017 [Member]
Repayment of related party debt		2,226
Repayment of related party debt interest		334
Total repayment		2,560
On December 1, 2014 [Member]
Convertible note – related party		$ 2,226
Interest rate		5.00%
Debt maturity date		Dec. 31, 2015
On July 1, 2014 [Member]
Convertible debt outstanding		$ 67,215
Interest rate		9.50%
Debt conversion, converted instrument, amount	$ 5,612
Debt conversion, converted instrument, shares issued	700,000
Debt maturity date		Dec. 31, 2015

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RELATED PARTY (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017
Convertible note - related party			$ 2,245
Due from related party	685
Repayment of related party debt	79,119
Officer and Director [Member]
Operating expenses on behalf of the Company	12,223
Repayment to related party	76,559
Due from related party	$ 685
On December 1, 2014 [Member]
Interest rate	5.00%
Convertible note - related party	$ 2,226
Debt maturity date	Dec. 31, 2015
December 29, 2017 [Member]
Repayment of related party debt	$ 2,226
Repayment of related party debt interest	334
Total repayment	$ 2,560