Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

Our consolidated financial statements include our accounts and the accounts of our

100%

owned subsidiary, Alpha Energy Texas Operating, LLC. All intercompany transactions and balances have been eliminated. Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation and Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items, that (

) recorded transactions are valid; (

) all valid transactions are recorded and (

) transactions are recorded in the period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the company for the respective periods being presented.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

For purposes of the statements of cash flows, the Company considers all short-term debt securities purchased with maturity of

three

months or less to be cash equivalents.

Revenue from Contract with Customer [Policy Text Block]

Revenue and Cost Recognition

Effective

January 1, 2018,

we adopted ASU

2014

09,

Revenue from Contracts with Customers (Topic

606

). Under the new standard, we recognize revenues when the following criteria are met: (i) persuasive evidence of a contract with a customer exists, (ii) identifiable performance obligations under the contract exist, (iii) the transaction price is determinable for each performance obligation, (iv) the transaction price is allocated to each performance obligation, and (v) the performance obligations are satisfied. We derive all of our revenues from oil and gas production.

The Company records revenues from the sales of natural gas and crude oil when the production is produced and sold, and also when collectability is ensured. The Company

may

in the future have an interest with other producers in certain properties, in which case the Company will use the sales method to account for gas imbalances. Under this method, revenue will be recorded on the basis of natural gas actually sold by the Company. The Company also reduces revenue for other owners' natural gas sold by the Company that cannot be volumetrically balanced in the future due to insufficient remaining reserves. The Company's remaining over- and under-produced gas balancing positions are considered in the Company's proved oil and natural gas reserves. The Company had

gas imbalances at

December 31, 2019

2018.

The Company recorded revenues of

$4,278

and

$2,346

and costs of revenues totaling

$7,239

and

$2,678

during the years ended

December 31, 2019

and

2018,

respectively. There was

of accounts receivable at

December 31, 2019

and

2018.

Earnings Per Share, Policy [Policy Text Block]

Basic and Diluted Loss per share

Net loss per share is provided in accordance with FASB ASC

260

10,

"Earnings (Loss) per Share". Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. For the year ended

December 31, 2019,

there were

130,578

shares issuable from convertible credit line payable that were considered for their dilutive effects. For the year ended

December 31, 2018,

there were

93,631

shares issuable from convertible credit line payable which were considered for their dilutive effects but concluded to be anti-dilutive.

The reconciliation of basic and diluted loss per share is as follows:

	December 31, 2019			December 31, 2018

Basic net loss	$	(432,937	)	$	(1,500,410	)
Add back: Gain on change in fair value of derivative liabilities		(492,198	)		-
Diluted net loss	$	(925,135	)	$	(1,500,410	)

Basic and dilutive shares:
Weighted average basic shares outstanding		17,594,220			17,066,576
Shares issuable from convertible credit line payable		130,578			-
Dilutive shares		17,724,798			17,066,576

Loss per share:
Basic	$	(0.02	)	$	(0.09	)
Diluted	$	(0.05	)	$	(0.09	)

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into

three

levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level

– Quoted prices in active markets for identical assets or liabilities.

Level

– Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level

– Inputs that are generally unobservable and typically reflect management's estimate of assumptions that market participants would use in pricing the asset or liability.

The carrying amount of the Company's financial instruments consisting of cash and cash equivalents, accounts payable, notes payable and convertible notes approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Oil and Gas Properties Policy [Policy Text Block]

Oil and natural gas properties

We account for our oil and natural gas producing activities using the full cost method of accounting as prescribed by the United States Securities and Exchange Commission (SEC). Under this method, subject to a limitation based on estimated value, all costs incurred in the acquisition, exploration, and development of proved oil and natural gas properties, including internal costs directly associated with acquisition, exploration, and development activities, the costs of abandoned properties, dry holes, geophysical costs, and annual lease rentals are capitalized within a cost center. Costs of production and general and administrative corporate costs unrelated to acquisition, exploration, and development activities are expensed as incurred.

Costs associated with unevaluated properties are capitalized as oil and natural gas properties but are excluded from the amortization base during the evaluation period. When we determine whether the property has proved recoverable reserves or

not,

or if there is an impairment, the costs are transferred into the amortization base and thereby become subject to amortization.

We assess all items classified as unevaluated property on at least an annual basis for inclusion in the amortization base. We assess properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate that there would be impairment, or if proved reserves are assigned to a property, the cumulative costs incurred to date for such property are transferred to the amortizable base and are then subject to amortization.

Capitalized costs included in the amortization base, including estimated asset retirement costs, plus the estimated future expenditures to be incurred in developing proved reserves, net of estimated salvage values. Sales or other dispositions of oil and natural gas properties are accounted for as adjustments to capitalized costs, with

gain or loss recorded unless the ratio of cost to prove reserves would significantly change.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Risk

The Company has interest in

three

separate oil and gas leases, all of which are located in the state of Colorado. Environmental and regulatory factors within the state beyond the control of the Company

may

limit the Company's future production of all its leases.

The Company has a single buyer for the gas produces from

one

of its leases. The loss of this buyer would have a material adverse impact on our business.

Property, Plant and Equipment, Impairment [Policy Text Block]

Impairment

The net book value of all capitalized oil and natural gas properties within a cost center, less related deferred income taxes, is subject to a full cost ceiling limitation which is calculated quarterly. Under the ceiling limitation, costs

may

not

exceed an aggregate of the present value of future net revenues attributable to proven oil and natural gas reserves discounted at

percent using current prices, plus the lower of cost or market value of unproved properties included in the amortization base, plus the cost of unevaluated properties, less any associated tax effects. Any excess of the net book value, less related deferred tax benefits, over the ceiling is written off as expense. Impairment expense recorded in

one

period

may

not

be reversed in a subsequent period even though higher oil and gas prices

may

have increased the ceiling applicable to the subsequent period. During the years ended

December 31, 2019

and

2018,

the Company evaluated the future production of its leases through the termination of each lease. The Company entered into an escrow agreement for

$50,000

with Premier Gas Company, LLC on

April 30, 2019.

The escrow payment was to hold a purchase and sale agreement dated

January 29, 2019.

The agreement was

not

completed and the previously capitalized payment was impaired in

June 2019.

During the year ended

December 31, 2018,

there was

impairment recorded.

Asset Retirement Obligation [Policy Text Block]

Asset retirement obligation

We record the fair value of an asset retirement cost, and corresponding liability as part of the cost of the related long-lived asset and the cost is subsequently allocated to expense using a systematic and rational method. We record an asset retirement obligation to reflect our legal obligations related to future plugging and abandonment of our oil and natural gas wells and gathering systems. We estimate the expected cash flow associated with the obligation and discount the amount using a credit-adjusted, risk-free interest rate. At least annually, we reassess the obligation to determine whether a change in the estimated obligation is necessary. We evaluate whether there are indicators that suggest the estimated cash flows underlying the obligation have materially changed. Should those indicators suggest the estimated obligation

may

have materially changed on an interim basis (quarterly), we will update our assessment accordingly. Additional retirement obligations increase the liability associated with new oil and natural gas wells and gathering systems as these obligations are incurred. The Company had accrued an asset retirement obligation liability totaling

$786

and

$710

as of

December 31, 2019

and

2018,

respectively.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company accounts for income taxes under ASC

740

"Income Taxes"

which codified SFAS

109,

"Accounting for Income Taxes"

and FIN

“Accounting for Uncertainty in Income Taxes – an Interpretation of FASB Statement

No.109.”

Under the asset and liability method of ASC

740,

deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC

740,

the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than

not

that the Company will

not

realize tax assets through future operations.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

). Under ASU

2016

02,

an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU

2016

offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU

2016

is effective for annual reporting periods beginning after

December 15, 2018,

including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company adopted this standard as of

January 1, 2019.

The adoption of this standard did

not

have an impact on the Company's financial statements due to the lack of lease agreements for the Company at this time. The Company elected the short-term lease recognition exemption for its leases. For those leases with a lease term of

months or less, the Company will

not

recognize ROU assets or lease liabilities.

The Company does

not

believe that any other recently issued effective pronouncements, or pronouncements issued but

not

yet effective, if adopted, would have a material effect on the accompanying financial statements.

Error Corrections and Prior Period Adjustment Restatement [Policy Text Block]

statement

2020,

the Company identified errors in account balances in the Form

10K

filed for the year ended

December 31, 2018.

The following accounts were deemed to contain errors: accounts payable, derivative liability, common stock, additional paid in capital, operating expenses, interest expense and loss on derivative liabilities. The errors resulted from incorrect recording of stock-based compensation and overstatements of derivative liability and amortization of debt discount.

The tables below summarize previously reported amounts and the restated presentation of the consolidated balance sheet, consolidated statement of operations and consolidated statement of cash flows for the affected year:

ALPHA ENERGY, INC.

BALANCE SHEET

	December 31, 2018						December 31, 2018
	As Reported			Adjustment			As Restated
Current Assets
Cash	$	240		$	-		$	240
Accounts receivable		-			-			-
Total Current Assets		240			-			240

Oil and gas property, unproved, full cost		10,000						10,000
Total Assets	$	10,240		$	-		$	10,240

Liabilities and Stockholders' Deficit

Current liabilities
Accounts payable	$	550,848		$	(495,280	)	$	55,568
Accounts payable related party		-			6,579			6,579
Interest payable		11,479			-			11,479
Short term advance from related party		24,366			-			24,366
Derivative liability		608,598			(58,679	)		549,919
Total current liabilities		1,195,291			(547,380	)		647,911

Convertible credit line payable - related party		110,952			(19,849	)		91,103
Asset retirement obligation		710			-			710
Total liabilities		1,306,953			(567,229	)		739,724

Stockholders' deficit
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; none issued or outstanding		-			-			-
Common stock, $0.0001 par value; 65,000,000 shares authorized; 17,217,428 issued and outstanding at December 31, 2018		1,714			8			1,722
Additional paid in capital		607,806			542,253			1,150,059
Accumulated deficit		(1,906,233	)		24,968			(1,881,265	)
Total stockholder deficit		(1,296,713	)		567,229			(729,484	)

Total liabilities and stockholders' deficit	$	10,240		$	-		$	10,240

ALPHA ENERGY, INC.

STATEMENT OF OPERATIONS

	For the year ended December 31,
	2018						2018
	As Reported			Adjustment			As Restated

Oil & Gas Sales	$	2,346		$	-		$	2,346
Lease operating expenses		2,677			1			2,678
Gross margin		(331	)		(1	)		(332	)

Operating expenses:
Professional services		41,698			-			41,698
Board of directors fees		826,640			53,559			880,199
General and administrative		239,988			-			239,988
Total operating expenses		1,108,326			53,559			1,161,885

Loss from operations		(1,108,657	)		(53,560	)		(1,162,217	)

Other expenses
Interest expense		(96,377	)		19,849			(76,528	)
Gain (loss) on change in fair value of derivative liabilities		(320,344	)		58,679			(261,665	)
Total other expense		(416,721	)		78,528			(338,193	)

Net loss	$	(1,525,378	)	$	24,968		$	(1,500,410	)

Basic and diluted net loss per share	$	(0.09	)				$	(0.09	)

Weight average shares common share outstanding, basic and diluted		17,066,576						17,066,576

ALPHA ENERGY, INC.

STATEMENT OF CASH FLOWS

	For the year ended December 31,
	2018						2018
	As Reported			Adjustments			As Restated
Cash flows from operation activities
Net loss	$	(1,525,378	)	$	24,968		$	(1,500,410	)
Adjustments to reconcile net loss to net cash used in operating activities
Stock based compensation		506,440			536,261			1,042,701
Amortization of debt discount		88,091			(19,849	)		68,242
(Gain) loss on change in fair value of derivative liabilities		320,344			(58,679	)		261,665
Asset retirement obligation expense		75			-			75
Change in operating assets and liabilities:
Accounts receivable		1,285			-			1,285
Accounts payable		536,089			(495,280	)		40,809
Accounts payable related party		-			12,579			12,579
Interest payable		8,287			-			8,287
Net cash used in operating activities		(64,767	)		-			(64,767	)

Cash flows from investing activities
Deposit for purchase of oil and gas properties		(10,000	)		-			(10,000	)
Net cash used in investing activities		(10,000	)		-			(10,000	)

Cash flows from financing activities
Proceeds from convertible credit line payable – related party		49,580			-			49,580
Advances from related party		24,366			-			24,366
Net cash provided by financing activities		73,946			-			73,946

Net change in cash and cash equivalents		(821	)		-			(821	)
Cash and cash equivalents, beginning of period		1,061			-			1,061
Cash and cash equivalents, end of period	$	240		$	-		$	240

Supplemental disclosure of non-cash financing activities
Debt discount on convertible credit line payable – related party	$	49,580		$	-		$	49,580
Common stock issued for settlement of accrued Board of Directors fees	$	-		$	6,000		$	6,000