Pursuant to Section 13 or 15 d of the Securities Exchange Act of Date of Report date of earliest event reported: Exact name of registrant as specified in its charter. State or other jurisdiction. Address of principal executive offices, including Zip Code. Registrant's telephone number, including area code: Former name or former address if changed since last report.
Check appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions see General Instruction A. Pursuant to the requirements of the Securities Exchange Act ofthe registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Paul Laird, Chief Executive Officer. Property and Equipment, net of accumulated depreciation and.
Oil and gas properties - proved developed successful efforts method. Oil and gas properties - proved undeveloped successful efforts method. Oil and gas properties - unproved successful efforts method. Land and other equipment.
Accounts payable, related party. Current portion of notes payable. Note payable — related party. Accrued interest, related party. Long term debt, notes payable. Additional paid in capital. Total liabilities and stockholders' equity. See accompanying notes to the consolidated financial statements. Oil and gas sales. Oilfield and construction services.
Total cost of services. Depreciation and depletion expense. Production tax and royalty expense. Loss on sale of assets. Other income expensenet. Net loss per common share. Weighted average shares outstanding. Loss on disposition of assets.
See accompanying notes to the financial statements. Net cash provided by used in operating activities. Cash paid for purchase of property and equipment.
Proceeds from sale of assets. Net cash provided by used in investing activities. Proceeds from drilling fund. Proceeds from notes payable. Payments on notes payable. Net cash provided by used in financing activities.
Masterclass find the maturity value of the undiscounted promissory note pron videos
Cash paid for income taxes. Cash paid for interest.
Non-cash investing and financing activities:. Acquisition of Diversified Energy Services, Inc The interim consolidated financial statements of Diversified Resources, Inc.
Results for interim periods are not necessarily indicative of results to be expected for a full year or for previously reported periods due in part, but not limited to, interest rates, drilling risks, geological risks, the timing of acquisitions, and our ability to obtain additional capital.
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Certain information relating to our organization and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with GAAP. The results of operations presented in this quarterly report are not necessarily indicative of the results of operations that may be expected for any future periods.
In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation have been made in the accompanying unaudited financial statements.
In connection with this acquisition, the then President of the Company sold 2, shares of the Company's common stock to the Company for nominal consideration. The shares purchased from the President were returned to the status of authorized but unissued shares.
Additionally, the former principals of the Company assumed all of the debts of the Company at the date of the exchange. The majority of the leased acreage and producing wells are on Mountain Ute tribal land and are leased under an operating agreement with the tribe, which commenced on April 15, As of April 30,the Company has limited financial resources.
These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to achieve and maintain profitability and positive cash Find the maturity value of the undiscounted promissory note is dependent upon its ability to locate profitable mineral properties, generate revenue from planned business operations, and control exploration costs.
Management plans to fund its future operations through joint ventures, cash flow from commercial production and oilfield and construction services. However, there is no assurance that the Company will be able to obtain additional financing from investors or private lenders, or that additional commercial production can be attained. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.
The accompanying consolidated unaudited financial statements include the accounts of Diversified Resources, Inc. Any inter-company accounts and transactions have been eliminated. These services are primarily provided using DESI's fleet of equipment.
Cash and cash equivalents. The Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible into cash to be cash equivalents. The Company holds only cash as of April 30, The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Estimates of oil and gas reserve quantities provide the basis for the calculation of depletion, depreciation, and amortization, and impairment, each of which represents a significant component of the financial statements.
Actual results could differ from those estimates. We recognize oil and gas revenue from interests in producing wells as the oil and gas is sold. Revenue from the purchase, transportation, and sale of natural gas is recognized upon completion of the sale and when transported volumes are delivered. We recognize revenue related to gas balancing agreements based on the sales method.
Our net imbalance position at April 30, and October 31, was immaterial.
We recognize revenue when services are performed, collection of the relevant receivables is probable, persuasive evidence of an arrangement exists and the price is fixed or determinable. DESI prices services by the hour, day, or project depending on the type of service performed. Accounts Receivable and Allowance for Doubtful Accounts.
Our credit terms for our billings is net 30 days. Accounts receivables are determined to be past due if payments are not made in accordance with the terms and an allowance is recorded for accounts when there are indicators that the receivables may not be recovered.
Customary collection efforts are initiated and receivables are written off when we determine they are not collectible and abandon these collection efforts. We evaluate the past due accounts to setup an allowance for doubtful accounts on a regular basis for adequacy based upon our periodic review of the collectability of the receivables in light of historical experience, adverse situations that may affect our customers' ability to pay, estimated value of any underlying collateral and prevailing economic conditions.
This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available.
Accounting for Oil and Gas Activities.
Under this method, costs to acquire mineral interests in crude oil and natural gas properties, drill and equip exploratory wells that find proved reserves, and drill and equip development wells are capitalized. Capitalized costs of producing crude oil and natural gas properties, along with support equipment and facilities, are amortized to expense by the unit-of-production method based on proved crude oil and natural gas reserves on a field-by-field basis, as estimated by our qualified petroleum engineers.
Upon sale or retirement. Repairs and maintenance are expensed as incurred. The basis for grouping is a reasonable aggregation of properties with a common geological structural feature or stratigraphic condition, such as a reservoir or field. Depreciation, depletion and amortization of the cost of proved oil and gas properties are calculated using the unit-of-production.
With respect to lease and well equipment costs, which include development costs and successful exploration drilling costs, the reserve base includes only proved developed reserves.