As filed with the Securities and Exchange Commission on August 12, 2004
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[√] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED JUNE 30, 2004; OR |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ________ TO _______ |
Commission File No. 0-24027
ENERGY EXPLORATION TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)
Alberta, Canada | N/A |
840 7th Avenue S.W., Suite 700, Calgary, Alberta, Canada T2P 3G2
(Address of principal executive offices) (Zip Code)
(403) 264–7020
(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 registration was required to file such Reports), and (2) has been subject to such filing requirements for the past 90 days: YES [√] NO [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. YES [ ] NO [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:
20,295,209 common shares, no par value, as of July 31, 2004
ENERGY EXPLORATION TECHNOLOGIES INC.
INDEX TO THE FORM 10-Q
For the six month period ended June 30, 2004
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PART I | FINANCIAL INFORMATION | |||
ITEM 1. | FINANCIAL STATEMENTS (UNAUDITED) | 3 | ||
Consolidated Balance Sheets | 3 | |||
Consolidated Statements of Loss and Comprehensive Loss | 4 | |||
Consolidated Statements of Shareholders' Equity (Deficit) | 5 | |||
Consolidated Statements of Cash Flow | 6 | |||
Notes to the Consolidated Financial Statements | 7 | |||
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 14 | ||
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 18 | ||
ITEM 4. | CONTROLS AND PROCEDURES | 18 | ||
PART II | OTHER INFORMATION | |||
ITEM 1. | LEGAL PROCEEDINGS | 19 | ||
ITEM 2. | CHANGES IN SECURITIES AND USE OF PROCEEDS | 20 | ||
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES | 20 | ||
ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | 20 | ||
ITEM 5. | OTHER INFORMATION | 21 | ||
ITEM 6. | EXHIBITS AND REPORTS ON FORM 8-K | 21 | ||
SIGNATURE | 24 | |||
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PART I |
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ITEM 1. FINANCIAL INFORMATION ENERGY EXPLORATION TECHNOLOGIES INC. |
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Consolidated Balance Sheets |
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(Unaudited) (expressed in U.S. dollars except share data) |
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June 30, 2004 |
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December 31, 2003 |
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Assets |
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Current assets |
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Cash |
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$ |
526,213 |
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$ |
1,024,201 |
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Accounts receivable |
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95,053 |
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76,133 |
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Due from officers and employees |
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13,808 |
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- |
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Note receivable from former officer [note 3] |
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43,894 |
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43,952 |
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Prepaid expenses |
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81,551 |
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106,622 |
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760,519 |
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1,250,908 |
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Oil and natural gas properties, on the basis of full cost accounting, |
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net of depletion and impairments [note 4] |
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1,210,150 |
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1,194,406 |
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Other property and equipment, net of accumulated depreciation, |
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amortization and impairment [note 5] |
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182,611 |
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190,810 |
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$ |
2,153,280 |
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$ |
2,636,124 |
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Liabilities And Shareholders' Equity |
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Current liabilities |
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Trade payables |
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$ |
464,799 |
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$ |
136,098 |
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Other accrued liabilities |
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67,480 |
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78,452 |
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Subscriptions payable [note 6] |
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514,921 |
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472,501 |
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1,047,200 |
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687,051 |
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Contingencies, continuing operations and commitments [notes 1 and 10] |
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Shareholders' equity |
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Preferred shares [note 7] |
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Authorized: unlimited |
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Issued : Nil |
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- |
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- |
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Common shares |
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Authorized: unlimited |
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Issued : 20,039,709 and 19,306,852 at June 30, 2004 and |
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December 31, 2003, respectively [note 6] |
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25,811,440 |
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24,527,066 |
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Warrants [notes 6 and 8] |
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- |
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- |
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Deficit |
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(24,865,061) |
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(22,855,739) |
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Accumulated other comprehensive income |
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159,701 |
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277,746 |
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1,106,080 |
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1,949,073 |
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$ |
2,153,280 |
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$ |
2,636,124 |
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-3-
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ENERGY EXPLORATION TECHNOLOGIES INC. |
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Consolidated Statements Of Loss And Comprehensive Loss |
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(Unaudited) (expressed in U.S. dollars except share data) |
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Three months ended |
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Six months ended |
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June 30 |
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June 30 |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenues |
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Net oil and natural gas revenue |
$ |
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4,813 |
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$ |
- |
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$ |
21,642 |
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$ |
- |
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Gain (loss) on sale of properties |
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(469) |
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- |
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27,301 |
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- |
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4,344 |
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- |
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48,943 |
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- |
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Operating expenses |
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Oil and natural gas operating expenses |
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1,733 |
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- |
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2,389 |
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- |
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Administrative [notes 6 and 11] |
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849,562 |
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319,584 |
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1,381,738 |
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624,400 |
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Depletion and impairment of oil and |
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natural gas properties [notes 4 and 12] |
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338 |
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- |
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338 |
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59,974 |
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Amortization and depreciation [notes 5 and 12] |
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12,667 |
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14,107 |
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24,626 |
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28,205 |
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Survey operations and support |
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152,000 |
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27,699 |
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681,115 |
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44,823 |
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1,016,300 |
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361,390 |
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2,090,206 |
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757,402 |
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Operating loss from continuing operations |
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(1,011,956) |
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(361,390) |
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(2,041,263) |
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(757,402) |
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Other income |
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Interest |
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575 |
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530 |
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1,168 |
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1,017 |
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Other |
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- |
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863 |
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- |
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863 |
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575 |
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1,393 |
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1,168 |
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1,880 |
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Net loss for the period from continuing operations |
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(1,011,381) |
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(359,997) |
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(2,040,095) |
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(755,522) |
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Income (loss) from discontinued |
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operations [note 12] |
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41,805 |
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(5,618) |
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30,773 |
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192,981 |
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Net loss for the period |
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(969,576) |
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(365,615) |
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(2,009,322) |
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(562,541) |
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Other comprehensive income (loss): |
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Foreign currency translation adjustment |
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(53,403) |
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179,713 |
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(118,045) |
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323,246 |
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Comprehensive loss for the period |
$ |
(1,022,979) |
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$ |
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