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EXCEL - IDEA: XBRL DOCUMENT - Buscar CoFinancial_Report.xls
EX-32 - BUSCAR OIL 10Q, CERTIFICATION 906, CEO/CFO - Buscar Cobuscarexh32.htm
EX-31.2 - BUSCAR OIL 10Q, CERTIFICATION 302, CFO - Buscar Cobuscarexh31_2.htm
EX-31.1 - BUSCAR OIL 10Q, CERTIFICATION 302, CEO - Buscar Cobuscarexh31_1.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
 
(Mark One)

x
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACTOF 1934

For the quarterly period ended June 30, 2014

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

For the transition period from _______________ to _________________

Commission File Number: 333-122009

BUSCAR OIL, INC.
(Exact Name of Registrant as Specified in its Charter)

Nevada
 
69-0681435
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)

111 Ahmadi Crescent
Bedford, Nova Scotia
Canada  B4A 4E5
(Address of Principal Executive Offices)  (Zip Code)

Registrant's telephone number including area code:  (902) 802-8847

N/A
Former name, former address, and former fiscal year, if changed since last report

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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 x    No o
 
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 definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 
Larger accelerated filer
o
Accelerated filer
o
 
Non-accelerated filer
o
Smaller reporting company
x

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes o    No x
 
As of June 3, 2015, there were 225,000 shares of the issuer’s common stock, $0.00001 par value per share, outstanding.
 
 
 
1

 
 
 
Buscar Oil, Inc.
 
(Formerly Colorado Gold Mines Inc.)
 
Balance Sheets
 
             
 
           
   
June 30
   
March 31
 
   
2014
   
2014
 
   
(Unaudited)
       
             
ASSETS            
             
CURRENT ASSETS
           
Cash
  $ -     $ 25  
                 
TOTAL ASSETS
  $ -     $ 25  
                 
 LIABILITIES & STOCKHOLDERS' DEFICIT
               
                 
CURRENT LIABILITIES
               
Due to Related Party
  $ 64,076     $ 33,576  
Commitments and Contingencies
    177,270       177,270  
                 
TOTAL LIABILITIES
  $ 241,346     $ 210,846  
                 
STOCKHOLDERS' DEFICIT
               
Preferred stock,  par value $0.00001; authorized 20,000,000
               
shares authorized; 8,000,000 shares issued and outstanding
               
at June 30, 2014 and March 31, 2014, respectively
    80       80  
Common stock, par value $0.00001 par value, 500,000,000 shares
               
authorized as of June 30, 2014 and March 31, 2014, respectively,
               
225,000 shares issued and outstanding at June 30, 2014 and March 31, 2014 (1)
    2       2  
Common stock payable
    85,714       -  
Additional paid-in capital
    13,930,588       13,930,588  
Accumulated deficit
    (14,257,730 )     (14,141,491 )
                 
TOTAL STOCKHOLDERS' DEFICIT
  $ (241,346 )   $ (210,821 )
                 
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
  $ -     $ 25  
 
(1)
All common share amounts and per share amounts in these financial statements reflect the 1-for-300 share reverse split of the issued and outstanding shares of common stock of the Company, effective June 18, 2014, including retroactive adjustment of common share amounts. See note 5.

 
 
The accompanying notes are an integral part of these financial statements.
 
 
2

 
 
 
Buscar Oil, Inc.
 
(Formerly Colorado Gold Mines Inc.)
 
Statements of Operations
 
(Unaudited)  
             
   
For the three month period ended
 
   
June 30,
 
   
2014
   
2013
 
             
Costs and expenses:
           
             
Management and consulting services
  $ 85,714     $ -  
General and administrative
    30,525       5,200  
Total expenses
    116,239       5,200  
                 
Loss from operations
    (116,239 )     (5,200 )
Income Taxes
    -       -  
Net loss
  $ (116,239 )   $ (5,200 )
                 
Net loss per share: Basic and diluted
  $ (0.52 )   $ (0.02 )
                 
Weighted average shares outstanding:
               
Basic and diluted (1)
    225,000       225,000  
 
(1)
All common share amounts and per share amounts in these financial statements reflect the 1-for-300 share reverse split of the issued and outstanding shares of common stock of the Company, effective June 18, 2014, including retroactive adjustment of common share amounts. See note 5.

 
 
 
 
The accompanying notes are an integral part of these financial statements
 
 
3

 


Buscar Oil, Inc.
 
 (Formerly Colorado Gold Mines Inc.)
 
 Statements of Cash Flows
 
 (Unaudited)
 
             
   
For the three month period ended
 
   
June 30,
 
   
2014
   
2013
 
             
Cash Flows Provided By (Used For) Operating Activities:
           
Net loss
  $ (116,239 )   $ (5,200 )
Adjustments to reconcile net loss to cash used in operating activities:
         
Share based compensation
    85,714       -  
                 
Changes in operating assets and liabilities
               
Accounts payable, related party
    30,500       5,200  
Cash Flows (Used In) Operating Activities
    (25 )     -  
                 
Net Change in Cash
    (25 )     -  
                 
Cash, beginning of period
    25       25  
Cash, end of period
  $ -     $ 25  
 
 
 
 
 
The accompanying notes are an integral part of these financial statements
 
 
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Buscar Oil, Inc.
(Formerly Colorado Gold Mines Inc.)
Notes to Financial Statements
(Unaudited)
 
Note 1 – Business
 
The Company was incorporated in Nevada as Cascade Springs Ltd. on January 19, 2010.  In 2012 the Company amended its Articles of Incorporation changing its name to Colorado Gold Mines, Inc.  On July 28, 2014, the Company amended its Articles of Incorporation changing its name to Buscar Oil, Inc. Buscar Oil, Inc. is seeking opportunities in the exploration and production of oil and gas. The Company is actively reviewing opportunities that are known to have historic production or present production, providing a low risk opportunity for production and cash flow.  The projects are de-risked based on its historic or present production of near production potential. The recoverability of any amounts of oil and gas at economic levels and the definition of reserves is also contingent of the ability of the Company to obtain the necessary financing to complete testing, exploration and development of the Company's interests.  Management has extensive resource contacts and experience in Canada, USA, Africa, South America and the growth plan for Buscar will seek opportunities in these jurisdictions, if feasible.

Note 2 – Basis of Presentation
 
Unaudited Interim Financial Statements
 
The unaudited interim financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). They do not include all information and footnotes required by GAAP for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended March 31, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC. The unaudited interim financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for fair presentation have been made. Operating results for the three month period ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending March 31, 2015.
 
Summary of Significant Accounting Policies
 
The financial statements have, in management's opinion, been properly prepared within the framework of the significant accounting policies summarized below:
 
The accompanying financial statements of Buscar Oil,Inc. (formerly Colorado Gold Mines, Inc.) (the "Company") have been prepared in accordance with accounting  principles  generally accepted in  the United States of America  and the  rules of the  Securities  and Exchange  Commission  ("SEC”).
 
Mineral Properties
 
Mineral property acquisition costs are capitalized in accordance with ASC 930. Mineral property exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. To date the Company has not established any reserves on its mineral properties.
 
Environmental Costs
 
Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable, and the cost can be reasonably estimated. Generally, the timing of these accruals coincides with the earlier of completion of a feasibility study or the Company's commitments to plan of action based on the then known facts.
 
 
 
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Income Taxes
 
We account for income taxes under the asset and liability method.  Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement 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 the temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized.
 
As a result of the implementation of certain provisions of ASC 740, Income Taxes (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax positions, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes.  We adopted the provisions of ASC 740 as of January 1, 2007, and have analyzed filing positions in each of the federal and state jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions.  We have identified the U.S. federal and California as our "major" tax jurisdictions.  Generally, we remain subject to Internal Revenue Service examination of our 2010 through 2012 U.S. federal income tax returns, and remain subject to California Franchise Tax Board examination of our 2010 through 2012 California Franchise Tax Returns.  However, we have certain tax attribute carryforwards which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized.
 
Basic and Diluted Loss Per Share
 
Basic loss per share is computed using the weighted average number of shares outstanding during the period. Diluted loss per share has not been provided as it would be anti-dilutive.
 
Stock-Based Compensation
 
We periodically issue stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. We account for stock option and warrant grants issued and vesting to employees based on Financial Accounting Standards Board (FASB) ASC Topic 718, “Compensation – Stock Compensation”, whereas the award is measured at its fair value at the date of grant and is amortized ratably over the service period. We account for stock option and warrant grants issued and vesting to non-employees in accordance with ASC Topic 505, “Equity”, whereas the value of the stock compensation is based upon the measurement date as determined at either (a) the date at which a performance commitment is reached, or (b) at the date at which the necessary performance to earn the equity instruments is complete.
 
Recent Accounting Pronouncements
 
In June 2014, the FASB issued ASU 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. ASU 2014-10 eliminates the distinction of a development stage entity and certain related disclosure requirements, including the elimination of inception-to-date information on the statements of operations, cash flows and stockholders' equity. The amendments in ASU 2014-10 will be effective prospectively for annual reporting periods beginning after December 15, 2014, and interim periods within those annual periods, however early adoption is permitted. The Company adopted ASU 2014-10 during the quarter ended June 30, 2014, thereby no longer presenting or disclosing any information required by Topic 915. 
 
 
 
 
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Note 3 – Going Concern
 
These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year.  Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern.  At June 30, 2014, the Company had not yet achieved profitable operations, had accumulated losses since its inception, had a working capital deficiency, and expects to incur further losses in the development of its business, all of which raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available or on terms acceptable to the Company.
 
Note 4 – Commitments and Contingencies
 
As of June 30, 2014, the Company had a total of $177,270 of outstanding liabilities related to previous Company directors, Robert Sawatsky and Kelly Fielder. As of this date, the Company recognizes these outstanding liabilities as a potential contingent liability. The Company’s legal counsel believes that the outstanding liabilities are expected to be paid back to the previous Company directors, Robert Sawatsky and Kelly Fielder, who had originally loaned money to the Company. However, there has been no resolution of this event.

Note 5 – Equity

On June 18, 2014, upon receiving approval from the Financial Industry Regulatory Authority, Troy Grant, the Company’s sole director and majority shareholder approved certain actions (the “Actions”) that include:
(i)      An amendment to the Company’s Articles of Incorporation changing Colorado Gold Mines’ name to Buscar Oil, Inc.
(ii)     A 1-for-300 share Reverse Split of the Company’s issued and outstanding common stock. Common share amounts and per share amounts in these financial statements have been retroactively adjusted to reflect this reverse split.

On April 1, 2014 the Company entered into a consulting services contract with Theo van der Linde. The contract shall terminate on October 31, 2014. Mr. van der Linde shall receive 3,000,000 shares of the Company’s common stock representing payment of $100,000 for services rendered for the term of the agreement. Such shares shall be valued at the price of $.03 per common share. $42,857 has been expensed and the shares have not been issued at the date of this report.

On April 1, 2014 the Company entered into a consulting services contract with Jack Bakker. The contract shall terminate on October 31, 2014. Mr. Bakker shall receive 3,000,000 shares of the Company’s common stock representing payment of $100,000 for services rendered for the term of the agreement. Such shares shall be valued at the price of $.03 per common share. $42,857 has been expensed and the shares have not been issued at the date of this report.
 
Per the agreements these individuals cannot own in excess of 9.99% of any class of stock of the company.
 
Note 6 – Subsequent Events
 
 
On August 1, 2014 the Company entered into an Executive Employment Agreement with Mr. Troy Grant. Starting on August 1, 2014, the Company shall pay Mr. Grant a base salary of $22,000 per month, plus applicable bonuses as are awarded by the Board of Directors from time to time based on performance, which may either be paid in stock or cash at the discretion of the Board. No shares have been issued to Mr. Troy as of the date of this report.
 
 
 
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Note 6 – Subsequent Events (continued)
 
 
On August 1, 2014 the Company entered into an office rental agreement with Mr. Grant for 700 square feet of office space located at his residence in Nova Scotia, Canada. The Company shall occupy the Premises on a month-to-month basis for $500 per month. Rent shall start from August 1, 2014 until July 30, 2015, and on such date, the Tenant shall pay owner the sum outstanding ($500 monthly) for all accrued rents.
 
 
On September 1, 2014 the Company entered into an Executive Employment Agreement with Mr. Terry Christopher. Mr. Christopher a geologist served as an advisor to the Company since September of 2014. Mr. Christopher will be entitled to receive 1,200,000 shares of the Company’s common stock upon execution of the agreement for $150,000 fair market value of services to be performed. No shares have been issued to Mr. Christopher as of the date of this report.
 
 
Per the agreement Mr. Christopher cannot own in excess of 9.99% of any class of stock of the company.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operation
 
The Company was incorporated in Nevada as Cascade Springs Ltd. on January 19, 2010.  In 2012 the Company amended its Articles of Incorporation changing its name to Colorado Gold Mines, Inc.  Then, on July 28, 2014, the Company amended its Articles of Incorporation changing its name to Buscar Oil, Inc. From our inception through June 30, 2014, we have not generated any revenue.  
 
We did not have any off balance sheet arrangements as of June 30, 2014.
 
On July 1, 2013, Troy Grant became our sole officer and director any.  Since his appointment Mr. Grant has reviewed opportunities for oil and gas properties.  Mr. Grant uses the services of Terry Christopher, a geologist and Vaughn Hughes, a petroleum engineer on an as needed basis to assist in evaluating potential oil and gas properties.  Under Mr. Grant’s direction, we have evaluated various oil and gas properties including but not limited to:

●  The “Heart of Texas” field located in Bell, Lampasas and Burnet counties of Texas
●  Jennings Oil Field, in Northwestern Creek County, Oklahoma
●  Mesa-Bridges Prospect, Palo Pinto County, Texas
●  Blanche Prospect, Pawnee County, Oklahoma
●  Queen City project in Texas
●  North Forty Prospect in Kentucky
 
The selection of prospects for oil and natural gas drilling, the drilling, ownership and operation of oil and natural gas wells, and the ownership of non-operating interests in oil and natural gas properties is highly speculative.   There is no assurance that we will be successful in locating or evaluating profitable oil and gas properties. Even if we are successful in negotiating interests in oil and gas properties, there is no assurance we will locate hydrocarbons or that we will be profitable.
 
We cannot predict whether any prospect will produce oil or natural gas or commercial quantities of oil or natural gas, nor can we predict the amount of time it will take to recover any oil or natural gas we do produce. Drilling activities may be unprofitable, not only from non-productive wells, but from wells that do not produce oil or natural gas in sufficient quantities or quality to return a profit. Delays and added expenses may also be caused by poor weather conditions affecting, among other things, the ability to lay pipelines. In addition, ground water, various clays, lack of porosity and permeability may hinder, restrict or even make production impractical or impossible.  As a result, investors could lose their entire investment in our common shares.
 
We recently changed our business plan to the identification and development of oil and gas properties. We have no operating history upon which an evaluation of our future success or failure can be made. We have net losses since in caption and have never generated revenues.   We do not have any current prospects for future revenues.  Our ability to achieve and maintain profitability and positive cash flow is dependent upon:
 
● our ability to locate an oil and gas lease
● our ability to sell petroleum related equipment
● our ability to sell oil and gas
● our ability to reduce exploration costs.
 
Based upon current plans, we expect to incur operating losses in future periods.  This will happen because there are expenses associated with the research and exploration of our properties.  As a result, we may not generate revenues in the future.  Failure to generate revenues will cause us to suspend or cease operations.  Because we are a small company that has never generated revenues and do not have any capital, we must raise money. If we can’t raise any capital, we will have to cease operations.
 
 
 
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We have not generated any revenues or incurred any cost of revenues for the period ended June 30, 2014. During the three month period ending June 30, 2014, we had operating expenses of $116,239 which primarily represented consulting, legal fees, and general & admin costs in order to comply with regulatory requirements.
 
There is no assurance that we will ever be profitable. 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 classifications of liabilities that may result should we be unable to continue as a going concern.

Liquidity and Capital Resources

During the three months ended June 30, 2014, cash used in operating activities was $25.
 
During the three months ended June 30, 2014, cash used in investing activities was $NIL.
 
During the three months ended June 30, 2014, cash provided by financing activities amounted to $NIL.
 
As of June 30, 2014, we did not have any cash available. We plan to raise additional debt and equity financing to meet our obligations as they become due.

Off-Balance Sheet Arrangements

We did not have any off balance sheet arrangements as of June 30, 2014.
 
Item 4.  Controls and Procedures.
 
Evaluation of Disclosure Controls and Procedures
 
An evaluation was carried out under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report on Form 10-Q.  Disclosure controls and procedures are procedures designed with the objective of ensuring that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, such as this Form 10-Q, is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and is communicated to our management, including our Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.  Based on that evaluation, our management concluded that, as of June 30, 2014, our disclosure controls and procedures were not effective.
 
Significant Deficiencies in Disclosure Controls And Procedures
 
The Company is a small organization with limited personnel. The Company was unable to implement an effective system of disclosure controls and procedures as of the evaluation date. Nevertheless, management believes that this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statement made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report.
 
Changes in Internal Control Over Financial Reporting
 
There were no changes in our internal control over financial reporting during the quarter ended June 30, 2014, that materially affected or are reasonably likely to materially affect our internal control over financial reporting.
 
 
 
 
10

 
 
 
PART II
 
Item 6.  Exhibits
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amended report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 
BUSCAR OIL, INC.
 
       
June 3, 2015
By:
/s/ Troy Grant
 
   
Troy Grant
 
   
Principal Executive, Financial
 
   
and Accounting Officer
 
 
 
 
 
 
 
 
 
 
 
 
 
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