Attached files
| file | filename |
|---|---|
| EX-99.3 - UNAUDITED PRO FORMA - Mirage Energy Corp | mirage_ex993.htm |
| EX-99.1 - AUDITED FINANCIAL STATEMENTS - Mirage Energy Corp | mirage_ex991.htm |
| EX-16.1 - LETTER OF AUDITOR - Mirage Energy Corp | mirage_ex161.htm |
| EX-10.1 - SHARE EXCHANGE AGREEMENT - Mirage Energy Corp | mirage_ex101.htm |
| 8-K - FORM 8-K - Mirage Energy Corp | mirage_8k.htm |
Exhibit 99.2
4WARD RESOURCES, INC.
UNAUDITED FINANCIAL STATEMENTS
FOR THREE MONTHS ENDED OCTOBER 31, 2016 AND 2015
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INDEX TO UNAUDITED FINANCIAL STATEMENTS | |||||||
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OCTOBER 31, 2016 | |||||||
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Page |
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| Balance Sheets - October 31, 2016 (Unaudited) and July 31. 2016 |
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2 |
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| Statements of Operations - For the Three Months Ended October 31, 2016 and 2015 (Unaudited) |
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3 |
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| Statements of Cash Flows - For the Three Months Ended October 31, 2016 and 2015 (Unaudited) |
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4 |
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| Notes to the Financial Statements (Unaudited) |
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5 |
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| 1 |
| Table of Contents |
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4WARD RESOURCES, INC. |
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October 31, 2016 |
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July 31, 2016 |
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(Unaudited) |
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ASSETS |
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Current Assets |
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Cash and Cash Equivalents |
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$ | 15,971 |
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$ | 76,165 |
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Loans Receivable - Officer |
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22,409 |
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- |
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Salary Advances |
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30,000 |
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20,000 |
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Prepaid Expenses |
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11,237 |
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2,859 |
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Total Current Assets |
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79,617 |
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99,024 |
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Property and Equipment, Net of $395 and $132 Accumulated |
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Depreciation, Respectively |
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Depreciation |
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Furniture and Fixtures |
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3,803 |
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4,007 |
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Office Equipment |
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1,950 |
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2,055 |
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Computers and Related Equipment |
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1,625 |
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1,712 |
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US Project Development Costs |
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22,908 |
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22,332 |
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MX Project Development Costs |
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77,636 |
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56,113 |
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Total Property and Equipment |
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107,922 |
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86,219 |
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Other Assets |
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Rental Security Deposit |
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6,920 |
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6,920 |
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Total Other Assets |
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6,920 |
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6,920 |
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Total Assets |
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$ | 194,459 |
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$ | 192,163 |
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LIABILITIES AND STOCKHOLDERS' (DEFICIT) | ||||||||
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Current Liabilities |
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Loan Payable - Related Party |
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$ | 135,000 |
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$ | 50,000 |
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Accounts Payable |
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30,015 |
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75,030 |
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Accrued Expenses Payable |
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540,370 |
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371,616 |
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Total Current Liabilities |
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705,385 |
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496,646 |
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Long-Term Liabilities |
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- |
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- |
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Total Liabilities |
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705,385 |
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496,646 |
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Stockholders' Equity (Deficit) |
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Common Stock , $30 stated value, 10,000 shares |
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authorized, 4681.74 and 120.90 shares issued |
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and outstanding, respectively |
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144,079 |
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144,079 |
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Accumulated Deficit |
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(654,994 | ) |
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(448,551 | ) |
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Accumulated Other Comprehensive Loss |
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(11 | ) |
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(11 | ) |
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Total Stockholders' (Deficit) |
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(510,926 | ) |
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(304,483 | ) |
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Total Liabilities and Stockholders' (Deficit) |
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$ | 194,459 |
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$ | 192,163 |
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See notes to the unaudited financial statements
| 2 |
| Table of Contents |
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4WARD RESOURCES, INC. | ||||||||
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(Unaudited) | ||||||||
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Three Months Ended |
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October 31, |
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2016 |
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2015 |
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Revenues |
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$ | - |
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$ | - |
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Cost of Goods Sold |
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- |
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- |
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Gross Profit |
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- |
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- |
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Operating Expenses |
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General and Administrative |
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190,926 |
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78,271 |
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Professional Fees |
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14,488 |
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- |
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Total Operating Expenses |
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205,414 |
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78,271 |
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Loss from Operations |
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(205,414 | ) |
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(78,271 | ) |
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Other Expense |
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Interest Expense |
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1,029 |
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- |
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Total Other Expense |
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1,029 |
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- |
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Loss before Income Taxes |
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(206,443 | ) |
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(78,271 | ) |
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Provision for Income Taxes |
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- |
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- |
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Net (Loss) |
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(206,443 | ) |
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(78,271 | ) |
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Other Comprehensive Loss |
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Foreign Currency Translation Adjustments |
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- |
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- |
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Total Comprehensive Loss |
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$ | (206,443 | ) |
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$ | (78,271 | ) |
See notes to the unaudited financial statements
| 3 |
| Table of Contents |
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4WARD RESOURCES, INC. | ||||||||
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(Unaudited) | ||||||||
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Three Months Ended |
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October 31, |
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2016 |
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2015 |
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Cash Flows Provided By (Used) In Operating Activities: |
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Net (Loss) |
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$ | (206,443 | ) |
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$ | (78,271 | ) |
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Adjustments to Reconcile Net Income to Net Cash |
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Provided By (Used) in Operating Activities: |
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Depreciation |
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396 |
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- |
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Changes in |
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Salary Advances |
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(10,000 | ) |
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- |
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Prepaid Expenses |
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(8,378 | ) |
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- |
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Accounts Payable |
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(45,015 | ) |
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- |
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Accrued Expenses |
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15,004 |
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- |
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Accrued Salaries - Related Parties |
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153,750 |
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67,500 |
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Net Cash (Used) in Operating Activities |
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(100,686 | ) |
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(10,771 | ) |
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Cash Flows Provided By (Used) In Investing Activities: |
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Loans Receivable - Officer |
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(22,409 | ) |
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- |
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Project Development Costs |
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(22,099 | ) |
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- |
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Net Cash (Used) in Investing Activities |
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(44,508 | ) |
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- |
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Cash Flows Provided By (Used) In Financing Activities: |
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Proceeds from Loan - Related Party |
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85,000 |
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- |
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Proceeds from Sale of Stock |
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- |
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10,771 |
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Net Cash Provided By Financing Activities |
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85,000 |
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10,771 |
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Net (Decrease) in Cash |
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(60,194 | ) |
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- |
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Cash at Beginning of Period |
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76,165 |
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- |
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Cash at End of Period |
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$ | 15,971 |
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$ | - |
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Supplemental Disclosures of Cash Flow Information |
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Cash Payments for Interest |
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$ | 1,029 |
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$ | - |
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Cash Payments for Income Taxes |
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$ | - |
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$ | - |
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See notes to the unaudited financial statements
| 4 |
| Table of Contents |
4WARD RESOURCES, INC.
Notes to the Unaudited Financial Statements
October 31, 2016
NOTE 1- ORGANIZATION AND DESCRIPTION OF BUSINESS
4Ward Resources, Inc. (the "Company") is a Texas corporation incorporated on June 24, 2015. It is based in San Antonio, TX, USA, and the Company's fiscal year end is July 31.
The Company intends to develop an integrated natural gas project that includes stand-alone storage capacity in Mexico of 52 BCF (Billion Cubic Feet) in Phase 1 with eventual capacity of 786 BCF. This integrated pipeline and storage project is planned to be able to store gas for any entity making it an Open Access pipeline facility. The new transmission pipelines are expected to provide an additional 800/mm cf/day of natural gas into Mexico from the United States. Operating revenues will include natural gas transmission and storage fees.
NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Financial Statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The Financial Statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles ("GAAP") of the United States.
In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the accompanying 8-K.
NOTE 3- GOING CONCERN
The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company had a net loss of $206,443 and had net cash used in operations of $100,686 for the quarter ended October 31, 2016 and had an accumulated deficit and working capital deficit of $654,994 and $625,768 at that date. The Company has not established an ongoing source of revenues sufficient to cover its operating cost, and requires additional capital to commence its operating plan. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These factors raise substantial doubt about its ability to continue as a going concern.
In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plan to obtain such resources for the Company include: sales of equity instruments; traditional financing, such as loans; and obtaining capital from management and significant stockholders sufficient to meet its minimal operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans.
There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
NOTE 4 – RELATED PARTY TRANSACTIONS
The CEO of the Company was advanced $22,409 during the three months ending October 31, 2016. As of October 31, 2016, the CEO was due $371,250 representing accrued unpaid salary earned from June 24, 2015 until October 31, 2016. Also, a Company owned by the spouse of the CEO provided a loan of $85,000 to 4Ward Resources, Inc. during the quarter. This additional loan increased the total loan amount to $135,000.
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