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GRID PETROLEUM CORP. - 10-K - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

July 15, 2014

This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements are not historical facts but rather are based on current expectations, estimates and projections. We may use words such as "anticipate," "expect," "intend," "plan," "believe," "foresee," "estimate" and variations of these words and similar expressions to identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted. You should read this report completely and with the understanding that actual future results may be materially different from what we expect. The forward-looking statements included in this report are made as of the date of this report and should be evaluated with consideration of any changes occurring after the date of this Report. We will not update forward-looking statements even though our situation may change in the future and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Working Capital March 31, 2014 March 31, 2013 $ $ Current Assets - 573 Current Liabilities 2,888,432 1,552,432 Working Capital (Deficit) (2,888,432) (1,551,859) Cash Flows For the Period from March 31, 2009 (date of inception) to March 31, 2014 March 31, 2014 $ $ Cash Flows from (used in) Operating (2,719,463) (5,278,839) Activities Cash Flows from (used in) Investing - (11,940,093) Activities Cash Flows from (used in) Financing 2,718,890 17,214,788 Activities Net Increase (decrease) in Cash During (573) - Period



Results for the Year Ended March 31, 2014Compared to the Year Ended March 31, 2013

Revenues:



The Company's revenues were $nil for the year ended March 31, 2014 compared to $nil in 2013.

Cost of Revenues:



The Company's cost of revenue was $nil for the year ended March 31, 2014, compared to $nil in 2013.

Operating Expenses:



Operating expenses for the year ended March 31, 2014, and March 31, 2013, were $761,608 and $5,435,809, respectively. Operating expenses consisted primarily of consulting fees, management fees, office expensesand preparing reports and SEC filings relating to being a public company. The decrease was primarily attributable to a decrease in impairment of rights to future exploration costs and impairment of oil and gas properties.

Other Income (Expense):

Other income (expense) for the year ended March 31, 2014, and March 31, 2013, were $(3,599,420) and $(366,132), respectively. Other income (expense) consisted of loss on derivative valuation and interest expense. The loss on derivative valuation is directly attributable to the change in fair value of the derivative liability. Interest expense is primarily attributable the initial interest expense associated with the valuation of derivative instruments at issuance and the accretion of the convertible debentures over their respective terms.

Net Loss:



Net loss for the year ended March 31, 2014, was $(4,361,029) compared with a net loss of $(5,801,941) for the year ended March 31, 2013. The decreased net loss is due to a decrease in impairment of rights to future exploration costs and impairment of oil and gas properties.

Results for the Period from March 31, 2009 (Inception of Exploration Stage) through March 31, 2014

Revenues: 20



The Company's revenues for the period from March 31, 2009 (inception of Exploration Stage) through March 31, 2014 were $nil.

Cost of Revenues

The Company's cost of revenue for the period from March 31, 2009 (inception of Exploration Stage) through March 31, 2014 were $nil.

Operating Expenses:

Operating expenses for the period from March 31, 2009 (inception of Exploration Stage) through March 31, 2014 were $7,826,602. Operating expenses consist primarily of consulting fees, officer compensation, management fees, administrative expenses, interest expense and professional fees appropriate for being a public company.

Other Income (Expense):



Other income (expenses) for the period from March 31, 2009 (inception of Exploration Stage) through March 31, 2014, were $(3,965,553).

Net Loss.

Net loss for the period March 31, 2009 (Inception of Exploration Stage) through March 31, 2014,was $(11,792,154). The net loss for this period was primarily related to general and administrative expenses exceeding the amount of revenues for the period indicated.

Impact of Inflation



We believe that the rate of inflation has had a negligible effect on our operations.

Liquidity and Capital Resources

The ability of the Company to continue as a going concern is dependent on the Company's ability to raise additional capital and implement its business plan. Since its inception, the Company has been funded by related parties through capital investment and borrowing funds.

As of March 31, 2014, total current assets were $nil.

As of March 31, 2014, total current liabilities were $2,888,432, which consisted primarily of accounts payable and accrued expenses and convertible debentures. We had negative net working capital of $(2,888,432) as of March 31, 2014.

During the period from March 31, 2009 (Inception of Exploration Stage) through March 31, 2014, operating activities used cash of $(5,278,839). The cash used by operating activities related to general and administrative expenses and non-cash items related to derivative instruments. Except for cash in the amount of $nil from sales of our products, all of the cash during this period was provided by related party transactions, capital contributions and convertible debentures.

Intangible Assets

The Company's intangible assets were $nil as of March 31, 2014.

Material Commitments

The Company's material commitments were $nil as of March 31, 2014.

21 Going Concern



We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.

Future Financings

We will continue to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund planned acquisitions and exploration activities.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Critical Accounting Policies



Our financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.

We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. A complete summary of these policies is included in the notes to our financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

Recently Issued Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Contractual Obligations

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.


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Source: Edgar Glimpses


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