Quarterly report pursuant to Section 13 or 15(d)

Business Acquisition

v3.10.0.1
Business Acquisition
6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Note 3 - Business Acquisition

Petrodome Energy LLC

 

As discussed in Note 1, on December 22, 2017, the Company closed on the acquisition of all of the issued and outstanding membership interests of Petrodome Energy, LLC, a Texas limited liability company, with an effective date of November 1, 2017, in a transaction accounted for under the acquisition method of accounting, whereby the assets acquired and the liabilities, if any assumed are to be valued at fair value, and compared to the fair value of the consideration given to identify if there are any identifiable intangible assets to be recognized as a result of the transaction.

 

The recorded cost of this acquisition was based upon the fair market value of the assets acquired based on an independent valuation. The fair value of the Business Enterprise and its assets exceed the value of the consideration given, creating a bargain purchase gain, which is to be recognized immediately by the purchaser. The fair value of the bargain purchase gain has been recorded in the amount of $27,021,418 during the year ended December 31, 2017.

 

Proforma unaudited condensed selected financial data for the three and six months ended June 30, 2017, as though this acquisition had taken place at January 1, 2017, are as follows:

 

   

Three Months

Ended

June 30,

2017

   

Six Months

Ended

June 30,

2017

 
             
             
Revenues   $ 2,717,496     $ 5,694,444  
                 
Net Loss (excludes unrealized gains / losses)   $ (1,425,275 )   $ (3,012,499 )
                 
Loss per share   $ (0.02 )   $ (0.05 )