Results of Operations for the Years Ended July 31, 2022 and 2021

Revenue

We did not recognize any revenue for the years ended July 31, 2022 and 2021.

Officer compensation

Officer compensation was $26,400 and $26,400 for the years ended July 31, 2022 and 2021, respectively, We incur monthly compensation expense of $2,200 for our CFO.






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Consulting - related party

Consulting - related party services were $65,000 and $60,000 for the years ended July 31, 2022 and 2021. Fees are paid to Noel Schaefer, Director, but are billed as consulting fees.





Consulting expense

Consulting fees were $0 and $8,000 for the years ended July 31, 2022 and 2021, respectively. When needed the Company hires experts in the mining, oil and gas industries to assist with its current projects. With no active projects in the current year, we did not hire any outside consultants.

Professional fees

Professional fees were $35,615 and $49,566 for the years ended July 31, 2022 and 2021, respectively, a decrease of $13,951, or 28%. Professional fees generally consist of legal, audit and accounting expense. In the current year our audit and legal fees decreased $9,000 and $4,951, respectively.

Mineral property expenditures

Mineral property expenditures were $0 and $1,000 for the years ended July 31, 2022 and 2021, respectively. The decrease in in the current period can be attributed to a decrease in expenditures while the Company pursues additional funding.





General and administrative

General and administrative expense was $25,487 and $32,944 for the years ended July 31, 2022 and 2021, respectively, a decrease of $7,457 or 23%. In the prior year we recognized $10,000 of bad debt expense that we did not incur in the current year. This decrease was offset with increases in travel and office expense in the current period.

Other expense

During the year ended July 31, 2022, we had total other income of $3,219 compared to a loss of $65,058 in the prior year. During the current year we incurred interest expense of $15,235, and a loss on debt conversion of $1,000, which was offset with a gain on forgiveness of debt of $17,167, and other income of $2,287. During the prior year we incurred interest expense of $93,017, which included a $72,631 expense for the issuance of warrants on a loan conversion, a loss on the impairment of oil rights of $28,800 and a loss on debt conversion of $6,857, which was offset with a gain on forgiveness of debt of $38,616, and other income of $25,000.





Net Loss

For the year ended July 31, 2022, we had a net loss of $149,283 as compared to a net loss of $242,968 for year ended July 31, 2021. Our net loss in the current year decreased mainly due to the expense incurred for the issuance of warrants in the prior year.

Liquidity and Financial Condition

Operating Activities

Cash used by operating activities was $165,704 for the year ended July 31, 2022 compared to cash used for operating activities of $168,873 for the year ended July 31, 2021.





Investing Activities

We used $0 for investing activities for the years ended July 31, 2022 and 2021.

Financing Activities

Net cash provided by financing activities was $190,550 for year ended July 31, 2022 compared to $163,000 for the year ended July 31, 2021. During the year ended July 31, 2022, we received $220,550 from the sale of common stock. We also received $5,000 from a loan payable and repaid $15,000. During the year ended July 31, 2021, we received $163,000 from the sale of common stock.

We had the following loans outstanding as of July 31, 2022:

On April 16, 2017, the Company executed a promissory note for $15,000 with a third party. The note matures in two years and interest is set at $3,000 for the full two years. As of July 31, 2022, there is $15,000 and $6,375 of principal and accrued interest, respectively, due on this loan. As of July 31, 2021, there was $15,000 and $4,875 of principal and accrued interest, respectively, due on this loan. This loan is currently in default.






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On June 11, 2020, a third party loaned the Company $14,000. On March 3, 2021, the party loaned another $5,000 to the Company. During the year ended July 31, 2022, the Company repaid $15,000 of the loan. The loan is unsecured, non-interest bearing and due on demand. As of July 31, 2022, there is a balance due of $4,000.

During the year ended July 31, 2020, a third party loaned the Company $60,000. The loan is unsecured, bears interest at 8% per annum and matures on September 1, 2021. As of July 31, 2022, there is $13,585 of interest accrued on this note. This note is in default.

Off-Balance Sheet Arrangements

We have no 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 is material to stockholders.





Critical Accounting Policies

Refer to Note 2 of our financial statements contained elsewhere in this Form 10-K for a summary of our critical accounting policies and recently adopting and issued accounting standards.

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