20-1740044
|
|||
(State
of incorporation)
|
(IRS
Employer ID Number)
|
|
(Unaudited)
As of
July 31, 2007
|
(Audited)
As of
October 31, 2006
|
|||||
A
S S E T S
|
|||||||
Current
Assets
|
|||||||
Cash
held at bank
|
$
|
21,750
|
$
|
752,788
|
|||
Cash
held in attorney’s trust account
|
119,702
|
40,650
|
|||||
Restricted
Cash - held in Escrow (note 4)
|
9,854,407
|
10,854,407
|
|||||
Prepaid
expenses
|
24,340
|
3,494
|
|||||
Loan
receivable from Access Energy Inc. (note 12)
|
234,350
|
-
|
|||||
Total
Current Assets
|
10,254,549
|
11,651,339
|
|||||
|
|||||||
Property
and Equipment –
net
|
27,365
|
31,325
|
|||||
|
|||||||
Other
Assets
|
|||||||
Exclusivity
agreement deposit (note 12)
|
93,740
|
-
|
|||||
Rent
Deposit
|
10,424
|
9,902
|
|||||
Total
Other Assets
|
104,164
|
9,902
|
|||||
Total
Assets
|
$
|
10,386,078
|
$
|
11,692,566
|
|||
|
|||||||
L
I A B I L I T I E S A N D S T O C K H O L D E R S’ E Q U I T
Y
|
|||||||
|
|||||||
Current
Liabilities
|
|||||||
Accounts
payable and accrued liabilities
|
$
|
173,138
|
$
|
97,812
|
|||
Accounts
payable to related parties
|
13,730
|
2,226
|
|||||
Total
Current Liabilities
|
186,868
|
100,038
|
|||||
Stockholders’
Equity
|
|||||||
Common
Stock (note 3)
|
74,855
|
74,855
|
|||||
Additional
Paid-in-Capital
|
11,875,653
|
11,867,547
|
|||||
Treasury
stock, at cost
|
(50,000
|
)
|
-
|
||||
Accumulated
Comprehensive Loss
|
(10,015
|
)
|
(2,296
|
)
|
|||
Deficit
accumulated during the development stage
|
(1,691,283
|
)
|
(347,578
|
)
|
|||
Total
Stockholders' Equity
|
10,199,210
|
11,592,528
|
|||||
Total
Liabilities and Stockholders' Equity
|
$
|
10,386,078
|
$
|
11,692,566
|
(Unaudited)
For the Nine Months Ended July 31, 2007 |
(Unaudited)
For the Nine Months Ended July 31, 2006 |
(Unaudited)
For the
Three Months Ended July 31, 2007 |
(Unaudited)
For the Three Months Ended
July 31, 2006 |
(Unaudited)
From Inception (October 12, 2004) through July 31, 2007 |
||||||||||||
|
|
|
|
|
|
|||||||||||
Revenues:
|
||||||||||||||||
Revenue
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Total
Revenues
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
|
||||||||||||||||
Expenses:
|
||||||||||||||||
Professional
Fees
|
421,363
|
156,229
|
211,571
|
155,604
|
736,804
|
|||||||||||
Loss
on abandoned fixed assets
|
-
|
1,494
|
-
|
1,494
|
1,494
|
|||||||||||
Employee
remuneration
|
40,083
|
15,622
|
14,091
|
15,622
|
69,545
|
|||||||||||
Website
& contract services
|
13,079
|
8,144
|
12,019
|
8,144
|
23,777
|
|||||||||||
Depreciation
|
6,065
|
42
|
2,059
|
-
|
8,508
|
|||||||||||
Exploration
expenses (note 12)
|
1,129,401
|
-
|
5,372
|
-
|
1,129,401
|
|||||||||||
Office
and Administration
|
82,447
|
42,770
|
26,600
|
38,659
|
181,620
|
|||||||||||
Total
Expenses
|
1,692,438
|
224,301
|
271,712
|
219,523
|
2,151,149
|
|||||||||||
Net
loss from Operations
|
(1,692,438
|
)
|
(224,301
|
)
|
(271,712
|
)
|
(219,523
|
)
|
(2,151,149
|
)
|
||||||
|
||||||||||||||||
Other
Income and Expenses:
|
||||||||||||||||
Interest
Income
|
351,450
|
-
|
113,190
|
-
|
487,271
|
|||||||||||
Gain
(loss) from Currency Transaction
|
(2,717
|
)
|
-
|
(3,955
|
)
|
-
|
(2,403
|
)
|
||||||||
Net
Loss before Taxes
|
(1,343,705
|
)
|
(224,301
|
)
|
(162,477
|
)
|
(219,523
|
)
|
(1,666,281
|
)
|
||||||
|
||||||||||||||||
Provision
for Income Taxes:
|
||||||||||||||||
Income
Tax Benefit
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Net
Loss
|
$
|
(1,343,705
|
)
|
$
|
(224,301
|
)
|
$
|
(162,477
|
)
|
$
|
(219,523
|
)
|
$
|
(1,666,281
|
)
|
|
|
||||||||||||||||
Other
Comprehensive Income (Loss)
|
$
|
(7,719
|
)
|
$
|
1,823
|
$
|
(5,199
|
)
|
$
|
-
|
$
|
(10,015
|
)
|
|||
|
||||||||||||||||
Total
Comprehensive Loss
|
$
|
(1,351,424
|
)
|
$
|
(222,478
|
)
|
$
|
(167,676
|
)
|
$
|
(219,523
|
)
|
$
|
(1,676,296
|
)
|
|
|
||||||||||||||||
Basic
and Diluted Loss Per Common Share
|
$
|
(0.03
|
)
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
(0.03
|
)
|
|
Weighted
Average number of Common Shares used in per share
calculations
|
45,514,041
|
63,000,000
|
44,854,700
|
63,000,000
|
49,799,626
|
Shares
|
Par
Value $0.001 |
Additional
Paid-In Capital |
Treasury
Stock |
Other
Compre- hensive Income |
Deficit
Accumulated During Development Stage |
Stockholder’s
Equity |
||||||||||||||||
Balance
–
October 12, 2004 - (inception)
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||
Stock
issued for cash - October 12, 2004 (1)
|
30,000,000
|
30,000
|
-
|
-
|
-
|
(25,000
|
)
|
5,000
|
||||||||||||||
Foreign
Currency Translation Adjustment
|
-
|
-
|
-
|
-
|
(
5
|
)
|
-
|
(
5
|
)
|
|||||||||||||
Net
Loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Balance
– October 31, 2004
|
30,000,000
|
30,000
|
-
|
-
|
(
5
|
)
|
(25,000
|
)
|
4,995
|
|||||||||||||
Stock
issued for cash - March 4, 2005 (1)
|
33,000,000
|
33,000
|
22,000
|
-
|
-
|
-
|
55,000
|
|||||||||||||||
Foreign
Currency Translation Adjustment
|
-
|
-
|
-
|
-
|
(
2,787
|
)
|
-
|
(
2,787
|
)
|
|||||||||||||
Net
Loss
|
-
|
-
|
-
|
-
|
-
|
(
13,780
|
)
|
(
13,780
|
)
|
|||||||||||||
Balance
– October 31, 2005
|
63,000,000
|
63,000
|
22,000
|
-
|
(
2,792
|
)
|
(
38,780
|
)
|
43,428
|
|||||||||||||
Equity
Compensation - Granted
August 1, 2006
|
-
|
-
|
21,620
|
-
|
-
|
-
|
21,620
|
|||||||||||||||
Deferred
equity compensation
|
-
|
-
|
(18,918
|
)
|
-
|
-
|
-
|
(
18,918
|
)
|
|||||||||||||
Stock
issued for cash - August
10, 2006
|
10,854,700
|
10,855
|
10,843,845
|
-
|
-
|
-
|
10,854,700
|
|||||||||||||||
Stock
issued on conversion of
Debentures - August 10, 2006
|
1,000,000
|
1,000
|
999,000
|
-
|
-
|
-
|
1,000,000
|
|||||||||||||||
Foreign
Currency Translation Adjustment
|
-
|
-
|
-
|
-
|
496
|
-
|
496
|
|||||||||||||||
Net
Loss
|
-
|
-
|
-
|
-
|
-
|
(
308,798
|
)
|
(
308,798
|
)
|
|||||||||||||
Balance
– October 31, 2006
|
74,854,700
|
74,855
|
11,867,547
|
-
|
(2,296
|
)
|
(347,578
|
)
|
11,592,528
|
|||||||||||||
Stock
repurchased for cash-November
6, 2006
|
(
30,000,000
|
)
|
-
|
-
|
(50,000
|
)
|
-
|
-
|
(
50,000
|
)
|
||||||||||||
Equity
compensation expensed
|
-
|
-
|
8,106
|
-
|
-
|
-
|
8,106
|
|||||||||||||||
Foreign
Currency Translation Adjustment
|
-
|
-
|
-
|
-
|
(7,719
|
)
|
-
|
(7,719
|
)
|
|||||||||||||
Net
Loss
|
-
|
-
|
-
|
-
|
-
|
(
1,343,705
|
)
|
(
1,343,705
|
)
|
|||||||||||||
Balance
– July 31, 2007
|
44,854,700
|
$
|
74,855
|
$
|
11,875,653
|
$
|
(50,000
|
)
|
$
|
(10,015
|
)
|
$
|
(1,691,283
|
)
|
$
|
10,199,210
|
|
(Unaudited)
November 1, 2006
Through
July 31, 2007
|
(Unaudited)
November 1, 2005
Through
July 31, 2006
|
(Unaudited)
From Inception
(October 12, 2004)
Through
July 31, 2007
|
|||||||
Cash
Flows from Operating Activities:
|
||||||||||
Net
Loss
|
$
|
(1,343,705
|
)
|
$
|
(224,301
|
)
|
$
|
(1,666,281
|
)
|
|
Adjustments
to reconcile net loss to net
cash used by operating activites:
|
||||||||||
Foreign
Currency Income (Loss)
|
(7,719
|
)
|
1,823
|
(10,015
|
)
|
|||||
Equity
compensation expense
|
8,106
|
-
|
10,808
|
|||||||
Loss
on abandoned fixed assets
|
-
|
1,494
|
1,494
|
|||||||
Office
Equipment and Furniture: Depreciation
|
6,065
|
42
|
8,508
|
|||||||
Changes
in Operating assets and liabilities
|
||||||||||
Prepaid
expenses
|
(20,846
|
)
|
-
|
(24,340
|
)
|
|||||
Exclusivity
agreement deposit
|
(93,740
|
)
|
-
|
(93,740
|
)
|
|||||
Rent
Deposit
|
(522
|
)
|
(9,167
|
)
|
(10,424
|
)
|
||||
Accounts
payable and accrued liabilities
|
75,326
|
15,308
|
173,138
|
|||||||
Payroll
and withholding taxes payable
|
(15
|
)
|
-
|
|||||||
Accounts
payable to related party
|
11,504
|
1,853
|
13,730
|
|||||||
Net
Cash Used in Operating Activities
|
(1,365,531
|
)
|
(212,963
|
)
|
(1,597,122
|
)
|
||||
|
||||||||||
Cash
Flows from Investing Activities:
|
||||||||||
Loan
to Access Energy Inc.
|
(234,350
|
)
|
-
|
(234,350
|
)
|
|||||
Purchase
of property and equipment
|
(2,105
|
)
|
-
|
(37,369
|
)
|
|||||
Net
Cash Used in Investing Activities
|
(236,455
|
)
|
-
|
(271,719
|
)
|
|||||
|
||||||||||
Cash
Flows from Financing Activities:
|
||||||||||
Issue
of convertible debentures
|
-
|
1,000,000
|
1,000,000
|
|||||||
Repurchase
of Common Stock
|
(50,000
|
)
|
-
|
(50,000
|
)
|
|||||
Sales
of Common Stock
|
-
|
-
|
10,914,700
|
|||||||
Net
Cash (Used in) Provided by Financing Activities
|
(50,000
|
)
|
1,000,000
|
11,864,700
|
||||||
|
||||||||||
Net
Increase (Decrease) in Cash
|
(1,651,986
|
)
|
787,037
|
9,995,859
|
||||||
Cash
Balance, Beginning of Period
|
11,647,845
|
41,048
|
-
|
|||||||
Cash
Balance, End of Period
|
$
|
9,995,859
|
$
|
828,085
|
$
|
9,995,859
|
||||
Supplemental
Disclosures:
|
||||||||||
Cash
Paid for interest
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Cash
Paid for income taxes
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
|
||||||||||
Non-cash
financing activities:
|
||||||||||
Conversion
of debentures into stock and warrants
|
$
|
-
|
$
|
-
|
$
|
1,000,000
|
1. |
DESCRIPTION
OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
|
1. |
DESCRIPTION
OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
|
1. |
DESCRIPTION
OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
|
1. |
DESCRIPTION
OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
|
1. |
DESCRIPTION
OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
|
2. |
PROPERTY
AND EQUIPMENT
|
July
31, 2007
|
October 31, 2006
|
||||||||||||
Cost
|
Accumulated
depreciation |
Net book
Value
|
Net book
Value
|
||||||||||
Furniture
and fixtures
|
$
|
18,752
|
$
|
3,441
|
$
|
15,311
|
$
|
16,078
|
|||||
Office
equipment
|
16,760
|
4,706
|
12,054
|
15,247
|
|||||||||
$
|
35,512
|
$
|
8,147
|
$
|
27,365
|
$
|
31,325
|
3. |
STOCKHOLDER'S
EQUITY
|
3. |
STOCKHOLDER'S
EQUITY
(continued)
|
Number of
Shares |
Par Value
|
Additional
Paid in Capital |
Treasury
Stock |
||||||||||
October
12, 2004 - Issued for cash
|
1,000,000
|
$
|
1,000
|
$
|
4,000
|
$
|
-
|
||||||
March
2005 - Issued for cash
|
1,100,000
|
1,100
|
53,900
|
-
|
|||||||||
Balance
October 31, 2005
|
2,100,000
|
2,100
|
57,900
|
-
|
|||||||||
June
21, 2006 – Stock Split 30:1
|
60,900,000
|
60,900
|
(57,900
|
)
|
-
|
||||||||
August
9, 2006 – Issued for cash
|
10,854,700
|
10,855
|
10,843,845
|
-
|
|||||||||
August
9, 2006 – On conversion of
|
|||||||||||||
Convertible
Debentures
|
1,000,000
|
1,000
|
999,000
|
-
|
|||||||||
Balance,
October 31, 2006
|
74,854,700
|
$
|
74,855
|
$
|
11,842,845
|
$
|
-
|
||||||
Repurchase
of stock for cash –
November. 6, 2006
|
(30,000,000
|
)
|
-
|
-
|
(50,000
|
)
|
|||||||
Balance,
July 31, 2007
|
44,854,700
|
$
|
74,855
|
$
|
11,842,845
|
$
|
(50,000
|
)
|
3. |
STOCKHOLDER'S
EQUITY
(continued)
|
4. |
RESTRICTED
CASH - HELD IN
ESCROW
|
5. |
LOAN
FROM OFFICERS AND
DIRECTORS
|
6. |
RELATED
PARTY TRANSACTIONS
|
7. |
STOCK
OPTIONS
|
7. |
STOCK
OPTIONS (continued)
|
8. |
COMPREHENSIVE
INCOME
|
9. |
LITIGATION
|
10. |
CONVERTIBLE
DEBENTURES
|
11. |
LEASE
COMMITMENTS
|
12. |
LOAN
RECEIVABLE FROM ACCESS ENERGY
INC.
|
13. |
SUBSEQUENT
EVENT
|
13.
|
SUBSEQUENT
EVENTS (continued)
|
As
of
July
31, 2007
|
||||
ASSETS
|
||||
Current
Assets
|
||||
Cash
held at bank
|
$
|
10,174,991
|
||
Accounts
receivable
|
83,135
|
|||
Prepaid
expenses
|
24,340
|
|||
Total
Current Assets
|
10,282,466
|
|||
Property,
plant and equipment - net
|
27,365
|
|||
Oil
and gas property costs
|
4,058,978
|
|||
Total
Capital Assets
|
4,086,343
|
|||
Other
assets
|
||||
Rent
deposit
|
10,424
|
|||
Total
Other Assets
|
10,424
|
|||
Total
Assets
|
$
|
14,379,233
|
||
L
I A B I L I T I E S A N D S T O C K H O L D E R S’ E Q U I T
Y
|
||||
Current
Liabilities
|
||||
Accounts
payable and accrued liabilities
|
$
|
1,011,203
|
||
Accounts
payable to related parties
|
1,855,646
|
|||
Current
portion of long term debt
|
734,469
|
|||
Total
Current Liabilities
|
3,601,318
|
|||
Long
Term Debt
|
142,248
|
|||
Minority
Interest
|
436,457
|
|||
Total
liabilities
|
4,180,023
|
|||
Stockholders’
Equity
|
||||
Common
Stock
|
74,855
|
|||
Additional
Paid-in-Capital
|
11,875,653
|
|||
Treasury
stock at cost
|
(50,000
|
)
|
||
Accumulated
Comprehensive Loss
|
(10,015
|
)
|
||
Deficit
accumulated during the development stage
|
(1,691,283
|
)
|
||
Total
Stockholders' Equity
|
10,199,210
|
|||
Total
Liabilities and Stockholders' Equity
|
$
|
14,379,233
|
13.
|
SUBSEQUENT
EVENT (continued)
|
Nine Months
Ended July 31, 2007 |
Nine Months
Ended July 31, 2006 |
||||||
REVENUES:
|
|||||||
Revenue
|
$
|
-
|
$
|
-
|
|||
Total
Revenues
|
-
|
-
|
|||||
EXPENSES:
|
|||||||
Professional
Fees
|
421,363
|
156,229
|
|||||
Loss
on abandoned fixed assets
|
-
|
1,494
|
|||||
Employee
remuneration
|
40,083
|
15,622
|
|||||
Website
& contract services
|
13,079
|
8,144
|
|||||
Depreciation
|
6,065
|
42
|
|||||
Exploration
expenses
|
1,129,401
|
-
|
|||||
Office
and Administration
|
82,447
|
42,770
|
|||||
Total
Expenses
|
1,692,438
|
224,301
|
|||||
Net
loss from Operations
|
(1,692,438
|
)
|
(224,301
|
)
|
|||
|
|||||||
Other
Income and Expenses:
|
|||||||
Interest
Income
|
351,450
|
-
|
|||||
Gain
(loss) from Currency Transaction
|
(2,717
|
)
|
-
|
||||
Net
Loss before Taxes
|
$ |
(1,343,705
|
)
|
$ |
(224,301
|
)
|
|
|
|||||||
Provision
for Income Taxes:
|
|||||||
Income
Tax Benefit
|
-
|
-
|
|||||
Net
Loss
|
(1,343,705
|
)
|
(224,301
|
)
|
|||
|
|||||||
Other
Comprehensive Income (Loss)
|
|||||||
Foreign
currency translation adjustment
|
|
(7,719
|
)
|
1,823
|
|||
|
|||||||
Total
Comprehensive Loss
|
$
|
(1,351,424
|
)
|
$
|
(222,478
|
)
|
July
31, 2007
|
October
31,
2006 |
||||||
Current
Assets (1)
|
$
|
10,254,549
|
$
|
11,651,339
|
|||
Total
Assets (1)
|
$
|
10,386,078
|
$
|
11,692,566
|
|||
Current
Liabilities
|
$
|
186,868
|
$
|
100,038
|
|||
Stockholders’
Equity
|
$
|
10,199,210
|
$
|
11,592,528
|
Exhibit
No. |
|
Description
|
31.1
|
|
Sec.
302 Certification of Principal Executive Officer
|
31.2
|
|
Sec.
302 Certification of Principal Financial Officer
|
32.1
|
|
Sec.
906 Certification of Principal Executive Officer
|
32.2
|
|
Sec.
906 Certification of Principal Financial
Officer
|
Date:
September 14, 2007
|
BLACKSANDS PETROLEUM, INC. | ||
By: |
/s/
Darren R. Stevenson
|
||
Name: Darren
R. Stevenson
Title:
Principal Executive Officer
|