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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended December 31, 2023

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

EXCHANGE ACT

 

Commission File Number: 000-12895

 

PETRO USA, INC.

(Exact name of registrant as specified in its charter)

 

Nevada   32-0252180
(State or other jurisdiction of incorporation or organization)   (IR.S. Employer Identification No.)
     
7325 Oswego Road    
Liverpool, New York   13090
(Address of principal executive offices)   (Zip Code)

 

(315) 451-7515

 

Registrant’s telephone number Including area code

 

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days ☒ Yes ☐ No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files) ☒ Yes ☐ No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

  Large accelerated filer ☐   Accelerated filer ☐
  Non-accelerated filer ☐   (Do not check if a smaller reporting company)   Smaller reporting company ☒
  Emerging Growth Company ☐    

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

 

 
 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

 

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 200,130,920 shares of common stock as of February 21, 2024.

 
 

 

TABLE OF CONTENTS

 

       
PART I      
       
Item 1 Financial Statements   4  
Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations   14  
Item 3 Quantitative and Qualitative Disclosures About Market Risks   16  
Item 4 Controls and Procedures   16  
         
PART II        
         
Item 1 Legal Proceedings   17  
Item 1A. Risk Factors   17  
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds   17  
Item 3 Default Upon Senior Securities   17  
Item 4 Mine Safety Disclosure   17  
Item 5 Other Information   17  
Item 6 Exhibits   17  
         
SIGNATURES   18  

 

 
 

PART 1 FINANCIAL STATEMENTS

 

 

PETRO USA, INC.

 

FINANCIAL STATEMENTS

FOR THE FISCAL QUARTER ENDED DECEMBER 31, 2023

 

TABLE OF C O N T E N T S

 

Consolidated Balance Sheets (Unaudited)     5  
         
Consolidated Statements of Operations (Unaudited)     6  
         
Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited)     7  
         
Consolidated Statements of Cash Flows (Unaudited)     8  
         
Notes to the Financial Statements (Unaudited)     9  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

F-1

 
 
 

 

 

 

PETRO USA, INC.
Balance Sheets
Six Months Ended December 31, 2023 and Year Ended June 30, 2023
     

 

   December 31,  June 30,
   2023  2023
   (Unaudited)   
ASSETS
Current assets:          
Cash and cash equivalents  $352   $100 
Total current assets   352    100 
           
Total assets  $352   $100 
           
Liabilities and Stockholders' Deficit          
           
Current liabilities:          
Accounts payable and accrued liabilities   30,448    29,568 
Promissory not and accrued interest to related party   4,217    4,077 
Accounts payable- related   100,962    94,861 
Loan payable-related   18,240    —   
Total current liabilities   153,867    128,506 
           
Total liabilities   153,867    128,506 
           
Stockholders' deficit:          
Preferred stock:  par value $0.0001 per share, 10,000,000          
Preferred stock:  par value $0.0001 per share, 10,000,000 shares authorized, none issued and outstanding   —      —   
Common stock:  par value $0.0001 per share, 500,000,000          
shares authorized, 200,130,920 and 200,030,920 shares issued and          
Common stock:  par value $0.0001 per share, 500,000,000 shares authorized, 200,130,920 and 200,030,920 shares issued and outstanding   20,013    20,003 
Additional paid-in capital   121,677,146    121,677,146 
Accumulated deficit   (121,850,674)   (121,825,555)
Total stockholders' deficit   (153,515)   (128,406)
           
Total liabilities and stockholders' deficit  $352   $100 
           
           
See accompanying notes to financial statements.

 

 

 

 

 

F-2

 
 
 

 

 

PETRO USA, INC.
Statements of Operations
Three and Six Months Ended December 31, 2023 and 2022
(Unaudited)
            

 

                                 
   For the Three Months Ended  For the Six Months Ended
   December 31,  December 31,
   2023  2022  2023  2022
             
Net revenues  $—     $—     $—     $—   
                     
Operating expenses:                    
General and administrative expenses   6,778    13,703    24,979    15,461 
Total operating expenses   6,778    13,703    24,979    15,461 
                     
Loss from operations   (6,778)   (13,703)   (24,979)   (15,461)
                     
Other expenses:                    
 Interest expense   (70)   (70)   (140)   (140)
Total other expenses   (70)   (70)   (140)   (140)
                     
Income (loss) before income taxes   (6,848)   (13,773)   (25,119)   (15,601)
                     
Income tax expense   —      —      —      —   
                     
Net loss  $(6,848)  $(13,773)  $(25,119)  $(15,601)
                     
Income (loss) per share – basic and diluted:  $(0.00)  $(0.00)  $(0.00)  $(0.00)
                     
Weighted average number of                    
Weighted average number of common shares outstanding - basic and diluted   200,130,920    200,030,920    200,080,920    200,030,920 
                     
See accompanying notes to financial statements.

 

 

 

F-3

 
 
 

 

 

 

PETRO USA, INC.
Statements of Cash Flows
For the Six Months Ended December 31, 2022 ad 2023
(Unaudited)
       

 

       
  

For the Six Months Ended

   December 31,
   2023  2022
Cash flows from operating activities:          
Net income (loss)  $(25,119)  $(15,601)
Adjustments to reconcile net loss to net cash          
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:          
Issuance of common stock as share based compensation   10    —   
Increase (decrease) in liabilities:          
Accounts payable   880    1,465 
Accounts payable- related   6,241    13,996 
Loan Payable   18,240    140 
Cash provided by (used in) operating activities   252    —   
           
Cash flows from investing activities:          
Cash provided by investing activities   —      —   
           
Cash flows from financing activities:          
Proceeds from notes payable   —      —   
Principal payments of notes payable   —      —   
Cash used in financing activities   —      —   
           
Net increase (decrease) in cash and cash equivalent   252    —   
Cash and cash equivalent - beginning of period   100    —   
           
Cash and cash equivalent - end of period   352   $—   
           
Supplemental Disclosure of Cash Flows Information:          
Cash paid during the year for:          
Interest  $—     $—   
Income taxes  $—     $—   
           
           
           
See accompanying notes to financial statements.          

  

F-4

 
 
 

 

 

Petro USA, Inc.
Statement of Changes in Stockholders' Deficit
For the Three and Six Months Ended December 31, 2023 and 2022
(Unaudited)

 

               Additional      
   Preferred Stock  Common  Stock  Paid-in  Accumulated   
   Shares  Amount  Shares  Amount  Capital  Deficit  Total
                      
Balance at June 30, 2023   —     $—      200,030,920   $20,003   $121,677,146   $(121,825,555)  $(128,406)
                                    
Net loss for the quarter   —      —      —      —      —      (18,271)   (18,271)
                                    
 Balance, September 30, 2023   —     $—      200,030,920    20,003    121,677,146    (121,843,826)  $(146,677)
                                    
Shares issued for services rendered        —      100,000    10              10 
                                    
Net loss for the quarter   —      —      —      —      —      (6,848)   (6,848)
                                    
 Balance, December 31, 2023   —     $—      200,130,920    20,013    121,677,146    (121,850,674)  $(153,515)
                                    
                                    
 Balance, June 30, 2022   —     $—      200,030,920   $20,003    121,677,146   $(121,801,692)  $(104,543)
                                    
Net loss for the quarter   —      —      —      —      —      (1,828)   (1,828)
                                    
 Balance, September 30, 2022   —     $—      200,030,920   $20,003   $121,677,146   $(121,803,520)  $(106,371)
                                    
Net loss for the quarter   —      —      —      —      —      (13,773)   (13,773)
                                    
 Balance, December 31, 2022   —     $—      200,030,920   $20,003   $121,677,146   $(121,817,293)  $(120,144)
                                    

F-5

 
 
 

Petro USA, Inc.

Notes to Financial Statements

For the three months and six months ended December 31, 2023 and 2022

 

 

1.        Organization, Description of Business, and Basis of Accounting

 

Business Organization

 

Petro USA, Inc. formerly All State Properties Holdings, Inc., a corporation (the "Company") was organized under the state of Nevada on April 24, 2008 to conduct business formerly carried on by its predecessor partnership, All State Properties L.P. (the "Partnership"). The Partnership merged with the Company on May 29, 2008. The Company acquired all of the assets and assumed all of the liabilities and obligations of the Partnership. At May 29, 2008 each unit, par value $0.001 per share of the Partnership was converted into one issued and outstanding share of par value $0.0001 common stock of the Corporation. On December 18, 2020, All State Properties Holdings, Inc. changed its name to Petro USA, Inc.

 

The Company's fiscal year end is June 30th.

 

Accounting Basis

 

These financial statements have been prepared on the accrual basis of accounting following generally accepted accounting principles of the United States of America (“U.S. GAAP”) consistently applied.

 

The accompanying unaudited condensed interim financial statements and related notes have been prepared in accordance with U.S. GAAP for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These unaudited condensed interim financial statements should be read in conjunction with the financial statements of the Company for the year ended June 30, 2023 and notes thereto contained in our 10-K Annual Report

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent. Actual results could differ from those estimates.

 

Income Taxes

 

The Company uses the asset and liability method of accounting for income taxes. At December 31, 2023 and June 30, 2023, respectively, the deferred tax asset and deferred tax liability accounts as recorded when material to the financial statements, are entirely the result of temporary and permanent differences. Temporary differences represent differences in the recognition of assets and liabilities for tax and financial reporting purposes, primarily share based compensation and loss on settlement of debt.

.

 

 

 

 

 

 

 

 

F-6
 
 
 

 

Petro USA, Inc.

Notes to Financial Statements

For the three months and six months ended December 31, 2023 and 2022

 

1.        Organization, Description of Business, and Basis of Accounting (Cont.)

 

Income Taxes

 

As of December 31, 2023, the deferred tax asset related to the Company's net operating loss (NOL) carry forward is fully reserved.  Due to the provisions of Internal Revenue Code Section 338, the Company may have no net operating loss carryforwards available to offset financial statement or tax return taxable income in future periods as a result of a change in control involving 50 percentage points or more of the issued and outstanding securities of the Company.

 

Dividends

 

The Company and has not yet adopted a policy regarding the payment of dividends.

 

Fair Value of Financial Instruments

 

The carrying value of cash, accounts payable and amounts due to related party approximates its fair value because of the short maturity of these instruments.  Unless otherwise noted, it is management's opinion the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.

 

The Company accounts for financial instruments in accordance with the Financial Accounting Standard Board's Accounting Standards Codification Topic 820 – Fair Value Measurements and Disclosures ("ASC 820"), which establishes a framework for measuring fair value and expands disclosure of fair value measurements. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, this policy established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

The following table presents assets that are measured and recognized at fair value on a non-recurring basis:

 

 

 

 

 

 

F-7

 

 
 
 
 

Petro USA, Inc.

Notes to Financial Statements

For the three months and six months ended December 31, 2023 and 2022

 

 

1.        Organization, Description of Business, and Basis of Accounting (Cont.)

 

Level 1: None

Level 2: None

Level 3: None

 

Earnings (Loss) per Share

 

Basic earnings (loss) per share is computed by dividing the net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the respective period presented in our accompanying financial statements.

 

Fully diluted earnings (loss) per share is computed similar to basic income (loss) per share except that the denominator is increased to include the number of common stock equivalents (primarily outstanding options and warrants).

 

Common stock equivalents represent the dilutive effect of the assumed exercise of outstanding stock options and warrants, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Company’s net income (loss) position at the calculation date.

 

As of December 31, 2023, and June 30, 2023, the Company has no issued and outstanding warrants or options.

 

2.        Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. However, the Company has incurred significant losses and is dependent on obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain the necessary funding it could cease operations as a new enterprise. This raises substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements.  These financial statements do not include any adjustments that might result from this uncertainty.

 

 

 

 

 

 

 

 

 

 

 

F-8

 

 

 
 
 

Petro USA, Inc.

Notes to Financial Statements

For the three months and six months ended December 31, 2023 and 2022

 

 

3.        Capital Stock

 

The Company has 10,000,000 shares of Preferred Stock authorized at a par value of $0.0001 and none has been issued at December 31, 2022 and June 30, 2023.

 

At December 31, 2023 the company had 200,130,920 common shares issued and outstanding. At June 30, 2022, the company had 200,030,920 common shares issued and outstanding. On October 3, 2023, the company issued 100,000 common share for services rendered.

 

The Company has no other classes of shares authorized for issuance. At December 31, 2023, and June 30, 2023, there were no outstanding stock options or warrants.

 

4.       Related Party Transactions

 

The Amounts due to related parties are advances from a company controlled by the Company's Chief Executive Officer in order to pay operating expenses of the Company. These advances are non-interest bearing and payable upon demand. 

 

5.       Subsequent Events

 

None.

 

 

 

 

 

 

 

 

 

 

 

F-9

 
 
 
ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

 

Forward Looking Statements

 

This section and other parts of this Form 10-Q quarterly report includes "forward-looking statements", that involves risks and uncertainties. All statements other than statements of historical facts, included in this Form 10-Q that address activities, events, or developments that we expect or anticipate will or may occur in the future, including such things as future capital expenditures (including the amount and nature thereof), business strategy and measures to implement strategy, competitive strength, goals, expansion and growth of our business and operations, plans, references to future success, reference to intentions as to future matters, and other such matters are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors that we believe are appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks, uncertainties, and other factors, many of which are beyond our control.

 

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, we do not assume responsibility for the accuracy and completeness of such forward-looking statements. We are under no duty to update any of the forward-looking statements after the date of this report to conform such statements to actual results.

 

Overview

 

All State Properties Holdings, Inc. (the "Company", "we", or "us") was incorporated under the laws of the State of Nevada on April 24, 2008. All State Properties Holdings, Inc. is to serve as a vehicle to effect a merger, exchange of capital stock, asset acquisition, or other business combination with a domestic or foreign private business. The company not commenced planned principal operations. The Company has a June 30 year end. As of December 31, 2023, the issued and outstanding shares of common stock totaled 200.130,920.

 

Certain statements contained below are forward-looking statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

 

Our auditors have issued a going concern opinion in the financial statements for the year ended June 30, 2022.

 

RESULTS OF OPERATIOMS

 

Working Capital

   December 31,  June 30,
   2023  2023
       
Current Assets  $352   $100 
Current Liabilities   153,867    128,506 
Working Capital (Deficit)  $(153,515)  $(138,406)

 

Cash Flows

 

   December 31,  December 31,
   2022  2021
       
Cash Flows from (used in) Operating Activities  $252   $—   
Cash Flows from (used in) Financing Activities   —      —   
Net Increase (decrease) in Cash During Period  $252   $—   

 

 
 
 

 

Operating Revenues

 

We have generated no revenues for the three and six months ended December 31, 2023 and December 31, 2022.

 

Operating Expenses and Net Loss

 

 Operating expenses for the three months ended December 31, 2023 were $6,778 compared with $113,703 for the three months ended December 31, 2022. The decrease in operating expenses were attributable to a decrease in other general and administrative expenses from $13,703 for the three months ended December 31, 2022 to $6,778 for the three months ended December 31, 2023.

 

 Operating expenses for the six months ended December 31, 2023 were $24,979 compared with $15,461 for the six months ended December 31, 2022. The increase in operating expenses were attributable to an increase in other general and administrative expenses from $15,461 for the six months ended December 31, 2022 to $24,979 for the six months ended December 31, 2023.

 

 During the three months ended December 31, 2023, the Company recorded a net loss of $6,848. compared with net loss of $13,773 for the three months ended December 31, 2022.

 

 During the six months ended December 31, 2023, the Company recorded a net loss of $25,119. compared with net loss of $15,601 for the six months ended December 31, 2022.

 

Liquidity and Capital Resources

 

 As of December 31, 2023, the Company's cash balance was $352 compared to cash balance of $100 as of June 30, 2023. As of December 31, 2023, the Company's total assets were $352 compared to total assets of $100 as of June 30, 2023.

 

 As of December 31, 2023, the Company had total liabilities of $153,867 compared with total liabilities of $128,506 as of June 30, 2023. The increase in total liabilities is attributed to an increase in account payable and accrued liabilities from $29,568 for the year ended June 30, 2023 to $30,448 for the six months ended December 31, 2023, and an increase in account payable-related from $94,861 for the year ended June 30, 2023 to $100,962 for the six months ended December 31, 2023.

 

 As of December 31, 2023, the Company has a working capital deficit of $153,515 compared with working capital deficit of $138,06 as of June 30, 2023.

 

Cashflow from Operating Activities

 

During the six months ended December 31, 2023 the Company provided $253 cash for operating activities compared to provided cash of $0 for operating activities during the six months ended December 31, 2022.

 

Cashflow from Financing Activities

 

During the six months ended December 31, 2023 and December 31, 2022, the Company did not receive any cash from financing activities.

 

Subsequent Developments

 

None.

 

Going Concern

 

We have not attained profitable operations and are dependent upon the continued financial support from our shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from our future business. These factors raise substantial doubt regarding our ability to continue as a going concern.

 

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.

 
 
 

 

Future Financing

 

The Company will consider selling securities in the future to fund operations. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund our operations and other activities.

 

Critical Accounting Policies

 

Our consolidated 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 consolidated 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 consolidated financial statements. A complete summary of these policies is included in the notes to our consolidated 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.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Market risk is the risk of loss from adverse changes in market prices and rates. The Company's market risk arises primarily from the fact that the area in which we do business is highly competitive and constantly evolving. The market in which we do business is highly competitive and constantly evolving. We face competition from the larger and more established companies, from companies that have greater resources, including but not limited to, more money, and greater ability to expand their markets also cut into our potential customers. Many of our competitors have longer operating histories, significantly greater financial strength, nationwide advertising coverage and other resources that we do not have.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Based on their evaluation of our disclosure controls and procedures(as defined in Rule 13a-15e under the Securities Exchange Act of 1934 the "Exchange Act"), our principal executive officer and principal financial officer have concluded that as of the end of the period covered by this quarterly report on Form 10-Q such disclosure controls and procedures were not effective due to the lack of segregation of duties and lack of a formal review process that includes multiple levels of review to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms because of the identification of a material weakness in our internal control over financial reporting which we view as an integral part of our disclosure controls and procedures.

 

The material weakness relates to the lack of segregation of duties in financial reporting, as our financial reporting and all accounting functions are performed by an external consultant with no oversight by a professional with accounting expertise. Our CEO/CFO does not possess accounting expertise and our company does not have an audit committee. This weakness is due to the company's lack of working capital to hire additional staff. To remedy this material weakness, we intend to engage another accountant to assist with financial reporting as soon as our finances will allow.

 

Changes in Internal Control over Financial Reporting

 

Except as noted above, there have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our first quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 
 
 

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

None

 

ITEM 1A. RISK FACTORS

 

Not Applicable

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

 

None

 

 ITEM 4. MINE SAFETY DISCLOSURE.

 

Not Applicable

 

ITEM 5. OTHER INFORMATION

 

None

 

Item 6.EXHIBITS

 

Exhibit 31.1 Certification of the Principal Executive Officer Pursuant to Rule 13A-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
Exhibit 31.2 Certification of the Principal Financial Officer Pursuant to Rule 13A-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
Exhibit 32.1 Certification of the Principal Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.2 Certification of the Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

 
 
 

 

SIGNATURES

 

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Dated: February 21, 2024   All State Properties Holdings, Inc..
     
    By: /s/Joseph C. Passalaqua
    Joseph C Passalaqua, Chief Executive Officer, Chief Financial Officer & President
     
     
     
     
     

 

Exhibit 31.1

 

CERTIFICATION PURSUANT TO RULE 13A-14(a) OF THE SECURITIES

EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION

302 OF THE SARBANES OXLEY ACT OF 2002

 

I, Joseph C. Passalaqua, certify that:

 

1. I have reviewed this Form 10-Q for the six months ended December 31, 2023 of Petro USA, Inc. 

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 

 

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

 

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

 

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

 

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and, 

 

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 

 

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): 

 

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and 

 

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 

 

Date: February 21, 2024

/s/Joseph C. Passalaqua

Joseph C. Passalaqua

Certification of Principal Executive Officer

 

 

Exhibit 31.2

 

CERTIFICATION PURSUANT TO RULE 13A-14(a) OF THE SECURITIES

EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION

302 OF THE SARBANES OXLEY ACT OF 2002

 

I, Joseph C. Passalaqua, certify that:

 

1. I have reviewed this Form 10-Q for the six months ended December 31, 2023 of Petro USA, Inc. 

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 

 

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

 

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

 

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

 

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and, 

 

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 

 

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): 

 

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and 

 

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 

 

Date: February 21, 2024

/s/Joseph C. Passalaqua

Joseph C. Passalaqua

Certification of Principal Financial Officer

 

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Petro USA, Inc. (the "Company") on Form 10-Q for the six months ended December 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the "report"), I, Joseph C. Passalaqua, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated this 21st day of February 2024.

s/Joseph C. Passalaqua

Joseph C. Passalaqua

Certification of Principal Executive Officer

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 ("Section 906"), or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Petro USA, Inc., and will be retained by Petro USA, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

Exhibit 32.2

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Petro USA, Inc. (the "Company") on Form 10-Q for the six months ended December 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the "report"), I, Joseph C. Passalaqua, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated this 21st day of February 2024.

 

s/Joseph C. Passalaqua

Joseph C. Passalaqua

Certification of Principal Financial Officer

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 ("Section 906"), or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Petro USA, Inc., and will be retained by Petro USA, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

v3.24.0.1
Cover - shares
 6 Months Ended
Dec. 31, 2023
Feb. 21, 2024
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Dec. 31, 2023  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2024  
Current Fiscal Year End Date --06-30  
Entity File Number 000-12895  
Entity Registrant Name PETRO USA, INC.  
Entity Central Index Key 0000745543  
Entity Tax Identification Number 32-0252180  
Entity Incorporation, State or Country Code NV  
Entity Address, Address Line One 7325 Oswego Road  
Entity Address, City or Town Liverpool  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 13090  
City Area Code 315  
Local Phone Number 451-7515  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   200,130,920
v3.24.0.1
Balance Sheets - USD ($)
Dec. 31, 2023
Jun. 30, 2023
Current assets:    
Cash and cash equivalents $ 352 $ 100
Total current assets 352 100
Total assets 352 100
Current liabilities:    
Accounts payable and accrued liabilities 30,448 29,568
Promissory not and accrued interest to related party 4,217 4,077
Accounts payable- related 100,962 94,861
Loan payable-related 18,240
Total current liabilities 153,867 128,506
Total liabilities 153,867 128,506
Stockholders' deficit:    
Preferred stock:  par value $0.0001 per share, 10,000,000 shares authorized, none issued and outstanding
Common stock:  par value $0.0001 per share, 500,000,000 shares authorized, 200,130,920 and 200,030,920 shares issued and outstanding 20,013 20,003
Additional paid-in capital 121,677,146 121,677,146
Accumulated deficit (121,850,674) (121,825,555)
Total stockholders' deficit (153,515) (128,406)
Total liabilities and stockholders' deficit $ 352 $ 100
v3.24.0.1
Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2023
Jun. 30, 2023
Statement of Financial Position [Abstract]    
Preferred Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Preferred Stock, Shares Authorized 10,000,000 10,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Common Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 500,000,000 500,000,000
Common Stock, Shares, Issued 200,130,920 200,030,920
Common Stock, Shares, Outstanding 200,130,920 200,030,920
v3.24.0.1
Statements of Operations - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]        
Net revenues
Operating expenses:        
General and administrative expenses 6,778 13,703 24,979 15,461
Total operating expenses 6,778 13,703 24,979 15,461
Loss from operations (6,778) (13,703) (24,979) (15,461)
Other expenses:        
 Interest expense (70) (70) (140) (140)
Total other expenses (70) (70) (140) (140)
Income (loss) before income taxes (6,848) (13,773) (25,119) (15,601)
Income tax expense
Net loss $ (6,848) $ (13,773) $ (25,119) $ (15,601)
Income (loss) per share – basic and diluted: $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Weighted average number of common shares outstanding - basic and diluted 200,130,920 200,030,920 200,080,920 200,030,920
v3.24.0.1
Statements of Cash Flows - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:        
Net income (loss) $ (6,848) $ (13,773) $ (25,119) $ (15,601)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
Issuance of common stock as share based compensation     10
Increase (decrease) in liabilities:        
Accounts payable     880 1,465
Accounts payable- related     6,241 13,996
Loan Payable     18,240 140
Cash provided by (used in) operating activities     252
Cash flows from financing activities:        
Net increase (decrease) in cash and cash equivalent     252
Cash and cash equivalent - beginning of period     100
Cash and cash equivalent - end of period $ 352 352
Supplemental Disclosure of Cash Flows Information:        
Interest    
Income taxes    
v3.24.0.1
Statement of Changes in Stockholders Equity - USD ($)
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total
Beginning balance, value at Jun. 30, 2022 $ 0 $ 20,003 $ 121,677,146 $ (121,801,692) $ (104,543)
Shares, Issued at Jun. 30, 2022   200,030,920      
Net loss for the quarter (1,828) (1,828)
Ending balance, value at Sep. 30, 2022 0 $ 20,003 121,677,146 (121,803,520) (106,371)
Shares, Issued at Sep. 30, 2022   200,030,920      
Net loss for the quarter (13,773) (13,773)
Ending balance, value at Dec. 31, 2022 $ 20,003 121,677,146 (121,817,293) (120,144)
Shares, Issued at Dec. 31, 2022   200,030,920      
Beginning balance, value at Jun. 30, 2023 0 $ 20,003 121,677,146 (121,825,555) (128,406)
Shares, Issued at Jun. 30, 2023   200,030,920      
Net loss for the quarter (18,271) (18,271)
Ending balance, value at Sep. 30, 2023 0 $ 20,003 121,677,146 (121,843,826) (146,677)
Shares, Issued at Sep. 30, 2023   200,030,920      
Shares issued for services rendered $ 10     10
Shares issued for services rendered, shares   100,000      
Net loss for the quarter (6,848) (6,848)
Ending balance, value at Dec. 31, 2023 $ 20,013 $ 121,677,146 $ (121,850,674) $ (153,515)
Shares, Issued at Dec. 31, 2023   200,130,920      
v3.24.0.1
1. Organization, Description of Business, and Basis of Accounting
 6 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
1. Organization, Description of Business, and Basis of Accounting

1.        Organization, Description of Business, and Basis of Accounting

 

Business Organization

 

Petro USA, Inc. formerly All State Properties Holdings, Inc., a corporation (the "Company") was organized under the state of Nevada on April 24, 2008 to conduct business formerly carried on by its predecessor partnership, All State Properties L.P. (the "Partnership"). The Partnership merged with the Company on May 29, 2008. The Company acquired all of the assets and assumed all of the liabilities and obligations of the Partnership. At May 29, 2008 each unit, par value $0.001 per share of the Partnership was converted into one issued and outstanding share of par value $0.0001 common stock of the Corporation. On December 18, 2020, All State Properties Holdings, Inc. changed its name to Petro USA, Inc.

 

The Company's fiscal year end is June 30th.

 

Accounting Basis

 

These financial statements have been prepared on the accrual basis of accounting following generally accepted accounting principles of the United States of America (“U.S. GAAP”) consistently applied.

 

The accompanying unaudited condensed interim financial statements and related notes have been prepared in accordance with U.S. GAAP for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These unaudited condensed interim financial statements should be read in conjunction with the financial statements of the Company for the year ended June 30, 2023 and notes thereto contained in our 10-K Annual Report

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent. Actual results could differ from those estimates.

 

Income Taxes

 

The Company uses the asset and liability method of accounting for income taxes. At December 31, 2023 and June 30, 2023, respectively, the deferred tax asset and deferred tax liability accounts as recorded when material to the financial statements, are entirely the result of temporary and permanent differences. Temporary differences represent differences in the recognition of assets and liabilities for tax and financial reporting purposes, primarily share based compensation and loss on settlement of debt.

.

 

As of December 31, 2023, the deferred tax asset related to the Company's net operating loss (NOL) carry forward is fully reserved.  Due to the provisions of Internal Revenue Code Section 338, the Company may have no net operating loss carryforwards available to offset financial statement or tax return taxable income in future periods as a result of a change in control involving 50 percentage points or more of the issued and outstanding securities of the Company.

 

Dividends

 

The Company and has not yet adopted a policy regarding the payment of dividends.

 

Fair Value of Financial Instruments

 

The carrying value of cash, accounts payable and amounts due to related party approximates its fair value because of the short maturity of these instruments.  Unless otherwise noted, it is management's opinion the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.

 

The Company accounts for financial instruments in accordance with the Financial Accounting Standard Board's Accounting Standards Codification Topic 820 – Fair Value Measurements and Disclosures ("ASC 820"), which establishes a framework for measuring fair value and expands disclosure of fair value measurements. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, this policy established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

The following table presents assets that are measured and recognized at fair value on a non-recurring basis:

 

Level 1: None

Level 2: None

Level 3: None

 

Earnings (Loss) per Share

 

Basic earnings (loss) per share is computed by dividing the net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the respective period presented in our accompanying financial statements.

 

Fully diluted earnings (loss) per share is computed similar to basic income (loss) per share except that the denominator is increased to include the number of common stock equivalents (primarily outstanding options and warrants).

 

Common stock equivalents represent the dilutive effect of the assumed exercise of outstanding stock options and warrants, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Company’s net income (loss) position at the calculation date.

 

As of December 31, 2023, and June 30, 2023, the Company has no issued and outstanding warrants or options.

 
v3.24.0.1
2. Going Concern
 6 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
2. Going Concern

2.        Going Concern

 

The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. However, the Company has incurred significant losses and is dependent on obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain the necessary funding it could cease operations as a new enterprise. This raises substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements.  These financial statements do not include any adjustments that might result from this uncertainty.

 

 

 

 

 
v3.24.0.1
3. Capital Stock
 6 Months Ended
Dec. 31, 2023
Equity [Abstract]  
3. Capital Stock

3.        Capital Stock

 

The Company has 10,000,000 shares of Preferred Stock authorized at a par value of $0.0001 and none has been issued at December 31, 2022 and June 30, 2023.

 

At December 31, 2023 the company had 200,130,920 common shares issued and outstanding. At June 30, 2022, the company had 200,030,920 common shares issued and outstanding. On October 3, 2023, the company issued 100,000 common share for services rendered.

 

The Company has no other classes of shares authorized for issuance. At December 31, 2023, and June 30, 2023, there were no outstanding stock options or warrants.

 
v3.24.0.1
4. Related Party Transactions
 6 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
4. Related Party Transactions

4.       Related Party Transactions

 

The Amounts due to related parties are advances from a company controlled by the Company's Chief Executive Officer in order to pay operating expenses of the Company. These advances are non-interest bearing and payable upon demand. 

 
v3.24.0.1
5. Subsequent Events
 6 Months Ended
Dec. 31, 2023
Subsequent Events [Abstract]  
5. Subsequent Events

5.       Subsequent Events

 

None.
v3.24.0.1
1. Organization, Description of Business, and Basis of Accounting (Policies)
 6 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Business Organization

Business Organization

 

Petro USA, Inc. formerly All State Properties Holdings, Inc., a corporation (the "Company") was organized under the state of Nevada on April 24, 2008 to conduct business formerly carried on by its predecessor partnership, All State Properties L.P. (the "Partnership"). The Partnership merged with the Company on May 29, 2008. The Company acquired all of the assets and assumed all of the liabilities and obligations of the Partnership. At May 29, 2008 each unit, par value $0.001 per share of the Partnership was converted into one issued and outstanding share of par value $0.0001 common stock of the Corporation. On December 18, 2020, All State Properties Holdings, Inc. changed its name to Petro USA, Inc.

 

The Company's fiscal year end is June 30th.

 
Accounting Basis

Accounting Basis

 

These financial statements have been prepared on the accrual basis of accounting following generally accepted accounting principles of the United States of America (“U.S. GAAP”) consistently applied.

 

The accompanying unaudited condensed interim financial statements and related notes have been prepared in accordance with U.S. GAAP for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These unaudited condensed interim financial statements should be read in conjunction with the financial statements of the Company for the year ended June 30, 2023 and notes thereto contained in our 10-K Annual Report

 
Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent. Actual results could differ from those estimates.

 
Income Taxes

Income Taxes

 

The Company uses the asset and liability method of accounting for income taxes. At December 31, 2023 and June 30, 2023, respectively, the deferred tax asset and deferred tax liability accounts as recorded when material to the financial statements, are entirely the result of temporary and permanent differences. Temporary differences represent differences in the recognition of assets and liabilities for tax and financial reporting purposes, primarily share based compensation and loss on settlement of debt.

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As of December 31, 2023, the deferred tax asset related to the Company's net operating loss (NOL) carry forward is fully reserved.  Due to the provisions of Internal Revenue Code Section 338, the Company may have no net operating loss carryforwards available to offset financial statement or tax return taxable income in future periods as a result of a change in control involving 50 percentage points or more of the issued and outstanding securities of the Company.

 
Dividends

Dividends

 

The Company and has not yet adopted a policy regarding the payment of dividends.

 
Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

The carrying value of cash, accounts payable and amounts due to related party approximates its fair value because of the short maturity of these instruments.  Unless otherwise noted, it is management's opinion the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.

 

The Company accounts for financial instruments in accordance with the Financial Accounting Standard Board's Accounting Standards Codification Topic 820 – Fair Value Measurements and Disclosures ("ASC 820"), which establishes a framework for measuring fair value and expands disclosure of fair value measurements. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, this policy established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

The following table presents assets that are measured and recognized at fair value on a non-recurring basis:

 

Level 1: None

Level 2: None

Level 3: None

 
Earnings (Loss) per Share

Earnings (Loss) per Share

 

Basic earnings (loss) per share is computed by dividing the net income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the respective period presented in our accompanying financial statements.

 

Fully diluted earnings (loss) per share is computed similar to basic income (loss) per share except that the denominator is increased to include the number of common stock equivalents (primarily outstanding options and warrants).

 

Common stock equivalents represent the dilutive effect of the assumed exercise of outstanding stock options and warrants, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Company’s net income (loss) position at the calculation date.

 

As of December 31, 2023, and June 30, 2023, the Company has no issued and outstanding warrants or options.

 
v3.24.0.1
3. Capital Stock (Details Narrative) - $ / shares
 3 Months Ended
Dec. 31, 2023
Jun. 30, 2023
Dec. 31, 2022
Equity [Abstract]      
Preferred Stock, Shares Authorized 10,000,000 10,000,000 10,000,000
Preferred Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001 $ 0.0001
Common Stock, Shares, Outstanding 200,130,920 200,030,920  
Stock Issued During Period, Shares, Issued for Services 100,000    
Petro USA (CE) (USOTC:PBAJ)
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