WEB NEWS Comments & Business Outlook
CN RESOURCES INC.
Consolidated Statements of Operations & Comprehensive Loss
(Unaudited)
For the Three Months Ended
For the Nine Months Ended
February 29
February 28
February 29
February 28
2016
2015
2016
2015
Revenue
Revenue (net of royalty)
$
9,821
$
11,837
$
53,774
$
151,693
Operating expenses
Bank service charge and bad debt
102
79
205
176
Production and operating expenses
5,820
19,510
17,148
32,383
Depreciation and depletion
-
19,754
-
63,334
Management fee
6,000
6,000
18,000
18,000
Professional fees
8,250
39,396
25,760
59,456
Regulatory filing
2,031
3,200
11,160
16,447
General and administrative expenses
9,000
8,845
27,546
31,608
Total operating expenses
31,203
96,784
99,819
221,404
Operating loss
(21,382
)
(84,947
)
(46,045
)
(69,711
)
Interest income
30
44,057
$
3,591
44,058
Net loss for the period
(21,351
)
(40,890
)
$
(42,454
)
(25,653
)
Loss per common share - basic and diluted
$
(0.00
)
(0.00
)
$
(0.00
)
(0.00
)
Comprehensive income:
Net loss
(21,351
)
(40,890
)
(42,454
)
(25,653
)
Foreign currency translation adjustment
(73,360
)
(449,752
)
(379,456
)
(449,752
)
Total comprehensive loss
$
(94,711
)
$
(490,642
)
(421,910
)
$
(475,405
)
Weighted average common shares outstanding - basic and diluted
56,100,000
56,100,000
56,100,000
56,100,000
Comments & Business Outlook
CN RESOURCES INC.
(Unaudited)
For the Three Months Ended
For the Six Months Ended
November 30,
November 30,
November 30,
November 30,
2015
2014
2015
2014
Revenue
Revenue (net of royalty)
$
19,898
$
49,200
$
43,952
$
139,857
Operating expenses
Accretion expenses
273
156
546
386
Bank service charge
49
92
103
97
Management fee
6,000
6,000
12,000
12,000
Production and operating expenses
7,687
5,345
11,328
12,879
Professional fees
10,510
15,700
17,510
20,060
Depreciation and depletion expense
-
8,511
-
43,580
General and administrative expenses
9,000
13,377
18,000
22,377
Regulatory filing
2,158
10,650
10,208
13,247
Total operating expenses
35,677
59,831
69,695
124,626
Operating income (loss)
(15,779
)
(10,631
)
(25,743
)
15,231
Interest income
2,592
-
3,561
-
Net income (loss)
$
(13,187
)
$
(10,631
)
$
(22,182
)
$
15,231
Loss per common share - basic and diluted
$
(0.00
)
$
(0.00
)
$
(0.00
)
$
0.00
Comprehensive income:
Net income (loss)
$
(13,187
)
$
(10,631
)
$
(22,182
)
$
15,231
Foreign currency translation adjustment
(28,807
)
-
(306,096
)
-
Total comprehensive income (loss)
(41,994
)
(10,631
)
(328,278
)
15,231
Weighted average common shares
outstanding - basic and diluted
56,100,000
56,100,000
56,100,000
56,100,000
Comments & Business Outlook
CN RESOURCES INC.
Statements of Operations and Comprehensive Loss
(Unaudited)
For the Three Months Ended
August 31
August 31
2015
2014
Revenue
Oil production (net of royality)
$
24,054
$
90,657
Operating expenses
Accretion expenses
273
230
Bank service charge
54
5
Production cost
3,641
7,534
Depreciation and depletion
-
35,069
General and administrative expenses
9,000
9,000
Management fee
6,000
6,000
Professional fees
7,000
4,360
Regulatory filing
8,050
2,597
Total operating expenses
34,018
64,795
Interest income
969
-
Net income (loss) for the period
$
(8,995
)
$
25,862
Loss per common share - basic and diluted
$
(0.00
)
$
0.00
Comprehensive income:
Net income (loss)
$
(8,995
)
$
25,862
Foreign currency translation adjustment
(277,289
)
-
Total comprehensive income (loss)
(286,284
)
25,862
Weighted average common shares outstanding - basic and diluted
56,100,000
56,100,000
Comments & Business Outlook
CN RESOURCES INC.
Statements of Operations
For the year
For the year
ended
ended
May 31,
May 31,
Revenue
Oil production (net of royalty)
$
174,336
$
203,265
Operating expenses
Bank service charge
185
358
Depreciation, depletion and accretion
86,994
63,475
Impairment
404,024
-
Management fee
24,000
24,000
Production cost
37,893
52,011
Professional fees
67,156
15,778
Regulatory filing
18,269
12,289
General and administrative expenses
40,566
39,136
Total operating expenses
$
679,087
$
256,461
Interest income
44,058
-
Net (loss)
$
(460,693
)
$
(3,782
)
Loss per common share - basic and diluted
$
(0.01
)
$
(0.00
)
Weighted average common shares outstanding - basic and diluted
56,100,000
26,346,575
Comprehensive loss
Net loss
$
(460,693
)
$
(3,782
)
Foreign currency translation adjustment
(559,076
)
-
Total comprehensive loss
$
(1,019,769
)
$
(3,782
)
Management Discussion and Analysis
For the year ended May 31, 2015, revenues totaled $222,380 compared to $252,679 nil in the prior year. Operating loss was $460,693 compared to operating loss of $3,782 in the prior year. The changes are due to the fact that the crude oil price has dropped substantially and production decreased as well.
Comments & Business Outlook
Statements of Operations
(Unaudited)
For the Three
For the Nine
February 28
February 28
February 28
February 28
2015
2014
2015
2014
Revenue, net of royalty
$
11,837
$
83,336
$
151,693
$
114,371
Operating expenses
Bank service charge and bad debt
79
98
176
234
Depreciation and depletion
19,754
3,770
63,334
6,283
Management fee
6,000
6,000
18,000
18,000
Production cost
19,510
30,069
32,383
36,639
Professional fees
39,396
3,200
59,456
13,378
Regulatory filing
3,200
2,859
16,447
2,859
General and administrative expenses
8,845
9,274
31,608
27,824
Total operating expenses
96,784
55,270
221,404
105,217
Foreign Exchange Gain/(Loss)
(449,752
)
(713
)
(449,752
)
(713
)
Interest income
$
44,058
$
-
$
44,058
$
-
Net income (loss) for the period
$
(490,642
)
$
27,354
$
(475,405
)
$
8,441
Income (Loss) per common share - basic and diluted
$
(0.01
)
$
0.00
$
(0.01
)
$
0.00
Weighted average common shares outstanding - basic and diluted
56,100,000
26,100,000
56,100,000
26,100,000
Managment Discussion and Analysis
Results of Operations
Oil and gas industry has experienced a substantial decline in crude oil prices, as a result, many small leveraged oil and gas companies are struggling in meeting its lenders demand. For the past Quarter ended February 28, 2015, the Company has taken the opportunity of low oil price to perform the necessary maintenance and repair works for the joint venture well. As a result, the production is significantly reduced and resulted in a small loss.
For the Quarter ended February 28, 2015, the company only produced 420 barrels of crude oil, and resulted in an operating loss $7,673. For the nine months ended February 28, 2015, we achieved an operating income of $119,305. Due to significant decrease in Canadian dollar against United States dollars and all our operations are in Canadian dollars, we had an unrealized foreign currency loss of $449,752.
Comments & Business Outlook
Statements of Expenses
(Unaudited)
For the Three Months Ended
For the Six Months Ended
November 30,
November 30,
November 30,
November 30,
2014
2013
2014
2013
Revenue
$
63,671
$
41,035
$
178,738
$
41,035
Royalty
14,471
-
38,881
-
Cost of production
5,345
16,571
12,879
16,571
19,816
16,571
51,760
16,571
Gross profit
43,855
24,464
126,978
24,464
Operating expenses
Accretion Expense
156
-
386
-
Bank service charge
92
87
97
136
Management fee
6,000
6,000
12,000
12,000
Professional fees
15,700
8,178
20,060
10,178
Depreciation and depletion expense
8,511
2,513
43,580
2,513
General and administrative expenses
13,377
9,000
22,377
18,550
Regulatory filing
10,650
-
13,247
-
Total operating expenses
54,486
25,778
111,747
43,377
Operating income (loss)
(10,631
)
(1,314
)
15,231
(18,914
)
Net income (loss)
$
(10,631
)
$
(1,314
)
$
15,231
$
(18,914
)
Loss per common share - basic and diluted
$
(0.00
)
$
(0.00
)
$
0.00
$
(0.00
)
Weighted average common shares outstanding - basic and diluted
56,100,000
26,100,000
56,100,000
26,100,000
Management Discussion and Analysis
Comments & Business Outlook
CN RESOURCES INC.
Statements of Operations
(Unaudited)
For the Three Months Ended
August 31
August 31
2014
2013
Revenue
Oil production
$
115,067
-
Cost of sales
Royalties
24,410
-
Cost of production
7,534
-
$
31,944
-
Gross Profit
$
83,123
$
-
Accretion expenses
230
Bank service charge
5
49
Depreciation and depletion
35,069
-
General and administrative expenses
9,000
9,550
Management fee
6,000
6,000
Professional fees
4,360
2,000
Regulatory filing
2,597
-
Total operating expenses
57,261
17,599
Net income (loss) for the period
$
25,862
$
(17,599
)
Loss per common share - basic and diluted
$
0.00
$
(0.00
)
Weighted average common shares
outstanding - basic and diluted
56,100,000
26,100,000
Management Discussion and Analysis
N/A
Comments & Business Outlook
For the year
For the year
ended
ended
May 31, 2014
May 31, 2013
Revenue
Oil production
$ 252,679 $ -
Cost of sales
Royalties
49,414 -
Cost of production
52,011 -
$ 101,425 $ -
Gross profit
$ 151,254 $ -
Operating expenses
Advertising
$ - $ 10,030
Bank service charge
358 6
Depreciation, depletion and accretion
63,475
Management fee
24,000 24,000
Professional fees
15,778 13,953
Regulatory filing
12,289 -
Bad debt expenses
- 11,970
General and administrative expenses
39,136 50,602
Total operating expenses
$ 155,036 $ 110,561
Interest income
- 18,051
Net (loss)
$ (3,782 ) $ (92,510 )
Loss per common share - basic and diluted
$ (0.00 ) $ (0.00 )
Weighted average common shares
outstanding - basic and diluted
26,346,575 26,100,000
Management Discussoin and Analysis
Revenues for the year ended May 31, 2014 totaled $252,679, compared to $nil in the prior year period, the increase is due to the Company commended production of its joint venture well in 2014 fiscal year.
