Cardinal Energy Group, Inc.

CIK:0001408351|SEC Filings

Consolidated Statements of Operations and Other Comprehensive Loss - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
REVENUES
Oil and gas revenues	$ 1,416	$ 47,057
Operating income from escrowed property - related party		250,000
Related party income from contract development operations		621,508
Total Revenues from Operations	1,416	918,565
COSTS & OPERATING EXPENSES
Operating and production costs	35,767	74,281
Costs of contract development operations	853	331,010
Depreciation	49,760	63,294
Impairment	372,513	2,654,824
General and administrative	856,654	1,568,506
Total Operating Expenses	1,315,547	4,691,915
OPERATING LOSS	(1,314,131)	(3,773,350)
OTHER INCOME (EXPENSES)
Other income	8,138	20,076
Gain (loss) on extinguishment of debt	(987,422)	27,373
Gain (loss) on retirement of assets	51,188	(6,774)
Gain (loss) from equity investment	(1,511)
Amortization of debt discount	(207,052)	(1,302,701)
Interest expense, net	(2,033,474)	(4,287,205)
Gain (loss) on change in the fair value of derivative liability	(21,377,793)	709,219
Total Other Expenses	(24,547,926)	(4,840,012)
NET LOSS	(25,862,057)	(8,613,362)
OTHER COMPREHENSIVE LOSS
Change in value of investments	(12,320)	(38,500)
NET COMPREHENSIVE LOSS	$ (25,874,377)	$ (8,651,862)
Loss per share of common stock (basic and diluted)	$ (0.25)	$ (0.18)
Weighted average shares outstanding	104,139,831	48,059,554

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (25,862,057)	$ (8,613,362)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property and equipment	49,760	63,294
Write off of subscription receivable		3,500
Accretion/depreciation of ARO liabilility/asset	16,394	14,987
Amortization of debt discount	207,052	1,302,701
Impairment	372,513	2,654,824
Stock based compensation	160,000	216,516
Amortization of prepaid debt issuance costs	26,275	429,826
(Gain) loss on extinguishment of debt	987,422	(27,373)
(Gain) loss from equity investment	1,511
(Gain) loss on change in fair value of derivative liability	21,377,793	(709,219)
Non-cash interest expense related to derivative liability		2,577,683
Non-cash interest expense, defaults fees and charges included in principal amount of notes		578,141
(Gain) loss on sale of property and equipment	1,043	6,774
(Gain) loss on debt conversion	(8,433)
(Gain) loss on derecognition of ARO	(52,231)
Stock issued for interest expense		119,500
Changes in operating assets and liabilities:
Accounts receivable - related party	56,788	44,288
Receivables	(15,000)	10,453
Prepaid expenses		(6,157)
Other assets	6,100	17,655
Accounts payable and accrued liabilities	391,615	493,602
Accrued interest	2,033,475
Accrued legal settlement		(100,000)
Net Cash used in Operating Activities	(241,547)	(922,367)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property and equipment	146,000
Cash paid for equity investment	(100)
Purchase of property and equipment		(3,511)
Purchase of oil and gas properties		(16,464)
Credit refunds against purchases of oil and gas properties		50,000
Net Cash Provided by Investing Activities	145,900	30,025
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of equipment purchase contracts payable	(5,058)	(13,302)
Net proceeds from issuance of convertible notes and loans payable	91,000	1,084,568
Repayment of convertible notes and loan payable	(13,257)	(270,167)
Net Cash Provided by Financing Activities	72,685	801,099
NET DECREASE IN CASH	(22,962)	(91,243)
CASH AT BEGINNING OF YEAR	24,155	115,398
CASH AT END OF YEAR	1,193	24,155
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest	13,257	22,295
Income Taxes
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Unrealized (loss) gain on available-for-sale-securities	12,320	(38,500)
Reduction in note payable for reduction in purchase price of oil properties		340,000
Derivative liability on convertible notes payable and warrants at inception		3,508,864
ARO estimate on assets purchased (reduction for sale of oil and gas properties)		(78,152)
Extinguishment of derivative liability		826,901
Common stock issued for conversion and extinguishment of debt	143,778	620,607
Original issue discount on convertible note payable		118,280
Settlement of equipment purchase payable upon sale of asset		28,000
Receivable exchanged for investment	$ 123,924

Consolidated Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash	$ 1,193	$ 24,155
Accounts receivable - related party		180,712
Notes receivable - short term	15,000
Investments in marketable securities	18,480	30,800
Total Current Assets	34,673	235,667
PROPERTY AND EQUIPMENT, net	47,275	244,078
OIL AND GAS PROPERTIES (full cost method)
Unproved properties		310,226
OTHER ASSETS
Deposits and deferred charges	50,000	56,100
TOTAL ASSETS	131,948	846,071
CURRENT LIABILITIES
Accounts payable and accrued expenses	635,701	908,066
Current portion of long term senior secured convertible promissory notes, net of debt discount of $-0- and $-0-, respectively	5,580,000	4,500,000
Convertible notes, net of unamortized debt discount and debt issuance costs of $6,201 and $148,036, respectively	2,772,434	1,040,951
Loan payable, net of debt discount of $0 and $36,759, respectively	271,707	119,584
Derivative liability	23,716,831	2,355,580
Equipment purchase contracts payable - current portion	51,168	13,721
Total Current Liabilities	33,027,841	8,937,902
LONG-TERM LIABILITIES
Convertible notes, net of unamortized debt discount and debt issuance costs of $-0- and $58,403 respectively		82,317
Equipment purchase contracts payable - long term portion		42,505
Asset retirement obligation		96,063
Total Long-Term Liabilities		220,885
TOTAL LIABILITIES	33,027,841	9,158,787
Commitments and contingencies
STOCKHOLDERS' DEFICIT
Series A Preferred stock, 1,000,000 shares authorized at par value of $0.00001; 1,000,000 shares issued and outstanding.	10	10
Common stock, 1,000,000,000 and 100,000,000 shares authorized at par value of $0.00001, respectively; 391,037,557 and 84,374,961 shares issued; 387,937,557 and 81,274,961 shares outstanding, respectively	3,880	813
Additional paid-in capital	11,129,848	9,841,715
Treasury stock	(2,013,380)	(2,013,380)
Accumulated other comprehensive loss	(2,199,120)	(2,186,800)
Accumulated deficit	(39,817,131)	(13,955,074)
TOTAL STOCKHOLDERS' DEFICIT	(32,895,893)	(8,312,716)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 131,948	$ 846,071