GulfStar Energy Corp

CIK:0001434702|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended		65 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011
Income Statement [Abstract]
Net revenues	$ 34,776	$ 32,007	$ 117,143	$ 69,310	$ 218,420
Cost of sales	6,323	16,500	22,551	27,842	59,393
Gross profit	28,453	15,507	94,592	41,468	159,027
Operating expenses:
General and administrative expense	445,486	483,336	1,458,224	1,108,536	6,213,972
Goodwill impairment	0	0	368,369	0	368,369
Total operating expenses	445,486	483,336	1,826,593	1,108,536	6,582,341
Loss from operations	(417,033)	(467,829)	(1,732,001)	(1,067,068)	(6,423,314)
Other income (expense):
Other income	5,246	778	1,239,936	234,131	1,488,544
Other expense	(4,566)	0	(7,207)	0	(246,464)
Total other income (expense)	680	778	1,232,729	234,131	1,242,080
Loss before income taxes	(416,353)	(467,051)	(499,272)	(832,937)	(5,181,234)
Income taxes	0	0	0	0	0
Net loss	(416,353)	(467,051)	(499,272)	(832,937)	(5,181,234)
Net loss attributable to the non-controlling interest	153,774	114,412	124,420	114,412	473,679
Net loss attributable to Common stockholders	$ (262,579)	$ (352,639)	$ (374,852)	$ (718,525)	$ (4,707,555)
Basic and diluted net income (loss) per common share	$ (0.02)	$ (0.02)	$ (0.02)	$ (0.05)
Weighted average number of common shares outstanding	11,353,012	15,983,209	15,036,209	13,239,794

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended		65 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011
OPERATING ACTIVITIES
Net loss attributable to Common stockholders	$ (374,852)	$ (718,525)	$ (4,707,555)
Adjustments to reconcile net (loss) to net cash flows (used in) operating activities:
Non-controlling interest	(124,420)	(114,412)	(473,679)
Non-cash transfer of related party note receivable	0	82,325	82,325
Non-cash issuance of equity for services	24,500	0	356,065
Depreciation	173,315	126,238	356,864
Gain on disposal of equipment	(6,101)	0	(6,101)
Non-cash gain on settlement	(929,744)	0	(929,744)
Non-cash gain on reduction of note payable to related party	(303,804)	0	(303,804)
Impairment loss of goodwill	368,369	0	368,369
Changes in:
Account receivable	(31,843)	0	(65,496)
Prepaids and other assets	18,183	(458,646)	(15,477)
Litigation settlement payable	(15,000)	(40,000)	0
Accounts payable and accrued liabilities	16,115	114,916	1,131,611
Net cash used in operating activities	(1,185,282)	(1,008,104)	(4,206,622)
INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(113,596)	(686,003)	(4,701,459)
Acquisition of Talon Energy Corporation, cash acquired	0	76,977	76,977
Collection of note receivable	0	(793)	0
Issuance of related party note receivable	0	0	(82,325)
Proceeds from sale of equipment	34,500	0	34,500
Expenditures for intangible assets	0	0	(170,874)
Net cash used in investing activities	(79,096)	(609,819)	(4,843,181)
FINANCING ACTIVITIES
Issuance of shares and member contributions	1,304,532	1,236,775	8,962,314
Redemption of shares	0	(54,347)	(141,636)
Proceeds from short term notes payable, net of repayments	30,233	30,000	30,233
Proceeds from related party loan payable, net of repayments	7,882	0	342,960
Net cash provided by financing activities	1,342,647	1,212,428	9,193,871
NET CHANGE IN CASH	78,269	(405,495)	144,068
CASH, Beginning	65,799	645,622
CASH, Ending	144,068	240,127	144,068
NON CASH ACTIVITIES:
Issuance of 50,000 shares of Gulfstar LLC member interest for PP&E	99,500	0	99,500
Issuance of 223,378 shares to reduce note payable to related party	335,078	0	335,078
Conversion of accounts payable to debt	$ 735,020	$ 0	$ 735,020

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 144,068	$ 65,799
Accounts receivable	106,379	33,653
Prepaids and other assets	15,477	33,660
Total current assets	265,924	133,112
Property, plant and equipment, net	4,391,196	4,404,314
Goodwill	0	368,369
Intangible assets	170,874	170,874
Total other assets	170,874	539,243
Total assets	4,827,994	5,076,669
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	80,172	936,418
Litigation settlement payment	0	15,000
Oil and gas proceeds due to others	40,883	33,477
Notes payable, related party	7,882	335,078
Notes payable	30,233	0
Accrued liabilities	659,183	488,380
Total current liabilities	818,353	1,808,353
Note payable, non current	735,035	0
Total liabilities	1,553,388	1,808,353
STOCKHOLDERS' EQUITY
Preferred shares, no par value, 100,000,000 shares authorized; no shares issued and outstanding	0	0
Common shares, $0.001 par value, 200,000,000 shares authorized; 8,159,138 shares issued and 11,499,479 outstanding at September 30, 2011 and 16,985,086 shares issued and outstanding at December 31, 2010	18,159	16,985
Additional paid in capital	7,625,267	6,296,863
Treasury shares - 6,659,659 shares at cost	(929,744)	0
Accumulated deficit	(4,707,555)	(4,332,703)
Stockholders' equity before non-controlling interest	2,006,127	1,981,145
Non-controlling interest	1,268,479	1,287,171
Total stockholders' equity	3,274,606	3,268,316
Total liabilities and stockholders' equity	$ 4,827,994	$ 5,076,669