Certain information and footnote disclosures required under accounting
principles generally accepted in the United States of America have been
condensed or omitted from the following consolidated financial statements
pursuant to the rules and regulations of the Securities and Exchange Commission.
It is suggested that the following consolidated financial statements be read in
conjunction with the year-end consolidated financial statements and notes
thereto included in the Company's Annual Report on Form 10-K for the year ended
December 31, 2013.
The results of operations for the three months ended March 31, 2014 and 2013 are
not necessarily indicative of the results for the entire fiscal year or for any
other period.
Notes to Unaudited Consolidated Financial Statements
March 31, 2014
NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION
Chancellor Group, Inc. (the "Company", "our", "we", "Chancellor" or the
"Company") was incorporated in the state of Utah on May 2, 1986, and then, on
December 30, 1993, dissolved as a Utah corporation and reincorporated as a
Nevada corporation. The Company's primary business purpose is to engage in the
acquisition, exploration and development of oil and gas production. On March 26,
1996, the Company's corporate name was changed from Nighthawk Capital, Inc. to
Chancellor Group, Inc. During early 2012, the Company's corporate office was
moved from Pampa to Amarillo, Texas.
On November 16, 2012, a certificate of incorporation was filed with the state of
Delaware for the formation of Pimovi, Inc. ("Pimovi"), a new majority-owned
subsidiary of Chancellor, and with which separate company financial statements
are consolidated with Chancellor's consolidated financial statements beginning
for the fourth quarter of 2012. Chancellor owns 61% of the equity of Pimovi in
the form of Series A Preferred Stock, therefore Chancellor maintains significant
financial control. As of March 31, 2014, Pimovi had not commenced principal
operations and had no sales or revenues, therefore Pimovi is considered a
"development-stage enterprise". The primary business purpose of Pimovi relates
largely to technology and mobile application fields, including development of
proprietary consumer algorithms, creating user photographic and other activity
records, First Person Video Feeds and other such activities related to mobile
and computer gaming.
On August 15, 2013, Chancellor Group, Inc. entered into a binding term sheet
(the "Term Sheet") with The Fuelist, LLC, a California limited liability company
("Fuelist"), and its founders, Matthew Hamilton, Eric Maas and Thomas Rand-Nash
(together, the "Founders"), pursuant to which Chancellor agreed to acquire a 51%
ownership interest in Fuelist. As consideration for the ownership interest,
Chancellor contributed to Fuelist a total of $271,200 in cash. As additional
consideration for the ownership interest, Chancellor contributed a total of
2,000,000 shares of newly issued common stock to Fuelist on August 19, 2013,
valued at $156,000, or $0.078 per share. As of March 31, 2014, Fuelist had not
commenced principal operations and had no sales or operating revenues through
March 31, 2014, therefore Fuelist is considered a "development-stage
enterprise". The primary purpose of Fuelist is the development of a data-driven
mobile and web technology platform that leverages extensive segment expertise
and big data analysis tools to value classic vehicles. These tools will enable
users to quickly find values, track valuations over time, and to identify
investment and arbitrage opportunities in this lucrative market.
GOING CONCERN
These consolidated financial statements have been prepared on the basis of a
going concern, which contemplates the realization of assets and satisfaction of
liabilities in the normal course of business. The Company has had continued net
operating losses with net losses attributable to Chancellor Group, Inc.
shareholders of $216,649 and $225,242 for the three months ended March 31, 2014
and 2013, respectively, and retained earnings deficits of $2,990,308 and
$2,773,659 as of March 31, 2014 and December 31, 2013, respectively. The
Company's continued operations are dependent on the successful implementation of
its business plan and its ability to obtain additional financing as needed. The
accompanying consolidated financial statements do not include any adjustments
that might be necessary if the Company is unable to continue as a going concern.
OPERATIONS
The Company is licensed by the Texas Railroad Commission as an oil and gas
producer and operator. The Company and its wholly-owned subsidiaries, Gryphon
Production Company, LLC and Gryphon Field Services, LLC, own 5 wells in Gray
County, Texas, of which 1 is a water disposal well. As of March 31, 2014,
approximately 4 oil wells are actively producing.
7
We produced a total of 248 barrels of oil in the three months ended March 31,
2014. The oil is light sweet crude.
Both Pimovi and Fuelist were development stage enterprises as of March 31, 2014,
with no significant operations other than the ongoing development of their
respective technologies as described above.
SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION
The consolidated financial statements of Chancellor Group, Inc. have been
prepared pursuant to the rules and regulations of the SEC for Quarterly Reports
on Form 10-Q and in accordance with US GAAP. Accordingly, these consolidated
financial statements do not include all of the information and footnotes
required by US GAAP for annual consolidated financial statements. These
consolidated financial statements should be read in conjunction with the
consolidated financial statements and notes in the Chancellor Group, Inc. Annual
Report on Form 10-K for the year ended December 31, 2013.
These accompanying consolidated financial statements include the accounts of
Chancellor and its wholly-owned subsidiaries: Gryphon Production Company, LLC,
and Gryphon Field Services, LLC. These entities are collectively hereinafter
referred to as "the Company". The accompanying consolidated financial statements
include the accounts of Chancellor's majority-owned subsidiary, Pimovi, Inc.,
with which Chancellor owns 61% of the equity of Pimovi and maintains significant
financial control. Beginning in the third quarter 2013, the accompanying
consolidated financial statements also include The Fuelist, LLC, which
Chancellor acquired 51% of the equity of Fuelist and maintains significant
financial control. All material intercompany accounts and transactions have been
eliminated in the consolidated financial statements.
The consolidated financial statements are unaudited, but, in management's
opinion, include all adjustments (which, unless otherwise noted, include only
normal recurring adjustments) necessary for a fair presentation of such
financial statements. Financial results for this interim period are not
necessarily indicative of results that may be expected for any other interim
period or for the year ending December 31, 2014.
ACCOUNTING YEAR
The Company employs a calendar accounting year. The Company recognizes income
and expenses based on the accrual method of accounting under generally accepted
accounting principles.
USE OF ESTIMATES
The preparation of consolidated financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect reported amounts of assets and liabilities and
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 period. Actual results could differ from those estimates.
PRODUCTS AND SERVICES, GEOGRAPHIC AREAS AND MAJOR CUSTOMERS
For our oil segment, the Company has no plans at this stage to further develop
its producing domestic oil properties, located in Gray County, Texas. The
Company's major customers, to which substantially all oil production is sold are
Plains Marketing, ExxonMobil, and XTO Energy. Given the number of readily
available purchasers for our products, it is unlikely that the loss of a single
customer in the areas in which we sell our products would materially affect our
sales. For our technology segment, the Company plans to continue developing its
web-based and mobile technology platforms for its two majority-owned
subsidiaries, Pimovi, Inc. and Fuelist, LLC.
NET LOSS PER SHARE
The net loss per share is computed by dividing the net loss by the weighted
average number of shares of common outstanding. Warrants, stock options, and
common stock issuable upon the conversion of the Company's preferred stock (if
8
any), are not included in the computation if the effect would be anti-dilutive
and would increase the earnings or decrease loss per share.
CASH AND CASH EQUIVALENTS
The Company considers all highly liquid investments with an original maturity of
three months or less as cash equivalents.
CONCENTRATION OF CREDIT RISK
Some of the Company's operating cash balances are maintained in accounts that
currently exceed federally insured limits. The Company believes that the
financial strength of depositing institutions mitigates the underlying risk of
loss. To date, these concentrations of credit risk have not had a significant
impact on the Company's financial position or results of operations.
RESTRICTED CASH
Included in restricted cash at March 31, 2014 and December 31, 2013 are deposits
totaling $25,000, in the form of a bond issued to the Railroad Commission of
Texas as required for the Company's oil and gas activities which is renewed
annually.
ACCOUNTS RECEIVABLE
The Company reviews accounts receivable periodically for collectability,
establishes an allowance for doubtful accounts and records bad debt expense when
deemed necessary. Based on review of accounts receivable by management at period
end, including credit quality and subsequent collections from customers, an
allowance for doubtful accounts was not considered necessary or recorded at
March 31, 2014 or December 31, 2013.
PREPAID EXPENSES
Certain expenses, primarily consulting fees, have been prepaid and will be used
within one year.
GOODWILL
Goodwill represents the cost in excess of the fair value of net assets of the
acquisition. Goodwill is not amortized but is subject to periodic testing for
impairment. The Company tests goodwill for impairment using a two-step process.
The first step tests for potential impairment, while the second step measures
the amount of the impairment, if any. The Company performs the annual impairment
test during the last quarter of each year. As of March 31, 2014, we determined
there was no impairment of our goodwill.
PROPERTY AND DEPRECIATION
Property and equipment are recorded at cost and depreciated under the
straight-line method over the estimated useful life of the assets. The estimated
useful life of leasehold costs, equipment and tools ranges from five to seven
years. Equipment is depreciated over the estimated useful lives of the assets,
which ranged from 5 to 7 years, using the straight-line method.
OIL AND GAS PROPERTIES
The Company follows the successful efforts method of accounting for its oil and
gas activities. Under this accounting method, costs associated with the
acquisition, drilling and equipping of successful exploratory and development
wells are capitalized. Geological and geophysical costs, delay rentals and
drilling costs of unsuccessful exploratory wells are charged to expense as
incurred. The carrying value of mineral leases is depleted over the minimum
estimated productive life of the leases, or ten years. Undeveloped properties
are periodically assessed for possible impairment due to un-recoverability of
costs invested. Cash received for partial conveyances of property interests is
treated as a recovery of cost and no gain or loss is recognized.
9
LONG-LIVED ASSETS
The Company assesses potential impairment of its long-lived assets, which
include its property and equipment and its identifiable intangibles such as
deferred charges, under the guidance Topic 360 "PROPERTY, PLANT AND EQUIPMENT"
in the Accounting Standards Codification (the "ASC"). The Company must
continually determine if a permanent impairment of its long-lived assets has
occurred and write down the assets to their fair values and charge current
operations for the measured impairment. As of March 31, 2014 we do not believe
any of our long-lived assets are impaired.
ASSET RETIREMENT OBLIGATIONS
The Company has not recorded an asset retirement obligation (ARO) in accordance
with ASC 410. Under ASC 410, a liability should be recorded for the fair value
of an asset retirement obligation when there is a legal obligation associated
with the retirement of a tangible long-lived asset, and the liability can be
reasonably estimated. The associated asset retirement costs should also be
capitalized and recorded as part of the carrying amount of the related oil and
gas properties. Management believes that not recording an ARO liability and
asset under ASC 410 is immaterial to the consolidated financial statements.
INCOME TAXES
Deferred taxes are provided on a liability method whereby deferred tax assets
are recognized for deductible temporary differences and operating loss
carry-forwards and deferred tax liabilities are recognized for taxable temporary
differences. Temporary differences are the differences between the reported
amounts of assets and liabilities and their tax bases. Deferred tax assets are
reduced by a valuation allowance when, in the opinion of management, it is more
likely than not that some portion or all of the deferred tax assets will not be
realized. Deferred tax assets and liabilities are adjusted for the effects of
changes in tax laws and rates on the date of enactment. We have recorded a
valuation allowance as of March 31, 2014.
REVENUE RECOGNITION
For our oil segment, revenue is recognized for the oil production when a product
is sold to a customer, either for cash or as evidenced by an obligation on the
part of the customer to pay. For our technology segment, revenue will be
recognized when earned, including both future subscriptions and other future
revenue streams, as required under relevant revenue recognition policies under
generally accepted accounting policies.
FAIR VALUE MEASUREMENTS AND DISCLOSURES
The Company estimates fair values of assets and liabilities which require either
recognition or disclosure in the financial statements in accordance with FASB
ASC Topic 820 "FAIR VALUE MEASUREMENTS". There is no material impact on the
March 31, 2014 consolidated financial statements related to fair value
measurements and disclosures. Fair value measurements include the following
levels:
Level 1: Quoted market prices in active markets for identical assets or
liabilities. Valuations for assets and liabilities traded in active
exchange markets, such as the New York Stock Exchange. Level 1 also
includes U.S. Treasury and federal agency securities and federal
agency mortgage-backed securities, which are traded by dealers or
brokers in active markets. Valuations are obtained from readily
available pricing sources for market transactions involving identical
assets or liabilities.
Level 2: Observable market based inputs or unobservable inputs that are
corroborated by market data. Valuations for assets and liabilities
traded in less active dealer or broker markets. Valuations are
obtained from third party pricing services for identical or similar
assets or liabilities.
Level 3: Unobservable inputs that are not corroborated by market data.
Valuations for assets and liabilities that are derived from other
valuation methodologies, including option pricing models, discounted
cash flow models and similar techniques, and not based on market
exchange, dealer, or broker traded transactions. Level 3 valuations
10
incorporate certain assumptions and projections in determining the
fair value assigned to such assets or liabilities.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying value of the Company's financial instruments, including cash and
cash equivalents, accounts receivable and accounts payable and long term debt,
as reported in the accompanying consolidated balance sheet, approximates fair
values.
EMPLOYEE STOCK-BASED COMPENSATION
Compensation expense is recognized for performance-based stock awards if
management deems it probable that the performance conditions are or will be met.
Determining the amount of stock-based compensation expense requires us to
develop estimates that are used in calculating the fair value of stock-based
compensation, and also requires us to make estimates of assumptions including
expected stock price volatility which is derived based upon our historical stock
prices.
BUSINESS COMBINATIONS
The Company accounts for business combinations in accordance with FASB ASC Topic
805 "Business Combinations". This standard modifies certain aspects of how the
acquiring entity recognizes and measures the identifiable assets, the
liabilities assumed and the goodwill acquired in a business combination. The
Company entered into a business combination with The Fuelist, LLC on August 15,
2013 (See Note 7 for further disclosure).
SUBSEQUENT EVENTS
Events occurring after March 31, 2014 were evaluated through the date this
quarterly report was issued, in compliance FASB ASC Topic 855 "SUBSEQUENT
EVENTS", to ensure that any subsequent events that met the criteria for
recognition and/or disclosure in this report have been included.
RECENT ACCOUNTING PRONOUNCEMENTS
In July 2013, FASB issued ASU No. 2013-11, INCOME TAXES (TOPIC 740):
PRESENTATION OF AN UNRECOGNIZED TAX BENEFIT WHEN A NET OPERATING LOSS
CARRYFORWARD, A SIMILAR TAX LOSS, OR A TAX CREDIT CARRYFORWARD EXISTS. This ASU
is effective for interim and annual periods beginning after December 15, 2013.
This update standardizes the presentation of an unrecognized tax benefit when a
net operating loss carryforward, a similar tax loss, or a tax credit
carryforward exists. This accounting pronouncement did not have any material
effect on our consolidated financial statements.
There were various other updates recently issued, most of which represented
technical corrections to the accounting literature or application to specific
industries, and are not expected to have a material impact on the Company's
financial position, results of operations or cash flows.
NOTE 2. INCOME TAXES
Deferred income taxes are recorded for temporary differences between financial
statement and income tax basis. Temporary differences are differences between
the amounts of assets and liabilities reported for financial statement purposes
and their tax basis. Deferred tax assets are recognized for temporary
differences that will be deductible in future years' tax returns and for
operating loss and tax credit carryforwards. Deferred tax assets are reduced by
a valuation allowance if it is deemed more likely than not that some or all of
the deferred tax assets will not be realized. Deferred tax liabilities are
recognized for temporary differences that will be taxable in future years' tax
returns.
At March 31, 2014, the Company had a federal net operating loss carry-forward of
approximately $2,830,083 compared to $2,639,577 at December 31, 2013. A deferred
tax asset of approximately $566,017 at March 31, 2014 and $527,915 at December
31, 2013 has been partially offset by a valuation allowance of approximately
11
$562,581 and $524,414 at March 31, 2014 and December 31, 2013, respectively, due
to federal net operating loss carry-back and carry-forward limitations.
The Company also had approximately $3,436 and $3,501 in deferred income tax
liability at March 31, 2014 and December 31, 2013, respectively, attributable to
timing differences between federal income tax depreciation, depletion and book
depreciation, which has been offset against the deferred tax asset related to
the net operating loss carry-forward.
Management evaluated the Company's tax positions under FASB ASC No. 740
"UNCERTAIN TAX POSITIONS," and concluded that the Company had taken no uncertain
tax positions that require adjustment to the consolidated financial statements
to comply with the provisions of this guidance. With few exceptions, the Company
is no longer subject to income tax examinations by the U.S. federal, state or
local tax authorities for years before 2010.
NOTE 3. STOCKHOLDERS' EQUITY
PREFERRED STOCK
The Company has authorized 250,000 shares, par value $1,000 per share, of
convertible Preferred Series B stock ("Series B"). Each Series B share is
convertible into 166.667 shares of the Company's common stock upon election by
the stockholder, with dates and terms set by the Board. No shares of Series B
preferred stock have been issued.
COMMON STOCK
The Company has 250,000,000 authorized shares of common stock, par value $.001,
with 74,250,030 and 73,760,030 shares issued and outstanding as of March 31,
2014 and December 31, 2013, respectively.
STOCK BASED COMPENSATION
For the three months ending March 31, 2014, the Company issued 490,000 shares of
common stock at a price of $0.055 per share and recognized $26,950 in consulting
fees expense, which is recorded in general and administrative expenses.
NON-EMPLOYEE STOCK OPTIONS AND WARRANTS
The Company accounts for non-employee stock options under FASB ASC Topic 505
"EQUITY-BASED PAYMENTS TO NON-EMPLOYEES", whereby options costs are recorded
based on the fair value of the consideration received or the fair value of the
equity instruments issued, whichever is more reliably measurable. During the
quarter ended March 31, 2014, no options were issued, exercised or cancelled.
The Company currently has outstanding warrants expiring December 31, 2014 to
purchase an aggregate of 6,000,000 shares of common stock; these warrants
consist of warrants to purchase 2,000,000 shares at an exercise price of $.025
per share, and warrants to purchase 4,000,000 shares at an exercise price of
$0.02 per share. In July 2009, the Company issued additional warrants expiring
June 30, 2014 to purchase an aggregate of 500,000 shares of common stock at an
exercise price of $0.125 per share. From June 2010 thru April 2011, the Company
issued additional warrants expiring June 30, 2015 to purchase an aggregate of
420,000 shares of common stock at an exercise price of $0.125 per share.
On March 31, 2014, the Company had the following outstanding warrants:
12
Exercise Weighted
Remaining Price times Average
Exercise Number of Contractual Life Number of Exercise
Price Shares (in years) Shares Price
----- ------ ---------- ------ -----
$0.025 2,000,000 .75 $ 50,000
$0.020 4,000,000 .75 $ 80,000
$0.125 500,000 .25 $ 62,500
$0.125 420,000 1.25 $ 52,500
--------- --------
6,920,000 $245,000 $0.035
========= ========
Weighted
Average Remaining
Number of Exercise Contractual Life
Warrants Shares Price (in years)
-------- ------ ----- ----------
Outstanding at December 31, 2013 6,920,000 $0.035
--------- ------
Issued -- --
Exercised -- --
Expired/Cancelled -- --
--------- ------
Outstanding at March 31, 2014 6,920,000 $0.035 1.0
--------- ------ ----
Exercisable at March 31, 2014 6,920,000 $0.035 1.0
========= ====== ====
|
NOTE 4. PROPERTY AND EQUIPMENT
A summary of fixed assets at:
Balance Balance
December 31, March 31,
2013 Additions Deletions 2014
-------- --------- --------- --------
Equipment $ 4,454 $1,201 $ -- $ 5,655
Leasehold Costs - Developed 57,580 5,360 -- 62,940
------- ------ ------- -------
Total Cost $62,034 $6,561 $ -- $68,595
======= ====== ======= =======
Less: Accumulated Depreciation $29,752 $1,851 $ -- $31,603
------- ------ ------- -------
Total Property and Equipment, net $32,282 $4,710 $ -- $36,992
======= ====== ======= =======
|
NOTE 5. CONTRACTUAL OBLIGATIONS
On February 25, 2013, the Company entered into a twelve month agreement with a
new investor relations consultant, which pays the consultant a fee of $9,000
monthly for the period from February 2013 through July 2013. In addition, the
Company granted 1,000,000 shares of common stock to the consultant upon
execution of the agreement. The Company recognized $9,500 in consulting fees
related to this agreement for the quarter ended March 31, 2014.
On May 1, 2013, Fuelist entered into a lease agreement with a related party
limited liability company for its main office, located in Berkeley, California.
The lease term is for one year beginning on May 1, 2013 and ending May 1, 2014.
The Company is obligated to pay a minimum amount of rent of $6,000 per year in
equal monthly installments of $500 payable on the 1st of each month. The Company
13
subsequently entered into a sublease agreement with another related party entity
in which it was not legally relieved of its primary obligation for the lease
agreement. The Company recognized $5,460 in sub-lease rent revenue in other
income and $8,100 in rent expense in other operating expenses, related to these
agreements during the quarter ended March 31, 2014.
NOTE 6. RELATED PARTY TRANSACTIONS
The Company has used the services of a consulting company owned by the Chairman
of the Board. The Company has paid $27,000 and $29,400 for those services during
the quarter ended March 31, 2014 and 2013, respectively. The Company has paid
directors fees to a company owned by the chairman of the board in the amount of
$7,500 and $7,500 and during the quarter ended March 31, 2014 and 2013,
respectively and to one other director in the amount of $7,500 and $7,500 during
the quarter ended March 31, 2014 and 2013 respectively.
NOTE 7. BUSINESS COMBINATION
On August 15, 2013, Chancellor entered into a binding term sheet with The
Fuelist, LLC, a California limited liability company ("Fuelist"), and its
founders (the "Founders"), pursuant to which Chancellor acquired a 51% ownership
interest in Fuelist.
As consideration for the 51% ownership interest in Fuelist, Chancellor agreed to
contribute to Fuelist a total of $271,200 in cash payable in 12 monthly
installments of $22,600. As additional consideration for the ownership interest,
Chancellor contributed a total of 2,000,000 shares of newly issued common stock
to Fuelist on August 19, 2013, valued at $156,000, or $0.078 per share.
Also in the term sheet, the 2,000,000 shares of Chancellor common stock are
deemed the property of the Founders irrespective of any future sales of the
Company or outcomes, and in the event of any sale of the Company to a third
party, the Founder's shares paid as part-consideration to the Company for the
purchase of Chancellor's 51% shall remain the property of the Founders and those
Founder's shares shall be transferred to the Founders before, or as part of, the
closing of any such sale in the future to a third party.
Chancellor determined that the acquisition of its majority-owned interest in
Fuelist constitutes a business combination as defined by FASB ASC Topic 805,
Business Combinations. Accordingly, the net assets acquired were recorded upon
acquisition at their estimated fair values. Fair values were determined based on
the requirements of FASB ASC Topic 820, Fair Value Measurements. In many cases
the determination of these fair values required management to make estimates
about discount rates, future expected cash flows, market conditions and other
future events that are highly subjective in nature and subject to change. These
fair value estimates were considered preliminary, and are subject to change for
up to one year after the closing date of the acquisition if any additional
information relative to closing dated fair values becomes available.
The initial fair value of assets acquired and liabilities assumed in the
purchase has yielded little to no value as such all the proceeds are currently
allocated to goodwill as shown below:
Purchase Price:
Issuance of 2,000,000 shares of common stock $156,000
Contributions payable 271,200
--------
Total $427,200
========
As of December 31, 2013 Chancellor paid $180,800 toward its contributions
|
payable to Fuelist. For the quarter ended March 31, 2014, Chancellor paid
$90,400 towards its contributions payable to Fuelist resulting in no further
funding commitments as of March 31, 2014.
NOTE 8. NON-CONTROLLING INTERESTS
All non-controlling interest of Chancellor related to Fuelist is a result of
Chancellor's initial investment, the investment of other members in Fuelist, and
results of operations. Cumulative results of these activities result in:
14
March 31, 2014 December 31, 2013
-------------- -----------------
Cash contributions paid by Chancellor to Fuelist $ 271,200 $ 180,800
Cash contributions paid by others to Fuelist 32,400 24,300
Net loss prior to acquisition by Chancellor
attributable to non-controlling interest (29,006) (29,006)
Net loss subsequent to acquisition by Chancellor
attributable to non-controlling interest (148,347) (91,045)
Proceeds from Fuelist sales of
Chancellor stock 4,480 --
--------- ---------
Total non-controlling interest in Fuelist $ 130,727 $ 85,049
========= =========
The following is a summary of changes in non-controlling interest in Fuelist
during the quarter ended March 31, 2014:
Non-controlling interest in Fuelist at December 31, 2013 $ 85,049
Cash contributions paid by Chancellor to Fuelist 90,400
Cash contributions paid by others to Fuelist 8,100
Net losses attributable to non-controlling interest in Fuelist (57,302)
Proceeds from Fuelist sales of Chancellor stock 4,480
---------
Non-controlling interest in Fuelist at March 31, 2014 $ 130,727
=========
All non-controlling interest of Chancellor related to Pimovi is a result of
results of operations. Cumulative results of these activities result in:
March 31, 2014 December 31, 2013
-------------- -----------------
Cumulative net loss attributable to
non-controlling interest in Pimovi $ (290,662) $ (274,157)
---------- ----------
Total non-controlling interest in Pimovi $ (290,662) $ (274,157)
========== ==========
The following is a summary of changes in non-controlling interest in Pimovi
during the quarter ended March 31, 2014:
Non-controlling interest in Pimovi at December 31, 2013 $ (274,157)
Net loss attributable to non-controlling interest in Pimovi (16,504)
-----------
Non-controlling interest in Pimovi at March 31, 2014 $ (290,662)
===========
|
NOTE 9. SUBSEQUENT EVENTS
Events occurring after March 31, 2014 were evaluated through the date the Form
10Q was issued, in compliance FASB ASC Topic 855 "Subsequent Events", to ensure
that any subsequent events that met the criteria for recognition and/or
disclosure in this report have been included.
On April 28, 2014, Chancellor received an interest-free loan of approximately
$5,000 from a related party company owned by the chairman of the board with no
specific repayment terms.
On April 29, 2014, Chancellor issued 250,000 shares of common stock for
consulting services valued at $7,500.
15
