10-Q 1 magnumoil10q.htm FORM 10-Q Filed by Abe Filing Services Inc. (604) 357-3379 - www.abefiling.com - Magnum Oil: 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

þ  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended November 30, 2010

 

o  TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT

 

For the transition period from _________ to _________

 

Commission File Number: 000-52044

 

MAGNUM OIL INC.

(Name of Small Business Issuer in its charter)

 

Nevada

26-2940624

(state or other jurisdiction of incorporation or organization)

(I.R.S. Employer I.D. No.)


E-2-14 Block E, Plaza Damas

Jalan Hartamas 1, Sri Hartamas

Kuala Lumpur, Malaysia

(Address of principal executive offices)

 

(603) 525-3380

Issuer’s telephone number

 

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 during the past 12 months (or for such shorter period that the registrant was require to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   þ   No   o

 

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 definition of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.  (Check one):


Large accelerated filer  o     Accelerated filer  o     Non-accelerated filer  o     Smaller reporting company  þ

 

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

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

As of January 18, 2011 the registrant had 48,400,000 shares of common stock outstanding.

 

 

 

 

                

             

MAGNUM OIL INC.

 

Table of Contents

 

PART I - FINANCIAL INFORMATION

 

3

Item 1.  Financial Statements

3

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

5

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

6

Item 4 Controls and Procedures

6

PART II – OTHER INFORMATION

 

6

Item 1.  Legal Proceedings

6

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

6

Item 3.  Defaults Upon Senior Securities

7

Item 4.  Submission of Matters to a Vote of Security Holders

7

Item 5.  Other Information

7

Item 6.  Exhibits

7

SIGNATURES

8

 

 

 

2

                

            

PART I - FINANCIAL INFORMATION

 

Safe Harbor Statement


This report on Form 10-Q contains certain forward-looking statements.  All statements other than statements of historical fact are “forward-looking statements” for purposes of these provisions, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operation; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statement of assumptions underlying any of the foregoing. Such forward-looking statements are subject to inherent risks and uncertainties, and actual results could differ materially from those anticipated by the forward-looking statements.


These forward-looking statements involve significant risks and uncertainties, including, but not limited to, the following: competition, promotional costs, and risk of declining revenues.  Our actual results could differ materially from those anticipated in such forward-looking statements as a result of a number of factors.  These forward-looking statements are made as of the date of this filing, and we assume no obligation to update such forward-looking statements.  The following discusses our financial condition and results of operations based upon our financial statements which have been prepared in conformity with accounting principles generally accepted in the United States.  It should be read in conjunction with our financial statements and the notes thereto included elsewhere herein.


 

Item 1.  Financial Statements

 

The unaudited interim financial statements of Magnum Oil Inc. (the “Company”, “Magnum Oil”, “we”, “our”, “us”) follow.  All currency references in this report are in U.S. dollars unless otherwise noted.

The accompanying Financial Statements of Magnum Oil Inc. should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended February 28, 2010.  Significant accounting policies disclosed therein have not changed except as noted below.

 

 

3

                

             

PTM PUBLICATIONS INCORPORATED

(A Development Stage Company)

Unaudited

(Express in U.S. Dollars)


November 30, 2010

 

Unaudited Consolidated Balance Sheets 

F-1

Unaudited Consolidated Statements of Operations 

F-2

Unaudited Consolidated Statement of Stockholders’ Deficit 

F-4

Unaudited Consolidated Statements of Cash Flows 

F-5

Unaudited Consolidated Notes to the Financial Statements 

F-6

 

 

 

4

                

             

 

MAGNUM OIL, INC.

(Formerly PTM PUBLICATIONS INCORPORATED)

(A Development Stage Company)

 CONSOLIDATED BALANCE SHEETS

Unaudited

 

 

 

 

 

 

 

November 30, 2010

 

February 28, 2010

 

 

 

 

 

 

 

 

 

(Audited)

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash

 

 

 

 

$

-    

$

2,255

Prepaid Expenses

 

 

 

 

2,680

 

-    

TOTAL ASSETS

 

 

 

$

2,680

$

2,255

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT  LIABILITIES

 

 

 

 

 

 

Cash Overdrawn

 

 

 

$

475

$

-    

Accounts payable and accrued liabilities

 

 

17,828

 

91,167

Loans from Related Party

 

 

 

61,934

 

16,981

TOTAL CURRENT LIABILITIES

 

 

$

80,237

$

108,148

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS'  EQUITY ( DEFICIT )

 

 

 

 

 

Capital stock

 

 

 

 

 

 

 

Authorized

 

 

 

 

 

 

 

       50,000,000 shares of common stock, $0.001 par value,

 

 

 

 

Issued and outstanding

 

 

 

 

 

 

        48,400,000 shares of common stock

 

$

48,400

$

48,400

        Additional Paid in Capital

 

 

 

16,600

 

16,600

Deficit accumulated during the development stage

 

(145,144)

 

(173,588)

Foreign currency translation adjustments

 

 

2,588

 

2,695

TOTAL STOCKHOLDER'S EQUITY/(DEFICIT)

 

 

 

 

 

$

(77,556)

$

(105,893)

TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY/(DEFICIT)

 

 

 

 

 

$

2,680

$

2,255

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

F-1

                

             

MAGNUM OIL, INC.

(Formerly PTM PUBLICATIONS INCORPORATED)

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

 

 

 

 

 

 

 


3 months

 

3 months

 

9 months

 

9 months

 

Cumulative Results

From Inception

 

 

 

 

 

 

 

Ended

 

Ended

 

Ended

 

Ended

 

(December 13, 2005) to

 

 

 

 

 

 

 

November 30, 2010

 

November 30, 2009 

 

November 30, 2010

 

November 30, 2009 

 

November 30, 2010

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

$

-    

$

-    

$

-    

$

-    

$

19,295

Total Revenues

 

 

 

 

 

-    

 

-    

 

-    

 

-    

 

19,295

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office and general

 

 

 

 

 

4,302

 

12,088

 

17,931

 

12,088

 

158,727

Professional Fees

 

 

 

 

 

7,224

 

8,941

 

34,350

 

8,941

 

86,437

Total Expenses

 

 

 

 

 

11,526

 

21,029

 

52,281

 

21,029

 

245,164


Operating loss

 

 

 

 

 

(11,526)

 

(21,029)

 

(52,281)

 

(21,029)

 

(245,164)

 

Other income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forgiveness of Debt

 

 

 

 

 

-

 

-

 

80,725

 

-

 

80,725

Total other income

 

 

 

 

 

-

 

-

 

80,725

 

-

 

80,725

NET INCOME ( LOSS)

 

 

 

 

$

(11,526)

$

(21,029)

$

28,444

$

(21,029)

$

(145,144)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC AND DILUTED LOSS PER COMMON SHARE

 

 

 

 

 

 

 

$

-    

 

$

 

-    

$

 

-    

$

 

-    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 $

48,400,000

 

$

 

48,400,000

$

 

48,400,000

$

 

48,400,000

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

F-2

                

             

MAGNUM OIL, INC.

(Formerly PTM PUBLICATIONS INCORPORATED)

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

From inception (December 13, 2005) to November 30, 2010

Unaudited

 

 

 

 

 

 

 

Deficit

 

 

 

 

 

Common Stock

 

 

 

Accumulated

 

Accumulated

 

 

 

 

 

Additional

 

During the

 

Other

 

 

 

Number of

 

 

 

Paid-in

 

Development

 

Comprehensive

 

 

 

shares

 

Amount

 

Capital

 

Stage

 

Income(loss)

 

Total

Common stock issued for cash at $0.001

 

 

 

 

 

 

 

 

 

 

 

per share on December 14, 2005

22,000,000

$

22,000

$

(17,000)

$

-    

$

-    

$

5,000

 

 

 

 

 

 

 

 

 

 

 

 

Net loss, February 28, 2006

 

 

 

 

 

 

(983)

 

 

 

(983)

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

34

 

34

Balance, February 28, 2006

22,000,000

$

22,000

$

(17,000)

$

(983)

$

34

$

4,051

Stock issued for cash during the quarter

 

 

 

 

 

 

 

 

 

 

 

August 31, 2006 @$0.0227 per share

26,400,000

 

26,400

 

33,600

 

 

 

 

 

60,000

 

 

 

 

 

 

 

 

 

 

 

 

Net loss, February 28, 2007

 

 

 

 

 

 

-    

 

 

 

-    

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

2,683

 

2,683

Balance, February 28, 2007

48,400,000

$

48,400

$

16,600

$

(983)

$

2,717

$

66,734

 

 

 

 

 

 

 

 

 

 

 

 

Net loss, February 28, 2008

 

 

 

 

 

 

(52,058)

 

 

 

(52,058)

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

350

 

350

Balance, February 28, 2008

48,400,000

$

48,400

$

16,600

$

(53,041)

$

3,067

$

15,026

 

 

 

 

 

 

 

 

 

 

 

 

Net loss, February 28, 2009

 

 

 

 

 

 

(75,309)

 

 

 

(75,309)

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

5,988

 

5,988

Balance, February 28, 2009

48,400,000

$

48,400

$

16,600

$

(128,350)

$

9,055

$

(54,295)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss, February 28, 2010

 

 

 

 

 

 

(45,238)

 

 

 

(45,238)

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

(6,360)

 

(6,360)

Balance, February 28, 2010

48,400,000

$

48,400

$

16,600

$

(173,588)

$

2,695

$

(105,893)

 

 

 

 

 

 

 

 

 

 

 

 

Net Income, November 30, 2010

 

 

 

 

 

 

28,444

 

 

 

30,444

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

(107)

 

(107)

Balance, November 30, 2010

48,400,000

$

48,400

$

16,600

$

(145,144)

$

2,588

$

(77,557)

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

F-3

                

             

MAGNUM OIL, INC.

(Formerly PTM PUBLICATIONS INCORPORATED)

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited

 

 

 

 

 

 

9 Months

 

9 Months

 

December 13, 2005

 

 

 

 

 

 

Ended

 

Ended

 

(Date of Inception) to

 

 

 

 

 

 

November 30, 2010

 

November 30, 2009

 

November 30, 2010

 OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

 

$

28,444

$

(21,029)

$

(145,144)

 

Adjustment to reconcile net loss to net cash

 

 

 

 

 

 

 

used in operating activities

 

 

 

 

 

 

 

 

Depreciation

 

 

 

-    

 

389

 

2,826

 

Loss on Disposition of Assets

 

 

-    

 

 

 

4,608

 

Increase in Prepaid Expenses

 

 

(2,680)

 

-    

 

(2,680)

 

Forgiveness of Debt

 

 

(80,725)

 

-    

 

(80,725)

 

Foreign currency translation loss

 

 

(107)

 

(6,586)

 

3,286

 

Increase (decrease) in accrued expenses

 

5,854

 

12,505

 

99,021

 

Loan Payable - Related Party

 

 

44,484

 

12,004

 

61,464

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

 

 

 

 

 

 

$

(2,730)

$

(2,716)

$

(57,344)

 

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Purchase of fixed assets

 

 

-    

 

(180)

 

(11,468)

 

Disposition of fixed assets

 

 

-    

 

-    

 

3,337

NET CASH PROVIDED BY INVESTING ACTIVITIES

 

 

 

 

 

 

$

-    

$

(180)

$

(8,131)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

Cash Overdrawn

 

 

475

 

-    

 

475

 

Proceeds from sale of common stock

 

-    

 

-    

 

2,200

 

Additional paid-in capital

 

 

-    

 

-    

 

62,800

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

 

 

 

 

 

$

475

$

-    

$

65,475

 

 

 

 

 

 

 

 

 

 

 

NET INCREASE ( DECREASE) IN CASH

$

(2,255)

$

(2,896)

$

-    

 

 

 

 

 

 

 

 

 

 

 

CASH, BEGINNING OF PERIOD

 

$

2,255

$

3,068

$

-    

 

 

 

 

 

 

 

 

 

 

 

CASH, END OF PERIOD

 

 

$

 

$

172

$

-    

 

 

 

 

 

 

   

 

 

 

 

Supplemental cash flow information and noncash financing activities:

 

 

 

 

Cash paid for:

 

 

 

 

 

 

 

 

 

 

Interest

 

 

 

$

-    

$

-    

$

-    

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

$

-    

$

-    

$

-    

   

 

The accompanying notes are an integral part of these financial statements.

 

 

 

F-4

                

             

MAGNUM OIL, INC.

(A Development Stage Enterprise)

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

November 30, 2010


NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION


Magnum Oil, Inc. (Formerly PTM Publications Incorporated) (the “Company”) was incorporated under the laws of the State of Nevada on December 13, 2005.  The Company is in the development stage.  Its activities to date have included capital formation, organization and development of its business plan.  The Company has commenced operations.  On July 15, 2010 the company changed its name to Magnum Oil Inc.


The Company operated through its lone subsidiary: PTM Publications Sdn Bhd, a Malaysian Corporation.


The Company decided to cease the operation of subsidiary in January 2010.


Magnum Oil, Inc. (the parent company) is now a holding company


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Basis of Accounting


The Company’s financial statements are prepared using the accrual method of accounting.  The Company has elected a February year-end.


Basic Earnings per Share


The Company computes earnings (loss) per share in accordance with Accounting Standards Codification (“ASC”) 260, Earnings per Share.  ASC 260 specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock.  The Company has adopted the provisions of ASC 260 effective December 13, 2005 (inception).


Basic earnings (loss) per share amounts are computed by dividing the net income (loss) by the weighted average number of common shares outstanding.  Diluted earnings (loss) per share are the same as basic earnings (loss) per share due to the lack of dilutive items in the Company.


Cash Equivalents


The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.


Use of Estimates and Assumptions


The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.


Stock-Based Compensation


The Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Based Compensation, using the fair value method.  All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.  Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued.

 

 

 

F-5

                

             

MAGNUM OIL, INC.

(A Development Stage Enterprise)

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

November 30, 2010


NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


Net Loss per Share


Basic loss per share includes no dilution and is computed by dividing loss available to common stockholders by the weighted average number of common shares outstanding for the period.  Dilutive loss per share reflects the potential dilution of securities that could share in the losses of the Company.  Because the Company does not have any potentially dilutive securities, the accompanying presentation is only of basic loss per share.


Recent Accounting Pronouncements


The company has evaluated all the recent accounting pronouncements and believes that none of them will have a material effect on the company’s financial statement.


NOTE 3 - GOING CONCERN


The accompanying financial statements are presented on a going concern basis.  The Company had limited operations during the period from December 13, 2005 (inception) to November 30, 2010 and generated a net loss of $145,144.  This condition raises substantial doubt about the Company’s ability to continue as a going concern.  Because the Company is currently in the development stage and has minimal expenses, management believes that the company’s current cash overdraft of $475 will not be sufficient to cover the expenses they will incur during the next twelve months and that they will need  developing operations and may need to raise additional funding to continue operations.


Management plans to raise additional funds through debt or equity offerings.  There is no guarantee that the Company will be able to raise any capital through this or any other offerings.


NOTE 4 - WARRANTS AND OPTIONS


There are no warrants or options outstanding to acquire any additional shares of common.


NOTE 5 - RELATED PARTY TRANSACTIONS


As of November 30, 2010, there is a total of $61,934 that has been forwarded by an officer of the Company of which $23,480 is interest free and payable on demand and a related party loaned $38,454 at 5% interest which is repayable on June 7, 2011


On August 23, 2010 the former directors of the company forgave a loan of $80,725, which was owed to them by the Company.


NOTE 6 - INCOME TAXES

  

Deferred tax assets: November 30, 2010
Net operating loss carryforwards                                                        $ 145,144
Gross deferred tax assets $ 50,100
Valuation allowance $ (50,100)
Net deferred tax assets $ 0

 

Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carryforwards are expected to be available to reduce taxable income.  As the achievement of required future taxable income is uncertain, the Company recorded a valuation allowance.

 

 

 

F-6

                

             

MAGNUM OIL, INC.

(A Development Stage Enterprise)

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

November 30, 2010


NOTE 7 - NET OPERATING LOSSES


As of November 30, 2010, the Company has a net operating loss carryforwards of approximately $145,144 Net operating loss carryforward expires twenty years from the date the loss was incurred.


NOTE 8 – STOCK TRANSACTIONS


Transactions, other than employees’ stock issuance, are in accordance with ASC 505.  Thus issuances shall be accounted for based on the fair value of the consideration received.  Transactions with employees’ stock issuance are in accordance with ASC 718.  These issuances shall be accounted for based on the fair value of the consideration received or the fair value of the equity instruments issued, or whichever is more readily determinable.


In August 2006, the company completed an offering of shares of common stock in accordance with an SB-2 registration statement declared effective by the Securities and Exchange Commission on May 4, 2006.  The company sold 26,400,000 shares of common stock, par value $0.001, at a price of $0.0227 per share to approximately 32 investors.  The aggregate offering price for the offering closed in August 2006 was $60,000, all of which was collected from the offering.


As of November 30, 2010 the Company had 48,400,000 shares of common stock issued and outstanding.

On May 23, 2010 the company received approval from FINRA for a forward split of common share of 22:1.  All share amounts have been retroactively adjusted for all periods presented.


NOTE 9 - STOCKHOLDERS’ EQUITY


The stockholders’ equity section of the Company contains the following classes of capital stock as of November 30, 2010: Common stock, $ 0.001 par value: 50,000,000 shares authorized; 48,400,000 shares issued and outstanding.


NOTE 10 - SUBSEQUENT EVENTS


In accordance with ASC 855, Subsequent Events, the Company has evaluated subsequent events through the date of issuance of the unaudited consolidated financial statements.

 

 

 

F-7

                

             

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

This section of this report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance.  Forward looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions or words which, by their nature, refer to future events.  You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report.  These forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.

 

Results of Operations

 

Our financial statements and information for the three and nine months ended November 30, 2010 have been prepared by our Management on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.  We generated no revenues during the three and nine months ended November 30, 2010 and have incurred total net losses of $145,144 from inception to November 30, 2010.  


Three months Ended November 30, 2010 compared to the Three months Ended November 30, 2009

 

We incurred net losses of $11,526, or $0.00 per share, for the three-month period ended November 30, 2010, as compared to net losses of $21,029, or $0.00 per share, for the three-month period ended November 30, 2009.  The decrease was mainly attributed to decreases in office and general expenses ($4,302 - 2010 compared to $12,088 - 2009.  Our other expenses for the three-month period ended November 30, 2010 consisted of professional fees in the amount of $7,224 ($8,941 - 2009). 


Nine months Ended November 30, 2010 compared to the Nine months Ended November 30, 2009

 

We earned net incomeof $28,444, or $0.00 per share, for the nine-month period ended November 30, 2010, as compared to net losses of $21,029, or $0.00 per share, for the nine-month period ended November 30, 2009.  The income we earned was attributed to forgiveness of debt in the amount of $80,725.  Our total expenses increased from $21,029 in 2009 to $52,281 in 2010.  This was mainly due to increased professional fees ($32,350 - 2010 compared to $8,941 - 2009.  Our other expenses for the nine-month period ended November 30, 2010 consisted of office and general expenses of $17,931 ($12,088 – 2009).


Liquidity and Capital Resources

 

At November 30, 2010, we had total assets of $2,680 consisting of prepaid expenses.

 

Our accounts payable at November 30, 2010 were $17,828.  In addition, we have an outstanding loan payment due to an officer, director and shareholder of the Company in the amount of $61,934.  This loan balance is non-interest bearing, unsecured and has no fixed terms of repayment. We also have a few other loans with investors which bear simple interest of 5% per year and are due one year from the date of the loans.

 

There are currently no options, warrants, rights or other securities conversion rights issued and/or outstanding.


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 is material to stockholders.


Inflation

 

The amounts presented in the financial statements do not provide for the effect of inflation on our operations or financial position.  The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.

 

 

 

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Item 3.  Quantitative And Qualitative Disclosures Of Market Risk

 

We are a non-accelerated filer and a smaller reporting company, as defined in Rule 12b-2 of the of the Securities Exchange Act of 1934, and as such, are not required to provide the information under this item.



Item 4.  Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to our sole officer, as appropriate to allow timely decisions regarding required disclosure. We carried out an evaluation, under the supervision and with the participation of our sole officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of November 30, 2010.  Based on the evaluation of these disclosure controls and procedures, and in light of the material weaknesses in our internal control over financial reporting identified in our Annual Report on Form 10-K for the year ended February 28, 2010, the sole officer concluded that our disclosure controls and procedures are ineffective.

 

Changes in internal controls

 

We have not yet implemented any of the recommended changes to internal control over financial reporting listed in our Annual Report on Form 10-K for the year ended February 28, 2010.  As such, there were no changes in our internal control over financial reporting, as defined in Rule 13a-15(f) promulgated under the Exchange Act, during the quarter ended November 30, 2010 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



Item 4T.  Controls and Procedures

 

Not applicable.

 


PART II – OTHER INFORMATION

 


Item 1.  Legal Proceedings

 

Not applicable.

 


Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

 

 

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Item 3.  Defaults Upon Senior Securities

 

None.

  


Item 4.  Submission of Matters to a Vote of Security Holders

 

None.

 


Item 5.  Other Information

 

None.

 


Item 6.  Exhibits

 

Exhibit Number

Description

31.1

Certification of the Chief Executive Officer Pursuant to Rule 13a-14 or 15d-14 of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

 

 

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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.

 

 

MAGNUM OIL INC.

      

Date:  January 19, 2011

 

By: /s/ Patrick DeBlois

 

 

Patrick DeBlois

 

 

President, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer, Secretary, Treasurer and Director

 

 

 

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