UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
X . QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 2011
. TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 000-53920
RING ENERGY, INC. |
(Exact Name of registrant as specified in its charter) |
Nevada | 98-0406406 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
18 ½ East State Street, Suite 202, Redlands, CA | 92373 |
(Address of principal executive offices) | (Zip Code) |
(909) 798-8394 |
(Registrants telephone number, including area code) |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes X . No .
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes X . No .
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 the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.
Large accelerated filer | . | Accelerated filer | . |
Non-accelerated filer | . (Do not check if a smaller reporting company) | Smaller reporting company | X . |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b-2 of the Exchange Act).
Yes . No X .
The registrant has one class of common stock of which 3,548,200 shares were outstanding at August 9, 2011.
EXPLANATORY NOTE
The purpose of this Amendment No. 1 to the Quarterly Report of Ring Energy, Inc. on Form 10-Q for the quarterly period ended June 30, 2011, filed with the Securities and Exchange Commission on August 15, 2011 (the Form 10-Q), is solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 to this report provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).
No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.
Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
2
PART II. OTHER INFORMATION
Item 6. Exhibits
The Exhibits filed as part of this amended report are listed on the Exhibit Index immediately following the signature page hereto, which Exhibit Index is incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Ring Energy, Inc.
Date: August 26, 2011
By: /s/ Robert Steve Owens
Robert Steve Owens
Chief Executive Officer
Chief Financial Office
3
EXHIBIT INDEX
Exhibit No. |
| Description |
|
|
|
31.1 |
| Rule 13a-14(a) Certification (1) |
|
|
|
32.1 |
| Section 1350 Certification (1) |
|
|
|
101. INS |
| XBRL Instance Document |
|
|
|
101. SCH |
| XBRL Taxonomy Extension Schema Document |
|
|
|
101. CAL |
| XBRL Taxonomy Extension Calculation Linkbase Document |
|
|
|
101. DEF |
| XBRL Taxonomy Extension Definition Linkbase Document |
|
|
|
101. LAB |
| XBRL Taxonomy Extension Label Linkbase Document |
|
|
|
101. PRE |
| XBRL Taxonomy Extension Presentation Linkbase Document |
___________________
(1) These exhibits were previously included in the Quarterly Report of Ring Energy, Inc. on Form 10-Q for the quarterly period ended June 30, 2011, filed with the Securities and Exchange Commission on August 15, 2011.
4
Balance SheetsParentheticals (USD $)
|
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Common Stock, par or stated value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 75,000,000 | 75,000,000 |
Common Stock, shares issued | 3,548,200 | 3,548,200 |
Common Stock, shares outstanding | 3,548,200 | 3,548,200 |
Statements of Operations (USD $)
|
3 Months Ended | 6 Months Ended | 84 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
|
Revenue from oil and gas properties | $ 0 | $ 1,258 | $ 2,624 | $ 6,455 | $ 16,744 |
Production costs | 0 | (1,429) | (600) | (3,253) | (15,252) |
Depreciation, depletion, and amortization | 0 | 0 | 0 | (1,463) | (3,125) |
Results from oil and gas operations | 0 | (171) | 2,024 | 1,739 | (1,633) |
Accounting and legal | 9,096 | 1,955 | 17,708 | 14,912 | 171,453 |
Advertising and promotion | 0 | 0 | 0 | 0 | 49,614 |
Consulting | 0 | 0 | 10,275 | 0 | 135,450 |
Management and director fees | 3,750 | 3,750 | 7,500 | 7,500 | 54,900 |
Transfer agent and filing | 320 | 695 | 630 | 1,430 | 27,434 |
Rent | 3,300 | 3,100 | 6,600 | 6,100 | 37,800 |
Depreciation | 299 | 300 | 599 | 600 | 3,197 |
Other | 207 | 450 | 416 | 1,312 | 40,187 |
Total General Administrative Expenses | 16,972 | 10,250 | 43,728 | 31,854 | 520,035 |
Loss From Operations | (16,972) | (10,421) | (41,704) | (30,115) | (521,668) |
Dividend and interest Income | 707 | 1,047 | 1,487 | 1,396 | 37,468 |
Interest expense | 0 | 0 | 0 | 0 | 5,221 |
Loss on impairment of oil and gas properties | 0 | (22,655) | 0 | (22,655) | (292,917) |
Total Other Income and (Expense) | 707 | (21,608) | 1,487 | (21,259) | (260,670) |
Loss Before Income Taxes | (16,265) | (32,029) | (40,217) | (51,374) | (782,338) |
Income tax benefit (expense) | 0 | 0 | 0 | 0 | 0 |
Net loss before other comprehensive loss | $ (16,265) | $ (32,029) | $ (40,217) | $ (51,374) | $ (782,338) |
Net loss per common share, basic and diluted | $ 0.00 | $ (0.01) | $ (0.01) | $ (0.01) | Â |
Weighted average number of common shares outstanding | 3,548,200 | 3,548,200 | 3,548,200 | 3,548,200 | Â |
Document and Entity Information
|
3 Months Ended | |
---|---|---|
Jun. 30, 2011
|
Aug. 09, 2011
|
|
Document and Entity Information | Â | Â |
Entity Registrant Name | RING ENERGY, INC. | Â |
Document Type | 10-Q | Â |
Document Period End Date | Jun. 30, 2011 | |
Amendment Flag | false | Â |
Entity Central Index Key | 0001384195 | Â |
Current Fiscal Year End Date | --12-31 | Â |
Entity Common Stock, Shares Outstanding | Â | 3,548,200 |
Entity Filer Category | Smaller Reporting Company | Â |
Entity Current Reporting Status | Yes | Â |
Entity Voluntary Filers | No | Â |
Entity Well-known Seasoned Issuer | No | Â |
Document Fiscal Year Focus | 2011 | Â |
Document Fiscal Period Focus | Q2 | Â |
"+ text.join( "
\n" ) +"
" + text[p] + "
\n"; } } }else{ formatted = '' + raw + '
'; } html = ''+ "\n"+''+ "\n"+''+ "\n"+' formatted: '+ ( this.Default == 'raw' ? 'as Filed' : 'with Text Wrapped' ) +''+ "\n"+' | '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
Related Party Disclosures
|
3 Months Ended |
---|---|
Jun. 30, 2011
|
|
Related Party Disclosures | Â |
Related Party Transactions Disclosure [Text Block] | Note 3: Related Party Transactions
The Companys 600 square foot executive office located in Redlands, California, is currently being leased on a month-to-month basis from a stockholder of the Company at a rate of $1,100 per month. A $1,000 deposit was paid at the commencement of the lease and at June 30, 2011 and December 31, 2010 the Company had prepaid one month of rent. Total rent expense paid for the three months ended June 30, 2011 and 2010 was $3,300 and $3,100, respectively and for the six months ended June 30, 2011 and 2010 was $6,600 and $6,100, respectively. |
Organization, Consolidation and Presentation of Financial Statements
|
3 Months Ended |
---|---|
Jun. 30, 2011
|
|
Organization, Consolidation and Presentation of Financial Statements | Â |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1: Basis of Presentation
Interim Period - The accompanying unaudited financial statements of Ring Energy, Inc. (the Company) were prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations. Management of the Company (Management) believes that the following disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Companys Form 10-K report for the year ended December 31, 2010.
These unaudited financial statements reflect all adjustments, consisting only of normal recurring adjustments that, in the opinion of Management, are necessary to present fairly the financial position and results of operations of the Company for the periods presented. Operating results for the six months ended June 30, 2011, are not necessarily indicative of the results that may be expected for the year ending December 31, 2011.
Development Stage Entity The Company is considered a development stage entity because its principal oil and gas operations are minimal and have not produced any significant revenue. Total revenue of $16,744 has been recognized since commencement of oil production, but the cost of production and the associated depreciation, depletion and amortization has resulted in a net loss from oil and gas operations of $1,633. Furthermore, the Company has determined that further development of its current leasehold interest is unlikely and has impaired all capitalized costs not expensed as depreciation, depletion and amortization. At June 30, 2011 the Company has cash available to pursue its efforts to acquire oil and gas interests of approximately $885,000; however, until such time as the results of its oil and gas operations are profitable, the Company will be considered a development stage entity. |
Subsequent Events
|
3 Months Ended |
---|---|
Jun. 30, 2011
|
|
Subsequent Events | Â |
Subsequent Events [Text Block] | Note 4: Subsequent Events
The Company evaluated all events and transactions that occurred after June 30, 2011 through August 11, 2011 the date the Company issued these financial statements. During this period, the Company did not have any material recognizable subsequent events. |
+J@//**?0DBITER=LV><
M-/QI`5V+/;\BN0AC572MSFO+R]N17.U3!X;ZVH+Z(%QJ#WOF.S*RZ;@+J<35
MY6@P&'ASR_J2ZG-5_YZ/60R30I"!(%-HLL;^4>0B?P%
M4$L#!!0````(`)MU'S_LXI1"6@L``)2A```5`!P`"TH-^KOF0+^.F4`M9B#RX35^E)_X)T:Y+L?HRSM`1DFP:F)^
M;3(+43%'CYZ&8GB<3"K$A6HF([P%W
0I=?<5)I8CG)UR!K87UZG4\\#P*N4/&!C%*;/)\F=B"G!
M?O;LTE"<`G)H*[\.@C2S([)ZY';71X;K:OY0#QG7Y>_A:$WUA,)@*%STQ%5X
M?ZX4=1Z>`(43AT-UXS;#\F@-T.HJ/CR^.D\.!_)]/.+P(Q8GS-6\GB13J/'P
ML!9<*,,S/2[_C!`'<>0O4$L#!!0````(`)MU'S^./FCAH!4``!P+`0`5`!P`
MX=A)2*N0^(83VK!")2^O
M/3;=M-1P//:PY<[]-)**(=W\,S("(]:4<0%9>#:RXI,IN:+7P/5K=/
OJ#@=\+5Q-5Z^09S?3/#@75G;3K3K+T[BP]IU,_IU,_=Q4+)]KK/(CF?W$Z
M<\GNR2WP09Z'`^"-?3ULO"?5A.>#W,J)&G`8D*U.`2^?^>U\PG>)/.\&UQH!
MI>#?I(`H#4ZLC8`R2"2KFJO^1G$$_=&H/_H&0\:_)R
VY))67LNCZFMYV.Z5[5Z>PV%X2?6DS^5S;MN+EZNV_V1]^Y
Accounting Policies
|
3 Months Ended |
---|---|
Jun. 30, 2011
|
|
Accounting Policies | Â |
Significant Accounting Policies [Text Block] | Note 2: Summary of Significant Accounting Policies
Organization - The Company was incorporated in the State of Nevada on July 30, 2004 and currently has a 25% working interest (18¾% net revenue interest) in an oil and gas lease comprising 440 total acres located in Howard County, Texas. The Company has completed one well on this property; however, the Company elected not to pursue further development thereof and therefore, the receipt of future oil production from this well is doubtful.
Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Fair Value Accounting The carrying value of certain of the Companys financial instruments, including cash and cash equivalents, deposits, prepaid expenses, and current liabilities approximate fair value due to their short-term maturities. The Company utilized Level 1 inputs to value the aforementioned assets and liabilities at the balance sheet dates.
Cash and Cash Equivalents The Company considers all highly liquid financial instruments with original maturities of three months or less to be cash equivalents. The carrying value approximates the fair value of these financial instruments. All cash deposits are held in one financial institution with amounts exceeding $250,000 not being federally insured.
Depreciation The Company maintains office furniture that is recorded at cost and depreciated using the straight-line method over a seven year period. Accumulated depreciation of $3,197 and $2,597 was recorded at June 30, 2011 and December 31, 2010, respectively.
Oil and Gas Properties The Company utilizes the full cost method of accounting for oil and gas properties. Under this method all costs associated with the acquisition, exploration, and development of oil and gas properties, including equipping of productive wells, are capitalized and are subject to amortization and/or periodic impairment. The unit-of-production method was utilized to amortize the Companys cost of its oil and gas properties subsequent to their initial impairment and until such time that the properties were fully impaired.
Net Loss per Common Share, basic and diluted - The computation of net loss per common share is based on the weighted average number of shares outstanding during the periods presented. No potentially dilutive securities or derivative instruments are outstanding.
Income Taxes The Company follows the provisions of uncertain tax positions as addressed in ASC 740-10-65-1 and uses the asset and liability method of accounting for income taxes. Under this method deferred tax assets and liabilities are determined based on differences between financial reporting and the tax basis of assets and liabilities and are measured using enacted tax rates to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized.
At June 30, 2011, the Company has a net operating loss carry forward of approximately $737,290 that expires if unused from 2027 through 2031, and a deferred tax asset of approximately $136,070. No tax benefit has been reported in the financial statements since the potential tax benefit is offset by a valuation allowance of approximately the same amount. The Company recognized no increase in the liability for unrecognized tax benefits. The Company has no tax position at June 30, 2011 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The Company did not recognize any accrued interest related to unrecognized tax benefits or operating expenses as a result of penalties during the periods presented. |
Balance Sheets (USD $)
|
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Cash and cash equivalents | $ 885,256 | $ 931,103 |
Deposits | 1,000 | 1,000 |
Prepaid expenses | 1,500 | 1,900 |
Total Current Assets | 887,756 | 934,003 |
Office Furniture (net) | 5,195 | 5,794 |
Oil and Gas - property and equipment (net) | 0 | 0 |
Total Assets | 892,951 | 939,797 |
Accounts payable and accrued liabilities | 0 | 5,420 |
Oil and gas drilling and operating costs payable | 0 | 1,209 |
Total Current Liabilities | 0 | 6,629 |
Total Liabilities | 0 | 6,629 |
Common Stock, $0.001 par value, 75,000,000 shares authorized, 3,548,200 shares issued and outstanding | 3,548 | 3,548 |
Paid-in capital | 1,671,741 | 1,671,741 |
Deficit accumulated during the development stage | (782,338) | (742,121) |
Total Stockholders' Equity | 892,951 | 933,168 |
Total Liabilities and Stockholders' Equity | $ 892,951 | $ 939,797 |