NEVADA
|
87-0564472
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer Identification
No.)
|
·
|
Our chief executive officer and
chief financial officer must now certify the accuracy of all of our
periodic reports that contain financial
statements;
|
·
|
Our periodic reports must disclose
our conclusions about the effectiveness of our disclosure controls and
procedures; and
|
·
|
We may not make any loan to any
director or executive officer and we may not materially modify any
existing loans.
|
·
|
with a price of less than five
dollars per share;
|
·
|
that are not traded on a
“recognized” national
exchange;
|
·
|
whose prices are not quoted on the
NASDAQ automated quotation system;
or
|
·
|
get information about the
investor’s financial situation, investment experience and investment
goals;
|
·
|
reasonably determine, based on
that information, that transactions in penny stocks are suitable for the
investor and that the investor can evaluate the risks of penny stock
transactions;
|
·
|
provide the investor with a
written statement setting forth the basis on which the broker/dealer made
his or her determination;
and
|
·
|
receive a signed and dated copy of
the statement from the investor, confirming that it accurately reflects
the investors’ financial situation, investment experience and investment
goals.
|
2006
|
High
|
Low
|
||||||
First
Quarter
|
$
|
0.15
|
$
|
0.03
|
||||
Second
Quarter
|
0.10
|
0.03
|
||||||
Third
Quarter
|
0.04
|
0.03
|
||||||
Fourth
Quarter
|
0.50
|
0.02
|
2007
|
High
|
Low
|
||||||
First
Quarter
|
$
|
.95
|
$
|
.22
|
||||
Second
Quarter
|
.46
|
.12
|
||||||
Third
Quarter
|
.14
|
.05
|
||||||
Fourth
Quarter
|
.09
|
.03
|
Name
|
Age
|
Title
|
Jon
Fullenkamp
|
53
|
President, CEO and Chairman of the
Board of Directors
|
Rick
May
|
62
|
Director
|
Perry
Mansell
|
60
|
Director
|
SUMMARY COMPENSATION
TABLE
|
|||||||||||||||||||||||||||||
Long Term
Compensation
|
|||||||||||||||||||||||||||||
Annual
Compensation
|
Awards
|
Payouts
|
|||||||||||||||||||||||||||
Name and
Principle Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Other
Annual
Compensation
|
Restricted
Stock
Award(s)
($)(1)
|
Securities
Underlying Options/SARs
(#)
|
LTIP
Payouts
($)
|
All other
compensation
($)
|
|||||||||||||||||||||
Jon Fullenkamp, CEO, President
& Director
|
2007
|
$
|
0
|
n/a
|
n/a
|
8,750,000
|
(1)
|
0
|
0
|
0
|
|||||||||||||||||||
Perry Mansell,
Director
|
2007
|
$
|
0
|
n/a
|
n/a
|
500,000
|
0
|
0
|
0
|
||||||||||||||||||||
Rick May,
Director
|
2007
|
$
|
0
|
n/a
|
n/a
|
500,000
|
0
|
0
|
0
|
||||||||||||||||||||
Title of
|
Name and
Address
|
Amount and
Nature
|
Percent of
|
||||||
Class
|
of Beneficial
Owner
|
of Beneficial
Owners
|
Ownership
|
||||||
Common
|
Jon
Fullenkamp
|
14,172,616
|
(1)
|
34
|
%
|
||||
112 N Curry Street, Carson City,
NV 89703-4934
|
|||||||||
Common
|
Rick May
|
540,000
|
0
|
%
|
|||||
112 N Curry Street, Carson City,
NV 89703-4934
|
|||||||||
Common
|
Perry
Mansell
|
540,000
|
0
|
%
|
|||||
112 N Curry Street, Carson City,
NV 89703-4934
|
Exhibit
No.
|
Description of
Exhibit
|
3.1
|
Articles of incorporation and
amendments (1)
|
3.2
|
Certificate of Amendment, dated
April 28, 2003 (2)
|
3.3
|
Bylaws (2)
|
3.4
|
Certificate of Amendment, dated
May 3, 2006 (3)
|
3.5
|
Certificate of Amendment, dated
August 22, 2006 (3)
|
14
|
|
31
|
|
32
|
VICTORY ENERGY
CORPORATION
|
|||
Date: November 20,
2008
|
By:
|
/s/ Jon
Fullenkamp
|
|
Jon
Fullenkamp
|
|||
CEO, President and
Director
|
|||
VICTORY ENERGY
CORPORATION
|
|||
Date: November 20,
2008
|
By:
|
/s/ Jon
Fullenkamp
|
|
Jon
Fullenkamp
|
|||
CEO, President and
Director
(Principal Executive Officer
and
Principal Financial and Accounting
Officer)
|
|||
Consolidated Balance
Sheets
|
||||||||
(A Development Stage
Company)
|
||||||||
Consolidated Balance
Sheets
|
||||||||
ASSETS
|
||||||||
December
31,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
CURRENT
ASSETS
|
||||||||
Cash and Cash
Equivalents
|
$
|
3,251
|
$
|
-
|
||||
Subscriptions
Receivable
|
160,000
|
-
|
||||||
Total
Current Assets
|
163,251
|
-
|
||||||
FIXED ASSETS,
NET
|
-
|
-
|
||||||
OTHER
ASSETS
|
||||||||
Investment in Joint
Venture
|
50,000
|
50,000
|
||||||
TOTAL
ASSETS
|
$
|
213,251
|
$
|
50,000
|
||||
CURRENT
LIABILITES
|
||||||||
LIABILITIES & STOCKHOLDERS'
DEFICIT
|
||||||||
CURRENT
LIABILITES
|
||||||||
Bank
Overdraft
|
$
|
-
|
$
|
79
|
||||
Accounts
Payable
|
34,803
|
19,142
|
||||||
Credit Line - WFB
Business Line
|
81,860
|
56,961
|
||||||
Prepaid
Subscriptions
|
203,500
|
203,500
|
||||||
Total
Current Liabilities
|
320,163
|
279,682
|
||||||
OTHER
LIABILITIES
|
||||||||
Loan from
Officer
|
1,377,879
|
690,085
|
||||||
Total
Other Liabilities
|
1,377,879
|
690,085
|
||||||
Total
Liabilities
|
1,698,042
|
969,767
|
||||||
Commitments and contingencies
(Note 6)
|
||||||||
STOCKHOLDERS'
DEFICIT
|
||||||||
Preferred Stock, $0.001 par value,
10,000,000 shares
|
||||||||
authorized,
630,517 issued and outstanding
|
631
|
716
|
||||||
Common Stock, $0.001 par value,
200,000,000 shares
|
||||||||
authorized, 42,395,366 issued
and outstanding
|
42,395
|
4,518
|
||||||
Additional paid-in
capital
|
7,860,331
|
4,566,320
|
||||||
Deficit accumulated in the
development stage
|
(9,388,148
|
)
|
(5,491,321
|
)
|
||||
Total
Stockholders' Deficit
|
(1,484,791
|
)
|
(919,767
|
)
|
||||
TOTAL LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
$
|
213,251
|
$
|
50,000
|
VICTORY ENERGY CORPORATION AND
SUBSIDIARIES
|
||||||||||||||||||||
(A Development Stage
Company)
|
||||||||||||||||||||
Consolidated Statement of
Operations
|
||||||||||||||||||||
For the
period
|
||||||||||||||||||||
of
Inception,
|
||||||||||||||||||||
For the
|
For the
|
from January
7,
|
||||||||||||||||||
Three Months
Ended
|
Year Ended
|
1982
through
|
||||||||||||||||||
December
31,
|
December
31,
|
December
31,
|
||||||||||||||||||
2007
|
2006
|
2007
|
2006
|
2007
|
||||||||||||||||
Unaudited
|
||||||||||||||||||||
Revenues
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
20,207
|
||||||||||
Costs and
Expenses
|
||||||||||||||||||||
Consulting
Expense
|
636,966
|
58,284
|
3,644,468
|
1,252,923
|
7,633,821
|
|||||||||||||||
Professional
Fees
|
1,400
|
3,121
|
14,138
|
47,444
|
158,146
|
|||||||||||||||
Land Leases
|
-
|
-
|
1,680
|
24,040
|
25,720
|
|||||||||||||||
Wages and
Salaries
|
-
|
-
|
-
|
22,500
|
270,500
|
|||||||||||||||
Other General &
Administrative
|
31,234
|
63,169
|
230,022
|
398,457
|
1,217,457
|
|||||||||||||||
Total
Expenses
|
669,600
|
124,574
|
3,890,308
|
1,745,364
|
9,305,644
|
|||||||||||||||
Operating
Loss
|
(669,600
|
)
|
(124,574
|
)
|
(3,890,308
|
)
|
(1,745,364
|
)
|
(9,285,437
|
)
|
||||||||||
Other Income and
(expenses)
|
||||||||||||||||||||
Loss on abandonment of
subsidiary
|
(50,900
|
)
|
||||||||||||||||||
Loss from reduction in
debt
|
(48,363
|
)
|
||||||||||||||||||
Interest
Expense
|
(5,664
|
)
|
(6,639
|
)
|
(5,664
|
)
|
||||||||||||||
Other
Income
|
120
|
120
|
2,216
|
|||||||||||||||||
Total Other Income and
(expenses)
|
(5,544
|
)
|
-
|
(6,519
|
)
|
-
|
(102,711
|
)
|
||||||||||||
Net Loss
|
$
|
(675,144
|
)
|
$
|
(124,574
|
)
|
$
|
(3,896,827
|
)
|
$
|
(1,745,364
|
)
|
$
|
(9,388,148
|
)
|
|||||
Basic and Dilutive net loss
per share
|
$
|
(0.02
|
)
|
$
|
(0.03
|
)
|
$
|
(0.16
|
)
|
$
|
(0.56
|
)
|
||||||||
Weighted average number of
shares
|
||||||||||||||||||||
outstanding, basic and
diluted
|
31,347,323
|
4,310,806
|
23,953,149
|
3,096,472
|
||||||||||||||||
Dilutive effect of preferred
stock,
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||
(Note 2)
|
VICTORY ENERGY CORPORATION AND
SUBSIDIARIES
|
||||||||||||||||||||||||||||
(A Development Stage
Company)
|
||||||||||||||||||||||||||||
Consolidated Statement of
Stockholders' Equity (Deficit)
|
||||||||||||||||||||||||||||
Unaudited
|
||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
Additional
|
Deficit
During
|
|||||||||||||||||||||||||||
Common
Stock
|
Preferred
Stock
|
Paid-in
|
Development
|
|||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stage
|
Total
|
||||||||||||||||||||||
Balances at January 7,
1982
|
-
|
$
|
-
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||||
Common stock for cash at
$7.50/sh
|
6,000
|
6
|
45,000
|
45,006
|
||||||||||||||||||||||||
Common stock for cash at
$0.39/sh.
|
168,503
|
169
|
65,819
|
65,988
|
||||||||||||||||||||||||
Net loss from inception to Dec.
31,'82
|
(39,597
|
)
|
(39,597
|
)
|
||||||||||||||||||||||||
Balances at Dec. 31,
1982
|
174,503
|
175
|
110,819
|
(39,597
|
)
|
71,397
|
||||||||||||||||||||||
Net loss, year ended Dec. 31,
1983
|
(71,397
|
)
|
(71,397
|
)
|
||||||||||||||||||||||||
Balances at Dec. 31,
1983
|
174,503
|
175
|
110,819
|
(110,994
|
)
|
(0
|
)
|
|||||||||||||||||||||
Common stock for cash at
$25.00/sh.
|
57
|
1,425
|
1,425
|
|||||||||||||||||||||||||
Common stock for cash at
$25.00/sh. per share
|
3
|
75
|
75
|
|||||||||||||||||||||||||
Common stock for cash at
$0.025/sh. per share
|
1,580,000
|
1,580
|
38,373
|
39,953
|
||||||||||||||||||||||||
Net loss - year ended Dec. 31,
1984
|
-
|
|||||||||||||||||||||||||||
Balances at Dec. 31,
1984
|
1,754,563
|
1,755
|
150,692
|
(110,994
|
)
|
41,453
|
||||||||||||||||||||||
Cancellation of common
stock
|
(1,296,132
|
)
|
(1,297
|
)
|
(1,297
|
)
|
||||||||||||||||||||||
Net loss - year ended Dec. 31,
1985
|
-
|
|||||||||||||||||||||||||||
Balances at Dec. 31,
1985
|
458,431
|
458
|
150,692
|
(110,994
|
)
|
40,156
|
||||||||||||||||||||||
Net loss - year ended Dec. 31,
1986
|
-
|
|||||||||||||||||||||||||||
Balances at Dec. 31,
1986
|
458,431
|
458
|
150,692
|
(110,994
|
)
|
40,156
|
||||||||||||||||||||||
Net loss - year ended Dec. 31,
1987
|
-
|
|||||||||||||||||||||||||||
Balances at Dec. 31,
1987
|
458,431
|
458
|
150,692
|
(110,994
|
)
|
40,156
|
||||||||||||||||||||||
Net loss - year ended Dec. 31,
1988
|
-
|
|||||||||||||||||||||||||||
Balances at Dec. 31,
1988
|
458,431
|
458
|
150,692
|
(110,994
|
)
|
40,156
|
||||||||||||||||||||||
Net loss - year ended Dec. 31,
1989
|
-
|
|||||||||||||||||||||||||||
Balances at Dec. 31,
1989
|
458,431
|
458
|
150,692
|
(110,994
|
)
|
40,156
|
||||||||||||||||||||||
Net loss - year ended Dec. 31,
1990
|
-
|
|||||||||||||||||||||||||||
Balances at Dec. 31,
1990
|
458,431
|
458
|
150,692
|
(110,994
|
)
|
40,156
|
||||||||||||||||||||||
Net loss - year ended Dec. 31,
1991
|
-
|
|||||||||||||||||||||||||||
Balances at Dec. 31,
1991
|
458,431
|
458
|
150,692
|
(110,994
|
)
|
40,156
|
||||||||||||||||||||||
Net loss - year ended Dec. 31,
1992
|
-
|
|||||||||||||||||||||||||||
Balances at Dec. 31,
1992
|
458,431
|
458
|
150,692
|
(110,994
|
)
|
40,156
|
||||||||||||||||||||||
Net loss - year ended Dec. 31,
1993
|
-
|
|||||||||||||||||||||||||||
Balances at Dec. 31,
1993
|
458,431
|
458
|
150,692
|
(110,994
|
)
|
40,156
|
||||||||||||||||||||||
Cancellation of common
stock
|
(316,000
|
)
|
(316
|
)
|
(316
|
)
|
||||||||||||||||||||||
Net loss - year ended Dec. 31,
1994
|
(6,656
|
)
|
(6,656
|
)
|
||||||||||||||||||||||||
Balances at Dec. 31,
1994
|
142,431
|
142
|
150,692
|
(117,650
|
)
|
33,184
|
||||||||||||||||||||||
Common stock for cash at
$0.001/sh.
|
2,357,895
|
2,359
|
2,359
|
|||||||||||||||||||||||||
Net loss - year ended Dec. 31,
1995
|
(49,097
|
)
|
(49,097
|
)
|
||||||||||||||||||||||||
Balances at Dec. 31,
1995
|
2,500,326
|
2,500
|
150,692
|
(166,747
|
)
|
(13,555
|
)
|
|||||||||||||||||||||
Common stock for cash at
$0.001/sh.
|
120,000
|
120
|
120
|
|||||||||||||||||||||||||
Net loss - year ended Dec. 31,
1996
|
0
|
0
|
(1,681
|
)
|
(1,681
|
)
|
||||||||||||||||||||||
Balances at Dec. 31,
1996
|
2,620,326
|
2,620
|
150,692
|
(168,428
|
)
|
(15,116
|
)
|
|||||||||||||||||||||
Net loss - year ended Dec. 31,
1997
|
(3,517
|
)
|
(3,517
|
)
|
||||||||||||||||||||||||
Balances at Dec. 31,
1997
|
2,620,326
|
2,620
|
150,692
|
(171,945
|
)
|
(18,633
|
)
|
|||||||||||||||||||||
Net loss - year ended Dec. 31,
1998
|
(2,479
|
)
|
(2,479
|
)
|
||||||||||||||||||||||||
Balances at Dec. 31,
1998
|
2,620,326
|
2,620
|
150,692
|
(174,424
|
)
|
(21,112
|
)
|
|||||||||||||||||||||
Net loss - year ended Dec. 31,
1999
|
(6,307
|
)
|
(6,307
|
)
|
||||||||||||||||||||||||
Balances at Dec. 31,
1999
|
2,620,326
|
2,620
|
150,692
|
(180,731
|
)
|
(27,419
|
)
|
|||||||||||||||||||||
Net loss - year ended Dec. 31,
2000
|
(9,011
|
)
|
(9,011
|
)
|
||||||||||||||||||||||||
Balances at Dec. 31,
2000
|
2,620,326
|
2,620
|
150,692
|
(189,742
|
)
|
(36,430
|
)
|
|||||||||||||||||||||
Net loss - year ended Dec. 31,
2001
|
(19,461
|
)
|
(19,461
|
)
|
||||||||||||||||||||||||
Balances at Dec. 31,
2001
|
2,620,326
|
2,620
|
150,692
|
(209,203
|
)
|
(55,891
|
)
|
|||||||||||||||||||||
Contributed capital for rent
and
|
||||||||||||||||||||||||||||
other
compensation
|
1,950
|
1,950
|
||||||||||||||||||||||||||
Net loss - year ended Dec. 31,
2002
|
(13,960
|
)
|
(13,960
|
)
|
||||||||||||||||||||||||
Balances at Dec. 31,
2002
|
2,620,326
|
2,620
|
152,642
|
(223,163
|
)
|
(67,901
|
)
|
|||||||||||||||||||||
Contributed capital for rent
and
|
||||||||||||||||||||||||||||
officer
compensation
|
488
|
488
|
||||||||||||||||||||||||||
Capital contributed by
shareholders
|
||||||||||||||||||||||||||||
via accounts payable and
interest
|
77,415
|
77,415
|
||||||||||||||||||||||||||
Stock issued for services
$0.025/sh.
|
13,389,932
|
13,390
|
321,358
|
334,748
|
||||||||||||||||||||||||
Stock issued for services at
$0.61/sh.
|
100,000
|
100
|
60,900
|
61,000
|
||||||||||||||||||||||||
Stock for consulting at
$0.47/share
|
10,000
|
10
|
4,690
|
4,700
|
||||||||||||||||||||||||
Net loss - year ended Dec. 31,
2003
|
(592,962
|
)
|
(592,962
|
)
|
||||||||||||||||||||||||
Balances at Dec. 31,
2003
|
16,120,258
|
16,120
|
617,493
|
(816,125
|
)
|
(182,512
|
)
|
|||||||||||||||||||||
Stock issued for services at
$0.16/sh
|
1,000,000
|
1,000
|
159,000
|
0
|
160,000
|
|||||||||||||||||||||||
Stock issued for services at
$0.17/sh.
|
1,800,000
|
1,800
|
304,200
|
0
|
306,000
|
|||||||||||||||||||||||
Stock issued for services at
$0.165/sh
|
800,000
|
800
|
131,200
|
0
|
132,000
|
|||||||||||||||||||||||
Stock issued for services at
$0.215/sh.
|
30,000
|
30
|
6,420
|
0
|
6,450
|
|||||||||||||||||||||||
Stock issued for debt at $0.45 per
sh.
|
150,000
|
150
|
67,350
|
0
|
67,500
|
|||||||||||||||||||||||
Stock issued for services at
$0.40/sh
|
300,000
|
300
|
119,700
|
0
|
120,000
|
|||||||||||||||||||||||
Stock issued for services at
$0.34/sh.
|
700,000
|
700
|
237,300
|
0
|
238,000
|
|||||||||||||||||||||||
Stock issued for services at
$0.41/sh.
|
300,000
|
300
|
122,700
|
0
|
123,000
|
|||||||||||||||||||||||
Stock issued for services at
$0.27/sh.
|
300,000
|
300
|
80,700
|
0
|
81,000
|
|||||||||||||||||||||||
Stock issued for services at
$0.22/sh.
|
600,000
|
600
|
131,400
|
0
|
132,000
|
|||||||||||||||||||||||
Net loss - year ended Dec. 31,
2004
|
(1,606,057
|
)
|
(1,606,057
|
)
|
||||||||||||||||||||||||
Balances at Dec. 31,
2004
|
22,100,258
|
22,100
|
1,977,463
|
(2,422,182
|
)
|
(422,619
|
)
|
|||||||||||||||||||||
Contributed capital for general
and administrative expenses
|
138,701
|
138,701
|
||||||||||||||||||||||||||
Stock issued for services at
$0.03/sh.
|
19,860,000
|
19,860
|
575,940
|
595,800
|
||||||||||||||||||||||||
Net loss - year ended Dec. 31,
2005
|
(1,323,775
|
)
|
(1,323,775
|
)
|
||||||||||||||||||||||||
Balances at December 31,
2005
|
41,960,258
|
41,960
|
2,692,104
|
(3,745,957
|
)
|
(1,011,893
|
)
|
|||||||||||||||||||||
Stock issued for services at
$0.027/sh.
|
17,583,334
|
17,583
|
459,917
|
477,500
|
||||||||||||||||||||||||
Common stock issued in
debt
|
||||||||||||||||||||||||||||
restructuring at $0.06 and
$0.03
|
10,666,667
|
10,667
|
429,333
|
440,000
|
||||||||||||||||||||||||
Stock issued for debt at $0.06/
sh.
|
5,000,000
|
5,000
|
295,000
|
300,000
|
||||||||||||||||||||||||
Stock issued for services at
$0.03/sh.
|
2,500,000
|
2,500
|
72,500
|
75,000
|
||||||||||||||||||||||||
Stock issued for services at
$0.05/sh.
|
500,000
|
500
|
24,500
|
25,000
|
||||||||||||||||||||||||
Stock issued for services at
$0.008/sh.
|
10,000,000
|
10,000
|
70,000
|
80,000
|
||||||||||||||||||||||||
Stock for consulting at
$0.008/sh.
|
4,500,000
|
4,500
|
31,500
|
36,000
|
||||||||||||||||||||||||
Stock for consulting at
$0.008/sh.
|
500,000
|
500
|
3,500
|
4,000
|
||||||||||||||||||||||||
Stock for consulting at
$0.008/sh.
|
4,000,000
|
4,000
|
28,000
|
32,000
|
||||||||||||||||||||||||
Stock for consulting at
$0.008/sh.
|
700,000
|
700
|
4,900
|
5,600
|
||||||||||||||||||||||||
Stock for consulting at
$0.008/sh.
|
300,000
|
300
|
2,100
|
2,400
|
||||||||||||||||||||||||
Stock for consulting at
$0.008/sh.
|
3,600,000
|
3,600
|
25,200
|
28,800
|
||||||||||||||||||||||||
Stock for consulting at
$0.008/sh.
|
3,000,000
|
3,000
|
21,000
|
24,000
|
||||||||||||||||||||||||
Stock for consulting at
$0.008/sh.
|
4,000,000
|
4,000
|
28,000
|
32,000
|
||||||||||||||||||||||||
Balances before reverse
split
|
108,810,259
|
108,810
|
4,187,554
|
(3,745,957
|
)
|
550,407
|
||||||||||||||||||||||
Reverse split 25 to 1, Oct.26,
2006
|
(104,457,849
|
)
|
(104,458
|
)
|
104,458
|
-
|
||||||||||||||||||||||
New Stock issued for
rounding
|
890
|
1
|
(1
|
)
|
-
|
|||||||||||||||||||||||
Balances after reverse
split
|
4,353,300
|
4,353
|
4,292,011
|
(3,745,957
|
)
|
550,407
|
||||||||||||||||||||||
Preferred stock for cash at
$0.467/sh.
|
715,517
|
716
|
246,234
|
246,950
|
||||||||||||||||||||||||
Common stock for
rounding$0.50/sh.
|
1
|
-
|
||||||||||||||||||||||||||
Common stock for services
$0.20/sh
|
5,200
|
5
|
1,035
|
1,040
|
||||||||||||||||||||||||
Common stock for
rounding$0.20/sh.
|
14
|
-
|
||||||||||||||||||||||||||
Common stock for services
$0.17/sh.
|
160,000
|
160
|
27,040
|
27,200
|
||||||||||||||||||||||||
Net loss - year ended Dec. 31,
2006
|
(1,745,364
|
)
|
(1,745,364
|
)
|
||||||||||||||||||||||||
Balances at December 31,
2006
|
4,518,515
|
4,518
|
715,517
|
716
|
4,566,320
|
(5,491,321
|
)
|
(919,767
|
)
|
|||||||||||||||||||
Common stock for services
$0.15/sh
|
6,277,251
|
6,277
|
935,310
|
941,587
|
||||||||||||||||||||||||
Common stock sold @
$0.21/sh
|
5,662,000
|
5,662
|
1,183,358
|
1,189,020
|
||||||||||||||||||||||||
Common stock for services
$0.21/sh
|
40,000
|
40
|
8,360
|
8,400
|
||||||||||||||||||||||||
Common stock for services
$0.21/sh
|
2,787,600
|
2,788
|
582,608
|
585,396
|
||||||||||||||||||||||||
Common stock subscribed, issued
$0.21
|
3,500,000
|
3,500
|
731,500
|
735,000
|
||||||||||||||||||||||||
Preferred Stock converted to
common
|
8,500,000
|
8,500
|
(85,000
|
)
|
(85
|
)
|
(8,415
|
)
|
-
|
|||||||||||||||||||
Common stock for services
$0.05/sh
|
300,000
|
300
|
14,700
|
15,000
|
||||||||||||||||||||||||
Common stock for services
$0.04/sh
|
10,310,000
|
10,310
|
402,090
|
412,400
|
||||||||||||||||||||||||
Common stock for services
$0.04/sh
|
500,000
|
500
|
19,500
|
20,000
|
||||||||||||||||||||||||
Revaluation of subscriptions
receivable
|
(575,000
|
)
|
(575,000
|
)
|
||||||||||||||||||||||||
Net loss - year ended Dec. 31,
2007
|
(3,896,827
|
)
|
(3,896,827
|
)
|
||||||||||||||||||||||||
Balances at December 31,
2007
|
42,395,366
|
$
|
42,395
|
630,517
|
$
|
631
|
$
|
7,860,331
|
$
|
(9,388,148
|
)
|
$
|
(1,484,791
|
)
|
VICTORY ENERGY CORPORATION AND
SUBSIDIARIES
|
||||||||||||||||||||
(A Development Stage
Company)
|
||||||||||||||||||||
Consolidated Statements of Cash
Flows
|
||||||||||||||||||||
For the
|
For the
|
From
Inception
|
||||||||||||||||||
Three Months
Ended
|
Year Ended
|
Jan. 7,
1982
|
||||||||||||||||||
December
31,
|
December
31,
|
through
|
||||||||||||||||||
2007
|
2006
|
2007
|
2006
|
Dec. 31,
2007
|
||||||||||||||||
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
Unaudited
|
|||||||||||||||||||
Net Loss
|
$
|
(675,144
|
)
|
$
|
(124,574
|
)
|
$
|
(3,896,827
|
)
|
$
|
(1,745,364
|
)
|
$
|
(9,388,148
|
)
|
|||||
Adjustments to reconcile net loss
to net cash
|
||||||||||||||||||||
used by operating
activities:
|
||||||||||||||||||||
Depreciation
|
198
|
1,096
|
2,294
|
|||||||||||||||||
Loss on extinguishment of
debt
|
48,363
|
|||||||||||||||||||
Loss on abandonment of
subsidiary
|
50,900
|
|||||||||||||||||||
Issuance of common stock for
services rendered
|
447,400
|
560,710
|
447,400
|
1,261,805
|
6,625,415
|
|||||||||||||||
Increase in Short Term
Receivables
|
210,984
|
|||||||||||||||||||
Decrease (Increase) in Prepaid
Expenses
|
||||||||||||||||||||
Increase (Decrease) in
Deposits
|
||||||||||||||||||||
Increase (Decrease) in Prepaid
Subscriptions
|
(43,450
|
)
|
203,500
|
203,500
|
||||||||||||||||
(Increase) Decrease in
Subscriptions Receivable
|
575,000
|
(160,000
|
)
|
(575,000
|
)
|
|||||||||||||||
Increase (Decrease) in accounts
payable
|
202
|
9,966
|
15,661
|
(311,828
|
)
|
34,803
|
||||||||||||||
Increase (Decrease) in accrued
liabilities
|
1,020
|
(16,006
|
)
|
(11,416
|
)
|
|||||||||||||||
Increase (Decrease ) in Accrued
Payroll,P'roll Taxes
|
(750,970
|
)
|
(240,000
|
)
|
||||||||||||||||
Increase (Decrease) in Short Term
Receivables
|
||||||||||||||||||||
Repayment of long term
debt
|
(146,431
|
)
|
||||||||||||||||||
Increase (decrease) in Accrued
Liabilities-Related
|
229,644
|
(125,500
|
)
|
(172,179
|
)
|
|||||||||||||||
Non-cash contributed
capital
|
(169,679
|
)
|
(121,000
|
)
|
||||||||||||||||
Net Cash provided by (used
by)
|
||||||||||||||||||||
Operating
Activities
|
578,122
|
(659,305
|
)
|
(3,593,766
|
)
|
(1,070,833
|
)
|
(2,997,873
|
)
|
|||||||||||
CASH FLOWS FROM INVESTING
ACTIVITIES
|
||||||||||||||||||||
Purchase of Fixed
Assets
|
(2,294
|
)
|
||||||||||||||||||
Purchase / Sale of Marketable
Securities
|
||||||||||||||||||||
Investment in Joint
Venture
|
(50,000
|
)
|
(50,000
|
)
|
||||||||||||||||
Net Cash (used by) Investing
Activities
|
-
|
-
|
-
|
(50,000
|
)
|
(52,294
|
)
|
|||||||||||||
CASH FLOWS FROM FINANCING
ACTIVITIES
|
||||||||||||||||||||
Proceeds of Note
Payable
|
122,684
|
|||||||||||||||||||
Proceeds (Repayment) of
Loans
|
(149,458
|
)
|
||||||||||||||||||
Increase (decrease) in Credit
Line
|
(4,167
|
)
|
24,899
|
56,961
|
81,860
|
|||||||||||||||
Proceeds (Repayment) of Loan from
Officer
|
565,054
|
687,794
|
690,085
|
1,377,879
|
||||||||||||||||
Proceeds (Repayment) of Note
Payable-Related Party
|
||||||||||||||||||||
Increase (Decrease) in Other Loans
Payable
|
(19,000
|
)
|
||||||||||||||||||
Contributed capital for rent and
officers' compensation
|
2,270,383
|
2,438
|
||||||||||||||||||
Proceeds from the sale of
Preferred Stock
|
246,950
|
246,950
|
||||||||||||||||||
Proceeds from the
sale/conversion of Common Stock
|
1,189,020
|
1,504,291
|
||||||||||||||||||
Commons stock subscribed,
revalued
|
(575,000
|
)
|
(575,000
|
)
|
||||||||||||||||
Proceeds from the
sale/conversion of Preferred Stock
|
246,950
|
|||||||||||||||||||
Contributed Capital by
shareholders
|
||||||||||||||||||||
Net Cash provided by Financing
Activities
|
(575,000
|
)
|
639,379
|
3,597,096
|
1,116,680
|
3,213,418
|
||||||||||||||
NET INCREASE IN
CASH
|
3,122
|
(19,926
|
)
|
3,330
|
(4,153
|
)
|
163,251
|
|||||||||||||
CASH AT BEGINNING OF
PERIOD
|
129
|
19,847
|
(79
|
)
|
4,074
|
-
|
||||||||||||||
CASH AT END OF
PERIOD
|
$
|
3,251
|
$
|
(79
|
)
|
$
|
3,251
|
$
|
(79
|
)
|
$
|
163,251
|
||||||||
CASH PAID
FOR:
|
||||||||||||||||||||
Interest
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Income
Taxes
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
2007
|
2006
|
|||||||
Numerator:
|
||||||||
Net Loss
|
$
|
( 3,896,827
|
)
|
$
|
(1,745,364
|
)
|
||
Denominator
|
||||||||
Basic and diluted weighted
average
|
||||||||
number of shares
outstanding
|
23,953,149
|
3,096,472
|
||||||
Basic and Diluted Net Loss Per
Share
|
$
|
(0.16
|
)
|
$
|
(0.56
|
)
|
||
|
||||||||
Dilutive effect of Preferred
Stock
|
Nil
|
Nil
|
Description
|
Years
|
Furniture and
fixtures
|
7
|
Computer hardware and
software
|
3-5
|
Jon
Fullenkamp
|
President
|
8,750,000
|
Rick May
|
Director
|
500,000
|
Perry
Mansell
|
Director
|
500,000
|