Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.10.0.1
Summary of Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Schedule of Estimated Useful Lives of Assets

Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

 

Office equipment – 3 years

Vehicle(s) – 5 years

Land – not depreciated

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2018 and December 31, 2017:

 

          Fair Value Measurement at  
    Carrying Value     September 30, 2018  
          Level 1     Level 2     Level 3  
                         
Derivative assets, debt and equity instruments   $     $          —     $          —     $        —  
Derivative liabilities, debt and equity instruments     454,444                   454,444  

  

          Fair Value Measurement at  
    Carrying Value     December 31, 2017  
          Level 1     Level 2     Level 3  
                         
Derivative assets, debt and equity instruments   $     $        —     $              —     $         —  
Derivative liabilities, debt and equity instruments     458,387                   458,387  

Schedule of Net Earnings (Loss) Per Common Share

The diluted weighted average number of common shares is computed using the treasury stock method for common stock that may be issued for outstanding stock options, warrants, and convertible debt.

 

    For the Three Months Ended September 30,     For the Nine Months Ended September 30,  
    2018     2017     2018     2017  
Numerator:                                
Net income (loss) available to stockholders     (723,904 )     (997,365 )     (3,114,205 )     (4,414,642 )
Basic net income allocable to participating securities (1)     -       -       -       -  
Income (loss) available to Foothills Exploration, Inc.’s stockholders     (723,904 )     (997,365 )     (3,114,205 )     (4,414,642 )
                                 
Denominator:                                
Weighted average number of common shares outstanding-Basic     16,522,827       14,618,019       15,593,318       14,270,627  
Effect of dilutive securities:                                
Options and warrants (2)     -       -       -       -  
Stock payable (3)     539,600       120,000       539,600       120,000  
Weighted average number of common shares outstanding-Diluted     17,062,427       14,738,019       16,132,918       7,496,571  
                                 
Net income (loss) per share:                                
Basic     (0.04 )     (0.07 )     (0.20 )     (0.31 )
Diluted     (0.04 )     (0.07 )     (0.19 )     (0.31 )

  

  (1) Restricted share awards that contain non-forfeitable rights to dividends are participating securities and, therefore, are included in computing earnings using the two-class method. Participating securities, however, do not participate in undistributed net losses.
     
  (2) For the three and nine months ended September 30, 2018, “out of the money” stock options representing 2,050,000 and 2,050,000 shares and warrants representing 2,783,515 and 2,783,515 shares were antidilutive and, therefore, excluded from the diluted share calculation. For the three and nine months ended September 30, 2017, “out of the money” stock options representing 2,050,000 and 2,050,000 shares and warrants representing 2,366,015 and 2,366,015   shares were antidilutive and, therefore, excluded from the diluted share calculation.
     
  (3) For the three and nine months ended September 30, 2018, stock payable representing 539,600 and 539,600 shares were anti-dilutive. For the three and nine months ended September 30, 2017, stock payable representing 120,000 and 120,000 shares were anti-dilutive.