Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 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 December 31, 2018 and 2017:

 

    Carrying     Fair Value Measurement at  
    Value     December 31, 2018  
          Level 1     Level 2     Level 3  
                         
Derivative assets, debt and equity instruments   $     $     $     $  
Derivative liabilities, debt and equity instruments     661,320                   661,320  

  

          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.

 

    December 31,  
    2018     2017  
Numerator:                
Net income (loss) available to stockholders   $ (6,585,506 )   $ (6,493,871 )
Basic net income allocable to participating securities (1)            
Income (loss) available to Foothills Exploration, Inc.’s stockholders   $ (6,585,506 )   $ (6,493,871 )
                 
Denominator:                
Weighted average number of common shares outstanding-Basic     16,992,461       14,418,719  
Effect of dilutive securities:                
Options and warrants (2)            
Stock payable (3)           205,000  
Convertible notes (4)     19,504,517       1,800,532  
Weighted average number of common shares outstanding-Diluted     36,496,978       16,424,251  
                 
Net income (loss) per share:                
Basic   $ (0.39 )   $ (0.45 )
Diluted   $ (0.18 )   $ (0.40 )

 

 

  (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 year ended December 31, 2018, “out of the money” stock options representing 2,050,000 shares and warrants representing 5,761,015 shares were antidilutive and, therefore, excluded from the diluted share calculation. For the year ended December 31, 2017, “out of the money” stock options representing 2,050,000 shares and warrants representing 2,783,515 shares were antidilutive and, therefore, excluded from the diluted share calculation.
     
  (3) For the year ended December 31, 2017, stock payable representing 205,000 shares were anti-dilutive.
     
  (4) For the year ended December 31, 2018 and 2017, convertible notes representing 19,504,517 and 1,800,532 shares were anti-dilutive.