Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Tables)

v3.19.2
Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2019
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 June 30, 2019 and December 31, 2018:

 

    Carrying     Fair Value Measurement at  
    Value     June 30, 2019  
          Level 1     Level 2     Level 3  
                         
Derivative assets, debt and equity instruments   $     $     $     $  
Derivative liabilities, debt and equity instruments     6,506,062                   6,506,062  

 

    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  
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
June 30,
    For the Six Months Ended
June 30,
 
    2019     2018     2019     2018  
Numerator:                        
Net income (loss) available to stockholders     (1,259,812 )     (1,528,456 )     (8,360,207 )     (2,390,301 )
Basic net income allocable to participating securities (1)     -       -       -       -  
Income (loss) available to Foothills Exploration, Inc.’s stockholders     (1,259,812 )     (1,528,456 )     (8,360,207 )     (2,390,301 )
                                 
Denominator:                                
Weighted average number of common shares outstanding-Basic     23,672,003       14,941,836       22,739,440       14,921,345  
Effect of dilutive securities:                                
Options and warrants (2)     64,081,948       -       64,081,948       -  
Stock payable (3)     96,666       4,491,111       96,666       4,491,111  
Convertible notes (4)     49,505,985       4,580,493       49,505,985       4,580,493  
Weighted average number of common shares outstanding-Diluted     88,500,616       19,932,947       137,271,552       24,492,949  
                                 
Net income (loss) per share:                                
Basic     0.15       (0.10 )     (0.35 )     (0.16 )
Diluted     0.04       (0.08 )     (0.06 )     (0.10 )

 

(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 months ended June 30, 2019 and 2018, “out of the money” stock options representing 2,050,000 and 2,050,000 shares and warrants representing 2,466,015 and 2,683,515 shares were antidilutive and, therefore, excluded from the diluted share calculation. For the six months ended June 30, 2019 and 2018, “out of the money” stock options representing 2,050,000 and 2,050,000 shares and warrants representing 2,466,015 and 2,683,515 shares were antidilutive and, therefore, excluded from the diluted share calculation.
   
(3) For the three months ended June 30, 2019 and 2018, stock payable representing 96,666 and 4,491,111 shares were anti-dilutive. For the six months ended June 30, 2019 and 2018, stock payable representing 96,666 and 4,491,111 shares were anti-dilutive.
   
(4) For the three months ended June 30, 2019 and 2018, convertible notes representing 220,000 and 0 shares were anti-dilutive. For the six months ended June 30, 2019 and 2018, convertible notes representing 220,000 and 0 shares were anti-dilutive.