This is in response to the post on Ihub about the

This is in response to the post on Ihub about the operating expenses for nine months ending being understated. The expenses are correctly stated.
Under normal circumstances, the general and administrative expenses amount would be much higher. However, the quarterly report ending November 30, 2013 was filed late. In the NT 10-Q, it states under part IV number 3 about significant changes:

“The Registrant anticipates that its net profit for the quarter will be $231,743. The Registrant expects a profit compared to its operating loss of $254,302 for the same quarter ending November 30, 2012 as a result of a one time unwinding of a financial services agreement. The financial results may change subject to the auditor's review.”

The NT 10-Q can be found here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9709343

Further, if you look closely at the quarterly report income statement, the general and administrative expenses are in parenthesis compared to other reports that have the general and administrative expenses not in parenthesis. This left a profit for the quarter.

The 10-Q for November 2013 can be found here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9718736

The most recent termination of a finance agreement I could find was terminated August 31, 2013 between Xun Energy and Prodigy Asset Management, LLC.

Here is the link to the 8-K stating the termination: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9585516

I went through the quarterly reports and calculated the stated general and administrative expenses on each quarterly report and came to the same number that was stated on the last report.

What happened is explained in the 10-Q ending November 2013:

“Operating expenses for the three months ended November 30, 2013 and November 30, 2012 totalled ($353,170) and $247,262. Total operating expenses from December 20, 2007 (“Inception”) through November 30, 2013 were $2,841,388. Our single largest expense for the three months ended November 30, 2013 has been financial consulting fees totalling ($498,250) and $94,800 for financial consulting for the three months ended November 30, 2012. Total financial consulting from December 20, 2007 (“Inception”) through November 30, 2013 were $888,550. The credit (negative) financial consulting fees is the result of the mutually agreed termination of the August 31, 2012 twenty-four month Financing Facilities Consulting Agreement (the “FFCA Agreement”) between the Company and Prodigy Asset Management, LLC (“PAM”). In consideration of the services to be provided by PAM, the Company agreed to pay PAM a prepaid retainer fee of $1,000,000 in the form of 20,000,000 common stock (Shares) of the Company.
The Company issued 20 million Shares to PAM which PAM has agreed to return the 20 million Shares to the Company resulting in the unwinding of the transaction. The Company amortized $500,000 of the prepaid retainer and upon termination of the FFCA Agreement, the costs amortized are reversed resulting in a credit or negative financial consulting fees for the three month period .”

So the resulting profit was correct, it was just a reversal of amortized costs from the financing agreement.

If anyone finds anything more information or sees any mistakes, please post.

Thanks.

The fault-finder will find faults even in paradise. -Henry David Thoreau