Overview

Sino American Oil Company (the "Company") is a development stage enterprise that was originally incorporated, on April 2, 2010, under the laws of the State of Nevada. The Company is in the Oil and Gas Exploration, Development and Production Business and has been since inception. The Company had appointed Ronald Hughes as CEO from the company formation to December 16, 2016 and then appointed Richard Tang to be the CEO and sole director on December 16, 2016. On November 11, 2018, the Company filed a re-domestication to have its domestic corporation be administered under the laws of the State of Wyoming. On January 31, 2021, the Company appointed Jeffrey Standen, as CEO and Director to negotiate and oversee the exploration, development, acquisition and development of new oil and natural gas reserves as well as explore new sources of revenue opportunities.

Sino American Oil Company plans to grow shareholder value through securing oil and natural gas reserves and negotiating oil and natural gas exploration, development and production deals within the United States of America and Canada. The focused industries are oil & gas exploration, oil & gas development, and oil & gas production sales. We anticipate being able to generate revenue on the sale of oil and gas.

Sino American Oil Company is currently negotiating deals within a very large exploration area oil field owners located in the Western Canadian sedimentary basin. The deals involve oil and gas production acquisitions, mineral land acquisitions and further production increases through production optimization and drilling activities as well as production infrastructure installations.

Results of Operations for the Year Ended September 30, 2021, compared to the Year Ended September 30, 2020

We have not generated any revenue to date.

Officer compensation was $74,000 compared to $96,000, for the year ended September 30, 2021 and 2020, respectively. Officer compensation is accrued at $24,000 per quarter for our CEO.

Consulting expense was $386,237 compared to $0 for the year ended September 30, 2021 and 2020, respectively. Consulting expense has increased as the Company begins to undertake activities in the oil and gas industry.

Consulting expense - related party was $150,365 compared to $0 for the years ended September 30, 2021 and 2020, respectively. In the current year we incur consulting expense of $15,000 per month for services provided by Triage.

General and administrative expense ("G&A") was $126,042 compared to $897 for the year ended September 30, 2021 and 2020, respectively. G&A expense has increased in large part due to professional fees.

Liquidity and Capital Resources

Cash flow from operations

Cash used in operating activities for year ended September 30, 2021 was $230,519 compared to $897 of cash used in operating activities for year ended September 30, 2020.





Cash Flows from Financing

For the year ended September 30, 2021, we received $20,000 from the sale of common stock and $42,886 from related party loans and $167,643 from other loans. In the prior period we received $897 from a related party loan.

Outstanding loans as of September 30, 2021

During the year ended September 30, 2021, White Sands Securities loaned the Company $53,541 through a note payable and cash advances. A portion of the loan is accruing interest at 8% per year. As of September 30, 2021, total accrued interest is $2,095.

On September 1, 2021, the Company entered into a loan agreement with Home Run Oil and Gas, Inc. ("Home Run").n Home Run loaned the company $114,103 ($150,000CAN). The loan in non-interest bearing and is due on or before November 30, 2021.


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Critical Accounting Estimates and Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Note 1 to the Financial Statements describes the significant accounting policies and methods used in the preparation of the Financial Statements. Estimates are used for, but not limited to, contingencies and taxes. Actual results could differ materially from those estimates. The following critical accounting policies are impacted significantly by judgments, assumptions, and estimates used in the preparation of the Financial Statements.

We are subject to various loss contingencies arising in the ordinary course of business. We consider the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss in determining loss contingencies. An estimated loss contingency is accrued when management concludes that it is probable that an asset has been impaired, or a liability has been incurred and the amount of the loss can be reasonably estimated. We regularly evaluate current information available to us to determine whether such accruals should be adjusted.

We recognize deferred tax assets (future tax benefits) and liabilities for the expected future tax consequences of temporary differences between the book carrying amounts and the tax basis of assets and liabilities. The deferred tax assets and liabilities represent the expected future tax return consequences of those differences, which are expected to be either deductible or taxable when the assets and liabilities are recovered or settled. Future tax benefits have been fully offset by a 100% valuation allowance as management is unable to determine that it is more likely than not that this deferred tax asset will be realized.

Off-Balance Sheet Arrangements

We have not entered into any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources and would be considered material to investors.

Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

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