AMERICAN OIL & GAS INC. Management report and analysis of the financial position and operating results (Form 10-K)

Results of operations

For the past years October 31, 2021 and 2020, we had no income and hired
$ 15,739 and $ 950, respectively, in professional fees. The increase in professional fees is explained by the fees incurred to update the company in its filings with the Security and Trade Commission. The Company has seen an increase of $ 15,739 in the year ended October 31, 2021 compared to October 31, 2020. This increase is mainly attributable to funds loaned to the company for operating expenses by Mr. Noble and Mr. Gelfand.

The following table provides selected financial data on our company for the years ended October 31, 2021 and 2020.

Balance sheet data: 10/31/21 10/31/20

Cash                    $       -     $       -
Total assets            $       -     $       -
Total liabilities       $  79,893     $  64,154
Shareholders' deficit   $ (79,893 )   $ (64,154 )

Liquidity and capital resources

Our cash balance at October 31, 2021 was $ 0, with $ 6,553 in accounts payable and
$ 73,340 in loans to pay to related parties. If we encounter a shortage of funds in the next twelve months, we can use additional funds from our manager, Michel Noble, who has agreed to advance funds for operations, but has no formal commitment, arrangement or legal obligation to advance or lend us funds.

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Plan of Operation

Our current cash balance is $ 0, which is not enough to cover the expenses that we will incur over the next twelve months. We are a company in the development phase and have generated $ 3,918 of turnover from creation to October 31, 2021. we sold $ 60,000 in equity securities to pay for our start-up operations.

Our auditor has issued a going concern opinion. The Company’s continued existence depends on the continued financial support of our shareholders, our ability to obtain the equity financing necessary to continue our operations and the pursuit of profitable operations.

Our plan of operation for fiscal 2022 will be to seek other business opportunities. We plan to spend $ 10,000 on professional fees, including fees due for compliance with reporting obligations, $ 5,000 in general administrative costs and $ 1,500 in working capital. Total spending over the next 12 months is therefore expected to be around $ 16,500.

Current management and a controlling shareholder will provide funds to pay for compliance costs in order to stay up to date on the Company’s records with the
Security and Trade Commission until the Company generates income to finance its operations.

Use of estimates and assumptions and critical accounting estimates and assumptions

The preparation of financial statements in accordance with generally accepted accounting principles in 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 as of the date (s) of the financial statements and the reported amounts of income and expenses at during the reporting period (s).

Critical accounting estimates are estimates for which (a) the nature of the estimate is significant due to the levels of subjectivity and judgment required to account for highly uncertain matters or the susceptibility of such matters to change, and (b) the impact of the estimate on the financial position or operational performance is significant. The Company’s critical accounting estimates and assumptions affecting the financial statements were as follows:

(i) Going concern assumption: management assumes that the Company will continue to operate, which contemplates the continuity of operations, realization of assets and liquidation of liabilities in the normal course of business;

(ii) Provision for valuation of deferred tax assets: management assumes that the realization of the Company’s net deferred tax assets resulting from its net operating loss carryforwards (“NOL”) for the purposes of federal income tax that may be deducted from future taxable profits has not been considered more likely than not and, therefore, the potential tax benefits of net loss carryforwards are offset by a provision for full capital loss. Management made this assumption on the basis of (a) the Company has suffered recurring losses, (b) general economic conditions, and (c) its ability to raise additional funds to support its day-to-day operations through a public or private offering, among other factors.

These significant accounting estimates or assumptions involve a risk of change due to the fact that there are uncertainties associated with such estimates or assumptions, and certain estimates or assumptions are difficult to measure or assess.

Management bases its estimates on historical experience and on various assumptions that are considered reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments on the carrying values ​​of assets and liabilities. liabilities that do not readily appear in other sources.

Management regularly evaluates the main factors and assumptions used to develop the estimates using information currently available, changes in facts and circumstances, historical experience and reasonable assumptions. After these assessments, if deemed appropriate, these estimates are adjusted accordingly.

Actual results could differ from these estimates.

Off-balance sheet provisions

We do not have off-balance sheet arrangements.

Going Concern

Our auditor has issued a going concern opinion. This means that there is substantial doubt as to our ability to continue operating for the next twelve months, unless we obtain additional capital to pay our bills. There can be no assurance that we will ever reach this point.

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