Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 18, 2013 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Can Cal Resources LTD | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001083848 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Common Stock, Shares Outstanding | ' | 42,027,060 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_BALANCE_SHEETS
CONDENSED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash | $130 | $1,316 |
Other current assets | 12,356 | 35,970 |
Total current assets | 12,486 | 37,286 |
Property and equipment, net of accumulated depreciation of $33,320 and $33,133, respectively | 746 | 1,026 |
Total assets | 13,232 | 38,312 |
Current liabilities: | ' | ' |
Accounts payable | 55,029 | 44,988 |
Accounts payable, related parties | 180,506 | 180,506 |
Accrued expenses | 5,331 | 5,211 |
Accrued expenses, related parties | 500,711 | 377,857 |
Unearned rental revenues | 16,042 | 9,167 |
Unearned revenues, related party | 52,500 | 0 |
Notes payable, related parties, net of $82 and $448 of unamortized common stock warrants at September 30, 2013 and December 31, 2012, respectively | 65,147 | 30,843 |
Total current liabilities | 875,266 | 648,572 |
Total liabilities | 875,266 | 648,572 |
Commitments and contingencies (See Note 8) | ' | ' |
Stockholders' (deficit): | ' | ' |
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and oustanding | 0 | 0 |
Common stock, $0.001 par value, 100,000,000 shares authorized, 42,027,060 and 42,027,060 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively | 42,027 | 42,027 |
Additional paid-in capital | 9,710,504 | 9,710,504 |
(Deficit) accumulated during exploration stage | -10,614,565 | -10,362,791 |
Total stockholders' (deficit) | -862,034 | -610,260 |
Total liabilities and stockholders' (deficit) | $13,232 | $38,312 |
CONDENSED_BALANCE_SHEETS_Paren
CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Condensed Balance Sheets | ' | ' |
Accumulated depreciation | $33,320 | $33,133 |
Unamortized common stock warrants | $82 | $448 |
Preferred Stock, Par Value | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 42,027,060 | 42,027,060 |
Common Stock, Shares Outstanding | 42,027,060 | 42,027,060 |
CONDENSED_STATEMENTS_OF_OPERAT
CONDENSED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | 222 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Income Statement [Abstract] | ' | ' | ' | ' | ' |
Material sales | $0 | $0 | $0 | $0 | $245,500 |
Cost of sales | 0 | 0 | 0 | 0 | 263,400 |
Gross loss | 0 | 0 | 0 | 0 | -17,900 |
Operating expenses: | ' | ' | ' | ' | ' |
Exploration costs | 17,571 | 14,802 | 40,617 | 38,163 | 688,303 |
General and administrative | 35,517 | 70,133 | 134,201 | 229,997 | 7,439,743 |
Depreciation | 93 | 1,682 | 280 | 5,008 | 265,226 |
Officer salary | 30,000 | 30,000 | 90,000 | 90,000 | 1,291,176 |
Impairment of operating assets | 0 | 0 | 0 | 0 | 443,772 |
Total operating expenses | 83,181 | 116,617 | 265,098 | 363,168 | 10,128,220 |
Net operating loss | -83,181 | -116,617 | -265,098 | -363,168 | -10,146,120 |
Other income (expense): | ' | ' | ' | ' | ' |
Other income | 0 | 0 | 0 | 3,100 | 69,798 |
Interest income | 0 | 0 | 0 | 0 | 52,945 |
Interest expense | -4,453 | -239,137 | -7,801 | -242,302 | -1,716,288 |
Rental revenue | 7,375 | 6,875 | 21,125 | 20,625 | 443,533 |
Gain (loss) on disposal of fixed assets | 0 | 0 | 0 | 0 | 3,128 |
Gain on extinguishment of debts | 0 | 0 | 0 | 0 | 1,152,039 |
Total other income (expense) | 2,922 | -232,262 | 13,324 | -218,577 | 5,155 |
Loss before provision for income taxes | -80,259 | -348,879 | -251,774 | -581,745 | -10,140,965 |
Provision for income taxes | 0 | 0 | 0 | 0 | 0 |
Net loss from continuing operations | -80,259 | -348,879 | -251,774 | -581,745 | -10,140,965 |
Income from discontinued operations | ' | ' | ' | ' | ' |
Income from discontinued operations | 0 | 0 | 0 | 0 | 116,400 |
Loss on disposal of operations (net of taxes) | 0 | 0 | 0 | 0 | -590,000 |
Net loss | ($80,259) | ($348,879) | ($251,774) | ($581,745) | ($10,614,565) |
Weighted average number of common shares outstanding - basic and fully diluted | 42,027,060 | 42,027,207 | 42,027,060 | 40,577,605 | ' |
Net (loss) per share - basic and fully diluted | $0 | ($0.01) | ($0.01) | ($0.01) | ' |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | 222 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net loss | ($251,774) | ($581,745) | ($10,614,565) |
Depreciation and amortization | 280 | 5,008 | 265,226 |
Bad debts | 0 | 0 | 207,100 |
(Gain) loss on sale of fixed assets | 0 | 0 | -3,128 |
Gain on extinguishment of debt | 0 | 0 | -1,152,039 |
Stock based compensation granted for services | 0 | 1,050 | 563,952 |
Stock based compensation granted for financing and amortization of debt discount | 366 | 238,419 | 973,016 |
Beneficial conversion feature on convertible debenture | 0 | 0 | 25,200 |
Loss on disposal of investment property | 0 | 0 | 764,300 |
Undistributed earnings of affiliate | 0 | 0 | -174,300 |
Gain on discontinued operations | 0 | 0 | -116,400 |
Loss on foreign currency translation | 0 | 0 | 8,500 |
Impairment of operating assets | 0 | 0 | 443,772 |
Decrease (increase) in assets: | ' | ' | ' |
Other current assets | 23,614 | -25,884 | 108,544 |
Accounts payable | 10,041 | 4,024 | -12,883 |
Accounts payable, related parties | 0 | 44,368 | 180,506 |
Accrued expenses | 120 | -2,566 | 543,909 |
Accrued expenses, related parties | 122,854 | 93,897 | 782,715 |
Unearned rental revenues | 6,875 | 6,875 | 16,042 |
Unearned revenues, related party | 52,500 | 0 | 52,500 |
Net cash used in operating activities | -35,124 | -216,554 | -7,138,033 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Purchase of investment property | 0 | 0 | -1,083,600 |
Proceeds from sale of investment property | 0 | 0 | 319,300 |
Purchase of property and equipment | 0 | -605 | -770,016 |
Proceeds from sale of property and equipment | 0 | 0 | 26,100 |
Net cash used in investing activities | 0 | -605 | -1,508,216 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from convertible debentures | 0 | 0 | 128,800 |
Proceeds from notes payable | 0 | 0 | 948,400 |
Principal payments on notes payable | 0 | 0 | -689,900 |
Proceeds from notes payable, related parties | 33,938 | 46,909 | 999,254 |
Principal payments on notes payable, related parties | 0 | -88,564 | -462,475 |
Proceeds from the issuance of common stock | 0 | 223,499 | 7,722,300 |
Net cash provided by financing activities | 33,938 | 181,844 | 8,646,379 |
Net increase in cash | -1,186 | -35,315 | 130 |
Cash, beginning of period | 1,316 | 37,846 | 0 |
Cash, end of period | 130 | 2,531 | 130 |
Supplemental disclosures: | ' | ' | ' |
Interest paid | 3,301 | 0 | ' |
Income taxes paid | $0 | $0 | ' |
1_Basis_of_Presentation
1. Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of presentation | ' |
The accompanying unaudited condensed financial statements have been prepared in accordance with Securities and Exchange Commission requirements for interim financial statements. Therefore, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The financial statements should be read in conjunction with the Form 10-K for the year ended December 31, 2012 of Can-Cal Resources Ltd. (the “Company”). | |
The interim condensed financial statements present the balance sheets, statements of operations and cash flows of Can-Cal Resources Ltd. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States. | |
The interim financial information is unaudited. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position as of September 30, 2013 and the results of operations and cash flows presented herein have been included in the financial statements. Interim results are not necessarily indicative of results of operations for the full year. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. | |
Exploration Stage Company | |
The Company is currently an exploration stage company. As an exploration stage enterprise, the Company discloses the deficit accumulated during the exploration stage and the cumulative statements of operations and cash flows from inception to the current balance sheet date. The Company has incurred net losses of $10,614,565 and used net cash in operations of $7,138,033 for the period from inception (March 22, 1995) through September 30, 2013. An entity remains in the exploration stage until such time as proven or probable reserves have been established for its deposits. Upon the location of commercially mineable reserves, the Company plans to prepare for mineral extraction and enter the development stage. To date, the exploration stage of the Company’s operations consists of contracting with geologists who sample and assess the mining viability of the Company’s claims. |
2_Going_Concern
2. Going Concern | 9 Months Ended |
Sep. 30, 2013 | |
Going Concern | ' |
Going concern | ' |
The Company incurred a net loss of $251,774 for the nine months ended September 30, 2013. Also, the Company’s current liabilities exceed its current assets by $862,780 as of September 30, 2013. These factors create substantial doubt about the Company’s ability to continue as a going concern. The Company’s management plans to continue to fund its operations in the short term with a combination of debt and equity financing and with revenue from operations in the long term. | |
The ability of the Company to continue as a going concern is dependent on securing additional sources of capital and the success of the Company’s plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
3_Related_Party
3. Related Party | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related party | ' |
Material Supply Agreement | |
On April 9, 2013, the Company entered into a Material Supply Agreement (“MSA”) with Candeo Lava Products, Inc., (“Candeo”) an Alberta, Canadian company controlled by a former Director and the brother of our current CEO. The agreement entitles Candeo to purchase certain volcanic lava or cinders from our Pisgah Mine Project that has been previously crushed and stockpiled (the “Finished Material”) at a price equal to the greater of 33 1/3% of the Net Sales Margin and fifteen US dollars ($15 USD) per ton. Under the agreement, Candeo is granted the exclusive right and privilege to remove up to 1 million tons (“Initial Amount”) of the Finished Material, and another million tons (“Additional Amount”) upon the successful of the initial million tons. | |
The Term of this agreement is for an initial period of ten (10) years from April 9, 2013, unless extended pursuant to the terms hereof. Candeo shall have the option to extend the Term of this Material Supply Agreement for [up to three (3)] additional five (5) year periods exercisable at any time with no less than three (3) months written notice prior to the expiration of the then current term, provided that the Candeo is not in default under any of the provisions of the MSA and that the whole of the Initial Amount and the Additional Amount of Finished Material have been completely removed from the Property. | |
Candeo will purchase thirteen thousand, three hundred and thirty-five (13,335) tons (the “Pre-Purchased Finished Material”) of the Finished Material during the first year of the Term at a purchase price of fifteen US dollars ($15 USD) per ton, for a total payment of two hundred and twenty-five thousand US dollars ($225,000 USD) (the “Pre-Purchased Payment”). The Pre-Purchased Finished Material will remain on the Property until Candeo commences its production operations, which will be subject to all necessary regulatory and other approvals required to remove the Finished Material from the Property, such as permits, certified weigh scale, productions plan, environmental reclamation plan (if applicable) and insurance all of which shall be the responsibility and at the sole cost of Candeo. The Pre-Purchased Payment will not be refundable to Candeo but shall be credited against the first Production Payment. | |
On various dates from May 10, 2013 to September 3, 2013, the Company received total proceeds of $52,500 from the prepaid sale of 3,500 tons of minerals at a price of $15 per ton. The materials have not been shipped as of the date of this filing. | |
Management Changes | |
On March 1, 2013, Dr. Michael Giuffre resigned from the Board of Directors. | |
On February 27, 2013, Mr. William J. Hogan resigned from the Board of Directors. | |
On August 12, 2012, Dr. Michael Giuffre was appointed to the Company’s Board of Directors. Compensation has not yet been determined. | |
On April 17, 2012, the Company appointed Ron Schinnour to the Board of Directors. Mr. Schinnour currently serves on the Board of Directors of FoodChek Systems Inc., a Company owned by another former member of the Company’s Board of Directors, William Hogan. Compensation has not yet been determined. | |
On January 30, 2012, the Company appointed Mr. Thompson MacDonald to the Board of Directors. Compensation has not yet been determined. | |
Notes Payable, Related Parties | |
From time to time we have received and repaid loans from Officers and Directors to fund operations. These related party debts are fully disclosed in Note 5 below. | |
Compensation | |
On July 1, 2010, the Company entered into a twelve month employment agreement, subject to automatic monthly renewals, with the Company’s CEO, G. Michael Hogan. The terms of the agreement include a fixed annual salary of $120,000. The Company may elect to satisfy payment in shares of common stock in lieu of cash at a market value equal to $0.10 above the average closing trading price of the common stock for the preceding five (5) days from the date of such election. No payments have been made in cash or stock to date. | |
We owed accrued salaries to our CEO of $450,000 and $240,000 at September 30, 2013 and December 31, 2012, respectively. | |
On June 30, 2010, the Company entered into a consulting agreement, with a Board of Director’s consulting firm, Futureworth Capital Corp. The terms of the agreement include annual compensation of $60,000, payable monthly. The Company may elect to satisfy payment in shares of common stock in lieu of cash at a market value equal to $0.10 above the average closing trading price of the common stock for the preceding five (5) days from the date of such election. No payments have been made in cash or stock to date. We owe Futureworth Capital Corp. $180,000, as included in accounts payable, related parties, for service prior to, and during the service period under the consulting agreement. Mr. William Hogan resigned from the Board of Directors on February 27, 2013, and his compensation via his consulting agreement terminated as of December 31, 2012. | |
Share Based Compensation | |
On September 30, 2012, the Company extended 2,439,920 previously granted and extended common stock warrants issued to the Company’s CEO, with an exercise price of $0.15 for an additional 21 months from their expiration on September 30, 2012. These warrants are fully vested and expire on June 30, 2014. The total estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 216% and a call option value of $0.0374, was $91,215 and was recognized as interest expense during the year ended December 31, 2012. | |
On September 30, 2012, the Company extended a total of 1,301,312 previously granted and extended common stock warrants issued to the one of the Company’s directors, with an exercise price of $0.15 for an additional 21 months from their expiration on September 30, 2012. These warrants are fully vested and expire on June 30, 2014. The total estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 216% and a call option value of $0.0374, was $48,649 and was recognized as interest expense during the year ended December 31, 2012. | |
On April 4, 2012, the Company sold 416,667 shares of its common stock and an equal number of warrants pursuant to unit offerings to a member of the Company’s Board of Directors in exchange for proceeds of $25,000. The warrants are exercisable over two years at an exercise price of $0.08 per share. The proceeds received were allocated between the common stock and warrants on a relative fair value basis. | |
On June 30, 2011, the Company extended 2,439,920 previously granted common stock warrants issued to the Company’s CEO, with an exercise price of $0.15 for an additional 15 months from their expiration on June 30, 2011. These warrants are fully vested and expire on September 30, 2012. The total estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 180% and a call option value of $0.0090, was $22,047 and was recognized as interest expense during the year ended December 31, 2011. These warrants were again extended for an additional 21 months with all other terms remaining consistent with these previously amended terms. | |
On June 30, 2011, the Company extended a total of 1,301,312 previously granted common stock warrants issued to the one of the Company’s directors, with an exercise price of $0.15 for an additional 15 months from their expiration on June 30, 2011. These warrants are fully vested and expire on September 30, 2012. The total estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 180% and a call option value of $0.0090, was $11,758 and was recognized as interest expense during the year ended December 31, 2011. These warrants were again extended for an additional 21 months with all other terms remaining consistent with these previously amended terms. |
4_Other_Current_Assets
4. Other Current Assets | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Other Current Assets | ' | ||||||||
Other Current Assets | ' | ||||||||
Other current assets consisted of prepaid expenses of $12,356 at September 30, 2013 and prepaid expenses of $35,970 at December 31, 2012. As of September 30, 2013 and December 31, 2012, prepaid expenses consisted of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Prepaid portion of UNLV research project as disclosed below | $ | – | $ | 18,530 | |||||
Annual Bureau of Land Management fees | 12,185 | 14,581 | |||||||
Prepaid insurance | 171 | 2,859 | |||||||
$ | 12,356 | $ | 35,970 | ||||||
On April 23, 2012, May 10, 2012 and March 31, 2013, the Company paid $30,000, $5,000 and $6,000, respectively to the University of Nevada Las Vegas (UNLV) as part of a research project on our Wikieup property to be conducted from May 1, 2012 through September 30, 2013. These fees were paid pursuant to a donation to the UNLV’s Economic Geology Research Program Fund, and were amortized over the duration of the project on a straight line basis. The project used both field and laboratory analyses to investigate the surface geology of the property in order to address the following questions: | |||||||||
1. Is there geologic evidence consistent with the presence of a porphyry copper system within the area of Can-Cal's claim block? | |||||||||
2. Is there evidence to support the hypothesis that the property represents the root zone of a porphyry system that has been decapitated and transported into the valley to the east? |
5_Notes_Payable_Related_Partie
5. Notes Payable, Related Parties | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Notes payable related parties | ' | ||||||||
Notes payable, related parties consisted of the following as of September 30, 2013 and December 31, 2012, respectively: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Notes payable to the CEO, unsecured, bearing interest at 10%, due on demand. | $ | 60,229 | $ | 26,291 | |||||
Promissory note payable originated on November 30, 2012 with Futureworth Capital Corp., a consulting firm owned by our former Chairman of the Board of Directors, unsecured, bearing interest at 10%, matures on November 29, 2013. In connection with the promissory note, the Company granted warrants to purchase 20,000 shares of the Company’s common stock at an exercise price of $0.10. The warrants expire on November 29, 2014. | 5,000 | 5,000 | |||||||
Total notes payable, related parties | 65,229 | 31,291 | |||||||
Less: unamortized discount on common stock warrants | 82 | 448 | |||||||
Less: current portion | 65,147 | 30,843 | |||||||
Notes payable, related parties, less current portion | $ | – | $ | – | |||||
The following presents components of interest expense by instrument type for the nine months ended September 30, 2013 and 2012, respectively: | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Interest on notes payable, related parties | $ | 4,134 | $ | 1,032 | |||||
Commissions on finance offerings | – | 1,050 | |||||||
Fair value of common stock granted as commissions on finance offerings | – | 1,050 | |||||||
Fair value of extended warrants | – | 238,419 | |||||||
Amortization of warrants granted on notes payable, related parties | 366 | – | |||||||
Accounts payable related vendor finance charges | 3,301 | 751 | |||||||
$ | 7,801 | $ | 242,302 | ||||||
6_Changes_in_Securities
6. Changes in Securities | 9 Months Ended |
Sep. 30, 2013 | |
=es Payable Related Parties [Text Block] | ' |
Changes in Securities | ' |
2013 | |
None. | |
2012 | |
On August 1, 2012 the Company issued 17,500 shares of its common stock to satisfy the $1,050 of subscriptions payable realized pursuant to common stock granted on March 20, 2012 as commission on the sale of securities. | |
On July 31, 2012, the Company sold a total of 1,000,000 shares of its common stock and an equal number of warrants pursuant to unit offerings to an individual investor in exchange for proceeds of $100,000. The warrants are exercisable over two years at an exercise price of $0.15 per share. The proceeds received were allocated between the common stock and warrants on a relative fair value basis. | |
On April 4, 2012, the Company sold 416,667 shares of its common stock and an equal number of warrants pursuant to unit offerings to a member of the Company’s Board of Directors in exchange for proceeds of $25,000. The warrants are exercisable over two years at an exercise price of $0.08 per share. The proceeds received were allocated between the common stock and warrants on a relative fair value basis. | |
On April 4, 2012, the Company sold a total of 874,982 shares of its common stock and an equal number of warrants pursuant to unit offerings amongst three individual investors in exchange for total proceeds of $52,499. The warrants are exercisable over two years at an exercise price of $0.08 per share. The proceeds received were allocated between the common stock and warrants on a relative fair value basis. | |
On March 20, 2012, the Company sold a total of 566,665 shares of its common stock and an equal number of warrants pursuant to a unit offering in exchange for total proceeds of $34,000 received amongst four investors. The proceeds received were allocated between the common stock and warrants on a relative fair value basis. | |
On March 20, 2012, the Company granted a total of 17,500 shares of its common stock as commissions on the sale of securities. The total fair value of the common stock was $1,050 based on the fair market value of the Company’s common stock on the date of grant. The Company elected not to net these commissions against the proceeds received from the sales and recognized the $1,050 of finance costs as interest expense within the statement of operations. The shares were subsequently issued in April of, 2012. | |
On March 20, 2012 the Company issued 50,000 shares of its common stock to satisfy the $1,500 of subscriptions payable realized pursuant to common stock granted to an employee for services on December 29, 2011. | |
On February 15, 2012, the Company sold a total of 200,000 shares of its common stock and an equal number of warrants pursuant to a unit offering in exchange for total proceeds of $12,000 received amongst two investors. The proceeds received were allocated between the common stock and warrants on a relative fair value basis. |
7_Options
7. Options | 9 Months Ended |
Sep. 30, 2013 | |
OptionsDisclosureAbstract | ' |
Options | ' |
Option Plan | |
Options granted for employee and consulting services - The 2003 Non-Qualified Option Plan was established by the Board of Directors in June 2003 and approved by shareholders in October 2003. A total of 1,500,000 shares of common stock are reserved for issuance under this plan. | |
Options Granted | |
There were no options issued during the nine months ended September 30, 2013 and 2012. | |
Options Exercised | |
There were no options exercised during the nine months ended September 30, 2013 and 2012. | |
Options Cancelled | |
There were no options cancelled during the nine months ended September 30, 2013 and 2012. |
8_Warrants
8. Warrants | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Warrants Tables | ' | ||||||||||
Warrants | ' | ||||||||||
Warrants Granted | |||||||||||
On November 30, 2012, the Company granted 20,000 common stock warrants s to a former member of the Company’s Board of Directors with an exercise price of $0.10 per share for its common stock. These stock warrants were granted in connection with a $5,000 loan from the Director. These warrants are exercisable over two years from the date of grant at an exercise price of $0.10 per share. | |||||||||||
On September 30, 2012, the Company extended 348,320 previously granted and extended common stock warrants issued to the Company’s former CEO, with an exercise price of $0.15 for an additional 21 months from their expiration on September 30, 2012. These warrants are fully vested and expire on June 30, 2014. The total estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 216% and a call option value of $0.0374, was $13,022 and was recognized as interest expense on September 30, 2012. | |||||||||||
On September 30, 2012, the Company extended 2,439,920 previously granted and extended common stock warrants issued to the Company’s CEO, with an exercise price of $0.15 for an additional 21 months from their expiration on September 30, 2012. These warrants are fully vested and expire on June 30, 2014. The total estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 216% and a call option value of $0.0374, was $91,215 and was recognized as interest expense on September 30, 2012. | |||||||||||
On September 30, 2012, the Company extended a total of 1,301,312 previously granted and extended common stock warrants issued to the one of the Company’s directors, with an exercise price of $0.15 for an additional 21 months from their expiration on September 30, 2012. These warrants are fully vested and expire on June 30, 2014. The total estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 216% and a call option value of $0.0374, was $48,649 and was recognized as interest expense on September 30, 2012. | |||||||||||
On September 30, 2012, the Company extended a total of 2,287,944 previously granted and extended common stock warrants issued amongst a total of five former investors, with an exercise price of $0.15 for an additional 21 months from their expiration on September 30, 2012. These warrants are fully vested and expire on June 30, 2014. The total estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 216% and a call option value of $0.0374, was $85,533 and was recognized as interest expense on September 30, 2012. | |||||||||||
On July 31, 2012, the Company granted 1,000,000 common stock warrants with an exercise price of $0.15 per share for its common stock. These stock warrants were granted in connection with the sale of 1,000,000 shares of common stock in exchange for proceeds of $100,000. These warrants are exercisable over two years from the date of grant at an exercise price of $0.15 per share. | |||||||||||
On April 4, 2012, the Company granted a total of 874,982 common stock warrants amongst three individual investors with an exercise price of $0.08 per share for its common stock. These stock warrants were granted in connection with the sale of 874,982 shares of common stock in exchange for total proceeds of $52,499. These warrants are exercisable over two years from the date of grant at an exercise price of $0.08 per share. | |||||||||||
On April 4, 2012, the Company granted 416,667 common stock warrants s to a member of the Company’s Board of Directors with an exercise price of $0.08 per share for its common stock. These stock warrants were granted in connection with the sale of 874,982 shares of common stock in exchange for total proceeds of $25,000. These warrants are exercisable over two years from the date of grant at an exercise price of $0.08 per share. | |||||||||||
On March 20, 2012, the Company granted 150,000 common stock warrants with an exercise price of $0.08 per share for its common stock. These stock warrants were granted in connection with the sale of 150,000 shares of common stock in exchange for proceeds of $9,000. These warrants are exercisable over two years from the date of grant at an exercise price of $0.08 per share. | |||||||||||
On March 20, 2012, the Company granted 83,333 common stock warrants with an exercise price of $0.08 per share for its common stock. These stock warrants were granted in connection with the sale of 83,333 shares of common stock in exchange for proceeds of $5,000. These warrants are exercisable over two years from the date of grant at an exercise price of $0.08 per share. | |||||||||||
On March 20, 2012, the Company granted 166,666 common stock warrants with an exercise price of $0.08 per share for its common stock. These stock warrants were granted in connection with the sale of 166,666 shares of common stock in exchange for proceeds of $10,000. These warrants are exercisable over two years from the date of grant at an exercise price of $0.08 per share. | |||||||||||
On March 20, 2012, the Company granted 166,666 common stock warrants with an exercise price of $0.08 per share for its common stock. These stock warrants were granted in connection with the sale of 166,666 shares of common stock in exchange for proceeds of $10,000. These warrants are exercisable over two years from the date of grant at an exercise price of $0.08 per share. | |||||||||||
On February 15, 2012, the Company granted 100,000 common stock warrants with an exercise price of $0.08 per share for its common stock. These stock warrants were granted in connection with the sale of 100,000 shares of common stock in exchange for proceeds of $6,000. These warrants are exercisable over two years from the date of grant at an exercise price of $0.08 per share. | |||||||||||
On February 15, 2012, the Company granted 100,000 common stock warrants with an exercise price of $0.08 per share for its common stock. These stock warrants were granted in connection with the sale of 100,000 shares of common stock in exchange for proceeds of $6,000. These warrants are exercisable over two years from the date of grant at an exercise price of $0.08 per share. | |||||||||||
Warrants Expired | |||||||||||
A total of 5,474,584 and -0- warrants expired during the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||
Warrants Cancelled | |||||||||||
There were no warrants cancelled during the nine months ended September 30, 2013 and 2012. | |||||||||||
The following is a summary of the common stock warrant activity as of September 30, 2013. | |||||||||||
Weighted | |||||||||||
Warrants | Average | ||||||||||
Outstanding | Exercise Price | ||||||||||
Balance, January 1, 2012 | 14,348,746 | $ | 0.11 | ||||||||
Granted | 9,455,810 | 0.13 | |||||||||
Cancelled | – | – | |||||||||
Exercised | – | – | |||||||||
Expired | (8,524,162 | ) | (0.08 | ) | |||||||
Balance, December 31, 2012 | 15,280,394 | 0.14 | |||||||||
Granted | – | – | |||||||||
Cancelled | – | – | |||||||||
Exercised | – | – | |||||||||
Expired | (5,474,584 | ) | (0.08 | ) | |||||||
Balance, September 30, 2013 | 9,805,810 | $ | 0.13 | ||||||||
9_Commitment_and_Contingencies
9. Commitment and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
#NAME? | ' |
Commitments and Contingencies | ' |
Mining claims - The Company has a lease and purchase option agreement covering six patented claims in the Cerbat Mountains, Hualapai Mining District and Mohave County Arizona. The Company pays $1,500 per quarter as minimum advance royalties. The Company has the option to purchase the property for $250,000 plus interest at a rate of 8% compounded annually from and after the date of its exercise of the option to purchase the property. If the Lessee exercises its option to purchase, all funds paid to Lessors shall be credited toward the purchase price as of the date the payments were made. | |
Mining reclamation costs - Mining and reclamation permits, and an air quality permit have been issued by the California regulatory agencies in the names of both, Twin Mountain, our joint venture partner, and the Company. The Company posted a cash bond in the amount of $1,379 (1% of the total bond amount) and Twin Mountain has posted the remainder of the $137,886 bond. If Twin Mountain defaults, we would be responsible for reclamation of the property, but reclamation costs incurred in that event would be paid in whole or part by the bond posted by us and Twin Mountain. Reclamation costs are not presently determinable. |
10_Subsequent_Events
10. Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent events | ' |
The Company has evaluated subsequent events from September 30, 2013 through the date whereupon the financial statements were issued and has determined that there are no items to disclose. |
1_Basis_of_Presentation_Polici
1. Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
The accompanying unaudited condensed financial statements have been prepared in accordance with Securities and Exchange Commission requirements for interim financial statements. Therefore, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The financial statements should be read in conjunction with the Form 10-K for the year ended December 31, 2012 of Can-Cal Resources Ltd. (the “Company”). | |
The interim condensed financial statements present the balance sheets, statements of operations and cash flows of Can-Cal Resources Ltd. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States. | |
The interim financial information is unaudited. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position as of September 30, 2013 and the results of operations and cash flows presented herein have been included in the financial statements. Interim results are not necessarily indicative of results of operations for the full year. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. | |
Exploration Stage Company | ' |
Exploration Stage Company | |
The Company is currently an exploration stage company. As an exploration stage enterprise, the Company discloses the deficit accumulated during the exploration stage and the cumulative statements of operations and cash flows from inception to the current balance sheet date. The Company has incurred net losses of $10,614,565 and used net cash in operations of $7,138,033 for the period from inception (March 22, 1995) through September 30, 2013. An entity remains in the exploration stage until such time as proven or probable reserves have been established for its deposits. Upon the location of commercially mineable reserves, the Company plans to prepare for mineral extraction and enter the development stage. To date, the exploration stage of the Company’s operations consists of contracting with geologists who sample and assess the mining viability of the Company’s claims. |
4_Other_Current_Assets_Tables
4. Other Current Assets (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Prepaid Expense and Other Assets [Abstract] | ' | ||||||||
Prepaid expenses | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Prepaid portion of UNLV research project as disclosed below | $ | – | $ | 18,530 | |||||
Annual Bureau of Land Management fees | 12,185 | 14,581 | |||||||
Prepaid insurance | 171 | 2,859 | |||||||
$ | 12,356 | $ | 35,970 |
5_Notes_Payable_Related_Partie1
5. Notes Payable, Related Parties (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Notes payable, related parties | ' | ||||||||
Notes payable, related parties consisted of the following as of September 30, 2013 and December 31, 2012, respectively: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Notes payable to the CEO, unsecured, bearing interest at 10%, due on demand. | $ | 60,229 | $ | 26,291 | |||||
Promissory note payable originated on November 30, 2012 with Futureworth Capital Corp., a consulting firm owned by our former Chairman of the Board of Directors, unsecured, bearing interest at 10%, matures on November 29, 2013. In connection with the promissory note, the Company granted warrants to purchase 20,000 shares of the Company’s common stock at an exercise price of $0.10. The warrants expire on November 29, 2014. | 5,000 | 5,000 | |||||||
Total notes payable, related parties | 65,229 | 31,291 | |||||||
Less: unamortized discount on common stock warrants | 82 | 448 | |||||||
Less: current portion | 65,147 | 30,843 | |||||||
Notes payable, related parties, less current portion | $ | – | $ | – | |||||
Components of interest expense by instrument type | ' | ||||||||
The following presents components of interest expense by instrument type for the nine months ended September 30, 2013 and 2012, respectively: | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Interest on notes payable, related parties | $ | 4,134 | $ | 1,032 | |||||
Commissions on finance offerings | – | 1,050 | |||||||
Fair value of common stock granted as commissions on finance offerings | – | 1,050 | |||||||
Fair value of extended warrants | – | 238,419 | |||||||
Amortization of warrants granted on notes payable, related parties | 366 | – | |||||||
Accounts payable related vendor finance charges | 3,301 | 751 | |||||||
$ | 7,801 | $ | 242,302 | ||||||
8_Warrants_Tables
8. Warrants (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Warrants Tables | ' | ||||||||||
Warrant activities | ' | ||||||||||
Weighted | |||||||||||
Warrants | Average | ||||||||||
Outstanding | Exercise Price | ||||||||||
Balance, January 1, 2012 | 14,348,746 | $ | 0.11 | ||||||||
Granted | 9,455,810 | 0.13 | |||||||||
Cancelled | – | – | |||||||||
Exercised | – | – | |||||||||
Expired | (8,524,162 | ) | (0.08 | ) | |||||||
Balance, December 31, 2012 | 15,280,394 | 0.14 | |||||||||
Granted | – | – | |||||||||
Cancelled | – | – | |||||||||
Exercised | – | – | |||||||||
Expired | (5,474,584 | ) | (0.08 | ) | |||||||
Balance, September 30, 2013 | 9,805,810 | $ | 0.13 |
2_Going_Concern_Details_Narrat
2. Going Concern (Details Narrative) (USD $) | Sep. 30, 2013 |
Going Concern Details Narrative | ' |
Working Capital | ($862,780) |
3_Related_Party_Details_Narrat
3. Related Party (Details Narrative) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CEO | ||
Accrued salaries owed | $450,000 | $240,000 |
4_Other_Current_Assets_Details
4. Other Current Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Total other current assets | $12,356 | $35,970 |
UNLV Research Project | ' | ' |
Total other current assets | 0 | 18,530 |
Bureau of Land Management | ' | ' |
Total other current assets | 12,185 | 14,581 |
Prepaid Insurance | ' | ' |
Total other current assets | $171 | $2,859 |
5_Notes_Payable_Related_Partie2
5. Notes Payable, Related Parties (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Total notes payable, related parties | $65,229 | $31,291 |
Less: unamortized discount on common stock warrants | 82 | 448 |
Less: current portion | 65,147 | 30,843 |
Notes payable, related parties, less current portion | 0 | 0 |
Notes payable | ' | ' |
Total notes payable, related parties | 60,229 | 26,291 |
Promissory Note Payable | ' | ' |
Total notes payable, related parties | $5,000 | $5,000 |
5_Notes_Payable_Related_Partie3
5. Notes Payable, Related Parties (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | 222 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Notes payable, related parties | Notes payable, related parties | Commissions on finance offerings | Commissions on finance offerings | Fair Value Stock Commissions | Fair Value Stock Commissions | Fair value of extended warrants | Fair value of extended warrants | Amortization Of Warrants Granted | Amortization Of Warrants Granted | Vendor finance charges, accounts payable | Vendor finance charges, accounts payable | ||||||
Interest expense | $4,453 | $239,137 | $7,801 | $242,302 | $1,716,288 | $4,134 | $1,032 | $0 | $1,050 | $0 | $1,050 | $0 | $238,419 | $366 | $0 | $3,301 | $751 |
7_Options_Details_Narrative
7. Options (Details Narrative) (Options) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Options | ' | ' |
Options granted | 0 | 0 |
Options exercised | 0 | 0 |
Options cancelled | 0 | 0 |
Options reserved for issuance | 1,500,000 | ' |
8_Warrants_Details
8. Warrants (Details) (Warrants, USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Warrants | ' | ' |
Warrants Outstanding | ' | ' |
Warrants outstanding - beginning balance | 15,280,394 | 14,348,746 |
Warrants Granted | 0 | 9,455,810 |
Warrants cancelled | 0 | 0 |
Warrants exercised | 0 | 0 |
Warrants expired | -5,474,584 | -8,524,162 |
Warrants outstanding - ending balance | 9,805,810 | 15,280,394 |
Weighted Average Exercise Price | ' | ' |
Weighted average exercise price - beginning balance | 0.14 | 0.11 |
Weighted average exercise price - Granted | ' | $0.13 |
Weighted average exercise price - Expired | ($0.08) | ($0.08) |
Weighted average exercise price - ending balance | 0.13 | 0.14 |