Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Nov. 20, 2014 | |
Document And Entity Information | ||
Entity Registrant Name | Can Cal Resources LTD | |
Document Type | 10-Q | |
Document Period End Date | 30-Jun-14 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1083848 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | No | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding | 42,027,060 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | Q2 |
CONDENSED_BALANCE_SHEETS
CONDENSED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Current assets: | ||
Cash | $582 | $1,388 |
Other current assets | 3,740 | 8,122 |
Total current assets | 4,322 | 9,510 |
Property and equipment, net of accumulated depreciation of $33,694 and $33,507, respectively | 465 | 652 |
Total assets | 4,787 | 10,162 |
Current liabilities: | ||
Accounts payable | 66,056 | 62,007 |
Accounts payable, related parties | 180,506 | 180,506 |
Accrued expenses | 19,827 | 17,603 |
Accrued expenses, related parties | 615,469 | 541,700 |
Unearned rental revenues | 22,917 | 9,167 |
Unearned revenues, related party | 89,830 | 63,460 |
Notes payable, related parties, net of $204 and $448 of unamortized common stock warrants at June 30, 2014 and December 31, 2013, respectively | 87,217 | 75,729 |
Total current liabilities | 1,081,822 | 950,172 |
Total liabilities | 1,081,822 | 950,172 |
Commitments and contingencies (See Note 9) | ||
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 June 30, 2014 and December 31, 2013, respectively | 42,027 | 42,027 |
Additional paid-in capital | 9,710,504 | 9,710,504 |
Accumulated (deficit) | -10,829,566 | -10,692,541 |
Total stockholders' (deficit) | -1,077,035 | -940,010 |
Total liabilities and stockholders' (deficit) | $4,787 | $10,162 |
CONDENSED_BALANCE_SHEETS_Paren
CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $33,694 | $33,507 |
Unamortized common stock warrants | $204 | $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 | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement [Abstract] | ||||
Material sales | $0 | $0 | $0 | $0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross loss | 0 | 0 | 0 | 0 |
Operating expenses: | ||||
Exploration costs | 3,569 | 11,476 | 7,137 | 23,046 |
General and administrative | 43,218 | 39,362 | 78,996 | 98,684 |
Depreciation | 93 | 94 | 187 | 187 |
Officer salary | 30,000 | 30,000 | 60,000 | 60,000 |
Impairment of operating assets | 0 | 0 | 0 | 0 |
Total operating expenses | 76,880 | 80,932 | 146,320 | 181,917 |
Net operating loss | -76,880 | -80,932 | -146,320 | -181,917 |
Other income (expense): | ||||
Other income | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Interest expense | -2,471 | -1,600 | -4,456 | -3,348 |
Rental revenue | 6,875 | 6,875 | 13,750 | 13,750 |
Total other income (expense) | 4,404 | 5,275 | 9,294 | 10,402 |
Loss before provision for income taxes | -72,476 | -75,657 | -137,026 | -171,515 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | ($72,476) | ($119,002) | ($137,026) | ($171,515) |
Weighted average number of common shares outstanding - basic and fully diluted | 42,027,060 | 40,952,784 | 42,027,060 | 40,018,224 |
Net (loss) per share - basic and fully diluted | $0 | $0 | $0 | ($0.01) |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | ($137,026) | ($171,515) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 187 | 187 |
Stock based compensation granted for financing and amortization of debt discount | 0 | 244 |
Decrease (increase) in assets: | ||
Other current assets | 4,382 | 14,920 |
Increase (decrease) in liabilities: | ||
Accounts payable | 4,049 | 7,690 |
Accounts payable, related parties | 0 | 0 |
Accrued expenses | 13,369 | 5,356 |
Accrued expenses, related parties | 62,625 | 76,601 |
Unearned rental revenues | 13,750 | 13,750 |
Unearned revenues, related party | 26,370 | 22,500 |
Net cash used in operating activities | -12,294 | -30,267 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from notes payable, related parties | 11,488 | 33,643 |
Net cash provided by financing activities | 11,488 | 33,643 |
Net increase (decrease) in cash | -806 | 3,376 |
Cash, beginning of period | 1,388 | 1,316 |
Cash, end of period | 582 | 4,692 |
Supplemental disclosures: | ||
Interest paid | 282 | 608 |
Income taxes paid | $0 | $0 |
1_Basis_of_Presentation
1. Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and regulation S-X as promulgated by the Securities and Exchange Commissions (“SEC”). 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, 2013 of Can-Cal Resources Ltd. (“Can-Cal” or 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 June 30, 2014 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. | |
Nature of Business | |
Can-Cal Resources, Ltd. Is a Nevada corporation incorporated on March 22, 1995. | |
The Company is an exploration company engaged in the exploration for precious metals, specifically focused on gold exploration projects. We have examined various prospective mineral properties for precious metals and acquired those deemed promising. We currently own, lease or have mining interest in four mineral properties in the southwestern United States (California and Arizona, as follows: Wikieup, Arizona; Cerbat, Arizona; Owl Canyon, California; and Pisgah, California). | |
As an exploration stage enterprise, the Company discloses the deficit accumulated during the exploration stage. 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 | 6 Months Ended |
Jun. 30, 2014 | |
Risks and Uncertainties [Abstract] | |
Going concern | The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred net losses of $10,829,566 and used net cash in operations of $7,160,017 for the period from inception (March 22, 1995) through June 30, 2014. The Company incurred a net loss of $137,026 for the six months ended June 30, 2014. Also, the Company’s current liabilities exceed its current assets by $1,077,500 as of June 30, 2014. The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of its new business opportunities. Management has plans to seek additional capital through private placements and public offerings of its common stock. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. |
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 | 6 Months Ended | ||
Jun. 30, 2014 | |||
Related Party Transactions [Abstract] | |||
Related party | Material Supply Agreement | ||
On March 3, 2014, Can-Cal Resources entered into an amended Material Supply Agreement (“MSA”) with Candeo Lava Products, Inc. (“Candeo”), an Alberta, Canada Company controlled by a former Director and the brother of the Company’s current CEO. This amended MSA supersedes the original MSA entered into on April 9, 2013. The amended agreement entitles Candeo the exclusive right to purchase and remove up to 2,000,000 tons volcanic lava and cinders from Can-Cal’s Pisgah Mine Project during the agreement’s initial term of twenty (20) years. (The original agreement called for 1,000,000 tons during the initial term.) Provided Candeo has removed the initial amount during the primary term, Candeo is entitled the exclusive right to remove additional incremental amounts of 1,000,000 tons each. Candeo shall have the option to extend the term of the amended agreement for up to an additional thirty (30) years provided it is not in default under any of the provisions of the Agreement. | |||
The price that Candeo shall pay to Can-Cal per ton of material removed by Candeo shall be the greater of Fifteen Dollars ($15.00 USD) per ton and the Net Sales Margins per ton realized by Candeo as follows: | |||
· | During the first year of the term, 35% of the Net Sales Margins; | ||
· | During the second year of the term, 40% of the Net Sales Margins; | ||
· | During the third year of the term, 45% of the Net Sales Margins; and | ||
· | 50% of the Net Sales Margins thereafter. | ||
The original MSA’s price was 33 1/3% of the Net Sales Margin and fifteen US dollars ($15.00 USD) per ton throughout the term of the Agreement. | |||
The amended MSA also agrees that Candeo will pre-purchase a minimum of ten thousand (10,000) tons at a purchase price of fifteen dollars ($15.00 USD) per ton for a total payment of $150,000 USD per year in each of the first three years of the term. The pre-purchased material shall 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 payments will not be refundable to Candeo but shall be credited against the first production payments. The original agreement called for Candeo to pre-purchase thirteen thousand, three hundred and thirty-five (13,335) tons 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). | |||
On various dates from May 10, 2013 to December 31, 2013 and for the six months ended June 30, 2104, the Company received total proceeds of $89,830 from the prepaid sale of approximately 6,000 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. | |||
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. | |||
The Company owed accrued salaries to its CEO of $540,000 and $480,000 at June 30, 2014 and December 31, 2013, 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. As of June 30, 2014, the Company owes 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 | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Prepaid Expense and Other Assets [Abstract] | |||||||||
Other Current Assets | Other current assets are prepaid expenses. As of June 30, 2014 and December 31, 2013, prepaid expenses consisted of the following: | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Annual Bureau of Land Management fees | $ | 1,840 | $ | 6,147 | |||||
Prepaid Rent | 1,900 | 1,975 | |||||||
$ | 3,740 | $ | 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 | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Notes payable related parties | Notes payable, related parties consisted of the following as of June 30, 2014 and December 31, 2013, respectively: | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Notes payable to the CEO, unsecured, bearing interest at 10%, due on demand. | $ | 82,217 | $ | 70,729 | |||||
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 | 87,217 | 75,729 | |||||||
Less: current portion | 87,217 | 75,729 | |||||||
Notes payable, related parties, less current portion | $ | – | $ | – | |||||
The following presents components of interest expense by instrument type for the six months ended June 30, 2014 and 2013, respectively: | |||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
Interest on notes payable, related parties | $ | 4,174 | $ | 2,496 | |||||
Amortization of warrants granted on notes payable, related parties | – | 244 | |||||||
Accounts payable related vendor finance charges | – | 608 | |||||||
$ | 4,174 | $ | 3,348 | ||||||
6_Changes_in_Securities
6. Changes in Securities | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | |
Changes in Securities | 2014 |
None. | |
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 | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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 six months ended June 30, 2013 and 2012. | |
Options Exercised | |
There were no options exercised during the six months ended June 30, 2013 and 2012. | |
Options Cancelled | |
There were no options cancelled during the six months ended June 30, 2013 and 2012. |
8_Warrants
8. Warrants | 6 Months Ended |
Jun. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 8,435,810 and 1,888,334 warrants expired during the six months ended June 30, 2014 and 2013, respectively leaving a balance of 1,020,000 outstanding warrants. 1,000,000 warrants held by R. Obinawke expired unexercised on July 31, 2014, leaving a balance of 20,000 held by W. Hogan which expired November 29, 2014. | |
Warrants Cancelled | |
There were no warrants cancelled during the six months ended June 30, 2014 and 2013. |
9_Commitment_and_Contingencies
9. Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
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. | |
On June 3, 2014, a group of Can-Cal Resources Ltd. (“Can-Cal”) shareholders, under the direction of Ron Sloan (a former CEO and Director of Can-Cal) (the “Plaintiffs”) filed a shareholder derivative complaint in Nevada State Court against Can-Cal, as well as its current Directors (Thompson MacDonald, G.M. Hogan, and Ron Schinnour), William Hogan, FutureWorth Capital Corp. and Candeo Lava Products Inc. (“Candeo”) (collectively the “Defendants”). The Plaintiffs are alleging that, among other things, the Defendants took advantage of a corporate opportunity with the Can-Cal’s Pisgah Material property by undertaking a transaction involving Candeo instead of pursuing the opportunity within Can-Cal. The Defendant’s dispute these allegations and intend to defend the action vigorously. Thus far, the Defendants are involved in removing the lawsuit from state to federal court. Legal counsel for Can-Cal is Justin Jones, Esq. of Wolf, Rifkin, Shapiro, Schulman, and Rabkin, LLP of Las Vegas, Nevada. |
10_Recent_Accounting_Pronounce
10. Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
10. Recent Accounting Pronouncements | On June 10, 2014, the Financial Accounting Standards Board ("FASB") issued update ASU 2014-10, Development Stage Entities (Topic 915). Amongst other things, the amendments in this update removed the definition of development stage entity from Topic 915, thereby removing the distinction between development stage entities and other reporting entities from US GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information on the statements of income, cash flows and shareholders’ equity, (2) label the financial statements as those of a development stage entity; (3) disclose a description of the development stage activities in which the entity is engaged and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments are effective for annual reporting periods beginning after December 31, 2014 and interim reporting periods beginning after December 15, 2015, however entities are permitted to early adopt for any annual or interim reporting period for which the financial statements have yet to be issued. The Company has elected to early adopt these amendments and accordingly have not labeled the financial statements as those of a development stage entity and have not presented inception-to-date information on the respective financial statements. |
In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates (ASU) 2014-15 requiring an entity’s management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. | |
We do not believe there are any additional recently issued accounting standards that have not yet been adopted that will have a material impact on the Company’s financial statements. |
11_Subsequent_Events
11. Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | |
Subsequent events | The Company has evaluated subsequent events from June 30, 2014 through the date whereupon the financial statements were issued. |
There are no subsequent events determined to be of merit for inclusion herein. |
1_Basis_of_Presentation_Polici
1. Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and regulation S-X as promulgated by the Securities and Exchange Commissions (“SEC”). 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, 2013 of Can-Cal Resources Ltd. (“Can-Cal” or 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 June 30, 2014 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. | |
Nature of business | Nature of Business |
Can-Cal Resources, Ltd. Is a Nevada corporation incorporated on March 22, 1995. | |
The Company is an exploration company engaged in the exploration for precious metals, specifically focused on gold exploration projects. We have examined various prospective mineral properties for precious metals and acquired those deemed promising. We currently own, lease or have mining interest in four mineral properties in the southwestern United States (California and Arizona, as follows: Wikieup, Arizona; Cerbat, Arizona; Owl Canyon, California; and Pisgah, California). | |
As an exploration stage enterprise, the Company discloses the deficit accumulated during the exploration stage. 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) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Prepaid Expense and Other Assets [Abstract] | |||||||||
Prepaid expenses | June 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Annual Bureau of Land Management fees | $ | 1,840 | $ | 6,147 | |||||
Prepaid Rent | 1,900 | 1,975 | |||||||
$ | 3,740 | $ | 35,970 |
5_Notes_Payable_Related_Partie1
5. Notes Payable, Related Parties (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Notes payable, related parties | June 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Notes payable to the CEO, unsecured, bearing interest at 10%, due on demand. | $ | 82,217 | $ | 70,729 | |||||
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 | 87,217 | 75,729 | |||||||
Less: current portion | 87,217 | 75,729 | |||||||
Notes payable, related parties, less current portion | $ | – | $ | – | |||||
Components of interest expense by instrument type | June 30, | June 30, | |||||||
2014 | 2013 | ||||||||
Interest on notes payable, related parties | $ | 4,174 | $ | 2,496 | |||||
Amortization of warrants granted on notes payable, related parties | – | 244 | |||||||
Accounts payable related vendor finance charges | – | 608 | |||||||
$ | 4,174 | $ | 3,348 |
2_Going_Concern_Details_Narrat
2. Going Concern (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Going Concern Details Narrative | ||||
Net loss | ($72,476) | ($119,002) | ($137,026) | ($171,515) |
Working Capital | ($1,077,500) | ($1,077,500) |
3_Related_Party_Details_Narrat
3. Related Party (Details Narrative) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Unearned revenues, related party | $89,830 | $63,460 |
CEO [Member] | ||
Accrued salaries owed | 540,000 | 480,000 |
Futureworth Capital [Member] | ||
Accrued salaries owed | $180,000 |
4_Other_Current_Assets_Details
4. Other Current Assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Total prepaid expenses | $3,740 | $8,122 |
Bureau of Land Management [Member] | ||
Total prepaid expenses | 1,840 | 6,147 |
Prepaid Rent [Member] | ||
Total prepaid expenses | $1,900 | $1,975 |
5_Notes_Payable_Related_Partie2
5. Notes Payable, Related Parties (Details - notes payable) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Total notes payable, related parties | $82,217 | $70,729 |
Less: current portion | 87,217 | 75,729 |
Notes payable, related parties, less current portion | 0 | 0 |
CEO [Member] | ||
Total notes payable, related parties | 82,217 | 75,729 |
Futureworth Capital [Member] | ||
Total notes payable, related parties | $5,000 | $5,000 |
5_Notes_Payable_Related_Partie3
5. Notes Payable, Related Parties (Details - interest payable) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Interest expense | $2,471 | $1,600 | $4,456 | $3,348 |
Interest on notes payable, related parties [Member] | ||||
Interest expense | 4,174 | 2,496 | ||
Amortization of warrants [Member] | ||||
Interest expense | 0 | 244 | ||
Accounts payable related vendor finance charges [Member] | ||||
Interest expense | $0 | $608 |
7_Options_Details_Narrative
7. Options (Details Narrative) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2012 | |
Shares reserved under plan | 1,500,000 | |
Options [Member] | ||
Options granted | 0 | 0 |
Options exercised | 0 | 0 |
Options cancelled | 0 | 0 |
8_Warrants_Details_Narrative
8. Warrants (Details Narrative) (Warrants [Member]) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Warrants [Member] | ||
Warrants expired | 8,435,810 | 1,888,334 |
Warrants outstanding | 1,020,000 |