Can Cal Resources (CCRE) 10-Q 15 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 11, 2018
Document And Entity Information
Entity Registrant Name	CAN CAL RESOURCES LTD
Entity Central Index Key	1,083,848
Document Type	10-Q
Trading Symbol	CCRE
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		43,667,060
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018
Small Business Entity	true

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash	$ 3,752	$ 769
Other current assets	5,790	5,790
Total current assets	9,542	6,559
Total assets	9,542	6,559
Current liabilities:
Accounts payable	315,344	310,817
Accounts payable, related parties	506	506
Accrued expenses	6,999	8,679
Accrued expenses, related parties	96,071	117,913
Unearned revenues, related party	450,000	402,438
Notes payable, related parties	191,136	139,871
Total current liabilities	1,060,056	980,224
Total liabilities	1,060,056	980,224
Commitments and contingencies
Stockholders' (deficit):
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.001 par value, 100,000,000 shares authorized; 43,667,060 shares issued and outstanding as at March 31, 2018 and December 31, 2017	43,667	43,667
Additional paid-in capital	10,595,697	10,595,697
Accumulated deficit	(11,689,878)	(11,613,029)
Total stockholders' (deficit)	(1,050,514)	(973,665)
Total liabilities and stockholders' (deficit)	$ 9,542	$ 6,559

BALANCE SHEETS (Unaudited) (Par

BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred Stock, Par Value	$ 0.001	$ 0.001
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	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Issued	43,667,060	43,667,060
Common Stock, Shares Outstanding	43,667,060	43,667,060

STATEMENT OF OPERATIONS (Unaudi

STATEMENT OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating expenses:
General and administrative expense	$ 76,160	$ 7,515
Director fees	18,750	0
Total operating expenses	94,910	7,515
Net loss from operations	(94,910)	(7,515)
Other income (expense):
Interest expense, related party	18,022	(2,828)
Foreign exchange gain (loss)	39	(188)
Total other income (expense)	18,061	(3,016)
Loss before provision for income taxes	(76,849)	(10,531)
Provision for taxes	0	0
Net loss	$ (76,849)	$ (10,531)
Loss per common share - basic and diluted	$ 0	$ 0
Weighted average number of common shares outstanding, basic and diluted	43,667,060	42,867,060

STATEMENTS OF CASH FLOW (Unaudi

STATEMENTS OF CASH FLOW (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (76,849)	$ (10,531)
Adjustments to reconcile net loss to net cash used in operating activities:
Accounts payable and accrued expenses	2,847	6,050
Accounts payable and accrued expenses, related party	(21,842)	2,828
Unearned revenues, related party	47,562	0
Net cash (used in) operating activities	(48,282)	(1,653)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of loans payable	51,265	1,653
Proceeds from issuance of convertible notes payable	0	0
Net cash provided by financing activities	51,265	1,653
Net changes in cash and equivalents	2,983	0
Cash and equivalents at beginning of the period	769	0
Cash and equivalents at end of the period	3,752	0
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid in interest	0	0
Cash paid for income taxes	$ 0	$ 0

1. NATURE OF BUSINESS AND SUMMA

1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Can-Cal Resources Ltd. (“Can-Cal” or the “Company”) 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 mineral 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 two mineral properties in the southwestern United States (California and Arizona, as follows: Cerbat, Arizona and Pisgah, California). The Company previously had mineral rights in Owl Canyon, California and Wikieup, Arizona, which have now been abandoned. 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. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read in conjunction with the financial statements of the Company for the fiscal year ended December 31, 2017 and notes thereto contained in the Company’s Annual Report on Form 10-K. The Company’s functional and reporting currency is the United States dollar (USD). Monetary assets and liabilities denominated in foreign currencies are translated in accordance with ASC 820, using the exchange rate prevailing at the balance sheet date. Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the determination of income. Foreign currency transactions are primarily undertaken in the Canadian dollar (CDN). The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. 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 an accumulated deficit of $11,638,879 for the period from inception (March 22, 1995) through December 31, 2017. 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. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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 amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Basic and Diluted Loss per Share The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an “as if converted” basis, by the weighted average number of common shares outstanding plus potential dilutive securities. For 2017 and 2016 potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share.

2. GOING CONCERN

2. GOING CONCERN	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN	2. GOING CONCERN The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying financial statements, the Company had a net loss of $76,849 for the three months ended March 31, 2018, has used net cash in operating activities of $8,117,100 from inception and had a working capital deficit of $1,050,514 at March 31, 2018. 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 TRANSACTIONS

3. RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	3. RELATED PARTY TRANSACTIONS Material Supply Agreement On April 9, 2013, the Company entered into a material supply agreement (the “the Original MSA”) with Candeo Lava Products Inc. (“Candeo”), which was amended on March 3, 2014 (the “Amended MSA”). Pursuant to the Amended MSA, Candeo is entitled to purchase material (“Material”) from the Pisgah Property at a price equal to the greater of $15 per ton and the net sales margin per ton removed from the Pisgah Property realized as follows: (i) 35% of the net sales margins during the first year of mining; and (ii) 50% of the net sales margins for the subsequent years during the term of the Amended MSA. Under the Amended MSA, Candeo has the right to remove an Initial Amount of up to 1,000,000 tons of Material from the Pisgah Property and Additional Amounts of 1,000,000 tons each, upon the successful removal of the Initial Amount from the Pisgah Property. Candeo’s right to remove the Additional Amounts from the Pisgah Property is on the basis that once Candeo has removed the first Additional Amount of the Material from the Pisgah Property, it shall have the right to remove subsequent Additional Amounts of Material from the Property, so long as it removes its then current Additional Amount. As such, Candeo’s right to extend the term of the Amended MSA is entirely based on Candeo’s successful performance of its Material removal commitments under the terms of the Amended MSA. Under the Amended MSA, Candeo is required to purchase a minimum of ten thousand (10,000) tons of Material during each of the first three years of the term of the agreement, all at a purchase price of $15.00 per ton, for a total payment of $150,000 per year in each of the first three years of the Term, with credit being given by the Company to Candeo for all pre-paid tons of Material that have already been purchased and paid for under the Original MSA. The Pre-Purchased Material will remain on the Pisgah Property until Candeo commences its production operations or engages the Company to mine and remove Material on Candeo’s behalf. In the event that Candeo engages the Company to mine and remove any of the Material, Candeo shall pay all of the Company’s reasonable costs and expenses in conducting such mining and removal operations plus a fee of 15%. All mining and removal operations on the Pisgah Property will be subject to all necessary regulatory and other third-party approvals being obtained. The Pre-Purchased Payments will not be refundable to Candeo but shall be credited against the first Production Payments. The term of the Amended MSA has been extended from an initial term of ten (10) years to twenty (20) years (the “Primary Term”) and Candeo has the option to extend the term for an additional thirty (30) years exercisable at any time with no less than three (3) months written notice prior to the expiration of the Primary Term, provided that Candeo is not in default under any of the provisions of the Amended MSA and that the whole of the Initial Amount has been removed from the Property. Unearned revenues as reflected on the Balance Sheet are a reflection of amounts received from Candeo based on the Amended MSA. Compensation 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 December 31, 2017, the Company owed FutureWorth Capital Corp. $506 (2016 - $506) as included in accounts payable, related parties, for service prior to, and during the service period under the consulting agreement. The consulting agreement was terminated on February 27, 2013 with Mr. William Hogan’s resignation from the Board of Directors. On June 10, 2016, the Company entered into a consulting agreement, with a Board of Director’s consulting firm, For Life Financial. The terms of the agreement include monthly compensation of $2,100 CAD for managing the Company. On September 10, 2016, the Company amended the agreement to include additional annual compensation $50,000 USD, payable monthly as the scope of work increased. Stock-Based Compensation All warrants previously issued by the Company have expired as of the fiscal year ending December 31, 2014. No new warrants have been issued as of March 31, 2018. On December 31, 2017, 650,000 Stock Options and 800,000 shares were issued as compensation for work done by consultants and directors of the Company. (Note 9)

4. NOTES PAYABLE, RELATED PARTI

4. NOTES PAYABLE, RELATED PARTIES	3 Months Ended
	Mar. 31, 2018
Notes Payable Related Parties
NOTES PAYABLE, RELATED PARTIES	4. NOTES PAYABLE, RELATED PARTIES Notes payable, related parties consisted of the following as of March 31, 2018 and December 31, 2017, respectively: March 31, 2018 December 31, 2017 Note payable (1) $ 149,129 $ 129,871 Promissory note payable (2) – 10,000 Promissory note payable (3) 42,007 – Total related party notes payable $ 191,136 $ 139,871 (1) Note payable to the former CEO, unsecured, bearing interest at 10% and due on demand. (2) 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 expired on November 29, 2014. (3) Promissory note payable originated on February 1, 2018 with Candeo, a company in which the former CEO is a director. The note bears an interest rate of 10% per annum and is payable on or before December 31, 2018. The following presents components of interest expense by instrument type as of March 31, 2018 and 2017, respectively: March 31, 2018 March 31, 2017 Interest on notes payable, related parties $ (18,022 ) $ 2,828 Accounts payable related vendor finance charges – – Finance Costs (Equity based) – – Total interest expense $ (18,022 ) $ 2,828 The negative interest recognized in the three months ended March 31, 2018 is due to a recalculation on the loan per revisions to the agreement from the lawyers of the lawsuit. Previously omitted costs were added to the outstanding loan and the interest rate was left at 10% for legal expenses incurred but adjusted to 5% for all other expenses.

1. NATURE OF BUSINESS AND SUM10

1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Nature of Business	Nature of Business Can-Cal Resources Ltd. (“Can-Cal” or the “Company”) 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 mineral 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 two mineral properties in the southwestern United States (California and Arizona, as follows: Cerbat, Arizona and Pisgah, California). The Company previously had mineral rights in Owl Canyon, California and Wikieup, Arizona, which have now been abandoned. 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.
Basis of Presentation	Basis of Presentation The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read in conjunction with the financial statements of the Company for the fiscal year ended December 31, 2017 and notes thereto contained in the Company’s Annual Report on Form 10-K. The Company’s functional and reporting currency is the United States dollar (USD). Monetary assets and liabilities denominated in foreign currencies are translated in accordance with ASC 820, using the exchange rate prevailing at the balance sheet date. Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the determination of income. Foreign currency transactions are primarily undertaken in the Canadian dollar (CDN). The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. 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 an accumulated deficit of $11,638,879 for the period from inception (March 22, 1995) through December 31, 2017. 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.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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 amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Basic and Diluted Loss per Share	Basic and Diluted Loss per Share The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an “as if converted” basis, by the weighted average number of common shares outstanding plus potential dilutive securities. For 2017 and 2016 potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share.

4. NOTES PAYABLE, RELATED PAR11

4. NOTES PAYABLE, RELATED PARTIES (Tables)	3 Months Ended
	Mar. 31, 2018
Notes Payable Related Parties
Schedule of Notes payable, related parties	March 31, 2018 December 31, 2017 Note payable (1) $ 149,129 $ 129,871 Promissory note payable (2) – 10,000 Promissory note payable (3) 42,007 – Total related party notes payable $ 191,136 $ 139,871
Schedule of components of interest expense	March 31, 2018 March 31, 2017 Interest on notes payable, related parties $ (18,022 ) $ 2,828 Accounts payable related vendor finance charges – – Finance Costs (Equity based) – – Total interest expense $ (18,022 ) $ 2,828

1. NATURE OF BUSINESS AND SUM12

1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Accumulated deficit	$ (11,689,878)	$ (11,613,029)

2. GOING CONCERN (Details Narra

2. GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended		276 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (76,849)	$ (10,531)
Net cash in operating activities from inception	(48,282)	$ (1,653)	$ 8,117,100
Working capital	$ (1,050,514)		$ (1,050,514)

3. RELATED PARTY TRANSACTIONS (

3. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounts payable, related parties	$ 506	$ 506
Consulting Agreement [Member] | Future Worth Capital Corp [Member]
Accounts payable, related parties		$ 506	$ 506
Warrants [Member]
Warrants issued	0
Options [Member] | Consultants and Directors [Member]
Options issued		650,000
Common Stock [Member] | Consultants and Directors [Member]
Stock issued for compensation, shares		800,000

5. NOTES PAYABLE, RELATED PARTI

5. NOTES PAYABLE, RELATED PARTIES (Details - Notes Payable) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Total related party notes payable	$ 191,136	$ 139,871
Former CEO [Member]
Total related party notes payable	149,129	129,871
Future Worth Capital [Member]
Total related party notes payable	0	10,000
Candeo [Member]
Total related party notes payable	$ 42,007	$ 0

5. NOTES PAYABLE, RELATED PAR16

5. NOTES PAYABLE, RELATED PARTIES (Details - Related Party Notes Payable) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest on notes payable, related parties	$ (18,022)	$ 2,828
Interest on Notes Payable [Member]
Interest on notes payable, related parties	(18,022)	2,828
Accounts payable related vendor finance charges [Member]
Interest on notes payable, related parties	0	0
Finance Costs (Equity Based) [Member]
Interest on notes payable, related parties	$ 0	$ 0

5. NOTES PAYABLE, RELATED PAR17

5. NOTES PAYABLE, RELATED PARTIES (Details Narrative)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Former CEO [Member]
Debt stated interest rate	10.00%
Future Worth Capital [Member]
Debt issuance date	Nov. 30, 2012
Debt stated interest rate	10.00%
Debt maturity date	Nov. 29, 2003
Number of warrants granted (in shares) | shares	20,000
Warrant exercise price (in dollars per share) | $ / shares	$ .10
Warrants maturity date	Nov. 29, 2014
Candeo [Member]
Debt issuance date	Feb. 1, 2018
Debt stated interest rate	10.00%
Debt maturity date	Dec. 31, 2018