Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Jul. 14, 2023 | |
Document And Entity Information | ||
Entity Registrant Name | AuraSource, Inc. | |
Entity Central Index Key | 0001083922 | |
Document Type | 10-K | |
Document Period End Date | Mar. 31, 2023 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 69,398,151 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2023 | |
Entity Shell Company | false | |
Entity Incorporation State Code | NV | |
Entity File Number | 0-28585 | |
Entity-Ex-Transition | false | |
Entity Interactive Data Current | Yes | |
Well Known Seasoned Issuer | No | |
Entity Voluntary Filer | No | |
Entity Public Float | $ 53,613,074 | |
Auditor Name | TAAD LLP | |
Auditor Location | Diamond Bar CA | |
Auditor ID | 5854 | |
Small business flag | true | |
Emerging Growth Company | true |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Current assets | ||
Cash and equivalents | $ 50,802 | $ 3,437 |
Accounts receivable, net | 0 | 0 |
Deposits and other current assets | 0 | 0 |
Total current assets | 50,802 | 3,437 |
Deposit | 2,821 | 2,262 |
Intangible assets, net | 0 | 0 |
Operating lease right-of-use assets, net | 61,918 | 5,145 |
Total assets | 115,541 | 10,844 |
Current liabilities | ||
Accounts payable | 105,602 | 136,107 |
Accounts payable related parties | 3,213,765 | 2,787,773 |
Operating lease obligations, current | 26,517 | 4,606 |
Note payable | 120,071 | 119,594 |
Customer advances | 0 | 0 |
Note payable related party | 3,034,679 | 2,750,548 |
Total current liabilities | 6,500,634 | 5,798,628 |
Operating lease obligations, long term | 35,632 | 0 |
Total Liabilities | 6,536,266 | 5,798,628 |
Shareholders equity | ||
Preferred stock, 10,000 shares authorized, no shares issued and outstanding, no rights or privileges designated | 0 | 0 |
Common stock, $.001 par value, 150,000,000 shares authorized 68,898,151 and 68,208,151 shares issued and outstanding, respectively | 69,398 | 68,208 |
Additional paid in capital | 15,074,749 | 14,724,399 |
Subscription payable | 0 | 0 |
Accumulated other comprehensive income | 52,422 | 13,223 |
Accumulated deficit | (21,617,294) | (20,593,614) |
Total shareholders equity | (6,420,725) | (5,787,784) |
Total liabilities and shareholders equity | $ 115,541 | $ 10,844 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - shares | Mar. 31, 2023 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, Authorized | 10,000 | 10,000 |
Preferred Stock, Issued | 0 | 0 |
Common Stock, Authorized | 150,000,000 | 150,000,000 |
Common Stock, Issued | 69,398,151 | 68,208,151 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 120,500 | $ 0 |
Cost of revenue | 92,732 | 0 |
Gross profit | 27,768 | 0 |
Operating expenses: | ||
General & administrative expenses | 574,847 | 772,893 |
Total operating expenses | 574,847 | 772,893 |
Loss from operations | (547,079) | (772,893) |
Interest income / (expense) and other, net | (476,601) | (356,804) |
Net loss | (1,023,680) | (1,129,697) |
Foreign currency translation gain (loss) | 39,199 | 18,000 |
Total Comprehensive Loss | $ (984,481) | $ (1,111,697) |
Basic & Diluted Loss per share | $ (0.01) | $ (0.01) |
Weighted average shares outstanding | 68,738,178 | 68,208,151 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (1,023,680) | $ (1,129,697) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Imputed interest related parties | 183,240 | 0 |
Options issued for services | 83,800 | 274,600 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 0 | 0 |
Deposits and other current assets net | 770 | (1,284) |
Accounts payable | (30,965) | 18,133 |
Accounts payable related parties | 710,124 | 789,663 |
Deferred revenue | 0 | 0 |
Interest payable | 377 | 4,135 |
Customer deposits | 0 | 0 |
Net cash used in operating activities | (76,334) | (44,450) |
Cash flows from investing activities : | ||
Gain on sale of asset | 0 | 0 |
Cash paid for acquisition of intangible | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities | ||
Proceeds from issuance of common stock, net | 84,500 | 0 |
Net proceeds from issuance of note payable | 0 | 0 |
Repayment of note payable | 0 | 0 |
Proceeds from loans payable, net | 0 | |
Advances from related parties, net | 0 | 0 |
Net cash provided by financing activities | 84,500 | 0 |
Effect of exchange rate fluctuation on cash and cash equivalents | 39,199 | (18,000) |
Net change in cash and equivalents | 47,365 | (62,450) |
Cash and equivalents - beginning balance | 3,437 | 65,887 |
Cash and equivalents - ending balance | 50,802 | 3,437 |
Supplemental disclosures of cash flows information: | ||
Interest | 0 | 0 |
Income taxes | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Current Operations and Background AuraMetal TM AuraMoto TM On April 1, 2022, we formed, NeoMetals LLC, an Arizona limited liability company, to focus on the development and production of the mineral-rich complex ore of the El Capitan mine, using an environmentally friendly and cost- effective beneficiation process. The Company owns 50% of this joint venture. There can be no assurance we will be able to carry out our development plans for AuraMetals or AuraMoto. Our ability to pursue this strategy is subject to the availability of additional capital and further development of our technology. We also need to finance the cost of effectively protecting our intellectual property rights in the United States (“US”) and abroad where we intend to market our technology and products. Going Concern Management’s Plan to Continue as a Going Concern In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital from the sale of its equity securities, (2) sales of its products, and (3) short-term or long-term borrowings from banks, stockholders or other party(ies) when needed. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans. The Company plans to look for opportunities to merge with other companies in the graphite industry. -31- The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing and attain profitable operations. Basis of Presentation and Principles of Consolidation Use of Estimates Cash and Cash Equivalents Property and Equipment - Leases The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on April 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. -32- The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. The new standard did not have a material impact. We entered into a new lease on July 1, 2022. The new policy impacted us July 1, 2019. Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of- Revenue Recognition - Income Taxes Stock-Based Compensation -33- Comprehensive Income - Foreign Currency Translation. - Net Loss Per Share Concentration of Credit Risk Financial Instruments and Fair Value of Financial Instruments The standard describes three levels of inputs that may be used to measure FV: Level 1: Quoted prices in active markets for identical or similar assets and liabilities. Level 2: Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the FV of the assets or liabilities. -34- The carrying value of cash, accounts receivable, accounts payable, and notes payable approximates their fair values due to their short-term maturities. Segment Reporting - FASB ASC Topic 280, “Segment Reporting”, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company’s financial statements reflect that substantially all of its operations are conducted in two industry segments – (1) which accounts for approximately 0% of the Company’s revenues for the year ended March 31, 2023; and (2) , which accounted for approximately 100% of the Company’s total revenues for the years ended March 31, 2023. -35- The following tables summarize segment information for the years ended March 31, 2023 and 2022: 2023 2022 REVENUES Revenue Production of materials $ — $ — Sales of electric automobiles 120,500 — Corporate & other — — 120,500 — Cost of Revenue Production of materials — — Sales of electric automobiles 92,732 — Corporate & other — — 92,732 — GROSS PROFIT Production of materials — — Sales of electric automobiles 27,768 — Corporate & other — — 27,768 — OPERATING EXPENSES Production of materials — — Sales of electric automobiles — — Corporate & other 574,847 772,893 574,847 772,893 LOSS FROM OPERATIONS Production of materials — — Sales of electric automobiles 27,768 — Corporate & other (574,847 ) (772,893 ) (547,079 ) (772,893 ) Interest and other income (expense), net Production of materials — — Sales of electric automobiles — — Corporate & other (476,079 ) (356,804 ) (476,079 ) (356,804 ) NET LOSS Production of materials — — Sales of electric automobiles 27,768 — Corporate & other (1,051,448 ) (1,129,697 ) (1,023,680 ) (1,129,697 ) -36- Recently Adopted Accounting Pronouncements - On January 1, 2021, the Company adopted ASU No. 2019-12, Income Taxes— Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This new standard removes certain exceptions for recognizing deferred taxes of foreign investments, the incremental approach to performing intra period allocation, and calculating income taxes for year-to-date interim period losses when such losses exceed anticipated full year losses. The standard also adds guidance to reduce complexity in certain areas, including accounting for franchise taxes that are partially based on income, transactions with a government that result in a step up in goodwill tax basis, enacted tax law changes impact during interim periods, and allocation of taxes to members of a consolidated group which are not subject to tax. The adoption of ASU 2019-12 did not have a material impact on the consolidated financial statements. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | NOTE 2 – CONCENTRATION OF CREDIT RISK We maintain our cash balances in financial institutions that from time to time exceed amounts insured by the FDIC (up to $250,000, per financial institution as of March 31, 2023). As of March 31, 2023 and 2022, our deposits did not exceeded insured amounts. We have not experienced any losses in such accounts and we believe we are not exposed to any significant credit risk on cash. Currently, we maintain a bank account in China. This account is not insured, and we believe is exposed to credit risk on cash. The cash balance in China as of March 31, 2023 and 2022 is $6,998 and $958 respectively. |
ACCOUNTS PAYABLE RELATED PARTIE
ACCOUNTS PAYABLE RELATED PARTIES | 12 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE RELATED PARTIES | NOTE 3 – DUE TO RELATED PARTIES As of March 31, 2023 and 2022, $3,213,765 and $2,787,773, respectively, is owed to the officers and directors. As of March 31, 2023, $455,934 is from the advancement of expenses and $2,757,831 is for past due compensation. The officers and directors of the Company agreed to accrue compensation for their services until such time the Company had sufficient funds to pay this liability. For the years ended March 31, 2023 and 2022, we recorded $183,240 and $91,824 of imputed interest related to these liabilities, respectively. |
NOTE PAYABLE - RELATED PARTY
NOTE PAYABLE - RELATED PARTY | 12 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
NOTE PAYABLE - RELATED PARTY | NOTE 4 – NOTE PAYABLE – RELATED PARTY On April 26, 2016, we entered into a note payable with Philip Liu, our CEO, whereby he converted amounts owed of $1,565,169. On February 15, 2018, Mr. Liu converted $303,266 of the note into 4,332,374 shares of common stock which was considered the fair market value. $2,372,795 is owed under the note as of March 31, 2023. The note has an interest rate of 10% which is compounded quarterly and is due on March 31, 2019. The note is in default. On April 26, 2016, we entered into a note payable with Eric Stoppenhagen, our CFO, whereby he converted amounts owed of $411,214. On February 15, 2018, Mr. Stoppenhagen converted $91,949 of the note into 1,313,556 shares of common stock which was considered the fair market value. $661,884 is owed under the note as of March 31, 2023. The note has an interest rate of 10% which is compounded quarterly and is due on March 31, 2019. The note is in default. |
NOTE PAYABLE
NOTE PAYABLE | 12 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
LOANS PAYABLE | NOTE 5 – NOTE PAYABLE In December 2014, we entered into a note payable for $63,357 which bears an interest rate of 6% per year as a settlement for previously due amounts recorded in accounts payable. The Company paid $7,500 to reduce the amount of the note. The amount of principle and interest as of March 31, 2023 is $93,505. The principle and interest are due on September 15, 2016. The note payable is currently in default. On May 3, 2020, we entered into a loan borrowed $29,332 from Bank of America (“Lender”), pursuant to a Promissory Note issued by Company to Lender (the “PPP Note”). The loan was made pursuant to the Payroll Protection Program established as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The PPP Note bears interest at 1.00% per annum, payable monthly beginning December 3, 2020, and is due on May 3, 2022. The PPP Note may be repaid at any time without penalty. The PPP Note contains customary events of default relating to, among other things, payment defaults, breach of representations and warranties, or provisions of the promissory note. The occurrence of an event of default may result in a claim for the immediate repayment of all amounts outstanding under the PPP Note. We repaid $10,000 in August 2020. As of March 31, 2023, the principal and interest of the PPP Note is $12,376. The Company plans to pay off this loan balance in the next year. On June 13, 2020, we entered into a note with the US Small Business Administration for a loan amount of $12,900 and an annual interest rate of 3.75% which is due in 30 years. As of March 31, 2023, the principal and interest of the note is $14,190. |
STOCK ISSUANCE
STOCK ISSUANCE | 12 Months Ended |
Mar. 31, 2023 | |
Stock Issuance | |
STOCK ISSUANCE | NOTE 6 – STOCK ISSUANCE During the quarter ended June 30, 2022, the Company issued 190,000 shares of common stock for $9,500. During the quarter ended September 30, 2022, the Company issued 200,000 shares of common stock for $10,000. During the quarter ended December 31, 2022, the Company issued 300,000 shares of common stock for $15,000. During the quarter ended March 31, 2023, the Company issued 500,000 shares of common stock for $50,000. As of March 31, 2023, there are 69,398,151 shares of common stock issued and outstanding. |
STOCK OPTIONS
STOCK OPTIONS | 12 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
STOCK OPTIONS | NOTE 7 - STOCK OPTIONS On April 1, 2021, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. On July 1, 2021, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. On October 1, 2021, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. On January 1, 2022, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. On April 1, 2022, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. On July 1, 2022, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. All options have a term of ten years. On October 1, 2022, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. On January 1, 2023, we granted 200,000 vested options to purchase shares of our common stock at $0.052 per share to certain our CEO and CFO per their employment agreements. All options have a term of ten years. We will record stock-based compensation expense over the requisite service period, which in our case approximates the vesting period of the options. During the year ended March 31, 2023 and 2022, the Company recorded $83,800 and $274,600, respectively, in compensation expense arising from the vesting of options, respectively. Though these expenses result in a deferred tax benefit, we have a full valuation allowance against the deferred tax benefit. The Company adopted the detailed method provided in FASB ASC Topic 718, “Compensation – Stock Compensation,” The fair value of each stock option granted is estimated on the grant date using the Black-Scholes option pricing model (“BSOPM”). The BSOPM has assumptions for risk free interest rates, dividends, stock volatility and expected life of an option grant. The risk-free interest rate is based upon market yields for United States Treasury debt securities at a 5-year constant maturity. Dividend rates are based on the Company’s dividend history. The stock volatility factor is based on the last five years of market prices prior to the grant date. The expected life of an option grant is based on management’s estimate. The fair value of each option grant, as calculated by the BSOPM, is recognized as compensation expense on a straight-line basis over the vesting period of each stock option award. These assumptions were used to determine the FV of stock options granted: Dividend yield 0.0% Volatility 330- 350% Average expected option life 5 years Risk-free interest rate 2.39% - 3.89% The following table summarizes activity in the Company's stock option grants for the years ended March 31, 2023 and 2022: Number of Shares Weighted Average Price Per Share Weighted Average Contractual Term (in years) Aggregate Intrinsic Value Balance at March 31, 2021 6,120,000 $ 0.24 3.50 $ - Granted 800,000 $ 0.05 3.00 $ 33,600 Expired (40,000) $ 0.75 0.00 $ Balance at March 31, 2022 6,880,000 $ 0.25 3.00 $ - Granted 800,000 0.05 4.50 $ 40,000 Expired (40,000 ) $ 0.45 $ - Balance at March 31, 2023 7,640,000 $ 0.23 3.34 $ - The following summarizes pricing and term information for options issued to employees and directors outstanding as of March 31, 2023: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price Life $0.50 40,000 1.00 $0.50 40,000 $0.50 $0.49 40,000 2.00 $0.49 40,000 $0.49 $0.25 4,800,000 3.62 $0.25 4,800,000 $0.25 $0.17 40,000 6.00 $0.17 40,000 $0.17 $0.15 40,000 3.00 $0.15 40,000 $0.15 $0.11 40,000 5.00 $0.11 40,000 $0.11 $0.08 40,000 4.00 $0.08 40,000 $0.08 $0.05 2,600,000 3.25 $0.05 2,600,000 $0.05 Balance 7,640,000 3.67 $0.23 7,640,000 $0.23 |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | NOTE 8 - LOSS PER SHARE The following table sets forth common stock equivalents (potential common stock) for the years ended March 31, 2023 and 2022 that are not included in the loss per share calculation above because their effect would be anti-dilutive for the periods indicated: The following table sets forth common stock equivalents (potential common stock) for the years ended March 31, 2023 and 2022 that are not included in the loss per share calculation above because their effect would be anti-dilutive for the periods indicated: 2023 2022 Weighted average common stock equivalents: Non-plan stock options 7,480,000 6,880,000 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | NOTE 9 - INCOME TAX The deferred tax asset as of March 31, 2023 and 2022 consisted of the following: 2023 2022 Net operating loss carryforwards $ 5,038,991 $ 4,800,371 Less valuation allowance (5,038,991 ) (4,800,371 ) $ — $ — Management provided a deferred tax asset valuation allowance equal to the potential benefit due to the Company’s loss. When the Company demonstrates the ability to generate taxable income, management will re-evaluate the allowance. The Company has not filed its federal and state tax returns for the years ending March 31, 2023 and 2022. As of March 31, 2023, the Company has net operating federal and state loss carryforward of $21,617,294 which is available to offset future taxable income that expires by year 2034. The Company applied a 100% valuation reserve against the deferred tax benefit as the realization of the benefit is not certain. There are no uncertain tax positions. Reconciliation between the provision for income taxes and the expected tax benefit using the federal statutory rate of 21% for 2023 and 2022 is as follows: 2023 2022 Income tax benefit at federal statutory rate (21.00 )% (21.00 )% Foreign tax rate difference 1.49 % 1.49 % State income tax benefit, net of effect on federal taxes (3.80 )% (3.80 )% Increase in valuation allowance 23.31 % 23.31 % Income tax expense — — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 - COMMITMENTS AND CONTINGENCIES Leases March 31, 2023 Lease Cost Operating lease cost (included in general and administration in the Company’s statement of operations) $ 30,656 Other Information Cash paid for amounts included in the measurement of lease liabilities for the year ended March 31, 2023 $ 30,007 Remaining lease term – operating leases (in years) 2.17 Average discount rate – operating leases 10% The supplemental balance sheet information related to leases for the periods are as follows: Operating leases Right-of-use assets $ 61,918 Total operating lease assets $ 61,918 Short-term operating lease liabilities $ 26,517 Long-term operating lease liabilities $ 35,632 Total operating lease liabilities $ 62,149 Maturities of the Company’s lease liabilities are as follows: Period ending March 31, Operating Lease 2024 71,323 Total lease payments 72,015 Less: Imputed interest/present value discount 9,174 Present value of lease liabilities $ 62,149 Litigation -42- Employment Agreements Effective January 1, 2020, the Company entered into an Employment Agreement (the “Employment Agreement”) with Philip Liu, the Company’s CEO. Under the Employment Agreement, Mr. Liu will receive a base salary of $240,000 per year and a guaranteed bonus of $40,000 per year. Each quarter Mr. Liu shall receive 100,000 options to purchase the Company’s common at an exercise price of $0.052 per share. Options expire 10 years from expiration. Mr. Liu will be eligible for an incentive bonus based on his performance. Additionally, Mr. Liu will receive a car allowance of $500 per month and an office allowance of $500 per month. The term of the contract is from January 1, 2020 to December 31, 2025. Effective January 1, 2020, the Company entered into an Employment Agreement (the “Employment Agreement”) with Eric Stoppenhagen, the Company’s CFO. Under the Employment Agreement, Mr. Stoppenhagen will receive a base salary of $120,000 per year and a guaranteed bonus of $20,000 per year. Each quarter Mr. Stoppenhagen shall receive 100,000 options to purchase the Company’s common at an exercise price of $0.052 per share. Options expire 10 years from expiration. Mr. Stoppenhagen will be eligible for an incentive bonus based on his performance. Additionally, Mr. Stoppenhagen will receive a car allowance of $250 per month and an office allowance of $250 per month. The term of the contract is from January 1, 2020 to December 31, 2025. |
JOINT VENTURE
JOINT VENTURE | 12 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
JOINT VENTURE | NOTE 11 - JOINT VENTURE In April 2022, we entered into a joint venture agreement where we own 50% of NeoMetals LLC, an Arizona limited liability company, to focus on the development and production of the mineral-rich complex ore of the El Capitan mine, using an environmentally friendly and cost- effective beneficiation process. On March 3, 2023, NeoMetals LLC entered into a promissory note for $1,800,000 with an accredited investor. This note was personally guaranteed by NeoMetals two managing directors, Douglas Sanders and Philip Liu. At the end of 12 months, the Company will pay back the note plus $270,000 in interest. The payable balance in the below table is due one year from issuance. The 50% ownership in the joint venture qualifies for the equity method of accounting. The equity method is applied when an entity has significant influence over the joint venture but does not have control. Philip Liu is co managing director which gives significant control. Each director has one vote and therefore split the voting power equally. Under this method, the joint venture is initially recorded at cost, and subsequently, Aurasource's share of the joint venture's income, expenses, and assets is recognized in its financial statements. The Company did not include the assets and liabilities related March 31, 2023 Assets Cash $ 1,765,144 Total Assets $ 1,765,144 Liabilities Note payable $ 1,834,581 Total Liabilities $ 1,834,581 The net loss of NeoMetals was $69,437 for the year ending March 31, 2023. The loss attributed to the Company was $34,719. -43- According to ASC 323-10-35-19, an investor’s share of losses of an investee may equal or exceed the carrying amount of an investment accounted for by the equity method plus advances made by the investor. An equity method investor shall continue to report losses up to the investor’s investment carrying amount, including any additional financial support made or committed to by the investor. Additional financial support made or committed to by the investor may take the form of any of the following: Capital contributions to the investee; Investments in additional common stock of the investee; Investments in preferred stock of the investee; Loans to the investee; Investments in debt securities (including mandatorily redeemable preferred stock) of the investee; Advances to the investee. According to ASC 323-10-35-20, the investor ordinarily shall discontinue applying the equity method if the investment (and net advances) is reduced to zero and shall not provide for additional losses unless the investor has guaranteed obligations of the investee or is otherwise committed to provide further financial support for the investee. According to ASC 323-10-35-21, an investor shall, however, provide for additional losses if the imminent return to profitable operations by an investee appears to be assured. For example, a material, nonrecurring loss of an isolated nature may reduce an investment below zero even though the underlying profitable operating pattern of an investee is unimpaired. According to ASC 323-10-35-22, If the investee subsequently reports net income, the investor shall resume applying the equity method only after its share of that net income equals the share of net losses not recognized during the period the equity method was suspended. The Company did not make or commit to financially support NeoMetals. The Company did not guarantee NeoMetals obligations. There were no imminent return to profitable operations for NeoMetals. In accordance with ASC 323-10-35 numbers 19 through 22 we did not record the loss as our carrying amount of our investment is zero. To the extent, there is net income in future periods we will offset against this loss. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Going Concern | Current Operations and Background AuraMetal TM AuraMoto TM We formed, NeoMetals LLC, an Arizona limited liability company, to focus on the development and production of the mineral-rich complex ore of the El Capitan mine, using an environmentally friendly and cost- effective beneficiation process. There can be no assurance we will be able to carry out our development plans for AuraMetals or AuraMoto. Our ability to pursue this strategy is subject to the availability of additional capital and further development of our technology. We also need to finance the cost of effectively protecting our intellectual property rights in the United States (“US”) and abroad where we intend to market our technology and products. Going Concern Management’s Plan to Continue as a Going Concern In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital from the sale of its equity securities, (2) sales of its products, and (3) short-term or long-term borrowings from banks, stockholders or other party(ies) when needed. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans. The Company plans to look for opportunities to merge with other companies in the graphite industry. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing and attain profitable operations. |
Revenue Recognition | Revenue Recognition - |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The unaudited consolidated financial statements were prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with US GAAP was omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes for the year ended March 31, 2022 included in our Annual Report on Form 10-K. The results of the three and six months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year ending March 31, 2023. |
Use of estimates | Use of Estimates |
Cash and cash equivalents | Cash and Cash Equivalents |
Property and Equipment | Property and Equipment - |
Leases | Leases The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on April 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. The new standard did not have a material impact. We entered into a new lease on July 1, 2019. The new policy impacted us July 1, 2019. |
Cost of goods sold | Cost of goods sold- Cost of goods sold includes cost of inventory sold during the period, net of discounts and allowances, freight and shipping costs, warranty and rework costs, and sales tax. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of- |
Income Taxes | Income Taxes |
Stock based compensation | Stock-Based Compensation |
Comprehensive Income | Comprehensive Income - |
Foreign currency transactions | Foreign Currency Translation. - |
Net loss per share | Net Loss Per Share |
Concentration of Credit Risk | Concentration of Credit Risk |
Financial instruments and fair value of financial instruments | Financial Instruments and Fair Value of Financial Instruments The standard describes three levels of inputs that may be used to measure FV: Level 1: Quoted prices in active markets for identical or similar assets and liabilities. Level 2: Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the FV of the assets or liabilities. The carrying value of cash, accounts receivable, accounts payables, and notes payable approximates their fair values due to their short-term maturities |
[us-gaap:SegmentReportingPolicyPolicyTextBlock] | Segment Reporting - FASB ASC Topic 280, “Segment Reporting”, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company’s financial statements reflect that substantially all of its operations are conducted in two industry segments – (1) which accounts for approximately 0% of the Company’s revenues for the year ended March 31, 2023; and (2) , which accounted for approximately 100% of the Company’s total revenues for the years ended March 31, 2023. The following tables summarize segment information for the years ended March 31, 2023 and 2022: 2023 2022 REVENUES Revenue Production of materials $ — $ — Sales of electric automobiles 120,500 — Corporate & other — — 120,500 0 Cost of Revenue Production of materials — — Sales of electric automobiles 92,732 — Corporate & other — — 92,732 0 GROSS PROFIT Production of materials — — Sales of electric automobiles 27,768 — Corporate & other — — 27,768 0 OPERATING EXPENSES Production of materials — — Sales of electric automobiles — — Corporate & other 619,815 772,893 619,815 772,893 LOSS FROM OPERATIONS Production of materials — — Sales of electric automobiles 27,768 — Corporate & other (619,815 ) (772,893 ) (592,047 ) (772,893 ) Interest and other income (expense), net Production of materials — — Sales of electric automobiles — — Corporate & other (501,070 ) (356,804 ) (501,070 ) (356,804 ) NET LOSS Production of materials — — Sales of electric automobiles 27,768 — Corporate & other (1,120,885 ) (1,129,697 ) (1,093,117 ) (1,129,697 ) |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stock option grant | Number of Shares Weighted Average Price Per Share Weighted Average Contractual Term (in years) Aggregate Intrinsic Value Balance at March 31, 2021 6,120,000 $ 0.24 3.50 $ - Granted 800,000 $ 0.05 3.00 $ 33,600 Expired (40,000) $ 0.75 0.00 $ Balance at March 31, 2022 6,880,000 $ 0.25 3.00 $ - Granted 800,000 0.05 4.50 $ 40,000 Expired (40,000 ) $ 0.45 $ - Balance at March 31, 2023 7,640,000 $ 0.23 3.34 $ - |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Notes to Financial Statements | ||
Retained earnings accumulated deficit | $ (21,617,294) | $ (20,593,614) |
DUE TO RELATED PARTIES (Details
DUE TO RELATED PARTIES (Details Narrative) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Notes to Financial Statements | ||
Accounts payable related parties | $ 3,213,765 | $ 2,787,773 |
STOCK OPTIONS - STOCK OPTIONS (
STOCK OPTIONS - STOCK OPTIONS (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Notes to Financial Statements | ||
Number of Options | 7,640,000 | 6,880,000 |
Weighted Average Price Per Share | $ 0.24 | $ 0.24 |
Options expired | 40,000 | |
Options granted | $ 800,000 | |
Option exercise price | $ 0.05 |