U.S. Rare Earths (UREE) 10-Q 23 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 18, 2015
Document And Entity Information
Entity Registrant Name	U.S. Rare Earths, Inc
Entity Central Index Key	1,098,881
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer	No
Is Entity a Voluntary Filer	No
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		11,327,050
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash	$ 1,769	$ 142,540
Deposits	21,941	23,671
Prepaid expenses	179,033	149,086
Total current assets	202,743	315,297
Deferred financing costs	0	276,811
Property and equipment, net	87,654	109,290
Total Assets	290,397	701,398
Current liabilities
Accounts payable and accrued expenses	2,846,043	2,225,799
Accounts payable and accrued expenses-related party	1,042,865	286,982
Payroll tax liability	461,514	321,518
Accrued compensation-officers	82,000	82,000
Accrued interest	17,553	7,960
Accrued interest-related party	1,161	358
Share repurchase obligation	240,000	240,000
Short-term notes payable, less unamortized discount and debt issuance costs of $66,429 and $0 at September 30, 2015 and December 31, 2014, respectively	367,710	106,490
Legal settlement liabilities	385,000	367,000
Total current liabilities	5,443,846	3,638,107
Long-term note payable	25,000	0
Total liabilities	5,468,846	3,638,107
Stockholders' deficit
Common stock, par value $0.00001, 100,000,000 shares authorized as of September 30, 2015 and December 31, 2014; 11,143,717 and 11,118,390 shares issued and outstanding as of September 30, 2015 and December 31, 2014	111	111
Additional paid-in capital	72,716,006	71,192,503
Accumulated deficit	(77,894,566)	(74,129,323)
Total stockholders' deficit	(5,178,449)	(2,936,709)
Total Liabilities and Stockholders' Deficit	$ 290,397	$ 701,398

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
CURRENT LIABILITY
Unamortized discount and debt issuance costs	$ 66,429	$ 0
STOCKHOLDERS' DEFICIT
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, Authorized	100,000,000	100,000,000
Common stock, Issued	11,143,717	11,118,390
Common stock, outstanding	11,143,717	11,118,390

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Operating costs and expenses:
Selling, general and administrative expenses	$ 916,476	$ 1,383,571	$ 3,299,075	$ 4,592,163
Exploration expense	58,382	307,312	234,334	845,611
Total operating expenses	974,858	1,690,883	3,533,409	5,437,774
(Loss) from operations	(974,858)	(1,690,883)	(3,533,409)	(5,437,774)
Other expense/(income):
Other income	(7,307)	0	(7,307)	0
Interest expense	53,850	4,693	81,145	7,017
Interest and penalties on payroll tax claim	3,695	0	139,996	0
Loss on legal settlement	0	18,000	18,000	349,000
Total other expense/(income)	50,238	22,693	231,834	356,017
(Loss) from continuing operations	(1,025,096)	(1,713,576)	(3,765,243)	(5,793,791)
Income (loss) from discontinued operations	0	0	0	1,230
Net loss	$ (1,025,096)	$ (1,713,576)	$ (3,765,243)	$ (5,792,561)
Per share data:
Net loss per share before discontinued operations attributable to UREE common shareholders	$ (0.09)	$ (0.16)	$ (0.34)	$ (0.56)
Discontinued operations attributable to UREE common shareholders	0	0	0	0
Net loss per share attributable to UREE common shareholders applicable to common stockholders	$ (0.09)	$ (0.16)	$ (0.34)	$ (0.56)
Weighted average number of shares outstanding - Basic and diluted	11,143,717	10,473,681	11,139,130	10,389,703

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities
Net loss	$ (3,765,243)	$ (5,792,561)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	21,636	21,172
Common stock and warrants issued for services	0	129,500
Stock-based compensation	1,423,503	2,737,500
Deferred offering costs charged to expense	276,811	0
Loss on legal settlement	18,000	349,000
Accretion of debt discount and debt issuance costs	66,429	0
Increase (decrease) in cash attributable to changes in operating assets and liabilities:
Prepaid expenses	(29,947)	(203,621)
Deposits	1,730	(81,544)
Account payable and accrued expenses	620,244	426,082
Account payable and accrued expenses - related party	755,883	4,939
Payroll tax liability	139,996	0
Accrued compensation-officers	0	5,000
Accrued interest	9,593	476
Accrued interest - related party	803	0
Net cash used in discontinued operations	0	(69,181)
Net cash used in operating activities	(460,562)	(2,473,238)
Cash flows from investing activities
Purchase of property and equipment	0	(22,294)
Net cash used in investing activities	0	(22,294)
Cash flows from financing activities
Proceeds from the sale of common stock and warrants	100,000	1,492,500
Repurchase of common stock	0	(1,354,999)
Proceeds from note payable	356,520	190,251
Payment for debt issuance costs	(16,000)	0
Repayment of note payable	(120,729)	(20,821)
Payment of deferred financing costs	0	(27,050)
Net cash provided by financing activities	319,791	279,881
Net decrease in cash	(140,771)	(2,215,651)
Cash at beginning of period	142,540	2,216,102
Cash at end of period	1,769	451
Non-cash investing and financing activities:
Forgiveness of accrued compensation due to officers	0	190,596
Share repurchase liability	0	1,144,000
Cash paid for:
Interest expense	0	898
Income taxes	$ 0	$ 0

1. ORGANIZATION

1. ORGANIZATION	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
1. ORGANIZATION	The Company and our Business U.S. Rare Earths, Inc. (“UREE”, “U.S. Rare Earths” or the “Company”) is a rare earth elements exploration and claims acquisition company based in Plano, Texas that seeks to create a completely independent American based rare earth supply chain solution within the continental United States. Formerly Colorado Rare Earths, Inc., the Company holds approximately 83 unpatented lode mining claims that cover approximately 1,600 acres of land in Colorado, Idaho and Montana. The claims held by the Company include properties along the Lemhi Pass trend including the Last Chance vein (one of the longest known, rare earth mineralized structures in the trend), part of the Rudolph Hill complex which has carbonatite related rare earth mineralization associated with the Colorado Iron Hill carbonatite, and parts of the largest identified rare earth mineralized carbonatite vein in the North Fork area of Idaho. In order to conserve cash resources, during the third quarter of 2015, the Company discontinued maintaining the rights to approximately 1,167 mining claims that it previously held. The Company’s operations are exploratory in nature. The Company currently does not have any producing properties and further exploration will be required before a final evaluation as to the economic and practical feasibility of any of the Company’s claims is determined. The Company is considered an exploration stage company under criteria of the Securities and Exchange Commission (the "SEC") because it has not demonstrated the existence of proven or probable reserves at its claims. Accordingly, as required under SEC guidelines and United States generally accepted accounting principles ("U.S. GAAP") for companies in the exploration stage, all of the Company's investments in mining properties to date have been expensed as incurred and therefore do not appear as assets on its balance sheet. The Company expects exploration expenditures will continue during 2015 and subsequent years. The Company expects to remain an exploration stage company for the foreseeable future. The Company will not exit the exploration stage until such time as the Company demonstrates the existence of proven or probable reserves that meet SEC guidelines. Likewise, unless mineralized material is classified as proven or probable reserves, all expenditures for mine exploration and construction will continue to be expensed as incurred. The Company's principal source of liquidity for the next several years will be the continued raising of capital through the issuance of equity or debt securities and the exercise of warrants. The Company plans to raise funds for each step of a project and, as each step is successfully completed, raise the capital for the next phase of the project. The Company believes this will reduce the cost of capital as compared to trying to raise all of the anticipated capital at once up front. However, since the Company's ability to raise additional capital will be affected by many factors, most of which are not within the Company's control, no assurance can be given that the Company will in fact be able to raise the additional capital as needed. On January 28, 2014, the Company entered into a binding letter of intent to sell the common stock of Media Depot, Inc., the Company’s media business subsidiary, and certain related media assets of the Company to Michael D. Parnell, the Company’s former Chief Executive Officer, National Accounts Director and a Director, or an affiliate of Mr. Parnell. On May 12, 2014, the Company completed the sale of the media business to an affiliate of Mr. Parnell effective January 1, 2014. See Note 4 and Note 11 for additional information regarding the sale of the media business. On July 18, 2011, the Company entered into an agreement to acquire U.S. Rare Earths, Inc., a Delaware corporation, and the acquisition closed on August 22, 2011. In connection with the acquisition, the Company changed its corporate name to U.S. Rare Earths, Inc. On December 15, 2010, the Company entered into an agreement to acquire certain mining claims located in Gunnison, Freemont and Saguache Counties, Colorado. The Company was incorporated in the State of Delaware on July 27, 1999 and changed its domicile to the State of Nevada in December 2007. The Company’s principal executive offices are located at 5600 Tennyson Parkway, Suite 240, Plano, Texas 75024. The telephone number is 972-294-7116. The Company’s principal website address is located at www.usrareearths.com Liquidity and Going Concern To date, the Company had no revenues from its rare-earth elements claims. At September 30, 2015, the Company had cash of $1,769 and a working capital deficit of approximately $5.2 million. At December 31, 2014, the Company had cash of $142,540 and a working capital deficit of approximately $3.3 million. This decrease in cash was due primarily to operating losses during the nine months ended September 30, 2015. During the nine months ended September 30, 2015 the Company raised $325,000 through the sale of its common stock and warrants and the issuance of a convertible note. During the nine months ended September 30, 2014, the Company raised approximately $1.6 million through the sale of its common stock and warrants. The Company’s business plan calls for significant expenses in connection with the exploration and development of the claims and the Company has budgeted expenditures for the next twelve months of approximately $1.4 million. To date, the Company has principally financed its operations through the sale of its common stock and the issuance of debt. The Company does not currently have sufficient funds to conduct continued exploration on its claims and requires additional financing in order to determine whether the claims contain economically viable quantities of reserves of rare-earth elements. The Company will also require additional financing if the costs of the exploration of the claims are greater than anticipated. The Company will also require additional financing to sustain its business operations if it is not successful in earning revenues once exploration is complete. Obtaining additional financing would be subject to a number of factors, including the market prices for rare-earth elements, investor acceptance of its properties and general market conditions. These factors may make the timing, amount, terms or conditions of additional financing unavailable to the Company. Financing transactions may include the issuance of equity or debt securities of the Company, obtaining credit facilities, or other financing mechanisms. However the Company cannot assure that additional financing will be available when needed on favorable terms, or at all. Even if the Company is able to raise the funds required, it is possible that the Company could incur unexpected costs and expenses or experience unexpected cash requirements that would force the Company to seek alternative financing. Furthermore, if the Company issues additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of its common stock. The inability to obtain additional capital will restrict the Company's ability to grow and will impact its ability to continue to conduct business operations. If the Company is unable to obtain additional financing, it will have to curtail its plans and possibly cease operations. If reserves of rare-earth elements are identified in economically-viable quantities, additional capital will be needed to actually develop and mine those reserves. Even if economic reserves are found, the Company will not be able to develop its mining operations should it be unable to obtain the necessary financing. Going Concern The Company's accountants have expressed doubt about its ability to continue as a going concern as a result of the Company's history of net losses. The Company's ability to achieve and maintain profitability and positive cash flow is dependent upon its ability to successfully execute the above plans. The outcome of these matters cannot be predicted at this time. These condensed consolidated financial statements do not include any adjustments to the amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue its business. Unaudited Financial Statements The accompanying unaudited financial statements of the Company have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Articles 8-03 and 10 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 financial statements for the periods ended September 30, 2015 and 2014 are unaudited and include all adjustments necessary to present a fair statement of the results of operations for the periods then ended. All such adjustments are of normal, recurring nature. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for a full fiscal year. For further information, refer to the financial statements and footnotes thereto included in these condensed consolidated financial statements and the Company’s Amendment No. 1 to Annual Report on Form 10-K/A for the year ended December 31, 2014 as filed with the SEC on March 6, 2015.

2. SIGNIFICANT ACCOUNTING POLIC

2. SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
2. SIGNIFICANT ACCOUNTING POLICIES	This summary of significant accounting policies of the Company is presented to assist in understanding the Company's condensed consolidated financial statements. The condensed consolidated financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States, and have been consistently applied in the preparation of the condensed consolidated financial statements. Accounting Method The Company’s condensed consolidated financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States. Principles of Consolidation These condensed consolidated financial statements include the Company’s consolidated financial position, results of operations, and cash flows. All material intercompany balances and transactions have been eliminated in the accompanying condensed consolidated financial statements. Cash and Cash Equivalents The Company classifies highly liquid temporary investments with an original maturity of three months or less when purchased as cash equivalents. The Company maintains cash balances at various financial institutions. Balances at U.S. banks are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risk for cash on deposit. As of September 30, 2015 and December 31, 2014, the Company had no uninsured cash amounts. Deferred Financing Costs Deferred financing costs consist of specific, incremental capitalized costs directly attributable to a proposed offering of securities. In the event of a successful public offering, these deferred costs will be charged against the gross proceeds of the offering in additional paid-in capital. In the event the offering is abandoned, any capitalized costs will be charged to expense in the period in which the offering is abandoned. As of December 31, 2014, the Company had recognized deferred offering costs totaling approximately $277,000. During the nine months ended September 30, 2015, the Company charged these costs to general and administrative expenses in the accompanying Statements of Operations. Property and Equipment Equipment consists of machinery, furniture, fixtures and software, which are stated at cost less accumulated depreciation and amortization. Depreciation is computed by the straight-line method over the estimated useful lives or lease period of the relevant asset, generally five to seven years. Mineral Rights Costs of acquiring mineral rights are capitalized by project area upon purchase of the associated claims. Costs to maintain the mineral rights and leases are expensed as incurred. When a property reaches the production stage, the related capitalized costs will be amortized, using the units of production method on the basis of periodic estimates of ore reserves. Long-Lived Assets The Company reviews its long-lived assets for impairment annually or when changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets under certain circumstances are reported at the lower of carrying amount or fair value. Assets held for disposal and assets not expected to provide any future service potential to the Company are recorded at the lower of carrying amount or fair value (less the projected costs associated with selling the asset). To the extent carrying values exceed fair values, an impairment loss is recognized in operating results. Value Measurements and Financial Instruments ASC Topic 820, Fair Value Measurement and Disclosures Level 1 – Quoted prices in active markets for identical assets and liabilities; Level 2 – Inputs other than level one inputs that are either directly or indirectly observable; and Level 3 – Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. The risk-free rate of return reflects the interest rate for the United States Treasury Note with similar time-to-maturity to that of the related financial instrument. The recorded value of other financial assets and liabilities, which consist primarily of cash and cash equivalents, deposits, deferred financing costs, other current assets, and accounts payable and accrued expenses, approximate the fair value of the respective assets and liabilities at September 30, 2015 and December 31, 2014 based upon the short-term nature of the assets and liabilities. Mineral Exploration and Development Costs All exploration expenditures are expensed as incurred. Exploration expenditures include direct exploration costs, as well as certain indirect costs allocated to exploration expense. Significant acquisition payments for active exploration rights are capitalized. If no minable ore body is discovered, previously capitalized costs are expensed in the period the exploration right is abandoned. Should a property be abandoned, its capitalized costs are charged to operations. The Company charges to operations the allocable portion of capitalized costs attributable to exploration rights abandoned. Capitalized costs are allocated to rights sold based on the proportion of claims sold to the claims remaining within the project area. Stock-Based Compensation The Company has share-based compensation plans under which non-employees, consultants and suppliers may be granted restricted stock, as well as options to purchase shares of Company common stock at the fair market value at the time of grant. Stock-based compensation cost is measured by the Company at the grant date, based on the fair value of the award over the requisite service period. For options issued to employees, the Company recognizes stock compensation costs utilizing the fair value methodology over the related period of benefit. Grants of stock options and stock to non-employees and other parties are accounted for in accordance with ASC 505. The Company recorded equity-based costs for non-employees, consultants and suppliers of $0 and $129,500 during the nine months ended September 30, 2015 and 2014, respectively. The Company applies ASC 718 for options, common stock and other equity-based grants to its employees and directors. ASC 718 requires measurement of all employee equity-based payment awards using a fair-value method and recording of such expense in the consolidated financial statements over the requisite service period. The fair value concepts have not changed significantly in ASC 718; however, in adopting this standard, companies must choose among alternative valuation models and amortization assumptions. After assessing alternative valuation models and amortization assumptions, the Company will continue using both the Black-Scholes valuation model and straight-line amortization of compensation expense over the requisite service period for each separately vesting portion of the grant. The Company recorded equity-based compensation for employees and directors of $1.4 million and $2.7 million for the nine months ended September 30, 2015 and 2014, respectively. Provision for Income Taxes Income taxes are provided based upon the liability method of accounting. Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end. A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the “more likely than not” standard. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. Net Loss Per Share Basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of the Company, subject to anti-dilution limitations. As of September 30, 2015 and 2014, the Company had outstanding warrants for the purchase of 1,179,234 and 1,154,234 common shares, respectively, and an option to purchase 1,000,000 shares that were not included in the computation of loss per share at September 30, 2015 and 2014 because they would have been anti-dilutive. Use of Estimates 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, 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. Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. At December 31, 2014, $321,518 was reclassified to payroll tax liability comprised of $271,602 from accounts payable and accrued expenses, $22,756 from accrued interest, and $21,160 from other current liabilities. For the nine months ended September 30, 2014, $380,559 was reclassified to exploration expense from general and administrative expense. These reclassifications have no impact on net income, earnings per share, accumulated deficit, or results of continuing operations. Reverse Stock Split On December 16, 2014, the Company amended its articles of incorporation to effect a 1-for-3 reverse stock split. All the relevant information relating to numbers of shares and per share information contained in these condensed consolidated financial statements has been retrospectively adjusted to reflect the reverse stock split for all periods presented. Recent Accounting Pronouncements A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, management has not determined whether implementation of such proposed standards would be material to its consolidated financial statements. In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, In February 2015, the FASB issued ASU 2015-02, Amendments to Consolidation Analysis), In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs

3. ACQUISITIONS

3. ACQUISITIONS	9 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
3. ACQUISITIONS	Idaho and Montana Assets – Part of the UREE (Delaware Merger) On July 18, 2011, the Company entered into an Agreement of Plan and Merger (the “Merger Agreement”) to acquire U.S. Rare Earths, Inc., a Delaware corporation, and the acquisition closed on August 22, 2011. As part of the acquisition, the Company acquired rights to 583 unpatented lode mining claims located in Lemhi County, Idaho and 56 unpatented lode mining claims located in Beaverhead and Ravalli Counties, Montana. The mineral claims cover approximately 9,600 acres that are believed to be on, near or adjacent to anomalous values of rare earth elements. Pursuant to the terms of the Merger Agreement, stockholders of the Delaware entity exchanged 100% of their outstanding common stock for 1,666,667 unregistered shares of the Company’s common stock valued at $8.55 per share. As part of the acquisition price, the Company also assumed a note payable in the amount of $1,418,719 and certain other accounts payable totaling $16,817. At closing, the Company paid $500,000 related to the notes payable. The Company was not able to obtain a valuation of the properties, assigned a fair value to the claims of $0, and recorded an impairment expense of $15,678,000 for the year ended December 31, 2011. Colorado Assets - Part of the Seaglass Holding Corp Merger On December 15, 2010, the Company entered into an Agreement of Plan and Merger with Seaglass Holding Corp (the “Seaglass Merger Agreement”). As part of the acquisition of Seaglass, the Company acquired rights to 611 unpatented lode mining claims that cover approximately 12,200 acres of land in Fremont, Gunnison and Saguache Counties, Colorado. The Company believes the mineral claims are on, near or adjacent to anomalous values of rare-earth elements. Pursuant to the terms of the Seaglass Merger Agreement, the stockholders of Seaglass exchanged 100% of the outstanding common stock of Seaglass for 1,966,667 unregistered shares of the Company’s common stock valued at $1.50 per share, or $2,950,000. An independent evaluation was performed by a licensed professional engineer to estimate the fair market value of the claims on the date of acquisition. Based on this report, the Company assigned a fair value to the claims of $326,000 and recorded an impairment expense of $2,624,000 for the year ended December 31, 2010. An impairment expense of $326,000 was recorded for the year ended December 31, 2013. The Company has no reported mineral reserves and all activities are exploratory in nature. Any mineral reserves will only come from extensive additional exploration, engineering, and evaluation of existing or future mineral claims. All costs have been recorded as exploration expenses.

4. DISCONTINUED OPERATIONS

4. DISCONTINUED OPERATIONS	9 Months Ended
	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
4. DISCONTINUED OPERATIONS	On January 28, 2014, the Company entered into a binding letter of intent to sell the common stock of Media Depot, Inc., the Company’s media business subsidiary, and certain related media assets of the Company to Michael D. Parnell, the Company’s former Chief Executive Officer, National Accounts Director and a Director of the Company. On May 12, 2014, the Company completed the sale of the media business to an affiliate of Mr. Parnell effective January 1, 2014. See Note 11 for additional information regarding the sale of the media business. As of September 30, 2015 and December 31, 2014, the Company had no assets or liabilities recorded on the balance sheet related to the media business. The Company recognized a gain on disposal of discontinued operations of $1,230 for the three months ended March 31, 2014. The Company does not believe there is an effect of income taxes on discontinued operations. Due to ongoing operating losses, the uncertainty of future profitability and limitations on the utilization of net operating loss carry-forwards under Internal Revenue Code Section 382, a valuation allowance has been recorded to fully offset the Company’s deferred tax asset.

5. PROPERTY AND EQUIPMENT, NET

5. PROPERTY AND EQUIPMENT, NET	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
5. PROPERTY AND EQUIPMENT, NET	Property and equipment, net consists of the following: Estimated September 30, December 31, Life 2015 2014 Office equipment 5 years $ 50,496 $ 50,496 Mining and other equipment 5 - 7 years 131,218 131,218 Accumulated depreciation (94,060 ) (72,424 ) Total $ 87,654 $ 109,290 Depreciation expense for the nine months ended September 30, 2015 and 2014 was $21,636 and $21,172, respectively, of which $18,009 and $18,011, respectively, is recorded in exploration expense and $3,627 and $3,161, respectively, is recorded in general and administrative expenses in the Statements of Operations.

6. ACCOUNTS PAYABLE AND ACCRUED

6. ACCOUNTS PAYABLE AND ACCRUED EXPENSES	9 Months Ended
	Sep. 30, 2015
Accounts Payable And Accrued Expenses
6. ACCOUNTS PAYABLE AND ACCRUED EXPENSES	Accounts Payable Accounts payable were approximately $2.8 million and $2.2 million as of September 30, 2015 and December 31, 2014, respectively. Such liabilities consisted of amounts due to vendors for consulting expenses, legal expenses, mining expenditures, external audit and other expenses incurred by the Company. Related Party Accounts Payable and Accrued Expenses Related party accounts payable and accrued expenses as of September 30, 2015 and December 31, 2014 reflected the following: September 30, December 31, 2015 2014 Related party payables due to Logic International Consulting Group, LLC for services on behalf of UREE $ 662,000 $ 208,601 Related party payables due to Lattimore Properties, Inc. for amounts paid on behalf of UREE 133,858 74,230 Related party payables due to Diane Cassidy for services on behalf of UREE 34,000 - Related party payables due to CRE Cloud Solutions for services 5,413 3,248 Related party payables due to Kevin Cassidy for amounts paid on behalf of UREE 44,743 903 $ 880,013 $ 286,982 Advances from related parties as of September 30, 2015 and December 31, 2014 reflected the following: September 30, December 31, 2015 2014 Advance from Lattimore Properties, Inc. $ 147,852 $ - Advance from Kevin Cassidy 15,000 - $ 162,852 $ -

7. PAYROLL TAX LIABILITY

7. PAYROLL TAX LIABILITY	9 Months Ended
	Sep. 30, 2015
Payroll Tax Liability
7. PAYROLL TAX LIABILITY	Underpayment of FICA During the years ended December 31, 2011 and 2012, the Company did not report stock-based compensation on Form 1099 or W-2, which amounted to $8,654,149 and $713,594 respectively. During the year ended December 31, 2013, the Company processed compensation to its chief executive officer as an independent contractor under Form 1099 instead of processing it as payroll under Form W-2. All stock-based compensation to officers, employees and independent contractors was recorded at the grant date fair market value in the financial statements for the years ended December 31, 2013, 2012, and 2011. As a result, on December 31, 2013, the Company recorded an estimate of $250,000 for past due amounts related to the Company’s portion of FICA (“FICA Underpayment”). In August 2014, the Company filed its amended Form 941 for 2011 and 2012 and increased the accrual for FICA Underpayment an additional $21,602 to a total of $271,602 and is recorded in general and administrative expenses in the Statements of Operations. Penalties and Interest on Underpayment of FICA In December 2014, the Company was notified by the IRS that penalties would apply to the FICA Underpayment. Based on the notice received from the IRS, which calculated penalties and interest through December 1, 2014, the Company accrued $27,160 in penalties and $22,757 in interest through December 31, 2014. In April 2015, the Company was notified by the IRS that they intend to assess a Trust Fund Recovery Penalty of $38,001 in addition to previously assessed penalties. This additional penalty was accrued as of March 31, 2015. At September 30, 2015, the Company accrued an additional $90,625 for potential unasserted Trust Fund Recovery Penalty claims. For the three and nine months ended September 30, 2015, the Company has recorded penalties and interest related to the FICA Underpayment and the Trust Fund Recovery Penalty of $3,695 and $139,996, respectively. There were no penalties and interest incurred in the three and nine months ended September 30, 2014.

8. NOTES PAYABLE

8. NOTES PAYABLE	9 Months Ended
	Sep. 30, 2015
Notes Payable [Abstract]
8. NOTES PAYABLE	Short-Term Notes Payable On May 26, 2015, the Company entered into a promissory note (the “May 2015 Note”) with an accredited investor in the principal amount of $285,000 for a purchase price of $200,000. The May 2015 Note matures six months from the date of issuance and shall not bear interest other than in the event of default. The May 2015 Note may be converted into shares of the Company’s common stock at any time following an event of default at a conversion price equal to a 20% discount of the average of the three lowest closing bid prices in the twenty trading days immediately preceding the conversion except that an additional discount of up to 15% shall apply in the case of certain defaults. The May 2015 Note may be prepaid at premiums to the outstanding principal during the term of the note. The May 2015 Note includes default provisions related to payment of principal and interest and bankruptcy or creditor assignment. In addition, it shall constitute an event of default under the May 2015 Note if the Company is delinquent in its filings with the Securities and Exchange Commission, the Company ceases to be quoted on the OTCQB, the Company’s common stock is not DWAC eligible, or the Company fails to maintain a share reserve as required under the May 2015 Note. In an event of default, the May 2015 Note may become immediately due and payable at premiums to the outstanding principal and shall bear interest at the rate of 22% per annum. The May 2015 Note also provides that if shares issuable upon conversion of the note are not timely delivered in accordance with the note’s terms then the Company shall be subject to certain cash penalties that increase proportionally to the duration of the delinquency up to a certain capped amount. The May 2015 Note was analyzed in accordance with ASC 470-20 and determined that it does not contain a beneficial conversion feature or contingent beneficial conversion feature. The May 2015 Note is convertible only upon an event of default, as defined, and upon an event of default, the May 2015 Note becomes share-settled debt that is subject to ASC 480. As a result, the Company recorded the May 2015 Note as a zero-interest-bearing note and will accrete the debt discount and debt issuance costs over the six-month term of the Note. In addition to the May 2015 Note, the Company has a short-term note payable of $117,281 as of September 30, 2015. The original loan amount of $131,520 was obtained for working capital purposes and is to be repaid in monthly installments starting in September 2015 through May 2016 at an annual interest rate of 7.77%. The short-term notes payable balance of $106,490 at December 31, 2014 consisted of a note payable. The original loan amount of $190,251 was obtained for working capital purposes, and was to be repaid in monthly installments starting in September 2014 through May 2015 at an annual interest rate of 4.49%. As of September 30, 2015, the note has been paid in full. Long-Term Notes Payable On September 22, 2015, the Company entered into a secured convertible promissory note (the “September 2015 Note”) in the principal amount of $25,000. The September 2015 Note is due and payable, along with any accrued but unpaid interest, on January 28, 2017. At any time the outstanding principal balance of the September 2015 Note may be converted, in whole or in part, into shares of the Company’s common stock at $0.75 per share at the option of the holder. The Company is required to pay interest to the holder on the aggregate unconverted and then outstanding principal amount of the September 2015 Note at a rate of 6% per annum, payable annually in arrears on each anniversary of the issue date, on each conversion date (as to that principal amount then being converted), and on the maturity date in cash or, at the holder’s option, in shares of the Company’s common stock at the conversion price, or a combination thereof.

9. RELATED PARTY TRANSACTIONS

9. RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
9. RELATED PARTY TRANSACTIONS	Properties The Company’s principal executive offices were located at 5600 Tennyson Parkway, Suite 190, Plano, Texas 75024 during 2013. This office was shared with John Victor Lattimore, Jr., former Chairman of the Company’s board of directors, and entities affiliated with Mr. Lattimore on a rent-free basis. On January 20, 2014, the Company leased 5600 Tennyson Parkway, Suite 240, Plano, Texas 75024 and no longer shares offices with Mr. Lattimore or his affiliates. The Company maintained an office at 12 Gunnebo Drive, Lonoke, Arkansas 72086 for the Company’s former media business, which consisted of 4,000 sq. ft. of office space. The office was leased for $916 per month, and the Company leased the office on a month-to-month basis. The facilities were owned by the J.S. Parnell Trust, of which Mr. Parnell, the former Chief Executive Officer, National Account Director and a Director of the Company, was trustee. The Company also maintained an office at 12 North Washington Street, Montoursville, Pennsylvania 17754 for the former media business which consisted of 4,000 sq. ft. of office space. The office was leased from the Hoff Family Limited Partnership, which was controlled by the wife of Matthew Hoff, a stockholder and former employee of the Company. Lease payments were $2,000 per month, and the Company leased the office on a month-to-month basis. Both of these leases were assumed by an affiliate of Mr. Parnell in connection with the sale of the media business (see Note 4). Since January 1, 2013, the Company has rented office space from Logic at 711 Fifth Avenue, 16th Floor, New York, New York 10022, which since May 1, 2013 has been on a month-to-month basis. Since June 1, 2013, the Company has paid rent of $9,250 per month. Logic is controlled by Kevin Cassidy, the Company’s Chief Executive Officer (“CEO”). Settlement Agreement In August 2012 a dispute arose out of an attempt by a group of shareholders—H. Deworth Williams, Edward Cowle and an affiliated entity—to take control of the Company by a written consent by purportedly removing Daniel McGroarty, Greg Schifrin and Kevin Cassidy from the board of directors and purportedly re-electing John Victor Lattimore, Jr., H. Deworth Williams, Edward Cowle, Michael Parnell, and Harvey Kaye. At the time, Messrs. Williams and Cowle were members of the Company’s board and were affiliates of the Company prior to the time that the Company began acquiring its rare earth mining claims in 2010. On September 12, 2012, the Company filed an action in the Eighth Judicial District Court, Clark County, Nevada (the “Nevada Action”) entitled U.S. Rare Earths, Inc. v. Williams et al On February 6, 2013, all of the parties in the Nevada Action entered into a Stipulation and Order to Modify the Preliminary Injunction, (the “Stipulation”) to facilitate the interim operations of the Company. The Stipulation modified the Preliminary Injunction with respect to the Company’s board of directors as follows: (a) the parties agreed that Kevin Cassidy, Daniel McGroarty, John Victor Lattimore, Jr., Winston Marshall, and Michael Parnell would comprise the members of its board of directors (the “Provisional Board”), pending the election of directors by the stockholders at a duly called and held stockholders’ meeting; (b) Edward Cowle would be immediately reinstated as a member of the Provisional Board; (c) the Provisional Board would not ratify or approve any action of the purported board undertaken between August 23, 2012 and October 11, 2012; and (d) the Provisional Board would not issue any additional shares of its stock to any person without reasonable cash consideration unless all parties to the Nevada Action consented to such issuance. In addition to the Nevada Action, a parallel action was filed by H. Deworth Williams and Edward F. Cowle against the Company (the “Utah Action”), entitled Williams et al. v. U.S. Rare Earths, Inc. On March 27, 2013, the parties in the Nevada Action and the Utah Action entered into a Settlement Agreement and General Release (the “Settlement Agreement”), which was approved on June 5, 2013 by the Eighth Judicial District Court, Clark County, Nevada, pursuant to which the parties agreed: (a) to dismiss the pending Nevada Action and Utah Action and to release all claims against one another in those actions; (b) to release any claims pertaining to its sale of 681,817 shares of Company common stock sold to Lattimore Properties, Inc. (“Lattimore Properties”) on September 12, 2012 at a price of $0.81 per share for a total of $550,000; (c) to release any claims pertaining to the issuance of a convertible secured promissory note to Unique Materials, LLC on September 13, 2012 for $650,000 at 5% interest, convertible into Company common stock at not less than $1.00 per share; (d) to enter into a Stock Purchase Agreement pursuant to which H. Deworth Williams, Edward Cowle and Geoff Williams, or the Sellers, will sell 333,334 shares of Company common stock owned by the Sellers to John Victor Lattimore, Jr. or his affiliates for a total purchase price of $1,000,000; (e) to compensate Kevin Cassidy and his affiliated companies, including Logic International Consulting Group, LLC, known as Logic, with which the Company has an ongoing relationship, for their consulting services in connection with the settlement by issuing to them 1,000,000 shares of Company common stock plus a convertible unsecured promissory note for $650,000, convertible into common stock at a conversion price of $3.00 per share; (f) to grant to defendants H. Deworth Williams, Edward Cowle, Geoff Williams, Blue Cap Development Corp. and their affiliated entity, Thorium Energy, Inc., a right of first refusal—consistent with the terms and conditions put forth by a bona fide third-party commercial bidder to be determined by the parties—for a period of 10 years with respect to a contract for the disposition of thorium in connection with the Company’s mining of rare earth elements on its Lemhi Pass claims; and (g) to issue to John Victor Lattimore, Jr. or one of his affiliated companies an option to purchase up to 1,000,000 shares of Company common stock at a price of $3.00 per share and upon such other terms as are determined by the Company’s board of directors. The Settlement Agreement also contained certain contingent agreements, which were conditioned upon the Company’s completion of a stock offering and/or PIPE transaction of more than $6,000,000 in the aggregate by the end of 2015. If the Company successfully completes such a stock offering and/or PIPE transaction, it has agreed to: (a) assume and maintain the lease of certain offices of the Company located in Salt Lake City, Utah; (b) reimburse H. Deworth Williams for certain business costs and expenses incurred for the benefit of the Company in an amount not to exceed $145,000; (c) reimburse defendants H. Deworth Williams, Edward Cowle, Geoff Williams and Blue Cap Development Corp. for their costs and fees incurred in the Nevada Action and the Utah Action in an amount not to exceed $150,000; (d) to retrieve or “claw back” not less than 700,000 shares of Company common stock that were authorized for issuance to Michael Parnell, Matthew Hoff, H. Deworth Williams, Winston Marshall, Greg Schifrin, Geoff Williams and Edward Cowle for non-cash consideration and future services; and (e) to employ Edward Cowle as a senior level executive with the company. During 2013 and 2014, the Company raised more than $6,000,000 through private stock offerings and accrued legal settlement liabilities of $385,000 and $367,000 as of September 30, 2015 and December 31, 2014, respectively. As part of the Settlement Agreement, the parties also agreed to enter into a Voting Shareholder Agreement pursuant to which the parties will vote their respective shares to ensure that the size of its board of directors will remain at seven members (unless increased pursuant to the Company’s bylaws or by applicable Nevada law), with (a) five members to be nominated by the Lattimore Shareholder Group (consisting of John Victor Lattimore Jr., Unique Materials LLC, Michael Parnell, Matthew Hoff, Kevin Cassidy, Daniel McGroarty and Winston Marshall), two of whom shall be independent directors; and (b) two members to be nominated by the Blue Cap Shareholder Group (consisting of Edward Cowle, H. Deworth Williams, Geoff Williams, Blue Cap Development Corp., and Children’s International Obesity Fund, Inc.). Pursuant to the terms of the Settlement Agreement, the Company agreed to issue 1,000,000 shares of its common stock at a price of $3.00 per share to Kevin Cassidy, Logic, and James J. Cahill, the managing director and registered principal of Agincourt Capital, LLC, an affiliate of Logic, as compensation for the consulting services. On October 7, 2013, the Company issued 1,000,000 shares of common stock to Kevin Cassidy, controlling owner of Logic, as payment in full for the accrued liability associated with the consulting services. As a part of the audit of the Company’s financial statements for the year ended December 31, 2013, management determined that the issuance of shares for payment of services should have been recorded June 5, 2013. As a result, the Company valued the 1,000,000 shares at the June 5, 2013 closing price of Company common stock of $5.82 per share and expensed an additional $2,820,000 for a total liability of $5,820,000 during the three months ended June 30, 2013. The Company also reclassified the original accrual of $3,000,000 related to the transaction by reducing the amount of loss on debt settlement (where the value of the transaction had been booked) by $3,000,000 (from $4,225,983 to $1,225,983) and recorded $5,820,000 to loss on legal settlement. Lattimore Option On March 8, 2013, the Company entered into an Option Purchase Agreement with Lattimore Properties, pursuant to which it granted Lattimore Properties a three-year option to purchase up to 1,000,000 shares of its common stock, at $3.00 per share, for a purchase price of $75,000. The effectiveness of the option was conditioned on approval of the Settlement Agreement. Subsequent to the approval of the Settlement Agreement, the option had not been exercised as of September 30, 2015. Share Repurchase Obligations and Options The Company entered into repurchase option agreements with existing stockholders, including Harvey Kaye, Edward Cowle, H. Deworth Williams, Daniel McGroarty, and an affiliate of Michael Parnell, under which it (i) acquired 33,334 shares of the Company’s common stock at $3.00 per share during September 2013, (ii) acquired 317,334 shares of the Company’s common stock at $3.00 per share during October 2013, and (iii) acquired 756,333 shares of the Company’s common stock at $3.00 per share during December 31, 2013 with a portion of the payment in the amount of $1,344,999 made during the three months ended March 31, 2014 and the balance of $924,000 which was then due and payable. On December 31, 2014, the Company re-issued 301,334 shares of common stock in exchange for the extinguishment of $904,000 of the $924,000 that was due and payable. The Company also obtained the right from Mr. McGroarty, to acquire up to 266,667 shares of the Company’s common stock at $3.00 per share until April 30, 2014. The foregoing option was not exercised and on September 15, 2014, the Company agreed with Mr. McGroarty to repurchase 16,667 shares of its common stock by September 22, 2014 at $3.30 per share and 50,000 shares of the Company’s common stock by October 15, 2014 at $3.30 per share and were granted an option to repurchase 133,334 shares of the Company’s common stock at $3.30 per share on or before January 1, 2015. Such option expired unexercised. As of September 30, 2015, the Company had not repurchased these shares and the balance of $220,000 is currently due and payable. In addition, the Company obtained the right from Matthew Hoff and his affiliate to acquire up to 266,667 shares of the Company’s common stock at $3.30 per share until December 31, 2014 and the Company further obtained the right from an affiliate of Michael Parnell to acquire up to 266,667 shares of its common stock at $3.00 per share until December 31, 2014, both of which have expired. The Company intends to satisfy the remaining repurchase obligations of $240,000 from proceeds of future financings from time to time.

10. COMMON STOCK

10. COMMON STOCK	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
10. COMMON STOCK	The Company had the following equity transactions during the nine months ended September 30, 2015: On February 20, 2015, the Company issued 25,000 shares of its common stock and warrants to purchase 25,000 shares of common stock to an investor for $100,000. The warrant exercise price was $5.00 per share. The warrants expire on February 24, 2018. The following represents a summary of the warrants outstanding at September 30, 2015 and changes during the period then ended: Weighted Average Aggregate Intrinsic Warrants Exercise Price Value Outstanding at December 31, 2014 1,154,234 $ 7.00 $ - Granted 25,000 5.00 - Outstanding at September 30, 2015 1,179,234 $ 6.96 $ - Exercisable at September 30, 2015 1,179,234 $ 6.96 $ - A summary of unvested common stock awards outstanding as of September 30, 2015 is presented below: Fair Market Value Common per Share on Shares Grant Date Outstanding at December 31, 2014 600,000 $ 8.76 No activity - - Outstanding at September 30, 2015 600,000 $ 8.76 Stock-based compensation expense was approximately $1.4 million and $2.7 million for the nine months ended September 30, 2015 and 2014, respectively. The Company has estimated a forfeiture rate of 0% for stock awards issued as compensation. The total amount of expense remaining at September 30, 2015 that is expected to be recognized for these awards is $1,934,491. If all awards vest, this amount will be recognized during the remainder of 2015, 2016 and 2017. To the extent the Company estimates certain of these awards will not vest, the associated expense will be reversed in the period in which the Company estimates the awards will not vest. 2013 Stock Incentive Plan On November 14, 2013, the board of directors and stockholders of the Company authorized the adoption and implementation of the Company’s 2013 Stock Incentive Plan (the “2013 Plan”). The principal purpose of the 2013 Plan is to attract, retain and provide incentives to employees, directors, consultants, and independent contractors of the Company and its related companies by offering them the opportunity to acquire a proprietary interest in the Company and to promote their interests and efforts to the long-term interests of the Company's stockholders. Under the 2013 Plan, an aggregate of 5,000,000 shares of our common stock have initially been reserved for issuance pursuant to a variety of stock-based compensation awards, including stock options, stock awards, restricted stock, restricted stock units and other stock and cash-based awards provided that no more than one million (1,000,000) shares may be issued pursuant to awards that are not options, and (b) the maximum number of shares with respect to which an employee may be granted awards under the plan during a fiscal year is one million (1,000,000) shares. The exercise price for each option may not be less than fair market value of the common stock on the date of grant, and in the case of an incentive stock option granted to an employee who, on the date of grant is a ten-percent shareholder, the exercise price shall not be less than 110% of the fair market value of a share on the date of grant. Options shall vest as determined by the Company’s board of directors but shall not exceed a ten-year period (five years in the case of an incentive stock option granted to an employee who on the date of grant is a ten-percent stockholder). No awards have been granted under the 2013 Plan.

11. COMMITMENTS, CONTINGENCIES

11. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
11. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS	Legal Proceedings Except as set forth below, there are no pending legal proceedings against the Company that are expected to have a material adverse effect on cash flows, financial condition or results of operations. On September 15, 2014, the Company entered into an agreement with Daniel McGroarty, the Company’s former President, to, among other things, repurchase 16,667 shares of the Company’s common stock by September 22, 2014 at $3.30 per share and 50,000 shares of the Company’s common stock by October 15, 2014 at $3.30 per share and were granted an option to repurchase 133,334 shares of the Company’s common stock at $3.30 per share on or before January 1, 2015. As of September 30, 2015, the Company had not purchased these shares and the balance of $220,000 is currently due and payable. On December 29, 2014, the Company was served with an AAA demand for arbitration by Mr. McGroarty, which alleged breach of contract. Mr. McGroarty is seeking specific performance, compensatory damages of $930,000 and reasonable attorney’s fees and costs. On January 14, 2015, the Company submitted its answering statement denying the allegation of Mr. McGroarty. The Company intends to defend itself vigorously in this action. Employment and Consulting Agreements Logic International Consulting Group LLC On March 11, 2011, the Company signed an exclusive Services Agreement with Logic. Under the Services Agreement, Logic agreed to provide certain advisory services to the Company. On December 31, 2011, the Services Agreement was automatically extended to December 11, 2013 and can be renewed for additional 12-month periods unless either party gives the other 45 days written notice of termination. The Services Agreement can be cancelled with 90 days written notice. The Services Agreement provides for a monthly payment of $50,000 to Logic. As of September 30, 2015, the Company owed Logic $650,000 for accrued but unpaid service fees. In March and November 2011, the Company issued warrants to Logic for the purchase of an aggregate of 666,668 shares of the Company’s common stock. On December 31, 2011, these warrants were cancelled and replaced with warrants to purchase an aggregate of 666,668 shares of the Company’s common stock. The warrants are exercisable at $1.50 per share and warrants to purchase 433,334 shares expire on March 9, 2016 and warrants to purchase 233,334 shares expire on November 28, 2016. The warrants may be called by the Company if it has registered the sale of the underlying shares with the SEC and a closing price of $21.00 or more for the Company’s common stock has been sustained for five trading days. The warrants contain certain piggyback registration rights. On June 28, 2013, the Company converted a payable to Logic of $800,000 into 266,667 shares of the Company’s common stock at $3.00 per share. The fair value of the stock on the date of conversion was $4.95 per share, and the Company recorded the difference between the conversion price and the fair value of $520,000 as loss on settlement of debt. Since June 2013, the Company has also agreed to reimburse Logic for a portion of the compensation due to Mr. Cassidy’s administrative assistant. For the nine months ended September 30, 2015 and 2014, the Company has recorded reimbursements of $36,000 and $22,500, respectively, of which $9,000 and $5,625, respectively, is recorded in exploration expense and $27,000 and $16,875, respectively, is recorded in general and administrative expenses in the Statements of Operations. Diane Cassidy Since June 2013, the Company retained Diane Cassidy, the sister of the Company’s Chief Executive Officer and Director, Kevin Cassidy, as a consultant to perform certain management services. From June 2013 to October 2013, Ms. Cassidy was paid at the rate of $5,000 per month, increasing to $10,000 per month in November 2013 and December 2013. From February 2014 through May 2014, she was paid at the rate of $16,667 per month. On May 19, 2014, the Company entered into a Consulting Agreement with Ms. Cassidy whereby Ms. Cassidy will provide certain management services. Under the agreement, Ms. Cassidy is entitled to $17,000 per month. The agreement has an initial term of one year, with automatic renewal for one year periods unless terminated by either party on 90 days’ prior written notice. After the initial term, and during any additional term, either party can terminate the agreement as of the end of a calendar month on 60 days’ prior written notice. On August 11, 2015, the Company provided written notice to terminate the agreement. As of September 30, 2015, the Company owed Diane Cassidy $34,000 for accrued but unpaid service fees. Lattimore Properties As of July 1, 2012, Lattimore Properties, an affiliate of John Victor Lattimore, Jr., the Company’s former Chairman of the Board, entered into a Consulting Agreement with Logic pursuant to which Lattimore Properties is to provide executive management, strategic planning and general office administration to Logic for a fee of $25,000 per month. The agreement has a term of one year commencing on July 1, 2013, unless sooner terminated on 30 days’ prior written notice. The term of the agreement may be extended upon the mutual written agreement of the parties. The agreement was not extended. Mark Scott On December 19, 2011, the Company entered into a Consulting Agreement with Mark Scott in connection with his service as the Company’s Chief Financial Officer. Under the agreement Mr. Scott was entitled to $4,000 per month plus $3,000 of shares of the Company’s common stock per month based on an $8.55 per share price. On August 31, 2012, the Company’s board of directors approved the issuance of 24,000 shares of common stock to Mr. Scott. The term of the Consulting Agreement expired on December 31, 2012, and the Company paid Mr. Scott $5,000 per month on a month-to-month basis during 2013 and $10,000 per month during 2014. On April 30, 2014, Mr. Scott was removed as Chief Financial Officer and between June 1, 2014 and August 13, 2014, the Company retained Mr. Scott as a consultant at a rate of $5,000 per month. As of September 30, 2015, the Company owed Mark Scott $17,500 for accrued but unpaid service fees. Michael Parnell On December 10, 2010, the Company entered into a Revised Employment Agreement with Michael Parnell, its former Chief Executive Officer, Chief Operating Officer and a Director. Under the terms of the employment agreement, Mr. Parnell’s annual salary was $125,000 in year one, $137,500 in year two and $151,000 in year three. Mr. Parnell was awarded 100,000 shares of restricted common stock. In the event that the Company was sold or merged or there was a change in control, Mr. Parnell was entitled to receive at his discretion, severance of $500,000 in cash or restricted common stock at $1.50 per share. Mr. Parnell was eligible for vacation of six weeks, benefit programs and incentive bonuses as approved by the Company’s board of directors. The employment agreement had a three-year term and was automatically renewable for additional one-year periods unless 90 days’ notice is provided by either party. On July 26, 2011, the Company entered into an Addendum to the Revised Employment Agreement with Mr. Parnell. The addendum extended the term of employment until December 10, 2015, subject to additional one-year renewal periods unless 90 days’ notice is provided by either party. The addendum provided, that Mr. Parnell’s annual salary for year four was $166,100 and $182,710 for year five. The Company also agreed to issue to Mr. Parnell 41,667 restricted shares of its common stock in years four and five. In the event of a change in control by merger, acquisition, takeover or otherwise, the share amounts due in years four and five would become immediately due and payable. On June 26, 2013, Mr. Parnell resigned as the Chief Operating Officer and a Director of the Company and accepted the position of National Accounts Director for the media business. On January 28, 2014, the Company entered into a binding letter of intent to sell the common stock of Media Depot, Inc., the then media subsidiary of the Company, and certain related media assets held by the Company to Mr. Parnell or a designated affiliate of Mr. Parnell. On May 12, 2014, the Company and an affiliate of Mr. Parnell entered into a Master Sale Agreement, and related Share Purchase Agreement and Asset Purchase Agreement, and completed the sale of the media business to an affiliate of Mr. Parnell effective January 1, 2014. In connection with this transaction, Mr. Parnell resigned as National Accounts Director on May 12, 2014 and the Revised Employment Agreement and addendum thereto were terminated immediately. On May 12, 2014, the Company and Mach One Media Group, Inc. (“Mach One”) entered into a Master Sale Agreement, and related Share Purchase Agreement and Asset Purchase Agreement, pursuant to which Mach One acquired all of the outstanding stock of Media Depot, Inc., a wholly-owned subsidiary of the Company, and acquired the assets and assumed the liabilities of the Company related to the media business effective January 1, 2014. Mach One is an affiliate of Michael D. Parnell, the Company's former Chief Executive Officer, National Accounts Director and Director. In addition, the Company and the Michael D. Parnell Living Trust (the "Parnell Trust") entered into an amendment to the Repurchase Option Agreement dated January 28, 2014, whereby the Company has the option to repurchase up to 266,667 shares of its common stock from the trust at $3.00 per share. The amendment extended the date on which the Company may exercise the right to repurchase the first 66,667 shares from March 15, 2014 to June 15, 2014 such that the Company may, at its option, repurchase 133,334 shares on or before June 15, 2014 and a further 66,667 shares on each of September 15, 2014 and December 15, 2014. As of December 31, 2014, the Company’s option to repurchase the 266,667 shares on or before December 15, 2014 had expired. The Company and Mr. Parnell also entered into a Termination and Release Agreement whereby Mr. Parnell resigned as National Accounts Director of the Company effective immediately, his employment agreement was terminated, and all compensation due to Mr. Parnell was extinguished. The agreement also provides for a mutual release of claims by the parties, and an indemnification by the Company of Mr. Parnell in certain circumstances. Daniel McGroarty On November 29, 2011, Daniel McGroarty was appointed the Company’s President. On January 1, 2012, the Company entered into an Executive Employment Agreement with Mr. McGroarty employing Mr. McGroarty as its President. Under the terms of the employment agreement, Mr. McGroarty’s salary was $120,000 in year one and was to be negotiated in years two and three. The employment agreement also provided for the grant to Mr. McGroarty of 216,667 shares of restricted Company common stock and further provided that 33,334 shares of common stock that were previously granted to Mr. McGroarty were fully vested as of November 30, 2011. The employment agreement had a three-year term and was automatically renewable for additional one-year periods unless 90 days’ notice is provided by either party. On August 14, 2013, the Company accepted the resignation of Daniel McGroarty effective July 31, 2013 as President of the Company and its subsidiaries. The parties entered into a Stock Repurchase Option and Severance Agreement whereby: (i) the parties agreed to settle all back pay and compensation claims with a payment of $60,000; (ii) the Company agreed to repurchase 33,334 of shares of its common stock from Mr. McGroarty on or before September 30, 2013 for $100,000 or $3.00 per share, which was subsequently paid; and (iii) the Company paid $40,000 for an option to acquire up to 266,667 shares of the Company’s common stock from Mr. McGroarty for $3.00 per share on or before April 30, 2014. The foregoing option was not exercised and on September 15, 2014, the Company entered into a further agreement with Mr. McGroarty pursuant to which the Company agreed, among other things, to repurchase 16,667 shares of its common stock by September 22, 2014 at $3.30 per share and 50,000 shares of its common stock by October 15, 2014 at $3.30 per share and were granted an option to repurchase 133,334 shares of its common stock at $3.30 per share on or before January 1, 2015. Such option expired unexercised. As of September 30, 2015, the Company had not repurchased these shares and the balance of $220,000 is currently due and payable. Leases The Company is obligated under various non-cancelable operating leases for their various facilities. The Company leases its principal executive offices at 5600 Tennyson Parkway, Suite 240, Plano, Texas 75024-3818. The lease of this 1,588 square foot space is for a term expiring on November 30, 2016, and provides for monthly rental payments of $3,441. On July 29, 2015 the Company entered into a sublease agreement in which the Company sublet the lease property to the subtenant. This sublease will begin on August 1, 2015 and will continue for the remainder of the term expiring on November 30, 2016. Subtenant shall pay landlord sublease payments of $3,441 per month and subtenant is not responsible for finding a replacement upon the termination of tenancy. The Company leases a corporate apartment at 5721 Henry Cook Boulevard, Plano, Texas 75024. The lease of this 1,024 square foot space is for a term which expired on February 10, 2015, and provided for monthly rental payments of $1,730. When the lease agreement expired, the Company continued leasing the apartment on a month-to-month basis at $1,730 per month. On April 13, 2015, the Company provided notice to the owner and ended the lease arrangement on May 13, 2015. The Company also leases 5,000 square feet of office and storage space at 120 Vandervoort Street, Salmon, Idaho. The Salmon facility is used by Company contractors when they are involved in exploration or other activities relating to our Idaho or Montana claims and is also used to store tools and materials used in our exploratory activities and samples collected from the claim sites. This lease provides for monthly rentals of $1,200 and expired December 4, 2014. The lease includes an option to renew for two terms of two years at a rent to be negotiated. As of September 30, 2015, the lease has not been renewed and the Company is paying on a month-to-month basis. Aggregate future minimum lease payments are $50,538 and $6,881 for the twelve-month periods ending September 30, 2016 and September 30, 2017, respectively. Rent expense for the nine months ended September 30, 2015 and 2014 was $133,228 and $139,922, respectively, of which $32,165 and $31,791, respectively, is recorded in exploration expense and $101,063 and $108,131, respectively, is recorded in general and administrative expenses in the Condensed Statements of Operations. License Agreement On July 23, 2015, the Company entered into an exclusive commercial patent license agreement to utilize the Membrane Assisted Solvent Extraction for Rare Earths Technology (“MSX Technology”), which results in the recovery and separation of Neodymium, Dysprosium and Praseodymium from electronic E-waste. The Company was also granted a non-exclusive commercial patent license agreement for use of MSX Technology for mining Neodymium, Dysprosium and Praseodymium. Under the agreement, the Company paid the Licensor a $35,000 execution fee, which was recognized in selling, general and administrative expenses in the three and nine months ended September 30, 2015. The Company is required to pay the Licensor royalties of 3% of net sales subject to minimum royalty payments of $15,000 for the year ending December 31, 2017 and $25,000 for years thereafter. In the event the Company earns sublicensing revenue from the MSX Technology, it is required to pay 35% of such revenue to the Licensor. The Company is responsible for all patent costs incurred to support the MSX Technology in excess of $20,000.

2. SIGNIFICANT ACCOUNTING POL17

2. SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Accounting Method	The Company’s condensed consolidated financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States.
Principles of Consolidation	These condensed consolidated financial statements include the Company’s consolidated financial position, results of operations, and cash flows. All material intercompany balances and transactions have been eliminated in the accompanying condensed consolidated financial statements.
Cash and Cash Equivalents	The Company classifies highly liquid temporary investments with an original maturity of three months or less when purchased as cash equivalents. The Company maintains cash balances at various financial institutions. Balances at U.S. banks are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risk for cash on deposit. As of September 30, 2015 and December 31, 2014, the Company had no uninsured cash amounts.
Deferred Financing Costs	Deferred financing costs consist of specific, incremental capitalized costs directly attributable to a proposed offering of securities. In the event of a successful public offering, these deferred costs will be charged against the gross proceeds of the offering in additional paid-in capital. In the event the offering is abandoned, any capitalized costs will be charged to expense in the period in which the offering is abandoned. As of December 31, 2014, the Company had recognized deferred offering costs totaling approximately $277,000. During the nine months ended September 30, 2015, the Company charged these costs to general and administrative expenses in the accompanying Statements of Operations.
Property and Equipment	Equipment consists of machinery, furniture, fixtures and software, which are stated at cost less accumulated depreciation and amortization. Depreciation is computed by the straight-line method over the estimated useful lives or lease period of the relevant asset, generally five to seven years.
Mineral Rights	Costs of acquiring mineral rights are capitalized by project area upon purchase of the associated claims. Costs to maintain the mineral rights and leases are expensed as incurred. When a property reaches the production stage, the related capitalized costs will be amortized, using the units of production method on the basis of periodic estimates of ore reserves.
Long-Lived Assets	The Company reviews its long-lived assets for impairment annually or when changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets under certain circumstances are reported at the lower of carrying amount or fair value. Assets held for disposal and assets not expected to provide any future service potential to the Company are recorded at the lower of carrying amount or fair value (less the projected costs associated with selling the asset). To the extent carrying values exceed fair values, an impairment loss is recognized in operating results.
Value Measurements and Financial Instruments	ASC Topic 820, Fair Value Measurement and Disclosures Level 1 – Quoted prices in active markets for identical assets and liabilities; Level 2 – Inputs other than level one inputs that are either directly or indirectly observable; and Level 3 – Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. The risk-free rate of return reflects the interest rate for the United States Treasury Note with similar time-to-maturity to that of the related financial instrument. The recorded value of other financial assets and liabilities, which consist primarily of cash and cash equivalents, deposits, deferred financing costs, other current assets, and accounts payable and accrued expenses, approximate the fair value of the respective assets and liabilities at September 30, 2015 and December 31, 2014 based upon the short-term nature of the assets and liabilities.
Mineral Exploration and Development Costs	All exploration expenditures are expensed as incurred. Exploration expenditures include direct exploration costs, as well as certain indirect costs allocated to exploration expense. Significant acquisition payments for active exploration rights are capitalized. If no minable ore body is discovered, previously capitalized costs are expensed in the period the exploration right is abandoned. Should a property be abandoned, its capitalized costs are charged to operations. The Company charges to operations the allocable portion of capitalized costs attributable to exploration rights abandoned. Capitalized costs are allocated to rights sold based on the proportion of claims sold to the claims remaining within the project area.
Stock-Based Compensation	The Company has share-based compensation plans under which non-employees, consultants and suppliers may be granted restricted stock, as well as options to purchase shares of Company common stock at the fair market value at the time of grant. Stock-based compensation cost is measured by the Company at the grant date, based on the fair value of the award over the requisite service period. For options issued to employees, the Company recognizes stock compensation costs utilizing the fair value methodology over the related period of benefit. Grants of stock options and stock to non-employees and other parties are accounted for in accordance with ASC 505. The Company recorded equity-based costs for non-employees, consultants and suppliers of $0 and $129,500 during the nine months ended September 30, 2015 and 2014, respectively. The Company applies ASC 718 for options, common stock and other equity-based grants to its employees and directors. ASC 718 requires measurement of all employee equity-based payment awards using a fair-value method and recording of such expense in the consolidated financial statements over the requisite service period. The fair value concepts have not changed significantly in ASC 718; however, in adopting this standard, companies must choose among alternative valuation models and amortization assumptions. After assessing alternative valuation models and amortization assumptions, the Company will continue using both the Black-Scholes valuation model and straight-line amortization of compensation expense over the requisite service period for each separately vesting portion of the grant. The Company recorded equity-based compensation for employees and directors of $1.4 million and $2.7 million for the nine months ended September 30, 2015 and 2014, respectively.
Provision for Income Taxes	Income taxes are provided based upon the liability method of accounting. Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end. A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the “more likely than not” standard. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes.
Net Loss Per Share	Basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of the Company, subject to anti-dilution limitations. As of September 30, 2015 and 2014, the Company had outstanding warrants for the purchase of 1,179,234 and 1,154,234 common shares, respectively, and an option to purchase 1,000,000 shares that were not included in the computation of loss per share at September 30, 2015 and 2014 because they would have been anti-dilutive.
Use of Estimates	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, 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.
Reclassification	Certain prior period amounts have been reclassified to conform to the current period presentation. At December 31, 2014, $321,518 was reclassified to payroll tax liability comprised of $271,602 from accounts payable and accrued expenses, $22,756 from accrued interest, and $21,160 from other current liabilities. For the nine months ended September 30, 2014, $380,559 was reclassified to exploration expense from general and administrative expense. These reclassifications have no impact on net income, earnings per share, accumulated deficit, or results of continuing operations.
Reverse Stock Split	On December 16, 2014, the Company amended its articles of incorporation to effect a 1-for-3 reverse stock split. All the relevant information relating to numbers of shares and per share information contained in these condensed consolidated financial statements has been retrospectively adjusted to reflect the reverse stock split for all periods presented.
Recent Accounting Pronouncements	A variety of proposed or otherwise potential accounting standards are currently under study by standard setting organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, management has not determined whether implementation of such proposed standards would be material to its consolidated financial statements. In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, In February 2015, the FASB issued ASU 2015-02, Amendments to Consolidation Analysis), In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs

5. PROPERTY AND EQUIPMENT, NET

5. PROPERTY AND EQUIPMENT, NET (Tables)	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Schedule of Equipment	Estimated September 30, December 31, Life 2015 2014 Office equipment 5 years $ 50,496 $ 50,496 Mining and other equipment 5 - 7 years 131,218 131,218 Accumulated depreciation (94,060 ) (72,424 ) Total $ 87,654 $ 109,290

6. ACCOUNTS PAYABLE AND ACCRU19

6. ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2015
Accounts Payable And Accrued Expenses Tables
Related Party Payable and Accrued Expenses	September 30, December 31, 2015 2014 Related party payables due to Logic International Consulting Group, LLC for services on behalf of UREE $ 662,000 $ 208,601 Related party payables due to Lattimore Properties, Inc. for amounts paid on behalf of UREE 133,858 74,230 Related party payables due to Diane Cassidy for services on behalf of UREE 34,000 - Related party payables due to CRE Cloud Solutions for services 5,413 3,248 Related party payables due to Kevin Cassidy for amounts paid on behalf of UREE 44,743 903 $ 880,013 $ 286,982
Advances from related parties	September 30, December 31, 2015 2014 Advance from Lattimore Properties, Inc. $ 147,852 $ - Advance from Kevin Cassidy 15,000 - $ 162,852 $ -

10. COMMON STOCK (Tables)

10. COMMON STOCK (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Summary of Warrants	Weighted Average Aggregate Intrinsic Warrants Exercise Price Value Outstanding at December 31, 2014 1,154,234 $ 7.00 $ - Granted 25,000 5.00 - Outstanding at September 30, 2015 1,179,234 $ 6.96 $ - Exercisable at September 30, 2015 1,179,234 $ 6.96 $ -
Unvested common stock awards outstanding	Fair Market Value Common per Share on Shares Grant Date Outstanding at December 31, 2014 600,000 $ 8.76 No activity - - Outstanding at September 30, 2015 600,000 $ 8.76

1. ORGANIZATION (Details Narrat

1. ORGANIZATION (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Organization Details Narrative
Cash	$ 1,769	$ 142,540
Working capital deficit	5,200,000	3,322,810
Payroll tax liability	$ 461,514	321,518
Accounts payable and accrued expenses		271,602
Accrued interest		22,756
Other current liabilities		$ 21,160

2. SIGNIFICANT ACCOUNTING POL22

2. SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Equity-based compensation for employees	$ 1,423,503	$ 2,737,500
Equity-based costs for non-employees, consultants and suppliers	$ 0	$ 129,500
Warrant [Member]
Antidilutive securities excluded from earnings	1,179,234	1,154,234
Option [Member]
Antidilutive securities excluded from earnings	1,000,000	1,000,000

5. PROPERTY AND EQUIPMENT, NE23

5. PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Accumulated depreciation	$ (94,060)	$ (72,424)
Total	$ 87,654	109,290
Office equipment [Member]
Estimated useful lives of equipment	5 years
Equipment, gross	$ 50,496	50,496
Mining and other equipment [Member]
Estimated useful lives of equipment	5 - 7 years
Equipment, gross	$ 131,218	$ 131,218

5. PROPERTY AND EQUIPMENT, NE24

5. PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Depreciation expense	$ 21,636	$ 21,172
Selling, General and Administrative Expenses [Member]
Depreciation expense	3,627	3,161
Exploration Expense [Member]
Depreciation expense	$ 18,009	$ 18,011

6. ACCOUNTS PAYABLE AND ACCRU25

6. ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Accounts Payable And Accrued Expenses Details
Related party payables due to Logic International Consulting Group, LLC for services on behalf of UREE	$ 662,000	$ 208,601
Related party payables due to Lattimore Properties, Inc. for amounts paid on behalf of UREE	133,858	74,230
Related party payables due to Diane Cassidy for services on behalf of UREE	34,000	0
Related party payables due to CRE Cloud Solutions for services	5,413	3,248
Related party payables due to Kevin Cassidy for amounts paid on behalf of UREE	44,743	903
Related party accounts payable and accrued expenses	$ 880,013	$ 286,982

6. ACCOUNTS PAYABLE AND ACCRU26

6. ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details 1) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Advance from related parties	$ 162,852	$ 0
Lattimore Properties, Inc.
Advance from related parties	147,852	0
Kevin Cassidy
Advance from related parties	$ 15,000	$ 0

6. ACCOUNTS PAYABLE AND ACCRU27

6. ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Accounts Payable And Accrued Expenses Details Narrative
Accounts payable	$ 2,846,043	$ 2,225,799

7. PAYROLL TAX LIABILITY (Detai

7. PAYROLL TAX LIABILITY (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Payroll Tax Liability Details
Accounts payable related to FICA cost	$ 21,602	$ 271,602	$ 21,602	$ 271,602
Accrued penalties related to FICA cost	3,695	0	139,996	0	$ 27,160
Accrued interest related to FICA cost	3,695	$ 0	139,996	$ 0	$ 22,757
Potential unasserted trust fund recovery penalty claims.	$ 90,625		$ 90,625

9. RELATED PARTY TRANSACTIONS (

9. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Legal settlement liabilities	$ 385,000	$ 367,000

10. COMMON STOCK (Details)

10. COMMON STOCK (Details) - Warrants	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Number of Warrants Outstanding, Beginning	1,154,234
Number of Warrants Granted	25,000
Number of Warrants Exercised	0
Number of Warrants Expired/Forfeited	0
Number of Warrants Outstanding, Ending	1,179,234
Number of Warrants Exercisable	1,179,234
Weighted Average Exercise Price Outstanding, Beginning | $ / shares	$ 7
Weighted Average Exercise Price Granted | $ / shares	5
Weighted Average Exercise Price Exercised | $ / shares	0
Weighted Average Exercise Price Expired/Forfeited | $ / shares	0
Weighted Average Exercise Price Outstanding, Ending | $ / shares	$ 6.96
Weighted Average Exercise Price Exercisable	6.96

10. COMMON STOCK (Details 1)

10. COMMON STOCK (Details 1) - Restricted stock	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Balance of unvested common shares at December 31, 2014	600,000
Granted	0
Vested	0
Expired/Forfeited	0
Balance of unvested common shares at September 30, 2015	600,000
Fair Market Value per Share on Grant Date at December 31, 2014 | $ / shares	$ 8.76
Granted | $ / shares	0
Vested | $ / shares	0
Expired/Forfeited | $ / shares	0
Fair Market Value per Share on Grant Date at September 30, 2015 | $ / shares	$ 8.76

10. COMMON STOCK (Details Narra

10. COMMON STOCK (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Common Stock Details Narrative
Stock-based compensation expense	$ 1,400,000	$ 2,700,000
Stock based compensation not yet recognized	$ 1,934,491

11. COMMITMENTS, CONTINGENCIE33

11. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating Lease Minimum Payment Due 2016	$ 50,538
Operating Lease Minimum Payment Due 2017	6,881
Rent expense	133,228	$ 139,922
Chief Financial Officer [Member]
Unpaid service fees	17,500
Exploration Expense [Member]
Reimbursement portion of compensation, Logic International Consulting Group LLC	9,000	5,625
Rent expense	32,165	31,791
Selling, General and Administrative Expenses [Member]
Reimbursement portion of compensation, Logic International Consulting Group LLC	27,000	16,875
Rent expense	101,063	108,131
Logic International Consulting Group LLC [Member]
Unpaid service fees	650,000
Reimbursement portion of compensation, Logic International Consulting Group LLC	36,000	$ 22,500
Diane Cassidy [Member]
Unpaid service fees	$ 34,000