| Document and Entity Information (USD $) | 3 Months Ended | |
| Mar. 31, 2014 | 15-May-14 | |
| Document And Entity Information | ' | ' |
| Entity Registrant Name | 'DYNARESOURCE INC | ' |
| Entity Central Index Key | '0001111741 | ' |
| Document Type | '10-Q | ' |
| Document Period End Date | 31-Mar-14 | ' |
| 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 Public Float | ' | $1,500,000 |
| Entity Common Stock, Shares Outstanding | ' | 11,052,088 |
| Document Fiscal Period Focus | 'Q1 | ' |
| Document Fiscal Year Focus | '2014 | ' |
| Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
| Current Assets: | ' | ' |
| Cash and Cash Equivalents | $528,733 | $1,143,344 |
| Foreign Tax Receivable | 392,435 | 296,038 |
| Total Current Assets | 921,168 | 1,439,382 |
| Mining Camp Equipment and Fixtures (Net of Accumulated Depreciation of $851,861 and $790,318) | 247,397 | 241,518 |
| Mining Properties (Net of Accumulated Amortization of $519,400 and $519,400) | 4,183,967 | 4,183,967 |
| Total Fixed Assets | 4,431,364 | 4,425,485 |
| Other Assets: | ' | ' |
| Investment in Affiliate | 70,000 | 70,000 |
| Note Receivable, Related Party | 186,828 | 186,840 |
| Other Assets | 312,860 | 277,319 |
| Total Other Assets | 569,688 | 534,159 |
| TOTAL ASSETS | 5,922,220 | 6,399,026 |
| Accounts Payable | 81,362 | 114,498 |
| Accrued Expenses | 383,150 | 246,722 |
| Due to Non-Controlling Interest | 231,500 | 120,000 |
| Total Current Liabilities | 696,012 | 481,220 |
| Long-Term Liabilities | 1,354,808 | 1,354,808 |
| Total Liabilities | 2,050,820 | 1,836,028 |
| Preferred Stock $0.0001 par value, 20,001,000 shares authorized | ' | ' |
| Series A | 1 | 1 |
| Series B | 56 | 46 |
| Common Stock, $0.01 par value, 25,000,000 shares authorized, 9,958,815 and 10,802,008 shares issued and outstanding | 110,520 | 110,520 |
| Preferred Rights | 40,000 | 40,000 |
| Additional Paid In Capital | 43,815,236 | 43,292,756 |
| Treasury Stock | -707,750 | -707,750 |
| Other Comprehensive Income | 147,902 | 252,611 |
| Accumulated Deficit | -6,002,516 | -6,002,516 |
| Accumulated Deficit Since Reentering the Development Stage | -27,663,281 | -26,692,834 |
| Total DynaResource, Inc. Stockholders' Equity | 9,740,168 | 10,292,834 |
| Noncontrolling Interest | -5,868,768 | -5,729,836 |
| TOTAL EQUITY | 3,871,400 | 4,562,998 |
| TOTAL LIABILITIES AND EQUITY | $5,922,220 | $6,399,026 |
| Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
| Statement of Financial Position [Abstract] | ' | ' |
| Accumulated Depreciation, Mining Equipment and Fixtures | $860,726 | $851,861 |
| Accumulated Amortization, Mining Properties | $519,400 | $519,400 |
| Preferred stock, par value | $0.00 | $0.00 |
| Preferred stock, shares authorized | 20,001,000 | 20,001,000 |
| Series A, shares outstanding | 1,000 | 1,000 |
| Series B, shares outstanding | 564,946 | 0 |
| Common stock, par value | $0.01 | $0.01 |
| Common stock, shares authorized | 25,000,000 | 25,000,000 |
| Common stock, shares outstanding | 11,052,008 | 11,052,008 |
| Statements of Operations (USD $) | 3 Months Ended | 87 Months Ended | |
| Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | |
| Income Statement [Abstract] | ' | ' | ' |
| REVENUES | $0 | $0 | $346,726 |
| COST OF SALES | ' | ' | ' |
| Pre-Pilot Production Expenses | 820,346 | ' | 820,346 |
| Exploration Costs | ' | 208,893 | 16,514,312 |
| GROSS PROFIT (DEFICIT) | -820,346 | -208,893 | 16,987,932 |
| Depreciation and Amortization | 17,865 | 22,061 | 1,003,048 |
| Stock Issued for Services | 0 | 0 | 2,748,564 |
| General and Administrative | 331,470 | 511,117 | 11,685,342 |
| TOTAL OPERATING EXPENSES | 349,335 | 533,178 | 15,436,954 |
| NET OPERATING INCOME (LOSS) | -1,169,681 | -742,071 | -32,424,887 |
| Portfolio Income | 107 | 134 | 22,768 |
| Currency Translation Gain (Loss) | 94,042 | 348,634 | 1,115,256 |
| Other income | 0 | 0 | 64,076 |
| Interest Expense | -42,338 | 0 | -175,687 |
| TOTAL OTHER INCOME (EXPENSE) | 51,811 | 348,768 | -1,332,251 |
| NET INCOME (LOSS) BEFORE INCOME TAXES | -1,117,870 | -393,303 | -33,757,138 |
| Provision for Income Taxes (Expense)Benefit | 0 | 0 | 38,259 |
| NET LOSS | -1,117,870 | -393,303 | -33,718,879 |
| Net Loss Attributable to Non-Controlling Interest | 139,209 | 198,420 | 5,817,172 |
| NET LOSS ATTRIBUTABLE TO DYNARESOURCE, INC. COMMON SHAREHOLDERS | -978,661 | -194,883 | -27,901,707 |
| Unrealized Loss on Securities Held for Sale | 0 | 0 | -735,760 |
| Currency Translation Gain (Loss) | 8,214 | -2,765 | 797,374 |
| COMPREHENSIVE LOSS BEFORE NON-CONTROLLING INTEREST | -970,447 | -197,648 | -27,840,093 |
| Comprehensive Loss (Income) Attributable to Non-Controlling Interest | 267 | 312 | 83,355 |
| COMPREHENSIVE LOSS ATTRIBUTABLE TO DYNARESOURCE, INC. COMMON SHAREHOLDERS | ($970,180) | ($197,336) | ($27,756,738) |
| Weighted Average Shares OutstandingBasic and Diluted | 11,052,008 | 10,802,008 | ' |
| Income (Loss) per Common Share, Basic and Diluted | ($0.10) | ($0.04) | ' |
| Statements of Cash Flows (USD $) | 3 Months Ended | 87 Months Ended | |
| Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
| Net Income (Loss) | ($1,117,870) | ($393,303) | ($33,718,879) |
| Adjustments to reconcile net loss to cash used by operating activities: | ' | ' | ' |
| Issuance of Common Stock for Services | 0 | 0 | 2,748,564 |
| Issuance of Common Stock Options | 0 | 0 | 779,462 |
| Issuance of Preferred Stock for Services | 0 | 0 | 1,000 |
| Depreciation and Amortization | 17,865 | 22,061 | 1,003,048 |
| Loss on Disposition of Assets | 0 | 0 | 22,075 |
| Minority Interest | 8,481 | 0 | 8,481 |
| Change in Operating Assets and Liabilities | ' | ' | ' |
| Decrease in Accounts Receivable | 0 | 0 | 199,143 |
| (Increase) Decrease in Foreign Tax Receivable | -96,397 | -9,223 | -343,230 |
| (Increase) in A/R - Related Party | 0 | -2,780 | -186,840 |
| (Increase) in Other Current Assets | 0 | -19,264 | 166,193 |
| (Increase) Decrease in Other Assets | -35,529 | -15,822 | -312,848 |
| Increase (Decrease) in Accounts Payable | -33,136 | -134,576 | 39,958 |
| Increase (Decrease) Increase in Accrued Expenses | 136,428 | -137 | 301,747 |
| (Decrease) in Deferred Tax Liability | 0 | 0 | -38,259 |
| CASH FLOWS (USED IN) OPERATING ACTIVITIES | -1,120,158 | -553,044 | -29,330,385 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
| Purchase of Fixed Assets | -23,744 | 0 | -1,236,686 |
| Retirement of Fixed Assets | 0 | 0 | 649,043 |
| Conversion of Note Receivable to Equity | 0 | 0 | 750,000 |
| Investment in Affiliate | 0 | 0 | 70,000 |
| Note Receivable to Affiliate | 0 | 0 | -750,000 |
| CASH FLOWS (USED IN) INVESTING ACTIVITIES | -23,744 | 0 | -657,643 |
| Proceeds from DynaMexico Earn In | 0 | 0 | 17,674,712 |
| Proceeds from Sale of Common Stock | 0 | 0 | 7,585,401 |
| Proceeds from sale of Series B Preferred Stock | 522,500 | 495,000 | 2,462,000 |
| Repurchase of Common Stock Options | 0 | 0 | -10,000 |
| Other Comprehensive Income (Loss) | -104,709 | -252,292 | 102,854 |
| Note Payable Additions | 0 | 0 | 1,694,808 |
| Loan from Non-Controlling Interest | 111,500 | 0 | 231,500 |
| Purchase of Treasury Stock | 0 | -66,500 | -517,729 |
| Sale of Treasury Stock | 0 | 0 | 472,375 |
| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | 529,291 | 176,208 | 26,695,921 |
| NET INCREASE (DECREASE) IN CASH | -614,611 | -376,836 | -292,107 |
| CASH AT BEGINNING OF PERIOD | 1,143,344 | 1,522,652 | 820,840 |
| CASH AT END OF PERIOD | 528,733 | 1,145,816 | 528,733 |
| Non-Cash Issuance of Common Shares for Services | 0 | 0 | 2,748,564 |
| Non-Cash Issuance of Preferred Shares for Services | 0 | 0 | 1,000 |
| Non-Cash Conversion of Note Receivable to Equity | 0 | 0 | 750,000 |
| Non-cash Conversion of Note Payable to Equity | 0 | 0 | 340,000 |
| Non-cash Conversion of Accrued Expenses to Equity | ' | ' | 22,734 |
| Non-cash Dividend of Property | 0 | 0 | 129,822 |
| Cash Paid During the Year for Taxes | 0 | 0 | 0 |
| Cash Paid During the Year for Interest Expense | $0 | $0 | $0 |
| Shareholders Equity (USD $) | Preferred Stock - Series A | Preferred Stock - Series B | Common Stock | Preferred Rights | Additional Paid-In Capital | Treasury Stock | Other Comprehensive Income / Loss | Retained Earnings / Accumulated Deficit | Deficit Since Reentering the Development Stage |
| Treasury Stock, Beginning Balance at Dec. 31, 2012 | ' | ' | ' | ' | ' | ($50,750) | ' | ' | ' |
| Additional Paid-in Capital, Beginning Balance at Dec. 31, 2012 | ' | ' | ' | ' | 40,429,500 | ' | ' | ' | ' |
| Other Comprehensive Income, Beginning Balance at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | 270,794 | ' | ' |
| Accumulated Deficit, Beginning Balance at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | -6,002,516 | -23,714,647 |
| Preferred Rights, Beginning Balance at Dec. 31, 2012 | ' | ' | ' | 40,000 | ' | ' | ' | ' | ' |
| Common Stock, Beginning Balance (Value) at Dec. 31, 2012 | ' | ' | 108,020 | ' | ' | ' | ' | ' | ' |
| Preferred Stock - Series A, Beginning Balance (No. Shares) at Dec. 31, 2012 | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' |
| Preferred Stock - Series B, Beginning Balance (Shares) at Dec. 31, 2012 | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
| Change in par value | -999 | ' | ' | ' | 999 | ' | ' | ' | ' |
| Sale of Series B referred Stock | ' | 387,900 | ' | ' | ' | ' | ' | ' | ' |
| Sale of Series B Preferred Shares | ' | 39 | ' | ' | 1,939,461 | ' | ' | ' | ' |
| Common stock options issued | ' | ' | ' | ' | 59 | ' | ' | ' | ' |
| Issuance of common stock for services, shares | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' |
| Issuance of common stock for services, amount | ' | ' | 2,500 | ' | ' | ' | ' | ' | ' |
| Issuance of common stock for services, APIC | ' | ' | ' | ' | 560,000 | -562,500 | ' | ' | ' |
| Conversion of notes payable to preferred stock, shares | ' | 72,546 | ' | ' | ' | ' | ' | ' | ' |
| Conversion of Notes Payable to Preferred Stock, amount | ' | 7 | ' | ' | ' | ' | ' | ' | ' |
| Conversion of Notes Payable to Preferred Stock, APIC | ' | ' | ' | ' | 362,727 | ' | ' | ' | ' |
| Treasury Stock Purchased | ' | ' | ' | ' | ' | -94,500 | ' | ' | ' |
| Other Comprehensive Income | ' | ' | ' | ' | ' | ' | -18,183 | ' | ' |
| Preferred Rights, Ending Balance at Dec. 31, 2013 | ' | ' | ' | 40,000 | ' | ' | ' | ' | ' |
| Accumulated Deficit, Ending Balance at Dec. 31, 2013 | ' | ' | ' | ' | ' | ' | ' | -6,002,516 | -26,692,834 |
| Treasury Stock, Ending Balance at Dec. 31, 2013 | ' | ' | ' | ' | ' | -707,750 | ' | ' | ' |
| Other Comprehensive Income, Ending Balance at Dec. 31, 2013 | ' | ' | ' | ' | ' | ' | 252,611 | ' | ' |
| Additional Paid-in Capital, Ending Balance at Dec. 31, 2013 | ' | ' | ' | ' | 43,292,746 | ' | ' | ' | ' |
| Preferred Stock - Series A, Ending Balance (Value) at Dec. 31, 2013 | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
| Preferred Stock - Series B - Ending Balance (Value) at Dec. 31, 2013 | ' | 46 | ' | ' | ' | ' | ' | ' | ' |
| Common Stock, Ending Balance (Value) at Dec. 31, 2013 | ' | ' | 110,520 | ' | ' | ' | ' | ' | ' |
| Common Stock, Ending Balance (No. shares) at Dec. 31, 2013 | ' | ' | 11,052,008 | ' | ' | ' | ' | ' | ' |
| Preferred Stock - Series A, Ending Balance (No. Shares) at Dec. 31, 2013 | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' |
| Preferred Stock - Series B, Ending Balance (Shares) at Dec. 31, 2013 | ' | 460,446 | ' | ' | ' | ' | ' | ' | ' |
| Common Stock, Beginning Balance (Value) at Dec. 31, 2013 | ' | ' | 110,520 | ' | ' | ' | ' | ' | ' |
| Preferred Stock - Series B, Beginning Balance (Value) at Dec. 31, 2013 | ' | 46 | ' | ' | ' | ' | ' | ' | ' |
| Preferred Stock - Series A, Beginning Balance (Value) at Dec. 31, 2013 | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
| Common Stock, Beginning Balance (No. Shares) at Dec. 31, 2013 | ' | ' | 11,052,008 | ' | ' | ' | ' | ' | ' |
| Sale of Series B referred Stock | ' | 104,500 | ' | ' | ' | ' | ' | ' | ' |
| Sale of Series B Preferred Shares | ' | 10 | ' | ' | ' | ' | ' | ' | ' |
| Sale of Series B Preferred Shares | ' | ' | 522,490 | ' | ' | ' | ' | ' | ' |
| Other Comprehensive Income | ' | ' | ' | ' | ' | ' | -104,709 | ' | ' |
| Net Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | -970,447 |
| Preferred Rights, Ending Balance at Mar. 31, 2014 | ' | ' | ' | 40,000 | ' | ' | ' | ' | ' |
| Accumulated Deficit, Ending Balance at Mar. 31, 2014 | ' | ' | ' | ' | ' | ' | ' | -6,002,516 | -27,663,281 |
| Treasury Stock, Ending Balance at Mar. 31, 2014 | ' | ' | ' | ' | -707,750 | ' | ' | ' | ' |
| Other Comprehensive Income, Ending Balance at Mar. 31, 2014 | ' | ' | ' | ' | ' | ' | 147,902 | ' | ' |
| Additional Paid-in Capital, Ending Balance at Mar. 31, 2014 | ' | ' | ' | ' | ' | 43,815,236 | ' | ' | ' |
| Preferred Stock - Series A, Ending Balance (Value) at Mar. 31, 2014 | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
| Preferred Stock - Series B - Ending Balance (Value) at Mar. 31, 2014 | ' | 56 | ' | ' | ' | ' | ' | ' | ' |
| Common Stock, Ending Balance (Value) at Mar. 31, 2014 | ' | ' | $110,520 | ' | ' | ' | ' | ' | ' |
| Common Stock, Ending Balance (No. shares) at Mar. 31, 2014 | ' | ' | 11,052,008 | ' | ' | ' | ' | ' | ' |
| Preferred Stock - Series A, Ending Balance (No. Shares) at Mar. 31, 2014 | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' |
| Preferred Stock - Series B, Ending Balance (Shares) at Mar. 31, 2014 | ' | 564,946 | ' | ' | ' | ' | ' | ' | ' |
| Nature of Activities and Significant Accounting Policies | 3 Months Ended |
| Mar. 31, 2014 | |
| Accounting Policies [Abstract] | ' |
| Nature of Activities and Significant Accounting Policies | ' |
| NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES | |
| Nature of Activities, History and Organization: | |
| DynaResource, Inc. (The “Company” or “DynaResource”) was organized September 28, 1937, as a California corporation under the name of West Coast Mines, Inc. In 1998, the Company re-domiciled to Delaware and changed its name to DynaResource, Inc. The Company is in the business of acquiring, investing in, and developing precious metal properties, and the production of precious metals. | |
| In 2000, the Company formed a wholly owned subsidiary, DynaResource de México S.A. de C.V., chartered in México (“DynaMéxico”). This Company was formed to acquire, invest in and develop resource properties in México. In 2005, the Company formed DynaResource Operaciones de San Jose De Gracia S.A. de C.V. (“DynaOperaciones”), and acquired effective control of Mineras de DynaResource, S.A de C.V. (formerly Minera Finesterre S.A. De C.V., “MinerasDyna”). The Company owned 25% of MinerasDyna and acquired effective control of MinerasDyna by acquiring the option to purchase the remaining 75% of the Shares of MinerasDyna. The Company finalized the option and acquisition of MinerasDyna in January 2010, and now owns 100% of MinerasDyna. The results of these subsidiaries are consolidated with those of the Company. | |
| From January 2008 through March 2011, DynaMéxico issued 100 Variable Capital Series “B” shares to Goldgroup Resources, Inc. a wholly owned subsidiary of Goldgroup Mining Inc. Vancouver BC (“Goldgroup”), in exchange for Goldgroup’s contribution of $18,000,000 USD to DynaMéxico. At March 14, 2011, Goldgroup owned 50% of the outstanding capital shares of DynaMéxico. | |
| On June 21, 2013, DynaResource acquired a Certificate for 300 Series “B” Variable Capital Shares of DynaMéxico, in exchange for the settlement of accounts receivable from DynaMéxico in the amount of $31,090,710 Mexican Pesos (approximately $2.4 million USD). After the issuance and receipt of the 300 Series B Shares, DynaUSA holds 80% of the total outstanding Capital of DynaMéxico. | |
| The Company produced approximately $7,637,150 in revenues from production activities conducted during the years ended December 31, 2003 through 2006, and suspended this activity voluntarily to concentrate its efforts on exploration and development. In accordance with that decision, as of January 1, 2007, the Company reentered the Exploration Stage and has presented its cumulative results since reentering the Exploration Stage, in accordance with Accounting Standards Codification (“ASC”) 915 “Development Stage Entities”, and will continue this presentation until it again has revenues from operations. | |
| The Company elected to become a voluntary reporting issuer in Canada in order to avail itself of Canadian regulations regarding reporting for mining properties, more specifically, National Instrument 43-101 (NI 43-101). This regulation sets forth standards for reporting resources in a mineral property and is a standard recognized in the mining industry. | |
| Unaudited Interim Financial Statements: | |
| The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission. These financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring accruals) necessary to present fairly the balance sheet, statement of operations, statement of stockholders’ equity and statement of cash flows for the periods presented in accordance with accounting principles generally accepted in the United States. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to SEC rules and regulations. It is presumed that users of this interim financial information have read or have access to the audited financial statements and footnote disclosure for the preceding fiscal year contained in the Company’s Annual Report on Form 10-K. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results of operations for the full year or any other interim period. The information included in this Form 10-Q should be read in conjunction with Management's Discussion and Analysis and Financial Statements and notes thereto included in the Company’s December 31, 2013 Form 10-K. | |
| Significant Accounting Policies: | |
| The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application. The application of accounting principles requires the estimating, matching and timing of revenue and expense. The accounting policies used conform to generally accepted accounting principles which have been consistently applied in the preparation of these financial statements. | |
| The financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items, that: 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods presented. | |
| Basis of Presentation: | |
| The Company prepares its financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States. | |
| Principles of Consolidation: | |
| The financial statements include the accounts of DynaResource, Inc. as well as DynaResource de México, S.A. de C.V., DynaResource Operaciones S.A. de C.V. and Mineras de DynaResource S.A. de C.V. All significant inter-company transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated. | |
| Emerging Growth Company Critical Accounting Policy Disclosure: | |
| The Company qualifies as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging grown company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company may elect to take advantage of the benefits of this extended transition period in the future. | |
| Foreign Currency Translation: | |
| The functional currency for the subsidiaries of the Company is the Mexican peso. As a result, the financial statements of the subsidiaries have been re-measured from Mexican pesos into U.S. dollars using (i) current exchange rates for monetary asset and liability accounts, (ii) historical exchange rates for nonmonetary asset and liability accounts, (iii) historical exchange rates for revenues and expenses associated with nonmonetary assets and liabilities and (iv) the weighted average exchange rate of the reporting period for all other revenues and expenses. In addition, foreign currency transaction gains and losses resulting from U.S. dollar denominated transactions are eliminated. The resulting re-measured gain or loss is reported as a separate component of stockholders’ equity (comprehensive income (loss). | |
| The financial statements of the subsidiaries should not be construed as representations that Mexican pesos have been, could have been or may in the future be converted into U.S. dollars at such rates or any other rates. | |
| Relevant exchange rates used in the preparation of the financial statements for the subsidiaries are as follows for the periods ended March 31, 2014 and December 31, 2013 (Mexican pesos per one U.S. dollar): | |
| Mar 31, 2014 Dec 31, 2013Current exchange rate Pesos 13.04 13.07Weighted Average exchange rate for the period ended Pesos 13.05 12.75 | |
| Cash and Cash Equivalents: | |
| The Company considers all highly liquid debt instruments with a maturity of three months or less to be cash equivalents. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. At March 31, 2014, the Company had a balance of $161,561 that was in excess of the FDIC insurance limit of $250,000. The carrying amount approximates fair market value. | |
| Accounts Receivable and Allowances for Doubtful Accounts: | |
| The allowance for accounts receivable is recorded when receivables are considered to be doubtful of collection. No allowance has been established as all receivables were deemed to be fully collectable. | |
| Foreign Tax Receivable: | |
| Foreign Tax Receivable (IVA) is comprised of recoverable value-added taxes charged by the Mexican government on goods and services rendered. Under certain circumstances, these taxes are recoverable by filing a tax return. Amounts paid for IVA are tracked and held as receivables until the funds are remitted. The total amounts of the IVA receivable as of March 31, 2014 and December 31, 2013 and $392,435 and $296,038, respectively. | |
| Inventory: | |
| As the Company ceased mining production in 2006, there is no inventory as of March 31, 2014 and December 31, 2013. | |
| Property: | |
| Property is carried at cost. Depreciation is provided over each asset’s estimated useful life. Upon retirement and disposal, the asset cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the determination of the net income. Expenditures for geological and engineering studies, maintenance and claim renewals are charged to expense when incurred. Additions and significant improvements are capitalized and depreciated. | |
| Mining Properties: | |
| The Company is an ‘Exploration Stage’ company as defined in “SEC Industry Guide 7”. Mining properties consist of 33 mining concessions covering approximately 69,121 hectares, at the San Jose de Gracia property, the basis of which are deferred until the properties are brought into production, at which time they will be amortized on the unit of production method based on estimated recoverable reserves. The Company has elected to expense a minimal amount of amortization due to the effects of exploration activities on the recoverable reserves. If it is determined that the deferred costs related to a property are not recoverable over its productive life, those costs will be written down to fair value as a charge to operations in the period in which the determination is made. The amounts at which mineral properties and the related deferred costs are recorded do not necessarily reflect present or future values. | |
| The recoverability of the book value of each property will be assessed annually for indicators of impairment such as adverse changes to any of the following: | |
| • estimated recoverable ounces of gold, silver or other precious minerals; | |
| • estimated future commodity prices; | |
| • estimated expected future operating costs, capital expenditures and reclamation expenditures. | |
| A write-down to fair value will be recorded when the expected future cash flow is less than the net book value of the property or when events or changes in the property indicate that carrying amounts are not recoverable. This analysis will be completed as needed, and at least annually. As of the date of this filing, no events have occurred that would require write-down of any assets. As of March 31, 2014, no indications of impairment existed. | |
| Pre Pilot-Production Costs: | |
| The Company is in the process of rehabilitating the San Pablo mine, and refurbishing the Pilot Mill Facility and preparing for Pilot Production Operations. The costs associated with the rehabilitation, preparation, clean up and facilitation of this process are expensed as pre pilot-production costs. Exploration Costs:Exploration costs not directly associated with proven reserves on the mining concessions are charged to operations as incurred. Exploration, development, direct field costs and administrative costs are expensed in the period incurred. | |
| The carrying amounts of the mining concessions are reviewed at each calendar year end to determine whether there is any indication of impairment or at other times if indications of impairment exist. As of March 31, 2014, no indications of impairment existed. | |
| Advertising Costs: | |
| The Company incurred no advertising costs for the three months ended March 31, 2014 and 2013. | |
| Income Taxes: | |
| Income from the parent company, DynaUSA, is taxed at regular corporate rates per the Internal Revenue Code. Although the Company has tax loss carry-forwards (see Note 6), there is uncertainty as to utilization prior to their expiration. Accordingly, the future income tax asset amounts have been fully offset by a valuation allowance. Income from the subsidiaries, are taxed at applicable Mexican tax law. | |
| Use of Estimates: | |
| In order to prepare financial statement in conformity with accounting principles generally accepted in the United States, management must make estimates, judgments and assumptions that affect the amounts reported in the financial statements and determines whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based. | |
| Comprehensive Income: | |
| ASC 220 “Comprehensive Income” establishes standards for reporting and display of comprehensive income and its components in a full set of general purpose financial statements. The Company’s comprehensive income consists of net income and other comprehensive income (loss), consisting of unrealized net gains and losses on the translation of the assets and liabilities of its foreign operations. For the periods ended March 31, 2014 and December 31, 2013, the Company’s components of comprehensive income were foreign currency translation adjustments and unrealized losses on securities held for sale. | |
| Revenue Recognition: | |
| The Company recognizes revenue in accordance with ASC 605-10, "Revenue Recognition in Financial Statements". Revenue is recognized when persuasive evidence of an arrangement exists, delivery or service has occurred, the sale price is fixed or determinable and receipt of payment is probable. | |
| Revenues earned from the sale of precious metal concentrates are recognized as the title to the material is passed to the buyer upon delivery. | |
| Earnings per Common Share: | |
| Earnings (loss) per share are calculated in accordance with ASC 260 “Earnings per Share”. The weighted average number of common shares outstanding during each period is used to compute basic earnings (loss) per share. Diluted earnings per share are computed using the weighted average number of shares and potentially dilutive common shares outstanding. Dilutive potential common shares are additional common shares assumed to be exercised. Potentially dilutive common shares consist of stock options and are excluded from the diluted earnings per share computation in periods where the Company has incurred a net loss, as their effect would be considered anti-dilutive. | |
| There were no potentially dilutive common stock equivalents as of March 31, 2014, therefore basic earnings per share equals diluted earnings per share for the period ended March 31, 2014. The Company had 1,151,800 options and warrants outstanding at March 31, 2014. The Company also had convertible debt instruments as of March 31, 2014. As the Company incurred a net loss during the period ended March 31, 2014, the basic and diluted loss per common share is the same amount, as any common stock equivalents would be considered anti-dilutive. | |
| Recently Issued Accounting Pronouncements: | |
| The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flows. | |
| Reclassifications: | |
| Certain prior year balances have been reclassified to conform to current year presentation. |
| Property | 3 Months Ended | ||||||||
| Mar. 31, 2014 | |||||||||
| Property, Plant and Equipment [Abstract] | ' | ||||||||
| Property | ' | ||||||||
| NOTE 2 - PROPERTY | |||||||||
| Property consists of the following at March 31, 2014 and December 31, 2013: | |||||||||
| 2014 | 2013 | ||||||||
| Mining camp equipment and fixtures | $ | 648,886 | $ | 648,886 | |||||
| Transportation equipment | 262,348 | 262,348 | |||||||
| Lab equipment | 14,306 | 14,306 | |||||||
| Machinery and equipment | 66,931 | 43,187 | |||||||
| Office furniture and fixtures | 76,894 | 76,894 | |||||||
| Office equipment | 11,673 | 11,673 | |||||||
| Computer equipment | 36,105 | 36,105 | |||||||
| Sub-total | 1,117,123 | 1,093,379 | |||||||
| Less: Accumulated depreciation | (869,726 | ) | (851,861 | ) | |||||
| Total | $ | 247,397 | $ | 241,518 | |||||
| Depreciation has been provided over each asset’s estimated useful life. Depreciation expense was $17,865 and $20,932 for the three months ended March 31, 2014 and 2013, respectively. | |||||||||
| Mining Properties | 3 Months Ended | ||||||||
| Mar. 31, 2014 | |||||||||
| Property, Plant and Equipment [Abstract] | ' | ||||||||
| Mining Properties | ' | ||||||||
| NOTE 3 - MINING PROPERTIES | |||||||||
| Mining properties consist of the following at March 31, 2014 and December 31, 2013: | |||||||||
| 2014 | 2013 | ||||||||
| San Jose de Gracia (“SJG”): | |||||||||
| Mining Concessions | $ | 4,703,367 | $ | 4,703,367 | |||||
| Less: Accumulated Amortization | (519,400 | ) | (519,400 | ) | |||||
| Total Mining Properties | $ | 4,183,967 | $ | 4,183,967 | |||||
| Amortization expense was $0 and $1,129 for the three months ended March 31, 2014 and 2013, respectively. | |||||||||
| Investment in Affiliate / Receivables from Affilate | 3 Months Ended |
| Mar. 31, 2014 | |
| Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ' |
| Investment in Affiliate / Receivables from Affilate | ' |
| NOTE 4 – INVESTMENT IN AFFILIATE/RECEIVABLES FROM AFFILIATE | |
| Through March 31, 2014, the Company loaned a total of $805,760 USD to DynaResource Nevada, Inc. (“DynaNevada”), a Nevada Corporation, which owns 100% of one operating subsidiary in México, DynaNevada de México, SA de CV. (“DynaNevada de México”). The terms of the Note Receivable provided for a “Convertible Loan”, repayable at 5% interest over a 3 year period, and convertible at the Company’s option into common stock of DynaNevada at $.25 / Share. DynaNevada is a related entity (affiliate), and through its subsidiary DynaNevada de México, has entered into an Option agreement with Grupo México (IMMSA) in México, for the exploration and development of approximately 3,000 hectares in the State of San Luis Potosi (“The Santa Gertrudis Property”). DynaNevada de México exercised the Option with IMMSA in March 2010, so that DynaNevada de México now owns 100% of the Santa Gertrudis Property. In June, 2010, DynaNevada de México acquired an additional 6,000 hectares in the State of Sinaloa (the “San Juan Property”). | |
| On December 31, 2010, the Company exercised its option to convert the note receivable and other receivable from DynaNevada into shares of common stock at a rate of $.25 / Share. The Company received 3,223,040 shares, which represents approximately 19.95% of the outstanding shares of DynaNevada. At the time of the exchange, DynaNevada’s net book value was approximately $695,000, consisting of $30,000 cash and the remainder unproven mining properties. DynaNevada has a contingent liability arising from the purchase of one of the mining properties, which Management believes has no merit. Based upon the above, Management estimated the value of the Company’s DynaNevada shares as of March 31, 2014 and December 31, 2013 to be $70,000. Management believes the impairment is temporary, and therefore an unrealized loss of $735,760 has been recorded in other comprehensive income. | |
| The Company has advanced funds to DynaNevada on a regular basis in order for DynaNevada to meets its basis filing and reporting obligations with the Mexican authorities relating to tax returns and paying taxes on its concessions. As of March 31, 2014 and December 31, 2013, the advances totaled $186,840 and $186,840, respectively. The amounts are carried in “other assets”. |
| Promissory Notes | 3 Months Ended |
| Mar. 31, 2014 | |
| Debt Disclosure [Abstract] | ' |
| Promissory Notes | ' |
| NOTE 5 – PROMISSORY NOTES | |
| Notes Payable – Series I | |
| At March 31, 2014, the Company was obligated to repay Promissory Notes in the amount of $1,205,000 (the “Notes”). The Notes bear simple interest at twelve and a half percent (12.5%), accrued for twelve months, and with the accrued interest to be added to the principal, and then interest will be paid by the Company, quarterly in arrears. The holders of the Notes (In Aggregate) are also entitled to receive ten percent (10%) of the net profits received by the Company, and generated from the bulk sampling material (if any, and up to fifty thousand tons) processed through the existing, or improved mill facilities at San Jose de Gracia. This net profit percentage (if any) would be paid quarterly in arrears based on the profits generated (if any) for the prior quarter. Such net profits (if any) are to be calculated after deducting all expenses related to the processing of the bulk sample material, and after a prior deduction of thirty three percent (33%) from the profits, to be deposited in a sinking fund cash reserve. The Notes mature on December 31, 2015. | |
| The Company has the right to prepay the Notes with a ten percent (10%) penalty. The Note holder may, at any time prior to maturity or prepayment, convert any unpaid principal and accrued interest into Series B Preferred Stock of the Company at $5.00 per share, or into Common Stock at $5.00 per share. If the Note is converted into Common Stock, at the time of conversion, the holder would receive a warrant to purchase additional common shares of the Company for $7.50 per share, such warrant expiring on December 31, 2015. | |
| Notes Payable – Series II | |
| At March 31, 2014, the Company was obligated to repay Promissory Notes in the amount of $149,808 (the “Notes”). The Notes bear simple interest at twelve and a half percent (12.5%), accrued for twelve months, and with the accrued interest to be added to the principal, and then interest will be paid by the Company, quarterly in arrears. The holders of the Notes (In Aggregate) are also entitled to receive ten percent (10%) of the net profits received by the Company, and generated from the bulk sampling material (if any, on the second fifty thousand tons) processed through the existing, or improved mill facilities at San Jose de Gracia. This net profit percentage (if any) would be paid quarterly in arrears based on the profits generated (if any) for the prior quarter. Such net profits (if any) are to be calculated after deducting all expenses related to the processing of the bulk sample material, and after a prior deduction of thirty three percent (33%) from the profits, to be deposited in a sinking fund. The Notes mature on December 31, 2015. | |
| The Company has the right to prepay the Notes with a ten percent (10%) penalty. The Note holder may, at any time prior to maturity or prepayment, convert any unpaid principal and accrued interest into common stock of the Company at $5.00 per share. At the time of conversion, the holder would receive a warrant to purchase additional common shares of the Company for $7.50 per share, such warrant expiring on December 31, 2015. | |
| No conversions occurred in the 1st qtr. |
| Income Taxes | 3 Months Ended | |||||||||||
| Mar. 31, 2014 | ||||||||||||
| Income Tax Disclosure [Abstract] | ' | |||||||||||
| Income Taxes | ' | |||||||||||
| NOTE 6 – INCOME TAXES | ||||||||||||
| The Company has adopted ASC 740-10, “Income Taxes”, which requires the use of the liability method in the computation of income tax expense and the current and deferred income taxes payable (deferred tax liability) or benefit (deferred tax asset). Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. | ||||||||||||
| The cumulative tax effect at the expected tax rate of 34% (blended for U.S. and Mexico) of significant items comprising the Company’s net deferred tax amounts as of March 31, 2014 and December 31, 2013 are as follows: | ||||||||||||
| Deferred Tax Asset Related to: | ||||||||||||
| 2013 | 2012 | |||||||||||
| Prior Year | $ | 9,500,294 | $8,282,305 | |||||||||
| Tax Benefit for Current Year | 454,458 | 1,217,989 | ||||||||||
| Total Deferred Tax Asset | 9,954,752 | 9,500,294 | ||||||||||
| Less: Valuation Allowance | (9,954,752 | ) | (9,500,294 | ) | ||||||||
| Net Deferred Tax Asset | $ | 0 | $ | 0 | ||||||||
| The net deferred tax asset and benefit for the current year is generated primarily from the cumulative net operating loss carry-forward which is approximately $33,500,000 at March 31, 2014, and will expire in the years 2025 through 2031. | ||||||||||||
| The realization of deferred tax benefits is contingent upon future earnings and is fully reserved at March 31, 2014. | ||||||||||||
| Related Party Transactions | 3 Months Ended |
| Mar. 31, 2014 | |
| Related Party Transactions [Abstract] | ' |
| Related Party Transactions | ' |
| NOTE 8 – RELATED PARTY TRANSACTIONS | |
| DynaResource de México (“DynaMéxico”) | |
| In May 2013, the Company agreed to receive a Share Certificate for 300 Series “B” Variable Capital Shares of DynaMéxico, in exchange for the settlement of accounts receivable from DynaMéxico in the amount of $31,090,710 Mexican Pesos (approximately $2.4 M USD). After the issuance and receipt of the 300 Series B Shares on June 21, 2013, DynaUSA holds 80% of the total outstanding Capital of DynaMéxico. As of March 31, 2014, the Company’s wholly owned subsidiaryMinerasDyna had an account receivable due from DynaMéxico in the amount of $2,800,000. | |
| Mineras de DynaResource (“MinerasDyna”) | |
| As of March 31, 2014, the Company had advanced $3,348,000 to MinerasDyna. MinerasDyna had advanced $2,800,000 to DynaMéxico as of March 31, 2014 and this amount is carried as a receivable by MinerasDyna from DynaMéxico.As of December 31, 2012, the Company agreed with DynaMéxico to accrue interest on the total amount receivable until repaid or otherwise retired. The interest rate to be accrued is agreed to be simple annual interest at the rate quoted by the Bank of México.The receivables from MinerasDyna and DynaMéxico have been eliminated upon consolidation. | |
| Dynacap Group Ltd. | |
| The Company paid $35,000 and $12,500 to Dynacap Group, Ltd. (an entity controlled by officers of the Company) for consulting and other fees during the three months ended March 31, 2014 and 2013, respectively. | |
| DynaNevada, Inc. and DynaNevada de México S.A. de C.V. (together “DynaNevada”) | |
| The Company advanced DynaNevada $0 and $48,000 in the three months ended March 31, 2014 and 2013, respectively, for maintenance of its corporate obligations and mining concessions. |
| Stockholders' Equity | 3 Months Ended | |||
| Mar. 31, 2014 | ||||
| Equity [Abstract] | ' | |||
| Stockholders' Equity | ' | |||
| NOTE 9 – STOCKHOLDERS’ EQUITY | ||||
| Authorized Capital. The total number of shares of all classes of capital stock which the corporation shall have the authority to issue is 45,001,000 shares, consisting of (i) twenty million and one thousand (20,001,000) shares of Preferred Stock, par value $0.0001 per share (“Preferred Stock”), of which one thousand (1,000) shares shall be designated as Series A Preferred Stock and (ii) twenty-five million (25,000,000) shares of Common Stock, par value $.01 per share (“Common Stock”). | ||||
| Series A Preferred Stock: | ||||
| The Company has designated 1,000 shares of its Preferred Stock as Series A, having a par value of $0.0001 per share. Holders of the Series A Preferred Stock have the right to elect a majority of the Board of Directors of the Company. In October 2007, the Company issued 1,000 shares of Series A Preferred Stock to its CEO. At March 31, 2014 and December 31, 2013 there were 1,000 and 1,000 shares of Series A Preferred Stock outstanding, respectively. The par value changed from $1.00 to $0.0001 in 2013. | ||||
| Series B Preferred Stock: | ||||
| The Company has designated 1,000,000 shares of its Preferred Stock as Series B, having a par value of $0.0001 per share. Holders of the Series B Preferred Shares have the right to convert into Common Stock of the Company on the following schedule: | ||||
| # of Common Stock | ||||
| # of Common Shares | Warrants Received | Company | ||
| Received on Conversion | On Conversion for | can force the | ||
| Date of Conversion | For Each Preferred Share | Each Preferred Share | Option? | |
| April 1 to June 30, 2014 | 2 | 0 | N | |
| July 1 to Dec 31, 2014 | 1.5 | 0.75 | N | |
| January 1 to June 30, 2015 | 1 | 1 | N | |
| July 1 to December 31, 2015 | 1 | 0 | Y | |
| The holders of Series B Preferred Shares do not have voting rights and are not entitled to receive a dividend. At March 31, 2014 and December 31, 2013 there were 564,946 and 460,446 shares of Series B Preferred Stock outstanding, respectively. | ||||
| In the third and fourth quarters of 2013, $340,000 of the promissory notes and $22,734 of accrued interest were converted to Series B Preferred Stock. No conversions occurred in the three months ended March 31, 2014. | ||||
| Preferred Stock (Undesignated): | ||||
| In addition to the 1,000 shares designated as Series A Preferred Stock and the 1,000,000 shares designated as Series B Preferred Stock, the Company is authorized to issue an additional 19,000,000 shares of Preferred Stock, having a par value of $0.0001 per share. The Board of Directors of the Company has authority to issue the Preferred Stock from time to time in one or more series, and with respect to each series of the Preferred Stock, to fix and state by the resolution the terms attached to the Preferred Stock. At March 31, 2014 and December 31, 2013, there were no other shares of Preferred Stock outstanding. | ||||
| Separate Series; Increase or Decrease in Authorized Shares. The shares of each series of Preferred Stock may vary from the shares of any other series thereof in any or all of the foregoing respects and in any other manner. The Board of Directors may increase the number of shares of Preferred Stock designated for any existing series by a resolution adding to such series authorized and unissued shares of Preferred Stock not designated for any other series. Unless otherwise provided in the Preferred Stock Designation, the Board of Directors may decrease the number of shares of Preferred Stock designated for any existing series by a resolution subtracting from such series authorized and unissued shares of Preferred Stock designated for such existing series, and the shares so subtracted shall become authorized, unissued and undesignated shares of Preferred Stock. | ||||
| Common Stock: | ||||
| The Company is authorized to issue 25,000,000 common shares at a par value of $0.01 per share. These shares have full voting rights. At March 31, 2014 and 2013, there were 11,052,008 and 11,052,008 shares outstanding, respectively. No dividends were paid for the three months ended March 31, 2014 and 2013. | ||||
| Preferred Rights: | ||||
| The Company issued “Preferred Rights” and received $158,500 in 2003 and $626,000 in 2002, for the rights to percentages of revenues generated from the San Jose de Gracia Pilot Production Plant. This has been reflected as “Preferred Rights” in stockholders’ equity. As of December 31, 2004, $558,312 was repaid and as of December 31, 2005, an additional $186,188 was repaid, leaving a current balance of $40,000 and $40,000 as of March 31, 2014 and December 31, 2013, respectively. | ||||
| Stock Issuances: | ||||
| During the three months ended March 31, 2014, no common shares were issued. | ||||
| During the three months ended March 31, 2014, the Company issued 104,500 Series B preferred shares for cash for $5.00 per share. | ||||
| During 2013, the Company issued 387,900 Series B preferred shares for cash for $5.00 per share.During 2013, the Company issued 68,000 Series B preferred shares for debt at $5.00 per share. | ||||
| During 2013, the Company issued 4,546 Series B preferred shares for accrued interest at $5.00 per share. | ||||
| During 2013, the Company issued 250,000 common shares to MinerasDyna for services. This has been reflected as treasury stock in the equity section of the financial statements. Expense related to these services has been eliminated in consolidation. | ||||
| Treasury Stock: | ||||
| During the three months ended March 31, 2014, no activity in treasury stock occurred. | ||||
| During 2013, the Company repurchased 28,551 shares for $94,500. | ||||
| Treasury stock is accounted for by the cost method. | ||||
| Options and Warrants: | ||||
| The Company had 1,151,800 options or warrants outstanding at March 31, 2014. | ||||
| During the three months ended March 31, 2014, no options or warrants were issued or exercised.The Company had 1,151,800 options or warrants outstanding at December 31, 2013. | ||||
| During 2013, no options were issued, none were exercised and none expired. The Company recorded expense related to the issuance of these options in accordance with the Black Scholes option pricing model. | ||||
| Employee Benefit Plans | 3 Months Ended |
| Mar. 31, 2014 | |
| Compensation and Retirement Disclosure [Abstract] | ' |
| Employee Benefit Plans | ' |
| NOTE 10 – EMPLOYEE BENEFIT PLANS | |
| During the periods ended March 31, 2014 and December 31, 2013, there were no qualified or non-qualified employee pension, profit sharing, stock option, or other plans authorized for any class of employees. |
| Commitments and Contingencies | 3 Months Ended | ||||
| Mar. 31, 2014 | |||||
| Commitments and Contingencies Disclosure [Abstract] | ' | ||||
| Commitments and Contingencies | ' | ||||
| NOTE 11 – COMMITMENTS AND CONTINGENGIES | |||||
| The Company is required to pay taxes in México in order to maintain concessions owned by DynaMéxico. Additionally, the Company is required to incur a minimum amount of expenditures each year for all concessions held. The minimum expenditures are calculated based upon the land area, as well as the age of the concessions. Amounts spent in excess of the minimum may be carried forward indefinitely over the life of the concessions, and are adjusted annually for inflation. Based on Management’s business plans, the Company does not anticipate that DynaMéxico will have any issues in meeting the minimum annual expenditures for the concessions, and DynaMéxico retains sufficient carry forward amounts to cover over 20 years of the minimum expenditure (as calculated at the 2012 minimum, adjusted for annual inflation of 4%).In September 2008, the Company entered into a 37 month lease agreement for its corporate office. In August, 2011 and then in August 2012, the Company entered into a one year extensions of the lease through August 31, 2014. The Company paid rent expense of $12,499 and $11,760 related to this lease for the three months ended March 31, 2014 and 2013, respectively. | |||||
| The following is a schedule of minimum lease payments required under the existing lease as of March 31, 2013: | |||||
| As of March 31: | Amount | ||||
| 2014 | $ | 20,832 | |||
| 2015 and beyond | 0 | ||||
| Total | $ | 20,832 | |||
| Litigation. | |||||
| On December 27, 2012, the Company, and DynaMéxico, filed an Original Petition and Application for Temporary Injunction and Permanent Injunction in the 14th Judicial District Court of Dallas, Texas (the “Petition”) against Defendants Goldgroup Mining Inc., Goldgroup Resources Inc., and certain individuals acting in concert with Goldgroup (collectively “Goldgroup”). The Petition alleged, among other things, that Goldgroup has wrongfully used property, confidential information and data belonging to DynaMéxico and consistently failed to disclose several matters of material importance to the public. | |||||
| The Petition requested that Goldgroup be enjoined from: (a) using or disseminating any confidential information belonging to DynaMéxico, (b) asserting that Goldgroup owns any interest in the San Jose de Gracia Project, rather than owning a common shares equity interest in DynaMéxico, (c) improperly disclosing that Goldgroup is the operator of the San Jose de Gracia Project, rather than Mineras de DynaResource SA de C.V. (“MinerasDyna”), and (d) failing to properly disclose that broad powers of attorney for acting on behalf of DynaMéxico are held by a DynaUSA senior executive. | |||||
| The Petition further requested, among other things: (a) a temporary and permanent injunction; (b) declaratory relief; (c) disgorgement of funds alleged to have been improperly raised as a consequence of Goldgroup’s wrongful actions; (d) cancellation of shares of DynaMéxico stock held by Goldgroup; and, (d) actual and punitive damages. | |||||
| At the time of the filing, the Company believed the Petition to be necessary in order to protect its shareholder interests in DynaMéxico and in order to protect the property, data, and assets of DynaMéxico. | |||||
| Although Goldgroup challenged the jurisdiction of Texas to the filed litigation, Goldgroup has acknowledged that it owns no direct interest in the San Jose de Gracia Property, and it has acknowledged that Mineras de DynaResource SA de C.V. (“Mineras”), DynaUSA’s 100% owned subsidiary, is the exclusive operator of the San Jose de Gracia Project. Additionally, recent developments in México in 2013, including: (1) the signing of the Exploitation Amendment Agreement (“EAA”) between Mineras and DynaMéxico; (2) the signing of a 20 year land lease agreement between Mineras and the Santa Maria Ejido Community surrounding the San Jose de Gracia Project; and (3) the acquisition by DynaUSA of a majority interest in DynaMéxico; protect against Goldgroup’s wrongfully obtaining and/or disseminating confidential data and information of DynaMéxico. | |||||
| These recent developments in México provided that the Dyna Parties non-suited the Texas action as announced by the Company on March 14, 2014, without prejudice to asserting or consolidating claims in México, as well as to contemplate additional claims or regulatory actions against Goldgroup in Canada. | |||||
| Goldgroup files for Arbitration | |||||
| On March 14, 2014 Goldgroup filed for arbitration, citing the Earn In Agreement dated September 1, 2006. The Company filed an answer on April 10, 2104 disputing that any issues exist which provide for arbitration. | |||||
| Litigation in México – Company is Plaintiff | |||||
| The Company, and DynaMéxico have filed several legal actions in México against Goldgroup Mining Inc., Goldgroup Resources Inc., certain individuals employed or previously employed by Minop, S.A. de C.V. (a Company operating in México and associated with Goldgroup Mining Inc.), and certain individuals retained as agents of Goldgroup Mining Inc. The Company and DynaMéxico are plaintiffs in the actions filed in México and the outcomes are pending. | |||||
| The Company believes that no material adverse change will occur as a result of the actions taken, and the Company further believes that there is little to no potential for the assessment of a material monetary judgment against the Company for legal actions it has filed in México. For purposes of confidentiality, the Company does not provide more specific disclosure in this Form 10-Q. | |||||
| Litigation – Company and/or Officers and Directors as Defendants | |||||
| Other than the filing for arbitration by Goldgroup described above, The Company, nor its Officers and Directors have received any formal notice of any legal actions filed against them, nor is the Company or its Officers and Directors aware of any legal actions filed against them. | |||||
| Non-Controlling Interest | 3 Months Ended | ||||||||
| Mar. 31, 2014 | |||||||||
| Noncontrolling Interest [Abstract] | ' | ||||||||
| Non-Controlling Interest | ' | ||||||||
| NOTE 12 – NON-CONTROLLING INTEREST | |||||||||
| The Company’s Non-controlling Interest recorded in the consolidated financial statements relates to a 50% interest in DynaResource de México, S.A. de C.V. from January 1, 2012 to May 17, 2013 and a 20% interest from May 18, 2013 and 20% thereafter. Changes in Non-controlling Interest for the years ended March 31, 2014 and December 31, 2013, respectively: | |||||||||
| Year Ended | Year Ended | ||||||||
| 31-Dec-13 | 31-Dec-12 | ||||||||
| Beginning balance | $ | -5,729,826 | $ | -5,122,891 | |||||
| Operating income (loss) | -139,209 | -604,135 | |||||||
| Other comprehensive income (loss) | 267 | -2,800 | |||||||
| Ending balance | $ | (5,868,768) | $ | (5,729,826) | |||||
| The Company began allocating a portion of other comprehensive income (loss) to the non-controlling interest with the adoption of ASC 160 as of January 1, 2009. | |||||||||
| Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||
| Mar. 31, 2014 | ||||||||||||||
| Fair Value Disclosures [Abstract] | ' | |||||||||||||
| Fair Value of Financial Instruments | ' | |||||||||||||
| NOTE 13 – FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||
| The ASC guidance for fair value measurements and disclosure establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: | ||||||||||||||
| Level 1 Inputs – Quoted prices for identical instruments in active markets. | ||||||||||||||
| Level 2 Inputs – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | ||||||||||||||
| Level 3 Inputs – Instruments with primarily unobservable value drivers. | ||||||||||||||
| As of March 31, 2014 and December 31, 2013, the Company’s financial assets were measured at fair value using Level 3 inputs, with the exception of cash, which was valued using Level 1 inputs. A description of the valuation of the Level 3 inputs is discussed in Note 4. | ||||||||||||||
| Fair Value Measurement at March 31, 2014 Using: | ||||||||||||||
| 31-Dec-13 | Quoted Prices In Active Markets | Significant Other | Significant | |||||||||||
| For Identical Assets | Observable | Unobservable | ||||||||||||
| (Level 1) | Inputs | Inputs | ||||||||||||
| (Level 2) | (Level 3) | |||||||||||||
| Assets: | ||||||||||||||
| Cash and Cash Equivalents | $ | 528,733 | $ | 528,733 | $ | - | $ | - | ||||||
| Investment in Affiliate | 70,000 | $ | - | $ | - | $ | 70,000 | |||||||
| 598,733 | 528,733 | 70,000 | ||||||||||||
| Accounts Payable and Accrued Liabilities | 464,512 | 464,512 | - | - | ||||||||||
| $ | 464,512 | $ | 464,512 | $ | - | $ | - | |||||||
| Fair Value Measurement at December 31, 2013 Using: | ||||||||||||||
| 31-Dec-13 | Quoted Prices In Active Markets | Significant Other | Significant | |||||||||||
| For Identical Assets | Observable | Unobservable | ||||||||||||
| (Level 1) | Inputs | Inputs | ||||||||||||
| (Level 2) | (Level 3) | |||||||||||||
| Assets: | ||||||||||||||
| Cash and Cash Equivalents | $ | 1,143,344 | $ | 1,143,344 | $ | - | $ | - | ||||||
| Investment in Affiliate | 70,000 | $ | - | $ | - | $ | 70,000 | |||||||
| 1,213,344 | 1,143,344 | 70,000 | ||||||||||||
| Accounts Payable and Accrued Liabilities | 361,220 | 361,220 | - | - | ||||||||||
| $ | 361,220 | $ | 361,220 | $ | - | $ | - | |||||||
| Subsequent Events | 3 Months Ended |
| Mar. 31, 2014 | |
| Subsequent Events [Abstract] | ' |
| Subsequent Events | ' |
| NOTE 14 – SUBSEQUENT EVENTS | |
| The Company issued preferred Series B shares in exchange for $675,000 at a price of $5, convertible 2 to 1 to common shares. | |
| The Company received $250,000 for a note payable, convertible to common shares at $2.50/share. | |
| The Company delivered gold product for sale for approximately $315,000 in May, 2014. |
