DynaResource (DYNR) 10-Q/A 17 Nov 15 2015 Q3 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 15, 2015
Document And Entity Information
Entity Registrant Name	DYNARESOURCE INC
Entity Central Index Key	1,111,741
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		16,722,825
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015

Balance Sheets

Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and Cash Equivalents	$ 3,240,546	$ 250,959
Accounts Receivable	0	19,496
Inventories	87,863	100,000
Foreign Tax Receivable and Other Current	451,888	209,061
Total Current Assets	3,780,297	579,516
Mining Camp Equipment and Fixtures (Net of Accumulated Depreciation of $948,542 and $967,207)	650,129	205,374
Mining Concessions	4,132,678	4,194,439
Investments in Affiliate	70,000	70,000
Receivables from Affiliate	160,372	172,968
Other Assets	20,261	44,568
TOTAL ASSETS	8,813,737	5,266,865
Current Liabilities:
Accounts Payable	231,796	231,315
Notes Payable	0	203,500
Due to Non-controlling Interest	231,500	231,500
Advances from Related Party	150,000	0
Accrued Expenses	666,287	838,732
Total Current Liabilities	1,279,583	1,505,047
Notes Payable	956,250	1,509,855
Note Payable-Related Party	0	250,000
Financial Statement Derivative Liabilities	5,117,941	0
TOTAL LIABILITIES	7,353,774	3,264,902
Equity:
Preferred Stock, Series A, $.0001 par value, 1,000 shares Authorized, 1,000 and 1,000 issued and outstanding	1	1
Preferred Stock, Series C, $.0001 par value, 1,733,221 shares Authorized, 1,733,221 and 0 shares issued and outstanding	4,333,053	0
Preferred Stock, $.0001 par value, 19,000,000 shares Authorized, 0 shares issued and outstanding	0	0
Common Stock, $.01 par value, 25,000,000 shares authorized, 16,722,825 and 14,146,024 shares issued and outstanding	167,228	141,461
Preferred Rights	40,000	40,000
Additional Paid In Capital	54,671,258	50,042,582
Treasury Stock	(4,219,515)	(4,152,750)
Accumulated Other Comprehensive Income	5,002,489	2,495,629
Accumulated Deficit	(51,768,048)	(40,383,731)
Total DynaResource, Inc. Stockholders' Equity	3,893,413	8,183,192
Non-controlling Interest	(6,766,503)	(6,181,229)
TOTAL EQUITY	(2,873,090)	2,001,963
TOTAL LIABILITIES AND EQUITY	$ 8,813,737	$ 5,266,865

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Accumulated Depreciation, Mining Equipment and Fixtures	$ 948,542	$ 967,207
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	19,000,000	1,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Series A, shares authorized	1,000	1,000
Series A, shares issued	1,000	1,000
Series A, shares outstanding	1,000	1,000
Series C, shares authorized	1,733,221	0
Series C, shares issued	1,733,221	0
Series C, shares outstanding	1,733,221	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	16,722,825	14,146,024
Common stock, shares outstanding	16,722,825	14,146,024

Statements of Operations

Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
REVENUES	$ 0	$ 297,638	$ 140,548	$ 884,484
COSTS AND EXPENSES OF MINING OPERATIONS
Production Costs Applicable to Sales	0	56,559	45,000	162,552
Mine Operating Costs	0	29,769	95,000	86,222
Pre-Pilot Production Costs	662,420	719,313	1,462,981	1,563,556
Property Holding Costs	178,564	104,470	414,881	391,493
General and Administrative	565,420	549,947	1,286,064	1,414,065
Share Based Compensation	791,400	0	1,277,535	687,500
Depreciation and Amortization	35,443	20,003	53,253	56,446
Total Operating Expenses	2,233,247	1,480,061	4,634,714	4,361,834
NET OPERATING LOSS	(2,233,247)	(1,182,423)	(4,494,166)	(3,477,350)
OTHER EXPENSE
Foreign Currency Translation Gains/Losses	(1,359,680)	(174,392)	(2,204,363)	(167,354)
Interest Income (Expense)	(35,759)	(55,515)	(195,780)	(153,990)
Inducement Costs	(293,822)	0	(293,822)	0
Other (Expense) Income	60,947	18	60,947	190
Total Other (Expense) Income	(1,628,314)	(229,889)	(2,633,018)	(321,154)
NET LOSS BEFORE TAXES	(3,861,561)	(1,412,312)	(7,127,184)	(3,798,504)
TAXES	0	0	0	0
NET LOSS	(3,861,561)	(1,412,312)	(7,127,184)	(3,798,504)
ACCRETION DUE TO PREFERRED C SHS	0	0	(4,637,178)	0
DEEMED DIVIDEND ON PREF C	(43,687)	0	(43,687)	0
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	262,976	96,496	380,045	394,272
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (3,642,272)	$ (1,315,816)	$ (11,428,004)	$ (3,404,232)
EARNINGS PER SHARE DATA ATTRIBUTABLE TO THE EQUITY HOLDERS OF DYNARESOURCE, INC.
Basic and Diluted Loss per Common Share	$ (.22)	$ (.11)	$ (.73)	$ (.30)
Weighted Average Shares Outstanding, Basic and Diluted	16,380,368	12,433,220	15,549,701	11,517,470
OTHER COMPREHENSIVE LOSS:
NET LOSS PER ABOVE	$ (3,861,561)	$ (1,412,312)	$ (7,127,184)	$ (3,798,504)
Accretion Expenses of Preferred Stock to Redemption Value	0	0	(4,637,178)	0
Deemed Dividend for Pref Shs C	(43,687)	0	(43,687)	0
Foreign Currency Translation Gains/Losses	(1,435,514)	(18,801)	(2,506,860)	(32,836)
TOTAL OTHER COMPREHENSIVE LOSS	(1,435,514)	(18,801)	(2,506,860)	(32,836)
TOTAL COMPREHENSIVE LOSS	(5,340,762)	(1,431,113)	(14,314,909)	(3,831,340)
ATTRIBUTABLE TO:
EQUITY HOLDERS OF DYNARESOURCE, INC.	(5,237,525)	(1,348,652)	(14,109,680)	(3,437,068)
NON-CONTROLLING INTERESTS	(103,237)	(82,461)	(205,229)	(394,272)
Total	$ (5,340,762)	$ (1,431,113)	$ (14,314,909)	$ (3,831,340)

Statements of Cash Flows

Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (7,127,184)	$ (3,798,504)
Adjustments to reconcile net loss to cash (used in) operating activities:
Issuance of Common Stock for Services	435,000	687,500
Issuance of Treasury Shares for Services	842,535	0
Inducement Costs	293,822	0
Adjustment Mark to Market for Preferred Stock, Series C	(60,515)	0
Depreciation and Amortization	53,253	56,446
Change in Operating Assets and Liabilities
Accounts Receivable	19,496	0
Receivables from Affiliate and Other Current	12,598	(358,058)
Foreign Tax Receivable	(248,962)	(250,825)
Accounts Payable	(605)	(29,096)
Accrued Liabilities	(145,081)	376,638
CASH FLOWS (USED IN) OPERATING ACTIVITIES	(5,925,643)	(3,315,899)
CASH FLOWS FROM INVESTING ACTIVITIES
Retirement of property	58,754	(22,788)
Purchase of Property	(549,110)	0
Other Assets	24,307	(14,765)
CASH FLOWS (USED IN) INVESTING ACTIVITIES	(466,049)	(37,553)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Advance from Related Party	325,000	0
Proceeds from sale of Preferred Stock, Series C	3,455,000	0
Proceeds from Note	500,000	0
Repurchase of common stock	0	(7,500)
Proceeds of Sale of Common Stock	2,917,750	512,500
Proceeds from sale of Preferred Stock, Series B	0	1,231,002
Payment of Note Payable	(203,500)	0
Proceeds from Notes Payable	0	453,500
Loan from Non-Controlling Interest	0	111,500
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	6,994,250	2,301,002
Effect of Foreign Exchange	2,387,029	154,092
NET INCREASE (DECREASE) IN CASH	2,989,587	(898,358)
CASH AT BEGINNING OF PERIOD	250,959	1,143,344
CASH AT END OF PERIOD	3,240,546	244,986
NON CASH TRANSACTIONS
Redemption of Preferred Stock, Series B for Common Stock	0	(14,333)
Conversion of Notes Payable to Common Stock	(842,904)	0
Issuance of Treasury Shares to Subsidiary	1,305,000	4,000,000
Capitalization of Accrued Interest to Notes	33,119	147,291
Advance Conversion to Common Stock	175,000	11,322
Derivative Liabilities due to Golden Post	5,178,458	0
Accretion of Preferred Stock to Redemption Value	4,637,178	0
Issuance of Common Stock for Treasury Stock	$ (1,305,000)	$ 0

Shareholders Equity

Shareholders Equity - 9 months ended Sep. 30, 2015 - USD ($)	Series A	Series B	Common Stock	Preferred Rights	Additional Paid-In Capital	Treasury Stock	Other Comprehensive Income / Loss	Retained Earnings / Accumulated Deficit	Total
Beginning Balance, Shares at Dec. 31, 2014	1,000	0	14,146,024			1,378,013
Beginning Balance, Amount at Dec. 31, 2014	$ 1	$ 0	$ 141,461	$ 40,000	$ 50,042,582	$ (4,152,750)	$ 2,495,629	$ (40,383,731)	$ 8,183,192
Sale of Common Shares, Shares			1,169,500
Sale of Common Shares, Amount			$ 11,695		2,906,055				2,917,750
Issuance of Shares to Subsidiaries, Shares			750,000			750,000
Issuance of Shares to Subsidiaries, Amount			$ 7,500		1,297,500	$ (1,305,000)			0
Issuance of Common Shares For Services, Shares			250,000
Issuance of Common Shares For Services, Amount			$ 2,500		432,500				435,000
Issuance of Treasury Shares For Services, Shares						(415,700)
Issuance of Treasury Shares For Services, Amount					(395,700)	$ 1,238,235			842,535
Other Comprehensive Income							2,506,860		2,506,860
Establishment of Derivative related to Golden Post Funding					(3,025,758)				(3,025,758)
Sale of warrants to Golden Post Funding					2,106,425				2,106,425
Fractional Shares			139
Conversion of Notes Payable to Common Stock, Shares			337,162
Conversion of Notes Payable to Common Stock, Amount			$ 3,372		839,532				842,904
Advance Conversion to Common Stock, Shares			70,000
Advance Conversion to Common Stock, Amount			$ 700		174,300				175,000
Inducement Costs					293,822				293,822
Ending Balance, Shares at Sep. 30, 2015	1,000	0	16,722,825			1,712,313
Ending Balance, Amount at Sep. 30, 2015	$ 1	$ 0	$ 167,228	$ 40,000	$ 54,671,258	$ (4,219,515)	$ 5,002,489	$ (51,768,048)	$ 3,893,413

1. Nature of Operations and Bas

1. Nature of Operations and Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Nature of Operations and Basis of Presentation	DynaResource, Inc. (The “Company”, “DynaResource”, or “DynaUSA”) 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 pilot production of precious metals. The interim consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) has been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures included are adequate to make the information presented not misleading. In management’s opinion, the unaudited Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2015 and 2014, the Consolidated Balance Sheets as of September 30, 2015 (unaudited) and December 31, 2014, and the unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2015 and 2014, contained herein, reflect all adjustments, consisting solely of normal recurring items, which are necessary for the fair presentation of the Company’s financial position, results of operations and cash flows on a basis consistent with that of the Company’s prior audited annual consolidated financial statements. However, the results of operations for the interim periods may not be indicative of results to be expected for the full fiscal year. Therefore, these financial statements should be read in conjunction with the audited financial statements and notes thereto and summary of significant accounting policies included in the Company’s Form 10-K for the year ended December 31, 2014. Except as noted below, there have been no material changes in the footnotes from those accompanying the audited consolidated financial statements contained in the Company’s Form 10-K for the year ended December 31, 2014. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. Certain amounts for the three and nine month periods ending September 30, 2014 have been adjusted to current reporting format.

2. Investment in Affiliate _ Re

2. Investment in Affiliate / Receivables from Affilate/Other Assets	9 Months Ended
	Sep. 30, 2015
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Investment in Affiliate / Receivables from Affilate/Other Assets	DynaResource Nevada, Inc., a Nevada Corporation (“DynaNevada”), with one operating subsidiary in México, DynaNevada de México, S.A. de C.V. (“DynaNevada de México”) have common officers, directors and shareholders with the Company. The total amount loaned by the Company to DynaNevada at December 31, 2010 was $805,760. 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 $0.25 / Share. On December 31, 2010, the Company converted its receivable from DynaNevada into 3,223,040 Shares of DynaNevada; and as a result, the Company owns 19.92% of the outstanding share capital of DynaNevada. DynaNevada is a related entity, and through its subsidiary in México (DynaNevada de México), (“DynaNevada de México”), 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”). In March, 2010, DynaNevada de México completed the Option with IMMSA so that it now owns 100% of Santa Gertrudis. In June, 2010, DynaNevada de México acquired an additional 6,000 Hectares in the State of Sinaloa (“the San Juan Property”). The Company has loaned additional funds to DynaNevada since 2010 for maintenance of concessions and other nominal required fees and expenses. The Company currently has a receivable from DynaResource Nevada, Inc. of $160,372 and an investment balance of $70,000 as of September 30, 2015. The balances as of December 31, 2014 were $172,968 in receivables and $70,000 in investment, respectively.

3. Promissory Notes

3. Promissory Notes	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Promissory Notes	Notes Payable – Series I In April and May, 2013, the Company entered into note agreements with individual shareholders in the principal amount of $1,495,000, of which $340,000 was then converted to Series B Preferred shares within the same year, netting to proceeds of $1,155,000 (the “Series I Notes” Series I). The Series I Notes bear simple interest at twelve and a half percent (12.5%), accrued interest for twelve months, and with the accrued interest to be added to the principal, and then interest to be paid by the Company, quarterly in arrears. The holders of the Series I 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 tonnes) processed through the existing, or improved mill facilities at San Jose de Gracia. 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. This net profit percentage (if any) would be paid quarterly in arrears based on the profits generated (if any) for the prior quarter. At the time of the Series I Notes, there were no proven or probable reserves and the Company had not produced any net profits. Consequently, the fair value of the net profits interest on the date of the Series I Note was deemed to be zero. Further, no payments have been made under the terms of this codicil. The Notes originally matured on December 31, 2015. In April, 2015, the notes were extended to December 31, 2016. The Company has the right to prepay the Series I Notes with a ten percent (10%) penalty. The notes are secured by the Company’s stock at $5 per share. The Series I Note holder retains the option, at any time prior to maturity or prepayment, to convert any unpaid principal and accrued interest into Common Stock at $5.00 per share. If the Series I Note is converted into Common Stock, at the time of conversion, the holder would also receive warrants, in the same number as the number of common shares received upon conversion, to purchase additional common shares of the Company for $7.50 per share, with such warrants expiring on December 31, 2015. In 2013, the Company offered an inducement to all Series I Note holders to convert their Series I Notes and accrued interest into Series B Preferred Stock (“Series B”), $5/Share, which Series B was convertible into common stock on a 2 for 1 basis (i.e., $2.50 stock). This conversion into Series B created $197,771 in inducement expense, with an offset to additional paid in capital. In 2013, $340,000 principal and $22,734 of capitalized accrued interest of the Series I Notes were converted into Preferred Stock, Series B and 72,546 shares were issued. At September 30, 2014, these 72,546 Series B shares were converted into 145,092 common shares. In April, 2015, the Company received note extensions (allonges) from all Series I note holders to ensure that all Series I Notes were in good standing and it also extended the maturity date of the Series I Notes to December 31, 2016. Notes Payable – Series II In 2013 and 2014, the Company entered into additional note agreements of $199,808 and $250,000, respectively (the “Series II Notes”) with similar terms as the Series I notes. The Series II 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 Series II 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 tonnes) processed through the existing, or improved mill facilities at San Jose de Gracia. 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. This net profit percentage (if any) would be paid quarterly in arrears based on the profits generated (if any) for the prior quarter. At the time of the Series II notes, there were no proven or probable reserves and the Company had not produced any net profits. Consequently, the fair value of the net profits interest on the date of the Series II note was deemed to be zero. Further, no payments have been made under the terms of this codicil. The Notes mature on December 31, 2016. The Company retains the right to prepay the Notes with a ten percent (10%) penalty. The notes are secured by the Company’s stock at $5 per share. 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, 2016. Series I and Series II Notes Outstanding The principal and interest balances on the Series I Notes as of September 30, 2015 and December 31, 2014 were $765,000 and $1,285,607, respectively. The principal and interest balances on the Series II Notes as of September 30, 2015 and December 31, 2014 were $191,250 and $474,278, respectively, for total Note balances of $956,250 and $1,759,885 as of September 30, 2015 and December 31, 2014, respectively. The accrued interest for these notes was $29,883 and $109,292 as of September 30, 2015 and December 31, 2014, respectively. The principal balance on the Note—Related Party was $0 and $250,000 as of September 30, 2015 and December 31, 2014, respectively. In April, 2015, the Company received allonges (note extensions) from all noteholders to ensure that all notes were in good standing and also confirmed the maturity of the Series II notes to be December 31, 2016. We have evaluated the terms of the allonges and have concluded that they are not extinguishments as defined in EITF 96-19. Note Conversion Contracts On June 30, 2015, the Company entered into conversion agreements with six (6) note holders. Principal and interest in the amount of $809,784 plus $33,119 of accrued interest (total of $842,903) was contracted to convert into 337,162 common shares. In addition, 337,162 warrants are to be issued which provide the option to purchase common shares at $2.50, with all warrants expiring December 31, 2017. The Company recorded $293,822 inducement expense related to these conversion transactions. On August 17, 2015, these common shares and warrants were issued.

4. Stockholders' Equity

4. Stockholders' Equity	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Stockholders' Equity	Issuance of Series C Senior Convertible Preferred Shares On June 30, 2015, the Company issued 1,600,000 Series C Senior Convertible Preferred Shares (the “Series C Preferred Shares”) at $2.50 per share for gross proceeds of $ 4,000,000, as well as issuing 133,221 additional Series C Preferred Shares due to anti-dilution provisions (with no cash remuneration). These Series C Preferred Shares are convertible to common shares at $2.50 per share, through February 20, 2020. The Series C Preferred Shares may receive a 4% per annum dividend, payable if available, and in arrears. A description of the transaction which included the issuance of the Series C Preferred Shares is included below. Financing Agreement with Golden Post Rail, LLC, a Texas Limited Liability Company 1. On May 6, 2015, the Company, Golden Post Rail, LLC, a Texas limited liability company (“Golden Post”), and Mr. Koy W. (“J.D.”} Diepholz, Charman-CEO of the Company entered into a Securities Purchase Agreement (the “SPA”). Pursuant to the SPA, Golden Post acquired the following securities: a) 1,600,000 shares of Series C Senior Convertible Preferred Stock (the “Series C Preferred”) at a purchase price of $2.50 per share ($4M USD), plus an additional 133,221 shares of Series C Preferred pursuant to anti-dilution provisions. The Series C Preferred is entitled to receive dividends at the per share rate of four percent (4%) per annum, ranks senior (in priority) to the Common Stock, the Series A Preferred Stock, and each other class or series of equity security of the Company. The Series C Preferred is convertible into Common Stock of the Company at the price of $2.50 per share, and is entitled to anti-dilution protection for (i) subsequent equity issuances by the Company and (ii) changes in the Company’s ownership of DynaResource de México SA de CV (“DynaMéxico”). The Series C Preferred is also entitled to preemptive rights, and the holder has the right to designate one person to the Company’s Board of Directors as a Class III director. b) A Common Stock Purchase Warrant (the “Golden Post Warrant”) for the purchase of 2,166,527 shares of the Company’s Common Stock, at an exercise price of $2.50 per share, and expiring June 30, 2020. The anti-dilution protections contained in the terms of the Series C Preferred are essentially replicated in the Golden Post Warrant. 2. On May 6, 2015, the Company executed a Promissory Note (the “Golden Post Note”) payable to Golden Post in the principal amount of $500,000, and bearing interest at 8%. The principal amount of the Golden Post Note and accrued interest to June 30, 2015 in the amount of $6,000 were credited against amounts payable to the Company pursuant to the Securities Purchase Agreement described above. 3. Pursuant to the SPA, the Company executed a Registration Rights Agreement pursuant to which Golden Post may require the Company to register the shares of Common Stock which may be issued upon the conversion of the Series C Preferred and the shares of Common Stock issuable upon the exercise of the Warrant, including any additional shares of Common Stock issuable pursuant to anti-dilution provisions. Due to underlying anti-dilutive provisions contained in the Series C Preferred Shares and the Golden Post Warrant, the Company incurred derivative liabilities of $2,152,700 in connection with the Series C Preferred Shares, and $3,025,758 in connection with the Golden Post Warrant. Additionally, the Company fully accreted the discount related to the Series C Preferred Shares and the Golden Post Warrant in the amount of $4,637,178, which is reflected “below” the net income (loss) amount. Legal fees of $45,000 was deducted from the proceeds of this transaction at closing. In the current quarter, these contracts were adjusted from mark to market and a reduction of the derivative liability was recorded in the amount of $60,517, with the offset to other expense. Also in the current quarter, the Company reported $40,000 deemed dividend for Golden Post Rail related to its 4% dividend terms. As the Company has not declared these dividends, it is required only as an item “below” the net income (loss) amount. Due to the nature of this transaction as mandatorily redeemable, the preferred shares are classified as “temporary equity” on the balance sheet. Common Stock Issuances During the three months ended September 30, 2015, the Company issued 407,162 common shares for the conversion of notes, accrued interest and advances at $2.50 per share. These stock issuances also included the issuance of 407,162 warrants exercisable at $2.50 per share, expiring December 31, 2017. During the nine months ended September 30, 2015, the Company issued 1,169,500 common shares for cash at $2.50 per share, and the Company also issued 1,319,000 Warrants, with 1,020,000 of these warrants exercisable at $2.50 per share expiring December 31, 2017 and 149,500 warrants exercisable at $5 per share through December 31, 2015 and 149,500 warrants exercisable at $7.50 per share, expiring December 31, 2016. During the nine months ended September 30, 2015, the Company issued 1,169,500 shares of common stock for cash of $2,917,750. During the nine months ended September 30, 2015, the Company issued 750,000 common shares to Mineras de DynaResource S.A. de C.V. (“DynaMineras”, a wholly owned subsidiary) in exchange for services at a fair value of $1.74 per share. The shares are carried in Treasury for consolidation purposes. During the nine months ended September 30, 2015, the Company issued 250,000 shares to Dynacap Group Ltd., a related party, for services rendered at a fair value of $1.74 per share. Treasury Stock Distributions During the current quarter, the Company recognized $791,400 of expense related to the distribution of 395,700 treasury shares for services rendered. During the first quarter 2015, the Company recognized $51,135 in expense for the distribution of 20,000 treasury shares. In August, 2014, the Company distributed 20,000 treasury shares. Note Conversions As described in Note 3, Six (6) Noteholders converted principal and interest in the amount of $809,784 plus $33,119 of accrued interest (total of $842,903) into 337,162 shares of common stock ($2.50 per share). In addition, 337,162 warrants were issued, exercisable at $2.50 per share, expiring December 31, 2017. Chairman / CEO Conversion of Advance During the current quarter and as noted above, the Company converted $175,000 of advances from the CEO for the issuance of 70,000 shares of common (at $2.50 per share) as well as issuing 70,000 warrants, exercisable at $2.50 per share, expiring December 31, 2017.

5. Related Party Transactions

5. Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Dynacap Group Ltd. The Company paid $22,500 and $45,750 to Dynacap Group, Ltd. (an entity controlled by an officer of the Company (“Dynacap”) for consulting and other fees during the three and nine months ended September 30, 2015. For the three and nine months ended September 30, 2014, the amounts paid to Dynacap were $16,000 and $69,750, respectively. The Company also issued 250,000 shares of common stock in February, 2015 to Dynacap for services performed. Cash Advances by Management Company Chairman/CEO contributed $175,000, and Company CFO contributed $150,000 in the nine months ended September 30, 2015 as advances to the Company. The CEO also received 20,000 treasury shares in the current quarter. As noted above, the Company converted $175,000 of advances from the CEO for the issuance of 70,000 shares of common (at $2.50 per share) as well as 70,000 warrants, exercisable at $2.50 per share, expiring December 31, 2017. CFO Conversion Contract of Note Receivable On April 24, 2015, the Company’s CFO agreed to convert a $281,500 note ($250,000 principal and capitalized interest of $31,250) into common stock at $2.50 per share. On June 30, 2015, this agreement was revised to be included with the additional other note holders that agreed to note conversion as of June 30, 2015 and received the same terms as other shareholders. Therefore, an additional $6,792 of accrued interest through June 30, 2015 yielded a total of 115,217 common shares (at $2.50 per share) and 115,217 warrants. These shares and warrants were issued on August 17, 2015.

6. Commitments and Contingencie

6. Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	The Company is required to pay taxes in México in order to maintain mining 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 2014 minimum, adjusted for annual inflation of 4%). In addition to the surface rights held by DynaMéxico pursuant to the Mining Act Ley Minera y su Reglamento 20 Year Land Lease Agreement with the Santa Maria Ejido was dated January 6, 2014 and continues through 2033. It covers an area of 4,399 hectares surrounding the main mineral resource areas of SJG, and provides for annual lease payments by DynaMineras of $1,359,443 Pesos (approx. $85,000 USD), commencing in 2014. In September 2008, the Company entered into a 37-month lease agreement for its corporate office. In June, 2015, the Company entered into a one-year extension of the lease through August 31, 2016. The Company paid rent expense of $41,800 and $31,700 related to this lease for the nine months ended September 30, 2015 and 2014, respectively. Other Contingencies The Company's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. The Company conducts its operations so as to protect public health and the environment, and believes its operations are materially in compliance with all applicable laws and regulations. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations. Litigation The Company believes that no material adverse change will occur as a result of the legal 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. Further, the Company believes there is no legal basis for which to conduct arbitration proceedings. (See Item 2. Management’s Discussion and Analysis of Financial Conditions and Results of Operations; and see Part II, Item 1. Legal Proceedings.)

7. Non-Controlling Interest

7. Non-Controlling Interest	9 Months Ended
	Sep. 30, 2015
Noncontrolling Interest [Abstract]
Non-Controlling Interest	The Company’s Non-Controlling Interest recorded in the consolidated financial statements relates to an interest in DynaResource de México, S.A. de C.V. of 20%. Changes in Non-Controlling Interest for the nine months ended September 30, 2015 and 2014, respectively were as follows: Sept 30, 2015 Dec 31, 2014 Beginning balance $ (6,181,229 ) $ (5,680,107 ) Operating income (loss) (380,045 ) (536,357 ) Share of other comprehensive income (loss) (205,229 ) 35,235 Ending balance $ (6,766,503 ) $ (6,181,229 ) 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. However, this amount is only reflected in the income statement.

8. Subsequent Events

8. Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	Damages Awarded to DynaMéxico in México Litigation On October 5, 2015 DynaResource de México SA de C.V. (“DynaMéxico”), was awarded in excess of $48 M USD (Forty-Eight Million Dollars) in damages from Goldgroup Resources, Inc. (the “Goldgroup Damages”) by virtue of a Sentencia Definitiva (the “Definitive Sentence”) issued by the Thirty Sixth Civil Court of the Superior Court of Justice of the Federal District of México (Tribunal Superior de Justicia del Distrito Federal), File number 1120/2014. The Definitive Sentence included the considerations and resolutions by the Court, and additional Resolutions were also ordered in favor of DynaMéxico (together the Goldgroup Damages and the additional Resolutions are referred to as, the “Oct. 5, 2015 Resolution”). The October 5, 2015 Resolution is described below; See Part II, Item 1., Legal Proceedings, $48 M USD in Damages Awarded to DynaMéxico in México Litigation. Gold Sales On November 3, 2015, DynaMineras reported the delivery for sale of an approximate 350 Oz gold contained in concentrates (exact weights in gold and silver oz. to be determined at final settlement).

9. Fair Value of Financial Inst

9. Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2015
Fair Value Of Financial Instruments
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 Level 2 Inputs Level 3 Inputs As of September 30, 2015 and 2014, carrying value of the Company’s financial assets and liabilities, such as cash, receivables, inventories approximate fair value because of their short maturity. The derivative liabilities are measured at fair value using quoted market prices and estimated volatility factors based on historical quoted market prices for the Company’s common stock and are classified within Level 3 of the valuation hierarchy. Fair Value Measurement at September 30, 2015 Using: September 30, 2015 Quoted Prices In Active Markets For Identical Assets (Level 1) Significant Other Significant Derivative Liabilities—December 31, 2014 beginning balance — — — $ — Golden Post Derivatives June 30, 2014 (5,178,456 ) — — (5,178,456 ) Golden Post Mark to Market Derivative Adjustment 60,515 60,515 Totals September 30, 2015 Balance (5,117,941 ) — — $ (5,117,941 ) Fair Value Measurement at September 30, 2014 Using: None — — — $ — Totals — — — $ —

7. Non-Controlling Interest (Ta

7. Non-Controlling Interest (Tables)	9 Months Ended
	Sep. 30, 2015
Non-controlling Interest Tables
Changes in Non-controlling Interest	Sept 30, 2015 Dec 31, 2014 Beginning balance $ (6,181,229 ) $ (5,680,107 ) Operating income (loss) (380,045 ) (536,357 ) Share of other comprehensive income (loss) (205,229 ) 35,235 Ending balance $ (6,766,503 ) $ (6,181,229 )

9. Fair Value of Financial In17

9. Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Of Financial Instruments Tables
Fair Value of Financial Instruments	September 30, 2015 Quoted Prices In Active Markets For Identical Assets (Level 1) Significant Other Significant Derivative Liabilities—December 31, 2014 beginning balance — — — $ — Golden Post Derivatives June 30, 2014 (5,178,456 ) — — (5,178,456 ) Golden Post Mark to Market Derivative Adjustment 60,515 60,515 Totals September 30, 2015 Balance (5,117,941 ) — — $ (5,117,941 ) Fair Value Measurement at September 30, 2014 Using: None — — — $ — Totals — — — $ —

2. Investment in Affiliate _ 18

2. Investment in Affiliate / Receivables from Affilate/Other Assets (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Investment In Affiliate Receivables From Affilateother Assets Details Narrative
Receivables from Affiliate	$ 160,372	$ 172,968
Investments in Affiliate	$ 70,000	$ 70,000

6. Commitments and Contingenc19

6. Commitments and Contingencies (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Commitments And Contingencies Details Narrative
Rent expense	$ 41,800	$ 31,700

7. Non-Controlling Interest (De

7. Non-Controlling Interest (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Non-controlling Interest Details
Noncontrolling interest	$ (6,181,229)	$ (5,680,107)
Operating income (loss)	(380,045)	(536,357)
Share of Other Comprehensive Income (loss)	(205,229)	35,235
Ending balance	$ (6,766,503)	$ (6,181,229)

9. Fair Value of Financial In21

9. Fair Value of Financial Instruments (Details)	Sep. 30, 2015USD ($)
Derivative Liabilities	$ (5,178,456)
Golden Post Mark to Market Derivative Adjustment	60,515
Total	(5,117,941)
Liabilities
None	0
Totals	0
Level 1
Derivative Liabilities	0
Golden Post Mark to Market Derivative Adjustment	0
Total	0
Liabilities
None	0
Totals	0
Level 2
Derivative Liabilities	0
Golden Post Mark to Market Derivative Adjustment	0
Total	0
Liabilities
None	0
Totals	0
Level 3
Derivative Liabilities	(5,178,456)
Golden Post Mark to Market Derivative Adjustment	60,515
Total	(5,117,941)
Liabilities
None	0
Totals	$ 0