DynaResource (DYNR) 10-Q/A29 Aug 172017 Q2 Quarterly report (amended)Financial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2017	Aug. 21, 2017
Document And Entity Information
Entity Registrant Name	DYNARESOURCE INC
Entity Central Index Key	1,111,741
Document Type	10-Q/A
Document Period End Date	Jun. 30, 2017
Amendment Flag	true
Amendment Description	The purpose of this Amendment No. 1 to our Quarterly Report on Form 10-Q for the period ended June 30, 2017 as filed with the Securities and Exchange Commission on August 21, 2017 is to furnish Exhibits 101 to the Form 10-Q. No changes have been made to the Quarterly Report other than the furnishing of Exhibit 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB and 101.PRE described above. This Amendment No. 1 to Form 10-Q does not reflect subsequent events occurring after the original filing date of the Form 10-Q or modify or update in any way disclosures made in the Form 10-Q, as amended. In addition, pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as a result of this Amended Report, the certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002, filed and furnished, respectively as exhibits to the Original Report have been re-executed and re-filed as of the date of this Amended Report and are included as exhibits hereto.
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	Q2
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and Cash Equivalents	$ 1,679,279	$ 2,197,005
Accounts Receivable	343,321	454,140
Inventories	873,562	561,238
Foreign Tax Receivable	1,150,159	1,083,364
Other Current Assets	58,721	73,871
Total Current Assets	4,105,042	4,369,618
Mining Equipment and Fixtures (Net of Accumulated Depreciation of $913,599 and $821,132)	854,388	578,743
Mining Concessions (Net of Accumulated Amortization)	4,132,678	4,132,678
Investments in Affiliate	70,000	70,000
Other Assets	109,786	15,450
TOTAL ASSETS	9,271,894	9,166,489
Current Liabilities:
Accounts Payable	835,216	851,197
Convertible Notes Payable	950,625	956,250
Due to Non-controlling Interest	231,500	231,500
Accrued Expenses	1,517,644	1,367,510
Derivative Liabilities	3,402,653	5,106,090
Total Current Liabilities	6,937,638	8,512,547
Long-Term Liabilities:
Accrued Expenses	309,069	0
TOTAL LIABILITIES	7,246,707	8,512,547
Preferred Stock, Series C, $.0001 par value, 1,733,221 shares authorized, 1,733,221 outstanding as of 2017 and 2016	4,333,053	4,333,053
Stockholders’ Equity Deficit
Preferred Stock, Series A, $.0001 par value, 1,000 shares authorized, 1,000 and 1,000 issued and outstanding	1	1
Common Stock, $.01 par value, 25,000,000 shares authorized, 16,722,825 shares outstanding as of 2017 and 2016	167,228	167,228
Preferred Rights	40,000	40,000
Additional Paid In Capital	55,083,783	55,083,783
Treasury Stock, 1,112,313 outstanding as of 2017 and 2016	(3,175,515)	(3,175,515)
Accumulated Other Comprehensive Income	1,913,945	3,771,532
Accumulated Deficit	(51,243,114)	(53,581,567)
Total DynaResource, Inc. Stockholders' Equity	2,786,328	2,305,462
Non-controlling Interest	(5,094,194)	(5,984,573)
TOTAL (DEFICIT)	(2,307,866)	(3,679,111)
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$ 9,271,894	$ 9,166,489

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accumulated Depreciation, Mining Equipment and Fixtures	$ 913,599	$ 821,132
Series C, par value	$ 0.0001	$ 0.0001
Series C, shares authorized	1,733,221	1,733,221
Series C, shares outstanding	1,733,221	1,733,221
Series A, par value	$ .0001	$ 0.0001
Series A, shares authorized	1,000	1,000
Series A, shares issued	1,000	1,000
Series A, shares outstanding	1,000	1,000
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	16,722,825
Common stock, shares outstanding	16,722,825	16,722,825
Treasury stock	1,112,313	1,112,313

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
REVENUES	$ 3,217,802	$ 3,156,746	$ 4,559,314	$ 5,164,925
COSTS AND EXPENSES OF MINING OPERATIONS
Production Costs Applicable to Sales	1,139,128	563,160	1,657,890	865,155
Mine Operating Costs	1,091,983	1,311,942	1,558,145	1,975,350
Property Holding Costs	139,467	42,308	263,070	217,700
General and Administrative	650,821	557,221	1,189,337	1,012,600
Depreciation and Amortization	75,667	34,310	92,467	48,130
Total Operating Expenses	3,097,066	2,508,941	4,760,909	4,118,935
NET OPERATING INCOME (LOSS)	120,736	647,805	(201,595)	1,045,990
OTHER INCOME (EXPENSE)
Foreign Currency Gains (Losses)	256,669	(1,242,740)	695,449	(1,142,873)
Interest Expense	(32,057)	(29,883)	(61,670)	(59,766)
Derivatives Adj. Mark-to-Market Gain (Loss)	(644,641)	0	1,703,437	204,279
Other Income	252	174	397	360
Total Other Income (Expense)	(419,777)	(1,272,449)	2,337,613	(998,000)
NET INCOME (LOSS) BEFORE TAXES	(299,041)	(624,644)	2,136,018	47,990
TAXES	0	0	0	0
NET INCOME (LOSS)	(299,041)	(624,644)	2,136,018	47,990
Cumulative Dividend for Series C Preferred	(42,737)	(37,263)	(85,474)	(80,000)
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	348,323	128,537	202,435	164,780
ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ 6,545	$ (533,370)	$ 2,252,979	$ 132,770
EARNINGS PER SHARE DATA ATTRIBUTABLE TO THE EQUITY HOLDERS OF DYNARESOURCE, INC.:
Basic Loss per Common Share	$ (.00)	$ (0.03)	$ 0.13	$ 0.01
Diluted Loss per Common Share	$ (.00)	$ (0.03)	$ 0.03	$ 0
Weighted Average Shares Outstanding, Basic	16,722,825	16,722,825	16,722,825	16,722,825
Weighted Average Shares Outstanding, Diluted	16,722,825	16,722,825	18,595,886	18,590,365
OTHER COMPREHENSIVE INCOME:
NET INCOME (LOSS) PER ABOVE	$ (299,041)	$ (642,644)	$ 2,136,018	$ 47,990
Foreign Currency Exchange Gains (Losses)	603,836	(734,433)	(257,872)	(729,937)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	603,836	(734,433)	(257,872)	(729,937)
TOTAL COMPREHENSIVE INCOME (LOSS)	304,795	(1,359,077)	1,878,146	(681,947)
ATTRIBUTABLE TO:
Equity Holders of DynaResource, Inc.	(557,020)	(1,029,836)	2,970,960	(362,127)
NON-CONTROLLING INTERESTS	861,815	(329,241)	(1,092,814)	(319,820)
Total	$ 304,795	$ (1,359,077)	$ 1,878,146	$ (681,947)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ 2,136,018	$ 47,990
Adjustments to reconcile net loss to cash provided by (used in) Operating activities
Gain on Derivative Liabilities	(1,703,437)	(204,279)
Depreciation and Amortization	92,467	48,130
Change in Operating Assets and Liabilities
Accounts Receivable	163,885	(315,678)
Inventory	(214,111)	(13,163)
Other Current Assets	15,150	1,205
Receivables from Affiliate	(25,848)	(5,121)
Foreign Tax Receivable	83,849	(245,131)
Other Assets	(84,120)	(1,314)
Accounts Payable	937,906	16,037
Accrued Liabilities	413,205	150,636
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES	1,814,964	(520,688)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Equipment	(301,667)	(37,572)
CASH FLOWS (USED IN) INVESTING ACTIVITIES	(301,667)	(37,572)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment on Advances to Related Party	0	(50,000)
Payment of Dividends	0	(160,000)
Payment of Note Payable	(5,625)	0
Payment on L-T Payables	(111,315)	0
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	(116,940)	(210,000)
Effect of Foreign Exchange	(1,914,083)	1,188,491
NET DECREASE IN CASH	(517,726)	420,231
CASH AT BEGINNING OF PERIOD	2,197,005	1,922,599
CASH AT END OF PERIOD	1,679,279	2,342,830
SUPPLEMENTAL DISCLOSURES
Cash Paid for Interest	61,764	59,766
Cash Paid for Income Taxes	$ 0	$ 0

1. NATURE OF ACTIVITIES AND SIG

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2017
Accounting Policies [Abstract]
NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES	Nature of Activities, History and Organization 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 in the test mining and pilot milling 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 six months ended June 30, 2017 and 2016, the Consolidated Balance Sheets as at June 30, 2017 (unaudited) and December 31, 2016, and the unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016, 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, 2016. 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, 2016. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. In the second quarter 2017, we identified certain property taxes amounting to $541,245 from 2014, 2015, and $169,232 for 2016, which were not expensed as required and an over accrual of $150,000 for legal expenses at December 31, 2016. Based on Staff Accounting Bulletin No. 108 (“SAB 108”), we have determined that these amounts are immaterial to each of the time periods affected and, therefore, we are not required to amend our previously filed reports. However, if these adjustments were recorded in 2017, we believe the impact could be material to this year. Therefore, we plan to adjust our previously reported results for 2014, 2015, and 2016 for these immaterial amounts as required by SAB 108. Such previous periods will be restated upon the next filing of our quarterly and annual consolidated financial statements. The balance sheet as of December 31, 2016 has been adjusted to reflect the cumulative impact of such errors. As a result, Accounts payable has been increased by $541,245, accrued expenses increased by $169,232 and retained earnings decreased by $710,477. For additional information, see Footnote 14. Reclassifications Certain financial statement reclassifications have been made to prior period balances to reflect the current period’s presentation format; such reclassifications had no impact on the Company’s consolidated statements of operations or consolidated statements of cash flows and had no material impact on the Company’s consolidated balance sheets. Computation of Profit (Loss) per Share Basic Income (Loss) per share is computed by dividing the period Income (Loss) available to common shareholders by the weighted average number of common shares outstanding. Diluted Profit (Loss) per share is computed by dividing the Income (Loss) available to common shareholders by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For purposes of this calculation, convertible preferred stock, common stock dividends, warrants and options to acquire common stock, are all considered common stock equivalents in periods in which they have a dilutive effect and are excluded from this calculation in periods in which these are anti-dilutive or to the net loss. The securities for the three month period ending June 30, 2017 and June 30, 2016 were deemed antidilutive. The following table illustrates the computation of Profit (loss), for the three months and six months ended June 30, 2016 and 2017: Three Months June 30, 2017 Three Months June 30, 2016 Six Months June 30, 2017 Six Months June 30, 2016 Numerator Profit (Loss) $ 6,545 $ (533,370 ) $ 2,252,979 $ 132,770 Preferred dividends accrued — — 85,474 80,000 Gain on Derivatives — — (1,703,437 ) (204,279 ) Net Profit (Loss) applicable to common shareholders Denominator for basic and dilutive loss per share: $ 6,545 $ (533,370 ) $ 635,016 $ 8,491 Weighted average common stock shares outstanding 16,722,825 16,722,825 16,722,825 16,722,825 Net effect of dilutive common stock equivalents — — 1,873,061 1,867,540 Weighted average shares outstanding – diluted 16,722,825 18,578,175 18,595,886 18,590,365 Income Profit (Loss) per share - basic $ (.00 ) $ (.03 ) $ .13 $ .01 Income Profit (Loss) per share – diluted $ (.00 ) (.03 ) .03 .00

2. INVENTORIES

2. INVENTORIES	6 Months Ended
2. INVENTORIES	Jun. 30, 2017
Inventory Abstract
INVENTORIES	The Company commenced underground test mining and pilot milling activities (“pilot production”) in the 2nd quarter of 2014. Rehabilitation of the San Pablo Mine and refurbishing of the Pilot Mill Facility and construction of the adjacent tailings pond continued through 2016, and expansion of these activities commenced in second quarter 2017. Inventories are carried at the lower of cost or fair value and consist of mined tonnage, gravity-flotation concentrates, and gravity tailings (or, flotation feed material). Inventory balances of June 30, 2017 and December 31, 2016, respectively, were as follows: 2017 2016 Mined Tonnage Stockpiled $ 604,445 $ 445,082 Mill Tonnage Stockpiled 269,117 116,156 Total Inventories $ 873,562 $ 561,238

3. PROPERTY

3. PROPERTY	6 Months Ended
3. PROPERTY	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
PROPERTY	Property consists of the following at June 30, 2017 and December 31, 2016: 2017 2016 Mining camp equipment $ 630,335 $ 399,180 Transportation equipment 282,379 282,379 Machinery and equipment 602,250 470,741 Office furniture and fixtures 78,709 75,829 Office equipment 174,314 171,746 Sub-total 1,767,987 1,399,875 Less: Accumulated depreciation (913,599 ) (821,132 ) Total Property $ 854,388 $ 578,743 The Company purchased equipment of $301,667 and $37,572 in the six months ended June 30, 2017 and June 30, 2016, respectively. Depreciation has been provided over each asset’s estimated useful life. Depreciation expense was $92,467 and $48,130 for the six months ended June 30, 2017 and 2016, respectively.

4. MINING CONCESSIONS

4. MINING CONCESSIONS	6 Months Ended
4. MINING CONCESSIONS	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
MINING CONCESSIONS	Mining properties consist of the following at June 30, 2017 and December 31, 2016: 2017 2016 San Jose de Gracia (“SJG”): Total Mining Concessions $ 4,132,678 $ 4,132,678 Depletion expense was $nil and $nil for the six months ended June 30, 2017 and 2016 respectively, respectively.

6. CONVERTIBLE PROMISSORY NOTES

6. CONVERTIBLE PROMISSORY NOTES	6 Months Ended
6. CONVERTIBLE PROMISSORY NOTES	Jun. 30, 2017
Debt Disclosure [Abstract]
CONVERTIBLE PROMISSORY NOTES	Notes Payable – Series I In April and May 2013, the Company entered into note agreements with shareholders in the principal amount of $1,495,000, of which $340,000 was then converted to preferred shares within the same year, netting to proceeds of $1,155,000 (the “Series I Notes”). The Series I 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 I Notes (in aggregate) are also entitled to receive ten percent (10%) of the net profits received by the Company, on the first fifty thousand tons processed through the mill facilities at San Jose de Gracia. Such net profits (if any) are to be calculated after deducting “all expenses related to the production”, and after a prior deduction of thirty-three percent (33%) from the net profits, to be deposited into a sinking fund cash reserve. To date, the Company has not produced any net profits as calculated in accordance with the Series I Notes. The Notes originally matured on December 31, 2015. 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 also extended the maturity date of the Series I Notes to December 31, 2016. At December 31, 2016, one of the Series I Notes remained outstanding for a total of $5,800.78 and was paid in 2017, one of the Series I Notes was further extended to June 30, 2017, and the remaining Series I Notes were further extended to December 31, 2017. The Company has the right to prepay the Series I Notes with a ten percent (10%) penalty. 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, 2018. 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, on the second fifty thousand tons processed through the mill facilities at San Jose de Gracia. Such net profits (if any) are to be calculated after deducting “all expenses related to the production” l, and after a prior deduction of thirty-three percent (33%) from the net profits, to be deposited into a sinking fund cash reserve. To date, the Company has not produced any net profits as calculated in accordance with the Series II Notes. The Notes originally matured on December 31, 2015. 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. At December 31, 2016, the remaining Series II Notes were further extended to December 31, 2017. The Company has the right to prepay the Series II 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, 2018. 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 $33,120 of accrued interest (total of $842,903) was contracted to convert into 337,162 common shares. In addition, 337,162 warrants were issued which provide the option to purchase common shares at $2.50, with all warrants expiring December 31, 2017. The Company recorded $826,347 inducement expense related to these conversion transactions. On August 17, 2015, these common shares and warrants were issued. At June 30, 2017, the principal and capitalized interest balance on the remaining Series I Notes was $759,375, and the principal and capitalized interest on the Series II Notes was $191,250, for a total Note balance of $950,625. The accrued interest for these notes was $29,613 and $29,883 as of June 30, 2017 and 2016, respectively. Notes Payable In June 2017, the Company entered into financing agreements in the amount of $541,245 in order to retain the rights to, and maintain exploratory mineral concessions. The Company paid twenty percent as an initial payment, $108,249, and financed the balance, payable over thirty-six months. In accordance with the Company’s policy of treatment of exploratory mineral concessions or properties, the Company capitalized all costs associated with the financing of the exploratory mineral concessions, including annual taxes or fees, and the Company expects to prepare an annual impairment analysis. During the first quarter of 2017 the Company purchased $5,625 of the Notes Payable. The following is a summary of the Notes Payable at June 30, 2017 and December 31, 2016: 2017 2016 Convertible Promissory Notes Current Portion $ 956,250 $ 956,250 Purchase of Note (5,625 ) — Total Notes Payable $ 950,625 956,250

7. L-T ACCRUED EXPENSE

7. L-T ACCRUED EXPENSE	6 Months Ended
7. L-T ACCRUED EXPENSE	Jun. 30, 2017
L-t Accrued Expense
L-T ACCRUED EXPENSE	In June 2017, the Company entered into financing agreements for unpaid mining concession taxes for the period July 1, 2014 through December 31, 2015 in the amount of $541,245. The Company paid 20% as an initial payment, $108,249, and financed the balance over thirty six months The following is a summary of the transactions during the second quarter: June 30, 2017 Property Holding Taxes June 1, 2014 – December 31, 2015 $ 541,245 Initial payment of 20% (108,249 ) June 2017 principal payment (3,066 ) Balance at June 30, 2017 $ 429,430 Short-Term Portion $ 120,361 Long-Term Portion 309,069 Total $ 429,430

8. STOCKHOLDERS_ EQUITY

8. STOCKHOLDERS’ EQUITY	6 Months Ended
8. STOCKHOLDERS’ EQUITY	Jun. 30, 2017
Equity [Abstract]
STOCKHOLDERS’ EQUITY	There were no changes in our stockholders’ equity in the three and six months ended June 30, 2017. Authorized Capital Preferred Stock 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 June 30, 2017 and December 31, 2016, there were 1,000 shares and 1,000 shares of Series A Preferred Stock outstanding, respectively. 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). Legal fees of $45,000 were deducted from the proceeds of this transaction at closing. 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. During 2016, the company paid Dividends of $160,000 to the holder of Series C Convertible Preferred Stock. The Dividend is calculated at 4.0% of $4,000,000 payable annually on June 30. For the three and six months ending June 30, 2017 and June 30, 2016, the Company accrued $42,737 and $37,263 respectively for the cumulative dividends. For the six months ending June 30, 2017 and June 30, 2016, the Company accrued $85,474 and $80,000 respectively for the cumulative dividends. 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 June 30, 2017 and December 31, 2016, there were 16,722,825 shares outstanding, respectively. No dividends were paid for the periods ended June 30, 2017. Preferred Rights The Company issued “Preferred Rights” for the rights to percentages of revenues generated from the San Jose de Gracia Pilot Production Plant, and received $158,500 in 2003 and $626,000 in 2002. 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 June 30, 2017 and March 31, 2016, respectively. Stock Issuances 2016 Activity – None. 2017 Activity – None. Treasury Stock At June 30, 2017 and 2016, 1,112,313 treasury shares were outstanding. Warrants There were no changes in the number of warrants outstanding in the three or six months ended June 30, 2017.

9. RELATED PARTY TRANSACTIONS

9. RELATED PARTY TRANSACTIONS	6 Months Ended
9. RELATED PARTY TRANSACTIONS	Jun. 30, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	Related Party Transactions The Company follows FASB ASC subtopic 850-10, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. Pursuant to ASC 850-10-20, related parties include: a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. Material related party transactions are required to be disclosed in the consolidated financial statements, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which statements of operation are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which statements of operations are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Dynacap Group Ltd. The Company paid $73,500 and $59,000 to Dynacap Group, Ltd. (“Dynacap”, an entity controlled by the CEO of the Company) for consulting and other fees during the six months ended June 30, 2017 and 2016, respectively. Dynacap retains 2 individuals who are family members of the CEO, as well as 2 consultants, as independent contractors who provide administrative and executive support services to the Company. Dynacap has provided these services to the Company for recent years.

10. DERIVATIVE LIABILITIES

10. DERIVATIVE LIABILITIES	6 Months Ended
10. DERIVATIVE LIABILITIES	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE LIABILITIES	Preferred Series C Stock As discussed in Note 8, the Company analyzed the embedded conversion features of the Series C Preferred Stock and determined that the stock qualified as a derivative liability and is required to be bifurcated and accounted for as such since the host and the embedded instrument are not clearly and closely related. The Company performed a valuation of the conversion feature. In performing the valuation, the Company applied the guidance in ASC 820, “Fair Value Measurements”, In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company considered the inputs in this valuation to be level 3 in the fair value hierarchy under ASC 820 and used an equity simulation model to determine the value of conversion feature of the Series C Preferred Stock based on the assumptions below for the six months ended June 30, 2017 and year ended December 31, 2016: June 30, 2017 Dec 31, 2016 Annual volatility rate 105 % 123 % Risk free rate 1.50 % 1.93 % Holding Period 5 years 5 years Fair Value of common stock $ 1.63 $ 1.75 The below table represents the change in the fair value of the derivative liability (Preferred Series C Stock) during the six months ending June 30, 2017 and the year ending December 31, 2016: Period Ended June 30, 2017 Dec 31, 2016 Fair value of derivative (Preferred Series C Stock), beginning of year $ 2,592,452 $ 2,419,359 Change in fair value of derivative (Preferred Series C Stock) (1,213,672 ) 173,093 Fair value of derivative (Preferred Series C Stock), end of period $ 1,378,780 $ 2,592,452 Preferred Series C Warrants As discussed in Note 9, the Company analyzed the embedded conversion features of the Series C Preferred Stock and determined that the Warrants qualified as a derivative liability and is required to be bifurcated and accounted for as such since the host and the embedded instrument are not clearly and closely related. The Company performed a valuation of the conversion feature. In performing the valuation, the Company applied the guidance in ASC 820, “Fair Value Measurements”, In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company considered the inputs in this valuation to be level 3 in the fair value hierarchy under ASC 820 and used an equity simulation model to determine the value of conversion feature of the Warrants based on the assumptions below for the periods ended June 30, 2017 and December 31, 2016: June 30, 2017 Dec 31, 2016 Annual volatility rate 105 % 123 % Risk free rate 1.50 % 1.93 % Holding Period 5 years 5 years Fair Value of common stock $ 1.63 $ 1.75 The below table represents the change in the fair value of the derivative liability (Preferred Series C Warrants) for the period ended June 30, 2017 and the year ending December 31, 2016. Period Ended June 30, 2017 Dec 31, 2016 Fair value of derivative liability (Warrants), beginning of year $ 2,513,638 $ 2,963,378 Change in fair value of derivative liability (Warrants) (489,765 ) (449,740 ) Fair value of derivative liability (Warrants), end of period $ 2,023,873 2,513,638 Total (Gain) Loss on Derivative Liability (Preferred Series C Stock and Warrants) The below table represents the total (gain) or loss, of the derivative liability (Preferred Series C Stock and Warrants) for the period ended June 30, 2017 and the year ending December 31, 2016. Period Ended June 30, 2017 Dec 31, 2016 Fair value of derivative liability (Preferred C Stock and Warrants), beginning of year $ 5,106,090 $ 5,382,737 Change in fair value of derivative liability (Stock and Warrants) (1,703,437 ) (276,647 ) Fair value of derivative liability (Stock and Warrants), end of period $ 3,402,653 5,106,090

11. NON-CONTROLLING INTEREST

11. NON-CONTROLLING INTEREST	6 Months Ended
11. NON-CONTROLLING INTEREST	Jun. 30, 2017
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 50% through May 13, 2013, and 20% thereafter. Changes in Non-Controlling Interest for the periods ended June 30, 2017 and December 31, 2016, respectively were as follows: Qtr. Ended June 30, 2017 Year Ended December 31, 2016 Beginning balance $ (5,984,537 ) $ (6,498,190 ) Operating income (loss) (202,435 ) (317,179 ) Share of Other Comprehensive Income 1,092,778 830,832 Ending balance $ (5,094,194 ) $ (5,984,537 ) 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.

12. FAIR VALUE OF FINANCIAL INS

12. FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
12. FAIR VALUE OF FINANCIAL INSTRUMENTS	Jun. 30, 2017
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 June 30, 2017 and December 31, 2016, the Company’s financial assets were measured at fair value using Level 3 inputs, except for cash, which was valued using Level 1 inputs. A description of the valuation of the Level 3 inputs is discussed in Note 11. Fair Value Measurement at June 30, 2017 using Total Fair Market Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: None $ — $ — $ — $ — Totals $ — $ — $ — $ — Liabilities Derivative Liabilities $ 3,402,653 — — $ 3,402,653 Totals $ 3,402,653 $ — $ — $ 3,402,653 Fair Value Measurement at December 31, 2016 Using: Assets: None — — — — Totals $ — $ — $ — $ — Liabilities: Derivative Liabilities $ 5,106,090 — — $ 5,106,090 Totals $ 5,106,090 $ — $ — $ 5,106,090

13. REVENUE CONCENTRATION

13. REVENUE CONCENTRATION	6 Months Ended
13. REVENUE CONCENTRATION	Jun. 30, 2017
Revenue Concentration
REVENUE CONCENTRATION	The Company receives revenues from certain customers who individually represented 10% or more of the Company’s total revenue, and the Company’s accounts receivable balances are represented by customers who individually represented 10% or more of the Company’s total accounts receivable, as described below: For the three months ended June 30, 2017 one customer accounted for 100% of revenue and for the three months ended June 30, 2016, one customer accounted for 100% of revenue. For the six months ended June 30, 2017 two customers accounted for 100% of revenue and for the six months ended June 30, 2016, two customers accounted for 100% of revenue. At June 30, 2017, one customer accounted for 100% of accounts receivable. At December 31, 2016, one customer accounted for 100% of accounts receivable.

14. ADJUSTMENT OF PRIOR PERIODS

14. ADJUSTMENT OF PRIOR PERIODS	6 Months Ended
14. ADJUSTMENT OF PRIOR PERIODS	Jun. 30, 2017
Adjustment Of Prior Periods
ADJUSTMENT OF PRIOR PERIODS	In the second quarter 2017, we identified certain property taxes amounting to $541,245 from 2014 and 2015, and $169,232 from 2016, which were not expensed as required, and an over accrual of $150,000 for legal expenses at December 31, 2016. The Company assessed the materiality of this misstatement in the 2016 and 2015 periods financial statements in accordance with the SEC’s Staff Accounting Bulletin (SAB) No. 99, codified in ASC No. 250, Presentation of Financial Statements, and concluded that the misstatement was not material to any prior periods. In accordance with SAB 108, the Company has adjusted the three and six months ended June 30, 2016 and the balance sheet as of December 31, 2016. The following presents these adjustments in detail: BALANCE SHEET Previously Reported Dec 31, 2016 Adjustments Adjusted Balance Dec, 2016 Accounts Payable $ 309,952 $ 541,245 $ 951,197 Accrued Expenses 1,198,278 169,232 1,367,510 Total Liabilities 7,802,070 710,477 8,512,547 Accumulated Deficit (53,013,185 ) (568,382 ) (53,581,567 ) Total Equity (Deficit) 2,873,844 (568,382 ) 2,305,462 Non-Controlling Interest (5,842,478 ) (142,095 ) (5,984,573 ) Total Equity (Deficit) (2,968,634 ) (710,477 ) (3,679,111 ) Total Liabilities and Equity $ 9,166,489 ) $ — $ 9,166,489 INCOME STATEMENT Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Previously Reported Adjustments Adjusted Previously Reported Adjustments Adjusted COSTS AND EXPENSES OF MINING OPERATIONS Property Holding Costs $ — $ 42,308 $ 42,308 133,084 $ 84,616 $ 217,700 Total Operating Expenses 2,466,663 42,308 2,508,941 4,034,319 84,616 4,118,935 NET OPERATING INCOME (LOSS) 690,113 (42,308 ) 647,805 1,130,616 (84,616 ) 1,045,900 NET INCOME (LOSS) BEFORE TAXES (582,336 ) (42,308 ) (624,644 ) 132,606 (84,616 ) 47,990 NET INCOME (LOSS) (582,336 ) (42,308 ) (624,644 ) 132,606 (84,616 ) 47,990 ATTRIBUTABLE TO NON-CONTROLLING INTERESST 120,076 8,461 128,537 147,857 16,923 164,780 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS (499,532 ) (33,847 ) (533,370 ) $ 200,463 $ (67,693 ) $ 132,770 Basic Loss Per Common Share (0.03 ) $ 0.00 (0.03 ) $ 0.01 $ 0.00 $ 0.01 Diluted Loss Per Common Share $ (0.03 ) $ 0.00 $ (0.03 ) $ 0.01 $ 0.00 $ 0.00 STATEMENT of CASH FLOWS Previously Reported June 30, 2016 Adjustments Adjusted Balance June 30, 2016 Net Income (Loss) $ 132,606 $ (84,616 ) $ 47,990 Accrued Liabilities 66,020 84,616 150,636 Cash Flows Used in Operating $ (520,688 ) $ — $ (520,688 )

1. NATURE OF ACTIVITIES AND S19

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2017
Nature Of Activities And Significant Accounting Policies Policies
Nature of Activities, History and Organization	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 in the test mining and pilot milling 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 six months ended June 30, 2017 and 2016, the Consolidated Balance Sheets as at June 30, 2017 (unaudited) and December 31, 2016, and the unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016, 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, 2016. 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, 2016. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. In the second quarter 2017, we identified certain property taxes amounting to $541,245 from 2014, 2015, and $169,232 for 2016, which were not expensed as required and an over accrual of $150,000 for legal expenses at December 31, 2016. Based on Staff Accounting Bulletin No. 108 (“SAB 108”), we have determined that these amounts are immaterial to each of the time periods affected and, therefore, we are not required to amend our previously filed reports. However, if these adjustments were recorded in 2017, we believe the impact could be material to this year. Therefore, we plan to adjust our previously reported results for 2014, 2015, and 2016 for these immaterial amounts as required by SAB 108. Such previous periods will be restated upon the next filing of our quarterly and annual consolidated financial statements. The balance sheet as of December 31, 2016 has been adjusted to reflect the cumulative impact of such errors. As a result, Accounts payable has been increased by $541,245, accrued expenses increased by $169,232 and retained earnings decreased by $710,477. For additional information, see Footnote 14.
Reclassifications	Certain financial statement reclassifications have been made to prior period balances to reflect the current period’s presentation format; such reclassifications had no impact on the Company’s consolidated statements of operations or consolidated statements of cash flows and had no material impact on the Company’s consolidated balance sheets.
Computation of Profit (Loss) per Share	Basic Income (Loss) per share is computed by dividing the period Income (Loss) available to common shareholders by the weighted average number of common shares outstanding. Diluted Profit (Loss) per share is computed by dividing the Income (Loss) available to common shareholders by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For purposes of this calculation, convertible preferred stock, common stock dividends, warrants and options to acquire common stock, are all considered common stock equivalents in periods in which they have a dilutive effect and are excluded from this calculation in periods in which these are anti-dilutive or to the net loss. The securities for the three month period ending June 30, 2017 and June 30, 2016 were deemed antidilutive. The following table illustrates the computation of Profit (loss), for the three months and six months ended June 30, 2016 and 2017: Three Months June 30, 2017 Three Months June 30, 2016 Six Months June 30, 2017 Six Months June 30, 2016 Numerator Profit (Loss) $ 6,545 $ (533,370 ) $ 2,252,979 $ 132,770 Preferred dividends accrued — — 85,474 80,000 Gain on Derivatives — — (1,703,437 ) (204,279 ) Net Profit (Loss) applicable to common shareholders Denominator for basic and dilutive loss per share: $ 6,545 $ (533,370 ) $ 635,016 $ 8,491 Weighted average common stock shares outstanding 16,722,825 16,722,825 16,722,825 16,722,825 Net effect of dilutive common stock equivalents — — 1,873,061 1,867,540 Weighted average shares outstanding – diluted 16,722,825 18,578,175 18,595,886 18,590,365 Income Profit (Loss) per share - basic $ (.00 ) $ (.03 ) $ .13 $ .01 Income Profit (Loss) per share – diluted $ (.00 ) (.03 ) .03 .00

1. NATURE OF ACTIVITIES AND S20

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2017
Nature Of Activities And Significant Accounting Policies Tables
Computation of profit (loss)	Three Months June 30, 2017 Three Months June 30, 2016 Six Months June 30, 2017 Six Months June 30, 2016 Numerator Profit (Loss) $ 6,545 $ (533,370 ) $ 2,252,979 $ 132,770 Preferred dividends accrued — — 85,474 80,000 Gain on Derivatives — — (1,703,437 ) (204,279 ) Net Profit (Loss) applicable to common shareholders Denominator for basic and dilutive loss per share: $ 6,545 $ (533,370 ) $ 635,016 $ 8,491 Weighted average common stock shares outstanding 16,722,825 16,722,825 16,722,825 16,722,825 Net effect of dilutive common stock equivalents — — 1,873,061 1,867,540 Weighted average shares outstanding – diluted 16,722,825 18,578,175 18,595,886 18,590,365 Income Profit (Loss) per share - basic $ (.00 ) $ (.03 ) $ .13 $ .01 Income Profit (Loss) per share – diluted $ (.00 ) (.03 ) .03 .00

2. INVENTORIES (Tables)

2. INVENTORIES (Tables)	6 Months Ended
2. INVENTORIES (Tables)	Jun. 30, 2017
Inventories Tables
Schedule of inventory	2017 2016 Mined Tonnage Stockpiled $ 604,445 $ 445,082 Mill Tonnage Stockpiled 269,117 116,156 Total Inventories $ 873,562 $ 561,238

3. PROPERTY (Tables)

3. PROPERTY (Tables)	6 Months Ended
3. PROPERTY (Tables)	Jun. 30, 2017
Property Tables
Property	2017 2016 Mining camp equipment $ 630,335 $ 399,180 Transportation equipment 282,379 282,379 Machinery and equipment 602,250 470,741 Office furniture and fixtures 78,709 75,829 Office equipment 174,314 171,746 Sub-total 1,767,987 1,399,875 Less: Accumulated depreciation (913,599 ) (821,132 ) Total Property $ 854,388 $ 578,743

4. MINING CONCESSIONS (Tables)

4. MINING CONCESSIONS (Tables)	6 Months Ended
4. MINING CONCESSIONS (Tables)	Jun. 30, 2017
Mining Concessions Tables
Mining properties	2017 2016 San Jose de Gracia (“SJG”): Total Mining Concessions $ 4,132,678 $ 4,132,678

6. CONVERTIBLE PROMISSORY NOT24

6. CONVERTIBLE PROMISSORY NOTES (Tables)	6 Months Ended
6. CONVERTIBLE PROMISSORY NOTES (Tables)	Jun. 30, 2017
Convertible Promissory Notes Tables
Notes Payable	Notes Payable – Series I In April and May 2013, the Company entered into note agreements with shareholders in the principal amount of $1,495,000, of which $340,000 was then converted to preferred shares within the same year, netting to proceeds of $1,155,000 (the “Series I Notes”). The Series I 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 I Notes (in aggregate) are also entitled to receive ten percent (10%) of the net profits received by the Company, on the first fifty thousand tons processed through the mill facilities at San Jose de Gracia. Such net profits (if any) are to be calculated after deducting “all expenses related to the production”, and after a prior deduction of thirty-three percent (33%) from the net profits, to be deposited into a sinking fund cash reserve. To date, the Company has not produced any net profits as calculated in accordance with the Series I Notes. The Notes originally matured on December 31, 2015. 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 also extended the maturity date of the Series I Notes to December 31, 2016. At December 31, 2016, one of the Series I Notes remained outstanding for a total of $5,800.78 and was paid in 2017, one of the Series I Notes was further extended to June 30, 2017, and the remaining Series I Notes were further extended to December 31, 2017. The Company has the right to prepay the Series I Notes with a ten percent (10%) penalty. 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, 2018. 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, on the second fifty thousand tons processed through the mill facilities at San Jose de Gracia. Such net profits (if any) are to be calculated after deducting “all expenses related to the production” l, and after a prior deduction of thirty-three percent (33%) from the net profits, to be deposited into a sinking fund cash reserve. To date, the Company has not produced any net profits as calculated in accordance with the Series II Notes. The Notes originally matured on December 31, 2015. 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. At December 31, 2016, the remaining Series II Notes were further extended to December 31, 2017. The Company has the right to prepay the Series II 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, 2018. 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 $33,120 of accrued interest (total of $842,903) was contracted to convert into 337,162 common shares. In addition, 337,162 warrants were issued which provide the option to purchase common shares at $2.50, with all warrants expiring December 31, 2017. The Company recorded $826,347 inducement expense related to these conversion transactions. On August 17, 2015, these common shares and warrants were issued. At June 30, 2017, the principal and capitalized interest balance on the remaining Series I Notes was $759,375, and the principal and capitalized interest on the Series II Notes was $191,250, for a total Note balance of $950,625. The accrued interest for these notes was $29,613 and $29,883 as of June 30, 2017 and 2016, respectively. Notes Payable In June 2017, the Company entered into financing agreements in the amount of $541,245 in order to retain the rights to, and maintain exploratory mineral concessions. The Company paid twenty percent as an initial payment, $108,249, and financed the balance, payable over thirty-six months. In accordance with the Company’s policy of treatment of exploratory mineral concessions or properties, the Company capitalized all costs associated with the financing of the exploratory mineral concessions, including annual taxes or fees, and the Company expects to prepare an annual impairment analysis. During the first quarter of 2017 the Company purchased $5,625 of the Notes Payable. The following is a summary of the Notes Payable at June 30, 2017 and December 31, 2016: 2017 2016 Convertible Promissory Notes Current Portion $ 956,250 $ 956,250 Purchase of Note (5,625 ) — Total Notes Payable $ 950,625 956,250

7. L-T ACCRUED EXPENSE (Tables)

7. L-T ACCRUED EXPENSE (Tables)	6 Months Ended
7. L-T ACCRUED EXPENSE (Tables)	Jun. 30, 2017
L-t Accrued Expense Tables
Summary of the transactions for unpaid mining concession taxes	June 30, 2017 Property Holding Taxes June 1, 2014 – December 31, 2015 $ 541,245 Initial payment of 20% (108,249 ) June 2017 principal payment (3,066 ) Balance at June 30, 2017 $ 429,430 Short-Term Portion $ 120,361 Long-Term Portion 309,069 Total $ 429,430

10. DERIVATIVE LIABILITIES (Tab

10. DERIVATIVE LIABILITIES (Tables)	6 Months Ended
10. DERIVATIVE LIABILITIES (Tables)	Jun. 30, 2017
Total (gain) or loss, of the derivative liability	Period Ended June 30, 2017 Dec 31, 2016 Fair value of derivative liability (Preferred C Stock and Warrants), beginning of year $ 5,106,090 $ 5,382,737 Change in fair value of derivative liability (Stock and Warrants) (1,703,437 ) (276,647 ) Fair value of derivative liability (Stock and Warrants), end of period $ 3,402,653 5,106,090
Preferred Series C Stock
Valuation assumption	June 30, 2017 Dec 31, 2016 Annual volatility rate 105 % 123 % Risk free rate 1.50 % 1.93 % Holding Period 5 years 5 years Fair Value of common stock $ 1.63 $ 1.75
Change in the fair value of the derivative liability	Period Ended June 30, 2017 Dec 31, 2016 Fair value of derivative (Preferred Series C Stock), beginning of year $ 2,592,452 $ 2,419,359 Change in fair value of derivative (Preferred Series C Stock) (1,213,672 ) 173,093 Fair value of derivative (Preferred Series C Stock), end of period $ 1,378,780 $ 2,592,452
Preferred Series C Warrant
Valuation assumption	June 30, 2017 Dec 31, 2016 Annual volatility rate 105 % 123 % Risk free rate 1.50 % 1.93 % Holding Period 5 years 5 years Fair Value of common stock $ 1.63 $ 1.75
Change in the fair value of the derivative liability	Period Ended June 30, 2017 Dec 31, 2016 Fair value of derivative liability (Warrants), beginning of year $ 2,513,638 $ 2,963,378 Change in fair value of derivative liability (Warrants) (489,765 ) (449,740 ) Fair value of derivative liability (Warrants), end of period $ 2,023,873 2,513,638

11. NON-CONTROLLING INTEREST (T

11. NON-CONTROLLING INTEREST (Tables)	6 Months Ended
11. NON-CONTROLLING INTEREST (Tables)	Jun. 30, 2017
Non-controlling Interest Tables
Changes in Non-controlling Interest	Qtr. Ended June 30, 2017 Year Ended December 31, 2016 Beginning balance $ (5,984,537 ) $ (6,498,190 ) Operating income (loss) (202,435 ) (317,179 ) Share of Other Comprehensive Income 1,092,778 830,832 Ending balance $ (5,094,194 ) $ (5,984,537 )

12. FAIR VALUE OF FINANCIAL I28

12. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
12. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	Jun. 30, 2017
Fair Value Of Financial Instruments Tables
Fair Value Measurement	Total Fair Market Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: None $ — $ — $ — $ — Totals $ — $ — $ — $ — Liabilities Derivative Liabilities $ 3,402,653 — — $ 3,402,653 Totals $ 3,402,653 $ — $ — $ 3,402,653 Fair Value Measurement at December 31, 2016 Using: Assets: None — — — — Totals $ — $ — $ — $ — Liabilities: Derivative Liabilities $ 5,106,090 — — $ 5,106,090 Totals $ 5,106,090 $ — $ — $ 5,106,090

14. ADJUSTMENT OF PRIOR PERIO29

14. ADJUSTMENT OF PRIOR PERIODS (Tables)	6 Months Ended
14. ADJUSTMENT OF PRIOR PERIODS (Tables)	Jun. 30, 2017
Adjustment Of Prior Periods Tables
Prior period adjustments	BALANCE SHEET Previously Reported Dec 31, 2016 Adjustments Adjusted Balance Dec, 2016 Accounts Payable $ 309,952 $ 541,245 $ 951,197 Accrued Expenses 1,198,278 169,232 1,367,510 Total Liabilities 7,802,070 710,477 8,512,547 Accumulated Deficit (53,013,185 ) (568,382 ) (53,581,567 ) Total Equity (Deficit) 2,873,844 (568,382 ) 2,305,462 Non-Controlling Interest (5,842,478 ) (142,095 ) (5,984,573 ) Total Equity (Deficit) (2,968,634 ) (710,477 ) (3,679,111 ) Total Liabilities and Equity $ 9,166,489 ) $ — $ 9,166,489 INCOME STATEMENT Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Previously Reported Adjustments Adjusted Previously Reported Adjustments Adjusted COSTS AND EXPENSES OF MINING OPERATIONS Property Holding Costs $ — $ 42,308 $ 42,308 133,084 $ 84,616 $ 217,700 Total Operating Expenses 2,466,663 42,308 2,508,941 4,034,319 84,616 4,118,935 NET OPERATING INCOME (LOSS) 690,113 (42,308 ) 647,805 1,130,616 (84,616 ) 1,045,900 NET INCOME (LOSS) BEFORE TAXES (582,336 ) (42,308 ) (624,644 ) 132,606 (84,616 ) 47,990 NET INCOME (LOSS) (582,336 ) (42,308 ) (624,644 ) 132,606 (84,616 ) 47,990 ATTRIBUTABLE TO NON-CONTROLLING INTERESST 120,076 8,461 128,537 147,857 16,923 164,780 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS (499,532 ) (33,847 ) (533,370 ) $ 200,463 $ (67,693 ) $ 132,770 Basic Loss Per Common Share (0.03 ) $ 0.00 (0.03 ) $ 0.01 $ 0.00 $ 0.01 Diluted Loss Per Common Share $ (0.03 ) $ 0.00 $ (0.03 ) $ 0.01 $ 0.00 $ 0.00 STATEMENT of CASH FLOWS Previously Reported June 30, 2016 Adjustments Adjusted Balance June 30, 2016 Net Income (Loss) $ 132,606 $ (84,616 ) $ 47,990 Accrued Liabilities 66,020 84,616 150,636 Cash Flows Used in Operating $ (520,688 ) $ — $ (520,688 )

1. NATURE OF ACTIVITIES AND S30

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Nature Of Activities And Significant Accounting Policies Details
Profit (Loss)	$ 6,545	$ (533,370)	$ 2,252,979	$ 132,770
Preferred dividends accrued	0	0	85,474	80,000
Gain on Derivatives	0	0	(1,703,437)	(204,279)
Net Profit (Loss) applicable to common shareholders	$ 6,545	$ (533,370)	$ 2,252,979	$ 132,770
Weighted average number of common shares outstanding, Basic	16,722,825	16,722,825	16,722,825	16,722,825
Net effect of dilutive common stock equivalents	0	0	1,873,061	1,867,540
Diluted weighted average number of common shares outstanding, Diluted	16,722,825	16,722,825	18,595,886	18,590,365
Income Profit (Loss) per share - basic	$ (.00)	$ (0.03)	$ 0.13	$ 0.01
Income Profit (Loss) per share – diluted	$ (.00)	$ (0.03)	$ 0.03	$ 0

2. INVENTORIES (Details)

2. INVENTORIES (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Inventories Details
Mined Tonnage Stockpiled	$ 604,445	$ 445,082
Mill Tonnage Stockpiled	269,117	116,156
Total Inventories	$ 873,562	$ 561,238

3. PROPERTY (Details)

3. PROPERTY (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Property Details
Mining camp equipment	$ 630,335	$ 399,180
Transportation equipment	282,379	282,379
Machinery and equipment	602,250	470,741
Office furniture and fixtures	78,709	75,829
Office equipment	174,314	171,746
Sub-total	1,767,987	1,399,875
Less: Accumulated depreciation	(913,599)	(821,132)
Total Property	$ 854,388	$ 578,743

3. PROPERTY (Details Narrative)

3. PROPERTY (Details Narrative) - USD ($)	6 Months Ended
3. PROPERTY (Details Narrative) - USD ($)	Jun. 30, 2017	Jun. 30, 2016
Property Details Narrative
Purchase of Equipment	$ 301,667	$ 37,572
Depreciation expense	$ 92,467	$ 48,130

4. MINING CONCESSIONS (Details)

4. MINING CONCESSIONS (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Mining Concessions Details
San Jose de Gracia ("SJG"): Total Mining Concessions	$ 4,132,678	$ 4,132,678

6. CONVERTIBLE PROMISSORY NOT35

6. CONVERTIBLE PROMISSORY NOTES (Details) - USD ($)	6 Months Ended	12 Months Ended
6. CONVERTIBLE PROMISSORY NOTES (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Convertible Promissory Notes Details
Convertible Promissory Notes Current Portion	$ 956,250	$ 956,250
Purchase of Note	(5,625)	0
Convertible Notes Payable	$ 950,625	$ 956,250

6. CONVERTIBLE PROMISSORY NOT36

6. CONVERTIBLE PROMISSORY NOTES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Convertible Promissory Notes Details Narrative
Accrued interest	$ 29,613	$ 29,883

7. L-T ACCRUED EXPENSE (Details

7. L-T ACCRUED EXPENSE (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
L-t Accrued Expense Details
Property Holding Taxes June 1, 2014 – December 31, 2015	$ 541,245
Initial payment of 20%	(108,249)
June 2017 principal payment	(3,066)
Balance at June 30, 2017	429,430
Short-Term Portion	120,361
Long-Term Portion	309,069	$ 0
Total	$ 429,430

10. DERIVATIVE LIABILITIES (Det

10. DERIVATIVE LIABILITIES (Details) - Preferred Series C Stock - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Annual volatility rate	105.00%	123.00%
Risk free rate	1.50%	1.93%
Holding Period	5 years	5 years
Fair Value of common stock	$ 1.63	$ 1.75

10. DERIVATIVE LIABILITIES (D39

10. DERIVATIVE LIABILITIES (Details 1) - USD ($)	6 Months Ended	12 Months Ended
10. DERIVATIVE LIABILITIES (Details 1) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Fair value of derivative, beginning	$ 5,106,090	$ 5,382,737
Change in fair value of derivative	(1,703,437)	(276,647)
Fair value of derivative, ending	3,402,653	5,106,090
Preferred Series C Stock
Fair value of derivative, beginning	2,592,452	2,419,359
Change in fair value of derivative	(1,213,672)	173,093
Fair value of derivative, ending	$ 1,378,780	$ 2,592,452

10. DERIVATIVE LIABILITIES (D40

10. DERIVATIVE LIABILITIES (Details 2) - Preferred Series C Warrant - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Annual volatility rate	105.00%	123.00%
Risk free rate	1.50%	1.93%
Holding Period	5 years	5 years
Fair Value of common stock	$ 1.63	$ 1.75

10. DERIVATIVE LIABILITIES (D41

10. DERIVATIVE LIABILITIES (Details 3) - USD ($)	6 Months Ended	12 Months Ended
10. DERIVATIVE LIABILITIES (Details 3) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Fair value of derivative, beginning	$ 5,106,090	$ 5,382,737
Change in fair value of derivative	(1,703,437)	(276,647)
Fair value of derivative, ending	3,402,653	5,106,090
Preferred Series C Warrant
Fair value of derivative, beginning	2,513,638	2,963,378
Change in fair value of derivative	(489,765)	(449,740)
Fair value of derivative, ending	$ 2,023,873	$ 2,513,638

10. DERIVATIVE LIABILITIES (D42

10. DERIVATIVE LIABILITIES (Details 4) - USD ($)	6 Months Ended	12 Months Ended
10. DERIVATIVE LIABILITIES (Details 4) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Derivative Liabilities Details 4
Fair value of derivative, beginning	$ 5,106,090	$ 5,382,737
Change in fair value of derivative liability	(1,703,437)	(276,647)
Fair value of derivative, ending	$ 3,402,653	$ 5,106,090

11. NON-CONTROLLING INTEREST (D

11. NON-CONTROLLING INTEREST (Details) - USD ($)	6 Months Ended	12 Months Ended
11. NON-CONTROLLING INTEREST (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Non-controlling Interest Details
Beginning balance	$ (5,984,573)	$ (6,461,950)
Operating income (loss)	(202,435)	(283,333)
Share of Other Comprehensive Income	1,092,778	902,805
Ending balance	$ (5,094,194)	$ (5,984,573)

12. FAIR VALUE OF FINANCIAL I44

12. FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Assets:
Total Asset	$ 0	$ 0
Liabilities:
Derivative Liabilities	3,402,653	5,106,090
Total Liabilities	3,402,653	5,106,090
Fair value Level 1
Assets:
Total Asset	0	0
Liabilities:
Derivative Liabilities	0	0
Total Liabilities	0	0
Fair value Level 2
Assets:
Total Asset	0	0
Liabilities:
Derivative Liabilities	0	0
Total Liabilities	0	0
Fair value Level 3
Assets:
Total Asset	0	0
Liabilities:
Derivative Liabilities	3,402,653	5,106,090
Total Liabilities	$ 3,402,653	$ 5,106,090

13. REVENUE CONCENTRATION (Deta

13. REVENUE CONCENTRATION (Details Narrative)	3 Months Ended		6 Months Ended		12 Months Ended
13. REVENUE CONCENTRATION (Details Narrative)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
One Customer \| Revenue
Concentration risk	100.00%	100.00%
One Customer \| Accounts Receivable
Concentration risk			100.00%		100.00%
Two Customers \| Revenue
Concentration risk			100.00%	100.00%

14. ADJUSTMENT OF PRIOR PERIO46

14. ADJUSTMENT OF PRIOR PERIODS (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
BALANCE SHEET
Accounts Payable	$ 835,216	$ 851,197
Accrued Expenses	1,517,644	1,367,510
TOTAL LIABILITIES	7,246,707	8,512,547
Accumulated Deficit	(51,243,114)	(53,581,567)
Total DynaResource, Inc. Stockholders' Equity	2,786,328	2,305,462
Non-controlling Interest	(5,094,194)	(5,984,573)	$ (6,461,950)
TOTAL (DEFICIT)	(2,307,866)	(3,679,111)
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$ 9,271,894	9,166,489
Previously Reported
BALANCE SHEET
Accounts Payable		309,952
Accrued Expenses		1,198,278
TOTAL LIABILITIES		7,802,070
Accumulated Deficit		(53,013,185)
Total DynaResource, Inc. Stockholders' Equity		2,873,844
Non-controlling Interest		(5,842,478)
TOTAL (DEFICIT)		(2,968,634)
TOTAL LIABILITIES AND EQUITY (DEFICIT)		9,166,489
Adjustment
BALANCE SHEET
Accounts Payable		541,245
Accrued Expenses		169,232
TOTAL LIABILITIES		710,477
Accumulated Deficit		(568,382)
Total DynaResource, Inc. Stockholders' Equity		(568,382)
Non-controlling Interest		(142,095)
TOTAL (DEFICIT)		(710,477)
TOTAL LIABILITIES AND EQUITY (DEFICIT)		$ 0

14. ADJUSTMENT OF PRIOR PERIO47

14. ADJUSTMENT OF PRIOR PERIODS (Details 1) - USD ($)	3 Months Ended		6 Months Ended
14. ADJUSTMENT OF PRIOR PERIODS (Details 1) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
INCOME STATEMENT
Property Holding Costs	$ 139,467	$ 42,308	$ 263,070	$ 217,700
Total Operating Expenses	3,097,066	2,508,941	4,760,909	4,118,935
NET OPERATING INCOME (LOSS)	120,736	647,805	(201,595)	1,045,990
NET INCOME (LOSS) BEFORE TAXES	(299,041)	(624,644)	2,136,018	47,990
NET INCOME (LOSS)	(299,041)	(624,644)	2,136,018	47,990
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	348,323	128,537	202,435	164,780
ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ 6,545	$ (533,370)	$ 2,252,979	$ 132,770
Basic Loss per Common Share	$ (.00)	$ (0.03)	$ 0.13	$ 0.01
Diluted Loss per Common Share	$ (.00)	$ (0.03)	$ 0.03	$ 0
Previously Reported
INCOME STATEMENT
Property Holding Costs		$ 0		$ 133,084
Total Operating Expenses		2,466,663		4,034,319
NET OPERATING INCOME (LOSS)		690,113		1,130,616
NET INCOME (LOSS) BEFORE TAXES		(582,336)		132,606
NET INCOME (LOSS)		(582,336)		132,606
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS		120,076		147,857
ATTRIBUTABLE TO COMMON SHAREHOLDERS		$ (499,532)		$ 200,463
Basic Loss per Common Share		$ (0.03)		$ 0.01
Diluted Loss per Common Share		$ (0.03)		$ 0.01
Adjustment
INCOME STATEMENT
Property Holding Costs		$ 42,308		$ 84,616
Total Operating Expenses		42,308		84,616
NET OPERATING INCOME (LOSS)		(42,308)		(84,616)
NET INCOME (LOSS) BEFORE TAXES		(42,308)		(84,616)
NET INCOME (LOSS)		(42,308)		(84,616)
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS		8,461		16,923
ATTRIBUTABLE TO COMMON SHAREHOLDERS		$ (33,847)		$ (67,693)
Basic Loss per Common Share		$ 0		$ 0
Diluted Loss per Common Share		$ 0		$ 0

14. ADJUSTMENT OF PRIOR PERIO48

14. ADJUSTMENT OF PRIOR PERIODS (Details 2) - USD ($)	3 Months Ended		6 Months Ended
14. ADJUSTMENT OF PRIOR PERIODS (Details 2) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
STATEMENT of CASH FLOWS
Net Income (Loss)	$ (299,041)	$ (642,644)	$ 2,136,018	$ 47,990
Accrued Liabilities			413,205	150,636
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES			$ 1,814,964	(520,688)
Previously Reported
STATEMENT of CASH FLOWS
Net Income (Loss)				132,606
Accrued Liabilities				66,020
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES				(520,688)
Adjustment
STATEMENT of CASH FLOWS
Net Income (Loss)				(84,616)
Accrued Liabilities				84,616
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES				$ 0