DynaResource (DYNR) 10-K 31 Mar 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Mar. 15, 2021
Cover [Abstract]
Entity Registrant Name	DYNARESOURCE INC
Entity Central Index Key	0001111741
Document Type	10-K
Document Period End Date	Dec. 31, 2020
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	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Interactive Data Currnet	Yes
Entity Incorporation State Country Code	DE
Entity File Number	000-30371
Entity Public Float	$ 9,358,421
Entity Common Stock, Shares Outstanding		17,722,825
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2020

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 1,504,016	$ 354,572
Accounts receivable	840,743	1,103,205
Inventories	603,967	523,089
Foreign tax receivable	2,179,914	1,297,387
Appeal bond	1,111,111	0
Other current assets	578,661	336,969
Total current assets	6,818,412	3,615,222
Property and equipment (net of accumulated depreciation of $113,176 and $109,928)	5,978	9,227
Operating lease	735,220	812,861
Mining concessions	4,132,678	4,132,678
Investments in affiliate (at cost)	70,000	70,000
Other assets	95,380	99,223
Total assets	11,857,668	8,739,211
Current Liabilities:
Accounts payable	2,274,011	2,059,429
Accrued expenses	3,385,093	1,775,404
Customer advances	2,500,000	1,000,000
Due to non-controlling interest	0	231,500
Derivative liabilities	2,371,560	86,104
Current portion of convertible notes payable	0	112,500
Current portion of operating lease payable	82,733	69,146
Current portion of long-term debt	1,984,007	1,637,509
Total current liabilities	12,597,404	6,971,592
Convertible notes payable - Series D (net of amortized discount of $755,244 and $0)	3,264,786	0
Convertible notes payable - Series I & II, less current portion	543,279	765,879
Operating lease payable, less current portion	685,951	768,684
Long term debt, less current portion	97,428	634,922
Total liabilities	17,188,848	9,141,077
Series C senior convertible preferred stock, $0.0001 par value, 1,734,992 and 1,733,221 shares authorized, issued and outstanding	4,337,480	4,333,053
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock, Series A, $0.0001 par value, 1,000 shares authorized, issued and outstanding	1	1
Common stock, $0.01 par value, 40,000,000 and 25,000,000 shares authorized 17,722,825 and 17,722,825 issued and outstanding	177,228	177,228
Preferred rights	40,000	40,000
Additional paid In capital	50,407,333	56,622,159
Treasury stock, 516,480 and 778,980 shares	(1,474,486)	(2,223,891)
Accumulated other comprehensive income	438,092	325,841
Accumulated deficit	(59,256,828)	(53,952,594)
Total DynaResource Inc. stockholders' equity (deficit)	(9,668,660)	988,744
Non-controlling interest	0	(5,723,663)
Total stockholders' deficit	(9,668,660)	(4,734,919)
Total liabilities and stockholders' deficit	$ 11,857,668	$ 8,739,211

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Property and equipment accumulated depreciation	$ 113,176	$ 109,927
Amortized discount	$ 755,244	$ 0
Series C, par value	$ 0.0001	$ 0.0001
Series C, shares authorized	1,734,992	1,733,221
Series C, shares issued	1,734,992	1,733,221
Series C, shares outstanding	1,734,992	1,733,221
Series A, par value	$ 0.0001	$ 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	$ 0.0001	$ 0.0001
Common stock, shares authorized	40,000,000	25,000,000
Common stock, shares issued	17,722,825	17,722,825
Common stock, shares outstanding	17,722,825	17,722,825
Treasury stock	516,480	778,980

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Revenue	$ 9,048,831	$ 11,612,722
COSTS AND EXPENSES OF MINING OPERATION:
Production cost applicable to sales	1,166,135	1,666,521
Mine production costs	2,370,972	3,557,850
Mine exploration costs	1,610,747	1,486,037
Mine expansion costs	909,190	689,405
Camp, warehouse and facilities	2,036,610	2,547,910
Transportation	528,423	816,504
Property holding costs	137,377	446,806
General and administrative	2,966,073	2,053,083
Depreciation and amortization	3,249	3,255
Total operating expenses	11,728,776	13,267,371
Net operating loss	(2,679,945)	(1,654,649)
OTHER INCOME (EXPENSE):
Foreign currency gains (loss)	(361,127)	397,161
Interest expense	(1,133,360)	(492,907)
Derivatives mark-to-market gain (loss)	(1,186,964)	888,579
Other income (expense)	(4,428)	970
Total other income	(2,685,878)	793,803
Net loss before taxes	(5,365,823)	(860,846)
Provision for income taxes	0	0
Net loss	(5,365,823)	(860,846)
Deemed dividend for Series C preferred	(173,499)	(173,320)
Loss attributable to non-controlling interest	61,589	62,511
Net loss attributable to common stockolders	$ (5,477,733)	$ (971,655)
EARNINGS PER SHARE DATA ATTRIBUTABLE TO THE EQUITY HOLDERS OF DYNARESOURCE, INC.:
Basic and diluted loss per common share	$ (0.31)	$ (0.05)
Weighted average shares outstanding, basic	17,722,825	17,722,825
OTHER COMPREHENSIVE INCOME (LOSS):
Foreign currency translation gain (loss)	$ 100,582	$ (970,981)
Total other comprehensive income (loss)	100,582	(970,981)
Total comprehensive income (loss)	(5,265,241)	(1,831,827)
ATTRIBUTABLE TO:
Equity holders of DynaResource Inc.	(5,191,983)	(1,719,692)
Non-controlling interest	$ (73,258)	$ (112,135)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Preferred A Stock	Common Stock	Preferred Rights	Paid-In Capital	Treasury Stock	Other Comp Income	Accumulated Deficit	Non Controlling Interest	Total
Beginning balance, shares at Dec. 31, 2018	1,000	17,722,825	0		778,980
Beginning balance, amount at Dec. 31, 2018	$ 1	$ 177,228	$ 40,000	$ 56,622,159	$ (2,223,891)	$ 1,247,198	$ (53,154,259)	$ (5,611,528)	$ (2,903,092)
Other comprehensive income (loss)						(921,357)		(49,624)	(970,981)
Net income (loss)							(798,335)	(62,511)	(860,846)
Ending balance, shares at Dec. 31, 2019	1,000	17,722,825	0		778,980
Ending balance, amount at Dec. 31, 2019	$ 1	$ 177,228	$ 40,000	56,622,159	$ (2,223,891)	325,841	(53,952,594)	(5,723,663)	(4,734,919)
Treasury stock issued for services, shares					(262,500)
Treasury stock issued for services, amount				(649,405)	$ 749,405				100,000
Other comprehensive income (loss)						112,251		(11,669)	100,582
Net income (loss)							(5,304,234)	(61,589)	(5,365,823)
Elimination of non-controlling interest				(5,565,421)				5,796,921	231,500
Ending balance, shares at Dec. 31, 2020	1,000	17,722,825	0		516,480
Ending balance, amount at Dec. 31, 2020	$ 1	$ 177,228	$ 40,000	$ 50,407,333	$ (1,474,486)	$ 438,092	$ (59,256,828)	$ 0	$ (9,668,660)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (5,365,823)	$ (860,846)
Adjustments to reconcile net loss to cash used in operating activities:
Change in derivatives	1,186,964	(888,579)
Depreciation and amortization	3,249	3,255
Amortization of loan discount	343,279	0
Stock issued for services	100,000	0
Non-dilution stock issuance	4,427	0
Change in operating assets and liabilities:
Accounts receivable	262,462	(28,481)
Inventories	(80,878)	1,065,689
Foreign tax receivable	(882,527)	(451,823)
Appeal bond	(1,111,111)	0
Other assets	(237,849)	33,153
Operating lease assets	77,641	(812,861)
Accounts payable	214,582	990,056
Accrued expenses	1,633,622	(458,753)
Customer advances	1,500,000	(750,000)
Lease liabilities	(69,146)	837,830
Cash flows used in operating activities	(2,421,108)	(1,321,360)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowing	4,020,000	0
Payments on convertible notes	(359,033)	0
Payments of long-term debt	(66,644)	(111,977)
Cash flows provided by (used in) financing activities	3,594,323	(111,977)
Effects of foreign currency exchange	(23,771)	(897,667)
Net increase (decrease) in cash and cash equivalents	1,149,444	(2,331,004)
Cash and cash equivalents at beginning of period	354,572	2,685,576
Cash and cash equivalents at end of period	1,504,016	354,572
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest	206,642	196,327
Cash paid for income taxes	0	0
NON CASH TRANSACTION:
Conversion of accounts payable to long-term debt	0	507,859
Accrued interest rolled into notes payable	$ 23,933	$ 40,254

1. NATURE OF ACTIVITIES AND SIG

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2020
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 the production of precious metals. In 2000, the Company formed a wholly owned subsidiary, DynaResource de México S.A. de C.V., chartered in México (“DynaMéxico”). This Company was formed to acquire, invest in and develop resource properties in México. DynaMéxico owns a portfolio of mining concessions that currently includes its interests in the San José de Gracía Project (“SJG”) in northern Sinaloa State, México. The SJG District covers 9,920 hectares (24,513 acres) on the west side of the Sierra Madre mountain range. The Company currently owns 80% of the outstanding capital of DynaMéxico. DynaMéxico currently holds 20% of the Shares of DynaMéxico as treasury shares, after complete foreclosure and recovery of those shares on February 20, 2020 from Goldgroup Resources Inc., a wholly owned subsidiary of Goldgroup Mining Inc. Vancouver, BC (“Goldgroup”). In 2005, the Company formed DynaResource Operaciones de San Jose De Gracía S.A. de C.V. (“DynaOperaciones”) as an operating subsidiary to manage registered employees, and acquired effective control of Mineras de DynaResource, S.A. de C.V. (formerly Minera Finesterre S.A. de C.V., “DynaMineras”). The Company owns 100% of DynaMineras and 100% of DynaOperaciones. The Company elected to become a voluntary reporting issuer in Canada in order to avail itself of Canadian regulations regarding reporting for mining properties and, more specifically, National Instrument 43-101 (“NI 43-101”). This regulation sets forth standards for reporting resources in a mineral property and is a standard recognized in the mining industry. Significant Accounting Policies The financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items that: 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods presented. Basis of Presentation The Company prepares its financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States. Use of Estimates In order to prepare financial statements in conformity with accounting principles generally accepted in the United States, management must make estimates, judgments and assumptions that affect the amounts reported in the financial statements and determines whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from the resolution currently anticipated by management and on which the financial statements are based. Principles of Consolidation The financial statements include the accounts of DynaResource, Inc., as well as DynaResource de México, S.A. de C.V. (100% ownership), DynaResource Operaciones S.A. de C.V. (100% ownership) and Mineras de DynaResource S.A. de C.V. (100% ownership). All significant inter-company transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated. Non-Controlling Interest The Company’s subsidiary, DynaResource de México S.A. de C.V, was 20% owned by Goldgroup Resources, Inc. until February 20, 2020 when the Company recovered the shares as partial satisfaction of a legal judgement. See Note 10 for further details. The Company accounted for this outside interest as a “non-controlling interest” through February 2020. A 20% share of operating income (loss) and comprehensive income (loss) was allocated to the non-controlling interest through the date of the recovery of the shares. Investments in Affiliates The Company owns a 19.95% interest in DynaResource Nevada, Inc., a Nevada Corporation (“DynaNevada”), with one operating subsidiary in México, DynaNevada de México, S.A. de C.V. (“DynaNevada de México”), together “DynaNevada”. The Company accounts for this investment using the cost basis. The Company has significant influence over DynaNevada, but not control, due to the lack of a majority voting interest in the entity. DynaNevada has been dormant for several years. DynaUSA has no plan or intention of future funding with DynaNevada nor are any other transactions with DynaNevada contemplated at this time. The Company therefore accounts for this investment using the cost basis. The investment was $70,000 and $70,000 at December 31, 2020 and 2019, respectively. Cash and Cash Equivalents The Company considers all highly liquid debt instruments with an original maturity of three months or less to be cash equivalents. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. As of December 31, 2020, the Company had $1,507,278 of deposits in U.S. Banks in excess of the FDIC limit. Accounts Receivable and Allowances for Doubtful Accounts The allowance for accounts receivable is recorded when receivables are considered to be doubtful of collection. As of December 31, 2020, and 2019, respectively, no allowance has been made. Foreign Tax Receivable Foreign Tax Receivable is comprised of recoverable value-added taxes (“IVA”) charged by the Mexican government on goods and services rendered to the company in Mexico and paid by the company. Under certain circumstances, these taxes are recoverable by filing a tax return and application for reimbursement. IVA Amounts charged to and paid by the company are recorded and carried as receivables until the funds are collected by the company. The total amounts of the IVA receivable as of December 31, 2020 and December 31, 2019 were $2,179,914 and $1,297,387, respectively. Inventories Inventories are carried at the lower of cost or net realizable value and consist of mined tonnage, gravity and flotation concentrates, and gravity tailings or flotation feed material. The inventories were $603,967 and $523,089 as of December 31, 2020 and December 31, 2019, respectively. Proven and Probable Reserves (No Known Reserves) The definition of proven and probable reserves is set forth in SEC Industry Guide 7 (“Industry Guide 7”). Proven reserves for which (1) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes, grade and/or quality are computed from the results of detailed sampling and (2) the sites for inspection, sampling and measurement are spaced so closely and the geological character is so well defined that size, shape, depth and mineral content of the reserves are well-established. Probable reserves are reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high enough to assume continuity between points of observations. As of December 31, 2020, none of the Company's properties contain resources that satisfy the definition of proven and probable reserves. The Company classifies the development of its properties, including the San Jose de Gracía Property, as exploration stage projects since no proven or probable reserves have been established under Industry Guide 7. Technical Report and Resource Estimate According to Canadian National Instrument 43-101 (2012) In 2012, DynaMéxico commissioned Servicios y Proyectos Mineros Property and Equipment Substantially all mine development costs, including design, engineering, mine construction, and installation of equipment are expensed as incurred as the Company has not established proven and probable reserves on any of its properties. Only certain types of mining equipment which has alternative uses or significant salvage value, may be capitalized without proven and probable reserves. Depreciation is computed using the straight-line method. Office furniture and equipment are being depreciated on a straight-line method over estimated economic lives ranging from 3 to 5 years. Leasehold improvements, which relate to the Company's corporate office, are being amortized over the term of the lease of 10 years. Design, Construction, and Development Costs: When proven and probable reserves as defined by Industry Guide 7 exist, development costs are capitalized, and the property is a commercially minable property. Mine development costs incurred either to develop new ore deposits, expand the capacity of operating mines, or to develop mine areas substantially in advance of current production would be capitalized. Costs of start-up activities and costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations as incurred. Costs of abandoned projects are charged to operations upon abandonment. All capitalized costs would be amortized using the units of production method over the estimated life of the ore body based on recoverable ounces to be mined from proven and probable reserves. Certain costs to design and construct mining and processing facilities may be incurred prior to establishing proven and probable reserves. As no proven and probable reserves have been established on any of the Company's properties, design, construction and development costs are not capitalized at any of the Company's properties, and accordingly, substantially all costs are expensed as incurred, resulting in the Company reporting larger operating expenses than if such expenditures had been capitalized. Additionally, the Company does not have a corresponding depreciation or amortization of these costs going forward since these expenditures were expensed as incurred as opposed to being capitalized. As a result of these and other differences, the Company's financial statements may not be comparable to the financial statements of mining companies that have established reserves as defined in Industry Guide 7. Mineral Properties Interests Mineral property interests include acquired interests in development and exploration stage properties, which are considered tangible assets. The amount capitalized relating to a mineral property interest represents its fair value at the time of acquisition. When a property does not contain mineralized material that satisfies the definition of proven and probable reserves, such as with the San Jose de Gracía Property, capitalized costs and mineral property interests are amortized using the straight-line method once production begins. As of December 31, 2020, the mining interests have been in the pilot production stage and therefore, no amortization has been expensed. Mining properties consist of 33 mining concessions covering approximately 9,919 hectares at the San Jose de Gracía property (“SJG”), the basis of which are amortized on the unit of production method based on estimated recoverable resources. If it is determined that the deferred costs related to a property are not recoverable over its productive life, those costs will be written down to fair value as a charge to operations in the period in which the determination is made. The amounts at which mineral properties and the related costs are recorded do not necessarily reflect present or future values. Impairment of Assets: For operating mines, recoverability is measured by comparing the undiscounted future net cash flows to the net book value. When the net book value exceeds future net undiscounted cash flows, an impairment loss is measured and recorded based on the excess of the net book value over fair value. Fair value for operating mines is determined using a combined approach, which uses a discounted cash flow model for the existing operations and a market approach for the fair value assessment of exploration land claims. Future cash flows are estimated based on quantities of recoverable mineralized material, expected gold and silver prices (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. The term "recoverable mineralized material" refers to the estimated amount of gold or other commodities that will be obtained after considering losses during processing and treatment of mineralized material. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company's estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold, silver and other commodity prices, production levels and costs and capital are each subject to significant risks and uncertainties. The recoverability of the book value of each property is assessed annually for indicators of impairment such as adverse changes to any of the following: ● estimated recoverable ounces of gold, silver or other precious minerals; ● estimated future commodity prices; ● estimated expected future operating costs, capital expenditures and reclamation expenditures. A write-down to fair value will be recorded when the expected future cash flow is less than the net book value of the property or when events or changes in the property indicate that carrying amounts are not recoverable. This analysis is completed as needed, and at least annually. As of the date of this filing, no events have occurred that would require write-down of any assets. As of December 31, 2020, and 2019, no indications of impairment existed. Asset Retirement Obligation As the Company is not obligated to remediate the mining properties, no Asset Retirement Obligation (“ARO”) has been established. Changes in regulations or laws, any instances of non-compliance with laws or regulations that result in fines, or any unforeseen environmental contamination could result in a material impact to the amounts charged to operations for reclamation and remediation. Pre-Pilot Production Costs During 2016, the Company conducted rehabilitation activity at the San Pablo mine and refurbished the Pilot Mill Facility at San Jose de Gracía and, in general prepared for test mining and pilot milling (“Pilot Production”) Operations. The costs associated with the rehabilitation, preparation, clean up and facilitation of this process were expensed as pre-pilot production costs. Property Holding Costs Holding costs to maintain a property on a care and maintenance basis are expensed in the period they are incurred. These costs include security and maintenance expenses, lease and claim fees and payments, and environmental monitoring and reporting costs. Exploration Costs Exploration costs are charged to operations and expenses as incurred. Exploration, development, direct field costs and administrative costs are expensed in the period incurred. Transactions in and Translations of Foreign Currency The functional currency for the subsidiaries of the Company is the Mexican Peso. As a result, the financial statements of the subsidiaries have been translated from Mexican Pesos into U.S. dollars using (i) year-end exchange rates for balance sheet accounts, and (ii) the weighted average exchange rate of the reporting period for all income statement accounts. Foreign currency translation gains and losses are reported as a separate component of stockholders’ equity and comprehensive income (loss). The financial statements of the subsidiaries should not be construed as representations that Mexican Pesos have been, could have been or may in the future be converted into U.S. dollars at such rates or any other rates. Relevant exchange rates used in the preparation of the financial statements for the subsidiaries are as follows for the years ended December 31, 2020 and 2019 (Mexican Pesos per one U.S. dollar): Dec 31, 2020 Dec 31, 2019 Current exchange rate Pesos 19.91 18.86 Weighted average exchange rate for the period ended Pesos 21.47 19.25 The Company recorded currency transaction gains (losses) of $(361,127) for the year ended December 31, 2020 and $397,161 for the year ended December 31, 2019. Income Taxes The Company accounts for income taxes under ASC 740 “Income Taxes” Income from the Company’s subsidiaries in México are taxed in accordance with applicable Mexican tax law. Comprehensive Income (Loss) ASC 220 “Comprehensive Income” Revenue Recognition The Company adopted ASC 606 “ Revenue from contracts with customers The amount of revenue recognized is initially recorded on a provisional basis based on the contract price and the estimated metal quantities based on assay data. The revenue is adjusted upon final settlement of the sale. The chief risk associated with the recognition of sales on a provisional basis is the fluctuations between the estimated quantities of precious metals based on the initial assay and the actual recovery from treatment and processing. As of December 31, 2020, there are $2,500,000 in customer deposit liabilities for payments received during the period for contracts expected to be settled in 2021. During the years ended December 31, 2020 and December 31, 2019 there was $0 and $1,750,000 of revenue recognized during the period from customer deposit liabilities (deferred contract revenue) from prior periods, and $0 of customer deposits refunded to the customer due to order cancellation. As of and for the year ended December 31, 2020 and December 31, 2019, there are no deferred contract costs or commissions. We have elected to account for shipping and handling costs as fulfillment costs after the customer obtains control of the concentrate. Stock-Based Compensation The Company accounts for stock options at fair value as prescribed in ASC 718 “Compensation – Stock Compensation” Fair Value of Financial Instruments The Company’s financial instruments consist of cash, receivables, payables and long-term debt. The carrying amount of cash, receivable and payables approximates fair value because of the short-term nature of these items. The carrying amount of long-term debt approximates fair value due to the relationship between the interest rate on long-term debt and the Company’s incremental risk adjusted borrowing rate. Per Share Amounts Earnings per share are calculated in accordance with ASC 260 “ Earnings per Share The Company had 3,391,855 warrants outstanding at December 31, 2020 which upon exercise, would result in the issuance of 3,391,855 shares of common stock. Of these warrants 2,166,527 were exercisable at $2.05 per share and 1,225,308 were exercisable at $.01 per share. The Company also had convertible debt instruments as of December 31, 2020 which, upon conversion at valuations from $2.00 to $2.50 per share, would result in the issuance of 2,227,312 shares of stock. The Company had 2,166,527 warrants outstanding at December 31, 2019 exercisable at $2.50 per share, which upon exercise, would result in the issuance of 2,166,527 shares of common stock. The Company also had convertible debt instruments as of December 31, 2019 which, upon conversion at a valuation of $2.50 per share, would result in the issuance of 335,250 shares of stock. Due to the Company’s net loss fully diluted weighted number of common shares outstanding and diluted earnings per share are the same under United States GAAP. Years ended December 31 2020 2019 Net loss attributable to common shareholders $ (5,477,733 ) $ (971,655 ) Shares: Weighted average number of common shares outstanding, Basic 17,722,825 17,722,825 Weighted average number of common shares outstanding, Diluted 17,722,825 17,722,825 Basic loss per share $ (0.31 ) $ (0.05 ) Diluted loss per share $ (0.31 ) $ (0.05 ) Related Party Transactions FASB ASC 850 "Related Party Disclosures" Recently Issued Accounting Pronouncements Leases In February 2016, FASB issued ASU 2016-02— Leases (Topic 842). The update is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. As such, The Company was required to adopt these provisions as of the fiscal year beginning on January 1, 2019. The Company elected the available practical expedients and adopted ASC 842 effective January 1, 2019, prospectively. The adoption of this standard resulted in the initial recognition of right-of-use assets and lease liabilities of $878,605 and $891,023, respectively, with no material impact on the results of operations and cash flows. See Note 10 for additional information regarding our leases.

2. INVENTORIES

2. INVENTORIES	12 Months Ended
	Dec. 31, 2020
Inventory Disclosure [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. 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 as of December 31, 2020 and December 31, 2019, respectively, were as follows: 2020 2019 Mined Tonnage, Gold-Silver Concentrates, and/or Gravity Tailings (Flotation Feed Material) $ 603,967 $ 523,089 Total Inventories $ 603,967 $ 523,089

3. PROPERTY AND EQUIPMENT

3. PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	Property consists of the following at December 31, 2020 and December 31, 2019: 2020 2019 Leasehold improvements $ 9,340 $ 9,340 Office equipment 31,012 31,012 Office furniture and fixtures 78,802 78,802 Sub-total 119,154 119,154 Less: Accumulated depreciation and amortization (113,176 ) (109,927 ) Total Property $ 5,978 $ 9,227 The Company purchased no equipment during the years ended December 31, 2020 and 2019, respectively. Depreciation and amortization has been provided over each asset’s estimated useful life. Depreciation and amortization expense was $3,249 and $3,255 for the years ended December 31, 2020 and 2019 respectively.

4. MINING CONCESSIONS

4. MINING CONCESSIONS	12 Months Ended
	Dec. 31, 2020
Extractive Industries [Abstract]
MINING CONCESSIONS	Mining properties consist of the San Jose de Gracía (“SJG”) concessions. Mining Concessions were $4,132,678 and $4,132,678 at December 31, 2020 and December 31, 2019, respectively. There was no depletion expense for the years ended December 31, 2020 and 2019.

5. INVESTMENT IN AFFILIATE_RECE

5. INVESTMENT IN AFFILIATE/RECEIVABLES FROM AFFILIATE/OTHER ASSETS	12 Months Ended
	Dec. 31, 2020
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
INVESTMENT IN AFFILIATE/RECEIVABLES FROM AFFILIATE/OTHER ASSETS	The Company owns 19.95% DynaResource Nevada, Inc. (“DynaNevada”), a Nevada Corporation, which owns 100% of one operating subsidiary in México, DynaNevada de México, S.A. de C.V. (“DynaNevada de México”). DynaNevada is a related entity (affiliate), and through its subsidiary, DynaNevada de México has entered into an Option agreement with Grupo México (IMMSA) in México, for the exploration and development of approximately 3,000 hectares in the State of San Luis Potosi (“The Santa Gertrudis Property”). DynaNevada de México exercised the Option with IMMSA in March 2010, so that DynaNevada de México now owns 100% of the Santa Gertrudis Property. In June 2010, DynaNevada de México acquired an additional 6,000 hectares in the State of Sinaloa (the “San Juan Property”). On December 31, 2010, the Company received 3,223,040 shares, which represents approximately 19.95% of the outstanding shares of DynaNevada. At the time of the exchange, DynaNevada’s net book value was approximately $695,000, consisting of $30,000 of cash and the remainder being unproven mining properties. Subsequent, to the exchange management determined the investment to be impaired due to lack of development of the properties and incurred a charge to the income statement. Management estimated the value of the Company’s DynaNevada shares as of December 31, 2020 and December 31, 2019 to be $70,000 and $70,000, respectively. At December 31, 2020 and December 31, 2019, the Company had a receivable from DynaNevada de México of $71,465 and $71,156, respectively for working capital advances. These amounts are included in Other Assets in the accompanying consolidated balance sheets.

6. CONVERTIBLE PROMISSORY NOTES

6. CONVERTIBLE PROMISSORY NOTES	12 Months Ended
	Dec. 31, 2020
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 Gracía. 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. As of December 31, 2018, seven of the Series I Notes totaling $646,875 had subsequently been extended to December 30, 2019. On December 31, 2019, the Company entered into agreements to extend seven outstanding notes totaling $646,875 plus accrued interest totaling $34,277 for new total notes of $691,152 until December 31, 2020. At December 31, 2019 Series I Notes remained outstanding with a total balance of $691,152. On March 31, 2020 the Company entered into agreements to extend the seven outstanding notes totaling $691,152 plus accrued interest totaling $21,286 for a new total of $702,438 until June 30, 2022. At December 31, 2020 one note for $246,533 was paid off leaving six Series I Notes remaining outstanding with a total balance of $455,905 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 $2.50 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 one year from their conversion date. 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 Gracía. 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 II Notes. The Notes originally matured on December 31, 2015. On December 31, 2019 the Company entered into agreements to extend the two notes totaling $78,750 plus accrued interest of $5,977 for total new notes of $84,757 to December 31, 2020. One note for $112,500 was not extended and was past due as of December 31, 2019. At December 31, 2019 three Series II notes remained outstanding for $197,226. On March 31, 2020 the Company entered into agreements to extend the two notes totaling $84,726 plus accrued interest of $2,648 for total new notes of $87,374 to June 30, 2022. One note for $112,500 was not extended and was paid off in May 2020. At December 31, 2020 two Series II notes remained outstanding for $87,374. 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 $2.50 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 one year from their conversion date.

7. INCOME TAXES

7. INCOME TAXES	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	The Company has adopted ASC 740-10, “ Income Taxes” Deferred Tax Asset Related to: 2020 2019 Prior Year $ 13,780,490 $ 13,343,134 Tax (Expense) Benefit for Current Year 953,120 437,356 Expiration of NOL Carryforward Period (1,260,610 ) — Total Deferred Tax Asset 13,473,000 13,780,490 Less Valuation Allowance (13,473,000 ) (13,780,490 ) Net Deferred Tax Asset $ — $ — For Financial Reporting Purposes Income (Loss) Before Taxes includes the following components: 2020 2019 United States $ (3,955,124 ) $ (928,078 ) Foreign (1,410,699 ) 67,232 $ (5,365,823 ) $ (860,846 ) The Expense (Benefit) for Taxes Consist of the Following: 2020 2019 Current Federal $ — $ — State — — Foreign — — $ — $ — Deferred and Other Federal $ (486,441 ) $ (454,164 ) State — — Foreign (466,679 ) 16,808 (953,120 ) (437,356 ) Total Tax Expense (Benefit) (953,120 ) (437,356 ) Change in Valuation Allowance 953,120 437,356 Net Tax Expense (Benefit) $ — $ — The Company's Income Tax Expense (Benefit) Differ from the Statutory Rate of 21% due to the following: 2020 2019 Tax (Expense) Benefit at Statutory Rate $ (1,126,823 ) $ (180,778 ) Foreign Tax Rate Differential (126,963 ) (34,434 ) Permanent Differences Stock Issued for Services 21,000 — Change in Derivative Liability 249,262 (222,145 ) Amortization of Loan Discount 72,089 — Other (41,685 ) — Change in Valuation Allowance 953,120 437,356 Provision for Income Tax Expense (Benefit) $ — $ — The net deferred tax asset and benefit for the current year is generated primarily from the cumulative net operating loss carry-forward which is approximately $52,800,000 at December 31, 2020 and will expire as follows: United States Expiring 2029 through 2038 $ 18,500,000 United States indefinite carry forward period 7,800,000 Foreign expiring from 2020 to 2021 26,500,000 Total $ 52,800,000 The realization of deferred tax benefits is contingent upon future earnings and is fully reserved at December 31, 2020. On December 11, 2013, the Mexican government enacted a tax reform that increased the effective tax rate applicable to the Company's Mexican operations. The law, effective January 1, 2014, increased the future corporate income tax rate to 30%, created a 10% withholding tax on dividends paid to non-resident shareholders and created a new Extraordinary Mining duty which is equal to 0.5% of gross revenues from the sale of gold, silver and platinum. Furthermore, the reform introduced a Special Mining Duty of 7.5%. The Special Mining Duty is deductible for income tax purposes. The Special Mining Duty is generally applicable to earnings before income tax, depreciation, depletion, amortization and interest. There will be no deductions related to development type costs, but exploration and prospecting costs are deductible when incurred. Certain non-deducted exploration expenditures incurred prior to January 1, 2014 are also deductible in the calculation of the Special Mining Duty. For the years ended December 31, 2020 and 2019, the Company had no taxes payable under the 7.5% Special Mining Duty. The Company or its subsidiaries file income tax returns in the United States and México. These tax returns are subject to examination by local taxation authorities provided the tax years remain open to audit under the relevant statute of limitations. The following summarizes the open tax years by major jurisdiction: United States: Three years after utilization of Net Operating Loss Carryforward México: 2016 to 2020 The Company recognizes interest and penalties related to UTBs on the interest expense line and other expense line of the accompanying consolidated statement of operations. Accrued interest and penalties are included in the related liability lines in the accompanying balance sheet.

8. STOCKHOLDERS' EQUITY

8. STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2020
Equity [Abstract]
STOCKHOLDERS' EQUITY	Authorized Capital 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. The Company issued 1,000 shares of Series A Preferred Stock to its CEO. At December 31, 2020 and December 31, 2019, there were 1,000 shares of Series A Preferred Stock outstanding. 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 were convertible to common shares at $2.50 per share, through June 30, 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. The Dividend is calculated at 4.0% of $4,337,480 payable annually on June 30. At December 31, 2020 dividends for the years 2017 to 2020 totaling $693,459 were in arrears. 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. (“K.D.”) Diepholz, Chairman-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 $2.41 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. The expiration of the Golden Post Warrant was extended on May 14, 2020, pursuant to an additional financing agreement with Golden Post. 2. 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. Additional Financing Agreement with Golden Post Rail, LLC, a Texas Limited Liability Company, and with Shareholders of DynaResource, Inc. On May 14, 2020, the Company closed an additional financing agreement with Golden Post, and with certain individual shareholders of DynaUSA (“DynaUSA Shareholders”), and related agreements. A summary of the transactions and related agreements are set forth below: 1. Pursuant to the May 14, 2020 Note Purchase Agreement (the “NPA”) among the Company, Golden Post Rail, LLC (the “Lead Purchaser”), and the other parties listed on Exhibit A thereto (the “Remaining Purchasers”): ● Golden Post acquired the following securities (a) A convertible promissory note (the “Golden Post Note”) payable to Golden Post in the principal amount of $2,500,000, bearing interest at 10%, and maturing two years from the date of execution. One half of the principal amount of the Golden Post Note, or $1,250,000, has been fully funded in accordance with an agreed-upon draw summary and budget. The balance of the principal amount will also be funded in accordance with agreed-upon draw summaries and the budget. The Golden Post Note is convertible, at the option of Golden Post, into shares of Series D Senior Convertible Preferred Stock (the “Series D Preferred”) at a conversion price of $2.00 per share; and (b) A common stock purchase warrant (the “2020 Warrant”) for the purchase of 783,976 shares of the Company’s common stock, at an exercise price of $0.01 per share, and maturing on the 10-year anniversary of the date of issuance. The 2020 Warrant contains anti-dilution provisions; and ● The Remaining Purchasers acquired the following securities a) Convertible promissory notes (the “Remaining Notes”) in the aggregate principal amount of $1,400,000, bearing interest at 10%, and maturing two years from the date of issuance. The Remaining Notes have been fully funded. The Remaining Notes are convertible, at the option of each individual Remaining Purchaser, into shares of Series D Preferred at a conversion price of $2.00 per share; and b) Common stock purchase warrants (the “Remaining Purchasers Warrants”) for the purchase of an aggregate of 439,026 shares of the Company’s common stock, at an exercise price of $0.01 per share, and maturing on the 10-year anniversary of the date of issuance. The Remaining Purchasers Warrants contain anti-dilution provisions. 2. Also pursuant to the NPA, the Company and the Lead Purchaser have agreed to amend the common stock purchase warrant dated June 30, 2015 (the “2015 Warrant”), issued to the Lead Purchaser in connection with that certain Securities Purchase Agreement dated as of May 6, 2015. The 2015 Warrant contemplates the purchase, upon exercise, of 2,166,527 shares (subject to adjustment) of the Company’s common stock and matured June 30, 2020 (the “Termination Date”). The amendment to the 2015 Warrant provides that, following the expiration of the 2015 Warrant pursuant to its terms, the Company will issue to the Lead Purchaser a new warrant (the “New Warrant”), substantially in the same form of the 2015 Warrant, for the number of shares of the Company’s common stock that went unexercised on the Termination Date, if any. The New Warrant has a maturity date of June 30, 2022. 3. As part of the transaction contemplated by the NPA, the Company executed an Amended and Restated Registration Rights Agreement pursuant to which Golden Post may require the Company to register the shares of common stock which may be issued upon (i) the conversion of the Series C Senior Convertible Preferred Stock (“Series C Preferred”), (ii) the conversion of the Series D Preferred, and (iii) the shares of common stock issuable upon the exercise of the 2015 Warrant, the 2020 Warrant, and a compensatory warrant issued to the Lead Purchaser on May 13, 2020 (described below under the heading “Compensatory Issuances”), including any additional shares of common stock issuable pursuant to anti-dilution provisions of such securities. 4. Pursuant to the transaction contemplated by the NPA, the Company agreed to call a special meeting of Company stockholders, to be held not later than July 14, 2020, to solicit stockholder approval of (a) an amendment of the Company’s certificate of incorporation to increase the number of authorized shares of common stock from 25,000,000 shares to 40,000,000 shares, and (b) an amendment of the Certificate of Designations of the Series C Preferred, in order to (a) extend the maturity date of the Series C Preferred by an additional two (2) years, (ii) add an equity cap in respect of the conversion of Series C Preferred into common stock of the Company, and (iii) add certain restrictions on the ability of the Company to issue Series C Preferred. The special meeting was properly called and held on July 13, 2020, whereby Company stockholders confirmed approval for each item referenced in item 4 above. 5. Compensatory Issuances 6. In order to accommodate the issuance of the additional 1,771 shares of Series C Preferred, on May 13, 2020 the Company filed with the Secretary of State of Delaware a Certificate of Increase of Series C Senior Convertible Preferred Stock, to increase the number of shares of preferred stock designated as Series C Preferred from 1,733,221 shares to 1,734,992 shares (“Certificate of Increase”). (1) Also, on May 13, 2020, the Company filed with the Secretary of State of Delaware a Certificate of Designations of the Powers, Preferences and Relative, Participating, Optional and Other Special Rights of Preferred Stock and Qualifications, Limitations and Restrictions thereof of Series D Senior Convertible Preferred Stock, contemplating the authorization of 3,000,000 shares of Series D Preferred (“Certificate of Designation”). The sale of the Golden Post Note, the Remaining Notes, the 2020 Warrant, the Remaining Purchasers Warrants, the Compensatory Warrant, and the Series C Preferred was made pursuant to a privately negotiated transaction that did not involve a public offering of securities and, accordingly, the Company believes that the transaction was exempt from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof. Each investor represented that it (A) is an “accredited investor” and (B) has such knowledge and experience in financial and business matters that the investor is capable of evaluating the merits and risks of acquiring the securities acquired by such investor. All of the foregoing securities are deemed restricted securities for purposes of the Securities Act. Due to underlying anti-dilutive provisions contained in the Series C Preferred Shares and the Golden Post Warrant, the Company incurred derivative liabilities. On May 14, 2020 in connection with the Series D Convertible Note financing, the expiration date for the Series C Preferred Shares and the Golden Post warrants were extended to June 30, 2022. In addition, a new derivative liability was incurred due to the issuance of warrants for kicker shares at December 31, 2019 the total derivative liability was $24,854 which included $10,787 for the Series C Preferred shares, and $14,068 in connection with the Golden Post Warrants. At December 31, 2020 the total derivative liability was $2,371,560 which included $601,313 for the Series C Preferred Shares, and $817,613 in connection with the Golden Post Warrants and $952,634 in connection with the Series D Convertible Note Kicker Warrants. The deemed dividend for the years ending December 31, 2020 and December 31, 2019 was $173,499 and $173,320 respectively. As the Company has not declared these dividends, it is required only as an item “below” the net income (loss) amount on the accompanying consolidated statements of income (loss). Due to the nature of this transaction as mandatorily redeemable, the preferred shares are classified as “temporary equity” on the balance sheet. Preferred Series C Carrying Value, December 31, 2019 $ 4,333,053 Issuances at Fair Value, Net of Issuance Costs — Bifurcation of Derivative Liability — Relative Fair Value of Warrants – Preferred Stock Discount 4,427 Accretion of Preferred Stock to Redemption Value — Carrying Value, December 31, 2020 $ 4,337,480 Preferred Stock (Undesignated) In addition to the 1,000 shares designated as Series A Preferred Stock, the 1,734,992 shares designated as Series C Preferred Shares and 3,000,000 shares designated as Series D Preferred Shares, the Company is authorized to issue an additional 15,265,008 shares of Preferred Stock, having a par value of $0.0001 per share. The Board of Directors of the Company has authority to issue the Preferred Stock from time to time in one or more series, and with respect to each series of the Preferred Stock, to fix and state by the resolution the terms attached to the Preferred Stock. At December 31, 2020 and December 31, 2019, there were no other shares of Preferred Stock outstanding. Separate Series; Increase or Decrease in Authorized Shares Common Stock The Company is authorized to issue 40,000,000 common shares at a par value of $0.01 per share. These shares have full voting rights. At December 31, 2020 and December 31, 2019, there were 17,722,825 and 17,722,825 shares outstanding, respectively. No dividends were paid for the years ended December 31, 2020 and 2019, respectively. Preferred Rights The Company issued “Preferred Rights” for the rights to percentages of revenues generated from the San Jose de Gracía Pilot Production Plant and received $784,500 for these rights. This has been reflected as “Preferred Rights” in stockholders’ equity. As of December 30, 2020, $744,500 had been repaid, leaving a current balance of $40,000 and $40,000 as of December 31, 2020 and 2019, respectively Stock Issuances There were no issuances of common stock during the years ending December 31, 2020 and December 31, 2019. Treasury Stock No treasury shares were issued or acquired during the year ended December 31, 2019. At December 31, 2019, 778,980 treasury shares were outstanding. During the year ending December 31, 2020, 262,500 treasury shares were transferred for services provided to the Company. At December 31, 2020, 516,480 treasury shares remained outstanding. Warrants 2020 Activity On May 13, 2020 the Company issued 2,306 warrants to purchase shares of common stock with an exercise price of $.01per share related to anti-dilution provisions of the Series C preferred stock. These warrants expire on May 13, 2027. On May 14, 2020, the Company issued 1,223,002 warrants to purchase shares of common stock with an exercise price of $.01 per share as kicker shares as part of the Series D note agreements. These warrants expire on May 14, 2030. On June 30, 2020, as part of the Series D note agreement the Company issued 2,166,527 warrants to purchase shares of common stock with an exercise price of $2.04 per share to replace the 2,166,527 warrants previously outstanding which expired on that date. These warrants expire on June 30, 2022. At December 2020, the Company had a total of 3,391,835 warrants outstanding. 2019 Activity The Company had 2,166,527 warrants outstanding at December 31, 2019. There were no warrants issued or exercised in 2019 and no warrants expired in 2019. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Intrinsic Value Balance at December 31, 2019 2,166,527 $ 2.45 0.51 $ - Granted 3,391,985 $ 1.31 4.89 $ - Exercised - $ - $ - Forfeited 2,166,527 $ - $ - Balance at December 31, 2020 3,391,985 $ 1.31 4.34 $ - Exercisable at December 31, 2020 3,391,834 $ 1.31 4.34 $ -

9. RELATED PARTY TRANSACTIONS

9. RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	Related Party Transactions Dynacap Group Ltd. The Company paid $114,250 and $146,125 to Dynacap Group, Ltd. (“Dynacap”, an entity controlled by the CEO of the Company) for consulting and other fees during the years ended December 31, 2020 and 2019, respectively. Advances from Goldgroup Mining Inc. (“Goldgroup”) to Dyna México In 2014, Goldgroup advanced $111,500 to DynaMéxico and in 2013 Goldgroup advanced $120,000 USD to DynaMéxico. This total of $231,500 was carried by DynaMéxico as a Due to Non-Controlling Interest. This balance was removed as part of the elimination of the non-controlling interest in February 2020. At December 31, 2020 and December 31, 2019, the balance of Due to Non-Controlling interest was $0 and $231,500, respectively.

10. COMMITMENTS AND CONTINGENCI

10. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Concession Taxes 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 recent business activities and current and forward plans and considering expenditures on mining concessions from 2002-2017 and continuing expenditures in current and forward activities, the Company does not anticipate that DynaMéxico will have any difficulties meeting the minimum annual expenditures for the concessions ($388 – $2,400 Mexican Pesos per hectare). DynaMéxico retains sufficient carry-forward amounts to cover over 10 years of the minimum expenditure (as calculated at the 2017 minimum, adjusted for annual inflation of 4%). Leases 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 Community surrounding San Jose de Gracía 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 on January 1st each year by DynaMineras of $1,359,443 Pesos (approx. $72,000 USD), commencing in 2014. The Company leases office space for its corporate headquarters in Irving, Texas. In September 2017, the Company entered into a sixty-six-month extension of the lease through 2023. As part of the agreement the Company received six months free rent as a finish out allowance. The Company capitalized the leasehold improvement costs and amortized them over the rent abatement period as rent expense. The Company makes tiered lease payments on the 1st of each month. Effective January 1, 2019, the Company adopted ASC 842, which requires recognition of a right-of-use asset and lease liability for all leases at the commencement date based on the present value of lease payments over the lease term. Additional qualitative and quantitative disclosures regarding the Company's leasing arrangements are also required. The Company adopted ASC 842 prospectively and elected the package of transition practical expedients that does not require reassessment of (1) whether any existing or expired contracts are or contain leases, (2) lease classification and (3) initial direct costs. In addition, the Company has elected other available practical expedients to not separate lease and non-lease components, which consist principally of common area maintenance charges, for all classes of underlying assets and to exclude leases with an initial term of 12 months or less. The Company determines if a contract is or contains a lease at inception. As of December 31, 2020, the Company has two operating leases - a six- and one-half year lease for office space with a remaining term of twenty-four months and a twenty-year ground lease in association with its México mining operations with a remaining term of thirteen years. Variable lease costs consist primarily of variable common area maintenance, storage parking and utilities. The Company’s leases do not have any residual value guarantees or restrictive covenants. As the implicit rate is not readily determinable for most of the Company’s lease agreements, the Company uses an estimated incremental borrowing rate to determine the initial present value of lease payments. These discount rates for leases are calculated using the Company's interest rate of promissory notes. The Company’s components of lease cost are as follows: Year Ended December 31, 2020 Operating Lease – Office Lease $ 84,431 Operating Lease – Ground Lease 86,091 Short Term Lease Costs 12,730 Variable Lease Costs — TOTAL $ 183,251 Weighted average remaining lease term and weighted average discount rate are as follows: Weighted Average Remaining Lease Term (Years) – Operating Leases 11.00 Weighted Average Discount Rate – Operating Leases 12.50 % Estimated future minimum lease obligations are as follow for the years ending December 31: YEAR 2021 $ 174,911 2022 179,377 2023 101,499 2024 96,896 2025 99,803 Thereafter 787,681 Total $ 1,440,167 Less Imputed Interest (671,483 ) RIGHT OF USE LIABILITY $ 768,684 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. $48M USD 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”). On October 5, 2016, the Thirty-Sixth Civil Court of the Superior Court of Justice of the Federal District of México (Tribunal Superior de Justicia del Distrito Federal) approved a Lien (referred to by the court as an “Embargo”), in favor of DynaMéxico, upon Stock Certificates in the name of Goldgroup Resources Inc. (“Goldgroup”). The Stock Certificates subject to the Lien (“Embargo”) constitute Shares of DynaMéxico (“the Goldgroup DynaMéxico Shares”). On August 24, 2017 a Federal Amparo Judge (“Juzgado de Distrito”) in the State of Vera Cruz, México, dismissed Goldgroup Resources Inc’s Amparo Trial Challenge to the $48 M USD damages award previously granted in favor of DynaMéxico. Pursuant to the dismissal ruling, the $48M USD damages award, previously granted to DynaMéxico by the Thirty-Sixth Civil Court of the Superior Court of Justice of the Federal District of México on October 5, 2015, was effectively confirmed. On May 27, 2019, The Eleventh Collegiate Court in Civil Matters of the First Circuit (“México Circuit Court”, and the Court of Final Appeal for Goldgroup Resources Inc.) issued a written notice confirming it was ruling against the Amparo Appeal filed by Goldgroup Resources Inc. and in Favor of DynaResource de México, S.A. de C.V. In an effort to stay the issuance of the Ruling by the México Circuit Court, Goldgroup Resources Inc. filed a request to The Supreme Court of México to review the Amparo Appeal decision. On July 3, 2019 an Official Ruling from The Supreme Court of México was issued to Reject the Request of Goldgroup Resources Inc. (the “México Supreme Court Rejection to Goldgroup”). The Justices of the First Chamber of the Supreme Court of Justice of México issued a Rejection Notice to Goldgroup Resources Inc., “due to the lack of legitimacy presented by Goldgroup”; and in issuing the Rejection Notice to Goldgroup, the Supreme court thereby reverted the Amparo Appeal back to the México Circuit Court where the Official and Final Ruling from the México Circuit Court was issued. On December 6, 2019 the 11th Federal Circuit Collegiate Court in México issued its Final Ruling (“the DynaMéxico Final México Legal Ruling”). The DynaMéxico Final México Legal Ruling is Favorable to DynaMéxico, and denies the Amparo challenge of Goldgroup Resources Inc., the subsidiary of Goldgroup Mining Inc. (“GGA.TO”). The DynaMéxico Final México Legal Ruling constitutes the Final Appeal of Goldgroup Resources Inc.; and is not subject to further appeal. The DynaMéxico Final Legal Ruling is the result and culmination of 7 years of legal action performed by DynaMéxico and is the Final Ruling of the 11th Federal Circuit Collegiate Court. With this DynaMéxico Final Legal Ruling issued, all matters before the Court in México with respect to DynaMéxico and Goldgroup Resources Inc. in México are fully resolved and are no longer subject to appeal or reconsideration. Legal Summary - Consequence of the DynaMéxico Final México Legal Ruling : 1. The $48,280,808.34 USD damages award (dated October 05, 2015) in favor of DynaMéxico and against Goldgroup Resources Inc. is now Final. Goldgroup Resources’ challenge(s) to that award have been fully denied and the damages award is Final. 2. The Lien against the Shares of DynaMéxico owned by Goldgroup Resources Inc. (established October 5, 2016, the “Lien against Goldgroup Shares”) is now fully confirmed, final, and enforceable 3. Ownership of the shares of DynaMéxico held by Goldgroup Resources (currently representing 20% of the outstanding shares of DynaMéxico) are subject to the lien against Goldgroup Shares. DynaMéxico Foreclosure and Recovery of All Remaining Shares of Goldgroup Resources 1. On February 20, 2020, a México City court issued its Final Judgment, effectively foreclosing on all of the remaining shares in DynaMéxico held by Goldgroup Resources Inc. and awarding the shares to DynaMéxico (the “DynaMéxico Foreclosure Judgment”). 2. The DynaMéxico Foreclosure Judgment awarded to DynaMéxico 100% of the Shares of DynaMéxico previously owned by Goldgroup Resources Inc. (a Subsidiary Company in México owned 100% by Goldgroup Mining Inc., Vancouver, BC., “GGA.TO”). Prior to the DynaMéxico Foreclosure Judgment, Goldgroup Resources Inc. owned shares of DynaMéxico constituting 20% of the total outstanding shares of DynaMéxico (the “Goldgroup Shares of DynaMéxico”). The Goldgroup Shares of DynaMéxico were held under Lien by DynaMéxico since October 2016. 3. DynaUSA owns 80% of the outstanding shares of DynaMéxico; DynaMéxico holds 20% of the outstanding shares of DynaMéxico as treasury shares. DynaUSA and DynaMéxico file Recognition Claim in Dallas County, Texas to Recognize the $48M Foreign Judgment in the US. On August 28, 2020 DynaUSA and DynaMéxico filed a Recognition Claim in Dallas County Texas USA, in order to register the $48M Foreign Judgment against Goldgroup Resources Inc. in the United States. On November 6, 2020, the Mexican courts ruled the $48M USD judgement could be transferred to the U.S. to support the Company’s filing of August 28, 2020. Appeal of U.S. Arbitration Award and Posting of Appeal Bond On March 25, 2020, the United States District Court for the District of Colorado denied the motion by DynaUSA and DynaMéxico to alter or amend its judgment (thereby confirming the August 2016 arbitration award), and, denied DynaUSA and DynaMéxico’s motions for stay and judgment pending appeal and to waive or reduce supersedes bond. On April 10, 2020, DynaUSA and DynaMéxico appealed the March 25, 2020 ruling to the Tenth Circuit Court of Appeals and in accordance with the requirements of the appeal, posted a cash bond of $1,111,111 which is being held with the court. Mercuria Energy Trading, S.A. (“Mercuria”) – Mercuria’s Failure to Perform On December 8, 2019 Mercuria informed Mineras de DynaResource (“DynaMineras”) that it was terminating its mineral concentrates business. DynaMineras commenced delivery of Concentrates to Mercuria in February 2017. On March 16, 2020 DynaMineras was notified by Counsel for the London Court of International Arbitration (“LCIA”) that Mercuria had filed a request for Arbitration. On April 13, 2020, DynaMineras filed a response to Mercuria Energy Trading, S.A., claiming that Mercuria failed to perform numerous promises made to DynaMineras to advance funds in the amount of $1.5M USD.; and further challenging amounts payable claimed by Mercuria in the Arbitration. The arbitration matter is in the disclosure phase. 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 an adverse 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. Coronavirus Pandemic In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic, which continues to spread throughout the United States of America. Efforts implemented by local and national governments, as well as businesses, including temporary closures, are expected to have adverse impacts on local, national and the global economies. Although the disruption is currently expected to be temporary, there is uncertainty around the duration and the related economic impact. Therefore, while we expect this matter to have an impact our business, the impact to our results of operations and financial position cannot be reasonably estimated at this time.

11. DERIVATIVE LIABILITIES

11. DERIVATIVE LIABILITIES	12 Months Ended
	Dec. 31, 2020
Derivative Liability [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 the conversion feature of the Series C Preferred Stock based on the assumptions below: 2020 2019 Annual volatility rate 156% 144% Risk free rate 0.13% 1.58% Remaining Term 1.50 years 0.5 years Fair Value of common stock $0.78 $0.47 For the years ended December 31, 2020 and 2019, an active market for the Company’s common stock did not exist. Accordingly, the fair value of the Company’s common stock was estimated using a valuation model with level 3 inputs. The below table represents the change in the fair value of the derivative liability during the years ended December 31, 2020 and 2019. Period Ended 2020 2019 Fair value of derivative (stock), beginning of period/year $ 37,038 $ 402,909 Change in fair value of derivative 276,547 (365,871 ) Fair value of derivative on the date of extension 287,728 - Fair value of derivative(stock), end of period/year $ 601,313 $ 37,038 Preferred Series C Warrants As discussed in Note 8, 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 Series C Preferred Stock based on the assumptions below: 2020 2019 Annual volatility rate 156 % 144 % Risk free rate 0.13 % 1.58 % Remaining Term 1.50 years 0.5 years Fair Value of common stock $ 0.78 $ 0.47 For the years ended December 31, 2020 and 2019, an active market for the Company’s common stock did not exist. Accordingly, the fair value of the Company’s common stock was estimated using a valuation model with level 3 inputs. The below table represents the change in the fair value of the derivative liability during the years ended December 31, 2020 and 2019. Period Ended 2020 2019 Fair value of derivative (warrants), beginning of period/year $ 49,066 $ 571,774 Change in fair value of derivative 367,781 (522,708 ) Fair value of derivative on the date of issuance 400,766 — Fair value of derivative(warrants), end of period/year $ 817,613 $ 49,066 Series D Notes Kicker Warrants As discussed in Note 8, the Company analyzed the embedded conversion features of the Series D Notes 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 Series D Warrants based on the assumptions below: 2020 Annual volatility rate 156 % Risk free rate 0.13 % Remaining Term 10.00 years Fair Value of common stock $ 0.78 For the year ended December 31, 2020, an active market for the Company’s common stock did not exist. Accordingly, the fair value of the Company’s common stock was estimated using a valuation model with level 3 inputs. The below table represents the change in the fair value of the derivative liability during the year ended December 31, 2020. Period Ended 2020 Fair value of derivative (warrants), beginning of period/year — Fair value of derivatives on date of issuance $ 409,998 Change in fair value of derivatives 542,636 Fair value of derivative(warrants), end of period/year $ 952,634

12. NON-CONTROLLING INTEREST

12. NON-CONTROLLING INTEREST	12 Months Ended
	Dec. 31, 2020
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% until February 24, 2020 when the minority interest was eliminated. Changes in Non-Controlling Interest for the years ended December 31, 2020 and 2019, respectively were as follows: 2020 2019 Beginning balance $ (5,723,663 ) $ (5,611,528 ) Operating income (loss) (61,589 ) (62,511 ) Share of Other Comprehensive Income (loss) (11,669 ) (49,624 ) Elimination of Non-Controlling Interest (5,796,921 ) — Ending balance $ — $ (5,723,663 )

13. FAIR VALUE OF FINANCIAL INS

13. FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2020
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	The ASC guidance for fair value measurements and disclosure establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Inputs Quoted prices for identical instruments in active markets. Level 2 Inputs Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Inputs Instruments with primarily unobservable value drivers. As of December 31, 2020, and December 31, 2019, the Company’s financial assets were measured at fair value using Level 3 inputs, with the exception of cash, which was valued using Level 1 inputs. A description of the valuation of the Level 3 inputs is discussed in Note 11. Fair Value Measurement at December 31, 2020 Using: Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative Liabilities $ 2,371,560 — — 2,371,560 Totals $ 2,371,560 $ — $ — 2,371,560 Fair Value Measurement at December 31, 2019 Using: Liabilities: Derivative Liabilities $ 86,104 — — 86,104 Totals $ 86,104 $ — $ — 86,104

14. REVENUE CONCENTRATION

14. REVENUE CONCENTRATION	12 Months Ended
	Dec. 31, 2020
Risks and Uncertainties [Abstract]
REVENUE CONCENTRATION	The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: For each of the twelve months ended December 31, 2020 and 2019, three and two customers accounted for 100% of revenue, respectively. At December 31, 2020 and 2019, four and two customers accounted for 100% of accounts receivable, respectively.

15. NOTES PAYABLE

15. NOTES PAYABLE	12 Months Ended
	Dec. 31, 2020
Notes Payable [Abstract]
NOTES PAYABLE	In June 2017, the Company entered into financing agreements for unpaid mining concession taxes on the Francisco Arturo mining concession for the period July 1, 2014 to December 31, 2015 in the amount of $533,580. The Company paid an initial 20% payment in the amount of $106,716 and financed the balance over 36 months at 18% interest. In February 2018 the Company entered into a financing agreement for unpaid mining concessions taxes on the Francisco Arturo mining concession for the year ended December 31, 2016 in the amount of $552,990. The Company paid an initial payment of $110,598 and financed the balance over 36 months at 18%. In June 2018 the Company entered into financing agreements for the unpaid mining concession taxes on the Francisco Arturo mining concession for the year ended December 31, 2017 and the period ending June 30, 2018 in the amount of $1,739,392. The Company paid an initial 20% payment of $347,826 and financed the balance over 36 months at 21.84% In February 2019 the Company entered into a financing agreement for unpaid mining concession taxes on the mining concession for the year ended December 31, 2018 in the amount of $335,350. The Company paid an initial 20% payment of $67,070 and financed the balance over 36 months at an interest rate of 21%. In June 2018, the Company applied for a reduction of the Francisco Arturo mining concession, from 69,121 hectares to 3,280 hectares. On July 31, 2018, The application for reduction was approved and the Company paid an initial amount of 985,116 MNP (Pesos), for the second semester 2018 mining concessions taxes on the reduced Francisco Arturo mining concession. The Company continues to accrue an amount of $22,500 (USD) per semester on the reduced Francisco Arturo mining concession. As of June 2019, the Company ceased making monthly payments on the above noted Francisco Arturo concession notes and has petitioned the Hacienda for a reduction in the liability equal to the reduction in the Francisco Arturo concession above. For financial reporting purposes the Company continues to carry all notes at unpaid principal amount and accrues interest on a monthly basis. At December 31, 2020 $675,606 of accrued interest on the notes was included in accrued liabilities on the consolidated balance sheet. In October 2019 the Company entered into a financing agreement for unpaid mining concession taxes on the core mining concessions in the amount of $299,474. The Company paid an initial 20% payment of $59,895 and financed the balance over 36 months at an interest rate of 22%. The following is a summary of the transaction during the years ended December 31, 2020 and 2019: Balance December 31, 2018 $ 1,803,235 Exchange Rate Adjustment 73,314 Property Holding Taxes - Core Concessions 634,824 20% Down Payment (126,965 ) 2019 Principal Payments (111,977 ) Balance December 31, 2019 2,272,431 Exchange Rate Adjustment (124,352 ) 2020 Principal Payments (66,644 ) Balance December 31, 2020 $ 2,081,435 At December 31, 2020 future maturities of notes payable are as follows: Year Ending December 31: 2021 $ 1,984,007 2022 97,428 $ 2,081,435

16. SUBSEQUENT EVENTS

16. SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	The Company has evaluated events from December 31, 2020, through the date whereupon the financial statements were issued, and has described below the events subsequent to the end of the period. Termination of Sales Agreement On January 6, 2021 Mineras de DynaResource SA de CV terminated its sales agreement with a major customer. Revolving Credit Line Facility On February 4, 2021 Mineras de DynaResource SA de CV (“Seller”) entered into a Revolving Credit Line Facility and Commercial Offtake Agreement (the “RCL"), with a commercial buyer. Under the terms of the RCL: ● The Company will deliver 100% of its produced concentrates to the buyer and provider of the RCL, through December 31, 2022; unless extended by the Company; ● An initial RCL has been established by buyer in the amount of $3.75M USD; ● At May 1, 2021, the RCL will be increased to an amount equal to 80% of prior 3 month’s revenue; ● Each successive month, the RCL shall be adjusted according to the company’s prior 3 month’s revenue; ● The RCL shall never be less than $3.75M USD; ● The RCL will be interest free for 45 days; ● The RCL is to be repaid through deliveries of Concentrates or Cash within 120 days; $48M First Amended Petition and Recognition Claim Filed in Dallas County, Texas USA On February 4, 2021 DynaUSA and DynaMéxico filed its First Amended Petition for Recognition of the $48M Foreign Judgment against Goldgroup Resources Inc. in the US.

1. NATURE OF ACTIVITIES AND S_2

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
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 the production of precious metals. In 2000, the Company formed a wholly owned subsidiary, DynaResource de México S.A. de C.V., chartered in México (“DynaMéxico”). This Company was formed to acquire, invest in and develop resource properties in México. DynaMéxico owns a portfolio of mining concessions that currently includes its interests in the San José de Gracía Project (“SJG”) in northern Sinaloa State, México. The SJG District covers 9,920 hectares (24,513 acres) on the west side of the Sierra Madre mountain range. The Company currently owns 80% of the outstanding capital of DynaMéxico. DynaMéxico currently holds 20% of the Shares of DynaMéxico as treasury shares, after complete foreclosure and recovery of those shares on February 20, 2020 from Goldgroup Resources Inc., a wholly owned subsidiary of Goldgroup Mining Inc. Vancouver, BC (“Goldgroup”). In 2005, the Company formed DynaResource Operaciones de San Jose De Gracía S.A. de C.V. (“DynaOperaciones”) as an operating subsidiary to manage registered employees, and acquired effective control of Mineras de DynaResource, S.A. de C.V. (formerly Minera Finesterre S.A. de C.V., “DynaMineras”). The Company owns 100% of DynaMineras and 100% of DynaOperaciones. The Company elected to become a voluntary reporting issuer in Canada in order to avail itself of Canadian regulations regarding reporting for mining properties and, more specifically, National Instrument 43-101 (“NI 43-101”). This regulation sets forth standards for reporting resources in a mineral property and is a standard recognized in the mining industry.
Significant Accounting Policies	The financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items that: 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods presented.
Basis of Presentation	The Company prepares its financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States.
Use of Estimates	In order to prepare financial statements in conformity with accounting principles generally accepted in the United States, management must make estimates, judgments and assumptions that affect the amounts reported in the financial statements and determines whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from the resolution currently anticipated by management and on which the financial statements are based.
Principles of Consolidation	The financial statements include the accounts of DynaResource, Inc., as well as DynaResource de México, S.A. de C.V. (100% ownership), DynaResource Operaciones S.A. de C.V. (100% ownership) and Mineras de DynaResource S.A. de C.V. (100% ownership). All significant inter-company transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated.
Non-Controlling Interest	The Company’s subsidiary, DynaResource de México S.A. de C.V, was 20% owned by Goldgroup Resources, Inc. until February 20, 2020 when the Company recovered the shares as partial satisfaction of a legal judgement. See Note 10 for further details. The Company accounted for this outside interest as a “non-controlling interest” through February 2020. A 20% share of operating income (loss) and comprehensive income (loss) was allocated to the non-controlling interest through the date of the recovery of the shares.
Investments in Affiliates	The Company owns a 19.95% interest in DynaResource Nevada, Inc., a Nevada Corporation (“DynaNevada”), with one operating subsidiary in México, DynaNevada de México, S.A. de C.V. (“DynaNevada de México”), together “DynaNevada”. The Company accounts for this investment using the cost basis. The Company has significant influence over DynaNevada, but not control, due to the lack of a majority voting interest in the entity. DynaNevada has been dormant for several years. DynaUSA has no plan or intention of future funding with DynaNevada nor are any other transactions with DynaNevada contemplated at this time. The Company therefore accounts for this investment using the cost basis. The investment was $70,000 and $70,000 at December 31, 2020 and 2019, respectively.
Cash and Cash Equivalents	The Company considers all highly liquid debt instruments with an original maturity of three months or less to be cash equivalents. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. As of December 31, 2020, the Company had $1,507,278 of deposits in U.S. Banks in excess of the FDIC limit.
Accounts Receivable and Allowances for Doubtful Accounts	The allowance for accounts receivable is recorded when receivables are considered to be doubtful of collection. As of December 31, 2020, and 2019, respectively, no allowance has been made.
Foreign Tax Receivable	Foreign Tax Receivable is comprised of recoverable value-added taxes (“IVA”) charged by the Mexican government on goods and services rendered to the company in Mexico and paid by the company. Under certain circumstances, these taxes are recoverable by filing a tax return and application for reimbursement. IVA Amounts charged to and paid by the company are recorded and carried as receivables until the funds are collected by the company. The total amounts of the IVA receivable as of December 31, 2020 and December 31, 2019 were $2,179,914 and $1,297,387, respectively.
Inventories	Inventories are carried at the lower of cost or net realizable value and consist of mined tonnage, gravity and flotation concentrates, and gravity tailings or flotation feed material. The inventories were $603,967 and $523,089 as of December 31, 2020 and December 31, 2019, respectively.
Proven and Probable Reserves (No Known Reserves)	The definition of proven and probable reserves is set forth in SEC Industry Guide 7 (“Industry Guide 7”). Proven reserves for which (1) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes, grade and/or quality are computed from the results of detailed sampling and (2) the sites for inspection, sampling and measurement are spaced so closely and the geological character is so well defined that size, shape, depth and mineral content of the reserves are well-established. Probable reserves are reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high enough to assume continuity between points of observations. As of December 31, 2020, none of the Company's properties contain resources that satisfy the definition of proven and probable reserves. The Company classifies the development of its properties, including the San Jose de Gracía Property, as exploration stage projects since no proven or probable reserves have been established under Industry Guide 7.
Technical Report and Resource Estimate According to Canadian National Instrument 43-101 (2012)	In 2012, DynaMéxico commissioned Servicios y Proyectos Mineros
Property and Equipment	Substantially all mine development costs, including design, engineering, mine construction, and installation of equipment are expensed as incurred as the Company has not established proven and probable reserves on any of its properties. Only certain types of mining equipment which has alternative uses or significant salvage value, may be capitalized without proven and probable reserves. Depreciation is computed using the straight-line method. Office furniture and equipment are being depreciated on a straight-line method over estimated economic lives ranging from 3 to 5 years. Leasehold improvements, which relate to the Company's corporate office, are being amortized over the term of the lease of 10 years. Design, Construction, and Development Costs: When proven and probable reserves as defined by Industry Guide 7 exist, development costs are capitalized, and the property is a commercially minable property. Mine development costs incurred either to develop new ore deposits, expand the capacity of operating mines, or to develop mine areas substantially in advance of current production would be capitalized. Costs of start-up activities and costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations as incurred. Costs of abandoned projects are charged to operations upon abandonment. All capitalized costs would be amortized using the units of production method over the estimated life of the ore body based on recoverable ounces to be mined from proven and probable reserves. Certain costs to design and construct mining and processing facilities may be incurred prior to establishing proven and probable reserves. As no proven and probable reserves have been established on any of the Company's properties, design, construction and development costs are not capitalized at any of the Company's properties, and accordingly, substantially all costs are expensed as incurred, resulting in the Company reporting larger operating expenses than if such expenditures had been capitalized. Additionally, the Company does not have a corresponding depreciation or amortization of these costs going forward since these expenditures were expensed as incurred as opposed to being capitalized. As a result of these and other differences, the Company's financial statements may not be comparable to the financial statements of mining companies that have established reserves as defined in Industry Guide 7.
Mineral Properties Interests	Mineral property interests include acquired interests in development and exploration stage properties, which are considered tangible assets. The amount capitalized relating to a mineral property interest represents its fair value at the time of acquisition. When a property does not contain mineralized material that satisfies the definition of proven and probable reserves, such as with the San Jose de Gracía Property, capitalized costs and mineral property interests are amortized using the straight-line method once production begins. As of December 31, 2020, the mining interests have been in the pilot production stage and therefore, no amortization has been expensed. Mining properties consist of 33 mining concessions covering approximately 9,919 hectares at the San Jose de Gracía property (“SJG”), the basis of which are amortized on the unit of production method based on estimated recoverable resources. If it is determined that the deferred costs related to a property are not recoverable over its productive life, those costs will be written down to fair value as a charge to operations in the period in which the determination is made. The amounts at which mineral properties and the related costs are recorded do not necessarily reflect present or future values. Impairment of Assets: For operating mines, recoverability is measured by comparing the undiscounted future net cash flows to the net book value. When the net book value exceeds future net undiscounted cash flows, an impairment loss is measured and recorded based on the excess of the net book value over fair value. Fair value for operating mines is determined using a combined approach, which uses a discounted cash flow model for the existing operations and a market approach for the fair value assessment of exploration land claims. Future cash flows are estimated based on quantities of recoverable mineralized material, expected gold and silver prices (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. The term "recoverable mineralized material" refers to the estimated amount of gold or other commodities that will be obtained after considering losses during processing and treatment of mineralized material. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company's estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold, silver and other commodity prices, production levels and costs and capital are each subject to significant risks and uncertainties. The recoverability of the book value of each property is assessed annually for indicators of impairment such as adverse changes to any of the following: ● estimated recoverable ounces of gold, silver or other precious minerals; ● estimated future commodity prices; ● estimated expected future operating costs, capital expenditures and reclamation expenditures. A write-down to fair value will be recorded when the expected future cash flow is less than the net book value of the property or when events or changes in the property indicate that carrying amounts are not recoverable. This analysis is completed as needed, and at least annually. As of the date of this filing, no events have occurred that would require write-down of any assets. As of December 31, 2020, and 2019, no indications of impairment existed.
Asset Retirement Obligation	As the Company is not obligated to remediate the mining properties, no Asset Retirement Obligation (“ARO”) has been established. Changes in regulations or laws, any instances of non-compliance with laws or regulations that result in fines, or any unforeseen environmental contamination could result in a material impact to the amounts charged to operations for reclamation and remediation.
Pre-Pilot Production Costs	During 2016, the Company conducted rehabilitation activity at the San Pablo mine and refurbished the Pilot Mill Facility at San Jose de Gracía and, in general prepared for test mining and pilot milling (“Pilot Production”) Operations. The costs associated with the rehabilitation, preparation, clean up and facilitation of this process were expensed as pre-pilot production costs.
Property Holding Costs	Holding costs to maintain a property on a care and maintenance basis are expensed in the period they are incurred. These costs include security and maintenance expenses, lease and claim fees and payments, and environmental monitoring and reporting costs.
Exploration Costs	Exploration costs are charged to operations and expenses as incurred. Exploration, development, direct field costs and administrative costs are expensed in the period incurred.
Transactions in and Translations of Foreign Currency	he functional currency for the subsidiaries of the Company is the Mexican Peso. As a result, the financial statements of the subsidiaries have been translated from Mexican Pesos into U.S. dollars using (i) year-end exchange rates for balance sheet accounts, and (ii) the weighted average exchange rate of the reporting period for all income statement accounts. Foreign currency translation gains and losses are reported as a separate component of stockholders’ equity and comprehensive income (loss). The financial statements of the subsidiaries should not be construed as representations that Mexican Pesos have been, could have been or may in the future be converted into U.S. dollars at such rates or any other rates. Relevant exchange rates used in the preparation of the financial statements for the subsidiaries are as follows for the years ended December 31, 2020 and 2019 (Mexican Pesos per one U.S. dollar): Dec 31, 2020 Dec 31, 2019 Current exchange rate Pesos 19.91 18.86 Weighted average exchange rate for the period ended Pesos 21.47 19.25 The Company recorded currency transaction gains (losses) of $(361,127) for the year ended December 31, 2020 and $397,161 for the year ended December 31, 2019.
Income Taxes	The Company accounts for income taxes under ASC 740 “Income Taxes” Income from the Company’s subsidiaries in México are taxed in accordance with applicable Mexican tax law.
Comprehensive Income (Loss)	ASC 220 “Comprehensive Income”
Revenue Recognition	The Company adopted ASC 606 “ Revenue from contracts with customers The amount of revenue recognized is initially recorded on a provisional basis based on the contract price and the estimated metal quantities based on assay data. The revenue is adjusted upon final settlement of the sale. The chief risk associated with the recognition of sales on a provisional basis is the fluctuations between the estimated quantities of precious metals based on the initial assay and the actual recovery from treatment and processing. As of December 31, 2020, there are $2,500,000 in customer deposit liabilities for payments received during the period for contracts expected to be settled in 2021. During the years ended December 31, 2020 and December 31, 2019 there was $0 and $1,750,000 of revenue recognized during the period from customer deposit liabilities (deferred contract revenue) from prior periods, and $0 of customer deposits refunded to the customer due to order cancellation. As of and for the year ended December 31, 2020 and December 31, 2019, there are no deferred contract costs or commissions. We have elected to account for shipping and handling costs as fulfillment costs after the customer obtains control of the concentrate.
Stock-Based Compensation	The Company accounts for stock options at fair value as prescribed in ASC 718 “Compensation – Stock Compensation”
Fair Value of Financial Instruments	The Company’s financial instruments consist of cash, receivables, payables and long-term debt. The carrying amount of cash, receivable and payables approximates fair value because of the short-term nature of these items. The carrying amount of long-term debt approximates fair value due to the relationship between the interest rate on long-term debt and the Company’s incremental risk adjusted borrowing rate.
Per Share Amounts	Earnings per share are calculated in accordance with ASC 260 “ Earnings per Share The Company had 3,391,855 warrants outstanding at December 31, 2020 which upon exercise, would result in the issuance of 3,391,855 shares of common stock. Of these warrants 2,166,527 were exercisable at $2.05 per share and 1,225,308 were exercisable at $.01 per share. The Company also had convertible debt instruments as of December 31, 2020 which, upon conversion at valuations from $2.00 to $2.50 per share, would result in the issuance of 2,227,312 shares of stock. The Company had 2,166,527 warrants outstanding at December 31, 2019 exercisable at $2.50 per share, which upon exercise, would result in the issuance of 2,166,527 shares of common stock. The Company also had convertible debt instruments as of December 31, 2019 which, upon conversion at a valuation of $2.50 per share, would result in the issuance of 335,250 shares of stock. Due to the Company’s net loss fully diluted weighted number of common shares outstanding and diluted earnings per share are the same under United States GAAP. Years ended December 31 2020 2019 Net loss attributable to common shareholders $ (5,477,733 ) $ (971,655 ) Shares: Weighted average number of common shares outstanding, Basic 17,722,825 17,722,825 Weighted average number of common shares outstanding, Diluted 17,722,825 17,722,825 Basic loss per share $ (0.31 ) $ (0.05 ) Diluted loss per share $ (0.31 ) $ (0.05 )
Related Party Transactions	FASB ASC 850 "Related Party Disclosures"
Recently Issued Accounting Pronouncements	Leases In February 2016, FASB issued ASU 2016-02— Leases (Topic 842). The update is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. As such, The Company was required to adopt these provisions as of the fiscal year beginning on January 1, 2019. The Company elected the available practical expedients and adopted ASC 842 effective January 1, 2019, prospectively. The adoption of this standard resulted in the initial recognition of right-of-use assets and lease liabilities of $878,605 and $891,023, respectively, with no material impact on the results of operations and cash flows. See Note 10 for additional information regarding our leases.

1. NATURE OF ACTIVITIES AND S_3

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Exchange rates	Dec 31, 2020 Dec 31, 2019 Current exchange rate Pesos 19.91 18.86 Weighted average exchange rate for the period ended Pesos 21.47 19.25
Per share amounts	Years ended December 31 2020 2019 Net loss attributable to common shareholders $ (5,477,733 ) $ (971,655 ) Shares: Weighted average number of common shares outstanding, Basic 17,722,825 17,722,825 Weighted average number of common shares outstanding, Diluted 17,722,825 17,722,825 Basic loss per share $ (0.31 ) $ (0.05 ) Diluted loss per share $ (0.31 ) $ (0.05 )

2. INVENTORIES (Tables)

2. INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory	2020 2019 Mined Tonnage, Gold-Silver Concentrates, and/or Gravity Tailings (Flotation Feed Material) $ 603,967 $ 523,089 Total Inventories $ 603,967 $ 523,089

3. PROPERTY AND EQUIPMENT (Tabl

3. PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Property and equipment	2020 2019 Leasehold improvements $ 9,340 $ 9,340 Office equipment 31,012 31,012 Office furniture and fixtures 78,802 78,802 Sub-total 119,154 119,154 Less: Accumulated depreciation and amortization (113,176 ) (109,927 ) Total Property $ 5,978 $ 9,227

7. INCOME TAXES (Tables)

7. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Deferred tax assets	2020 2019 Prior Year $ 13,780,490 $ 13,343,134 Tax (Expense) Benefit for Current Year 953,120 437,356 Expiration of NOL Carryforward Period (1,260,610 ) — Total Deferred Tax Asset 13,473,000 13,780,490 Less Valuation Allowance (13,473,000 ) (13,780,490 ) Net Deferred Tax Asset $ — $ —
Income (loss) before taxes	2020 2019 United States $ (3,955,124 ) $ (928,078 ) Foreign (1,410,699 ) 67,232 $ (5,365,823 ) $ (860,846 )
Income tax expense (benefit)	2020 2019 Current Federal $ — $ — State — — Foreign — — $ — $ — Deferred and Other Federal $ (486,441 ) $ (454,164 ) State — — Foreign (466,679 ) 16,808 (953,120 ) (437,356 ) Total Tax Expense (Benefit) (953,120 ) (437,356 ) Change in Valuation Allowance 953,120 437,356 Net Tax Expense (Benefit) $ — $ —
Effective income tax rate reconciliation	2020 2019 Tax (Expense) Benefit at Statutory Rate $ (1,126,823 ) $ (180,778 ) Foreign Tax Rate Differential (126,963 ) (34,434 ) Permanent Differences Stock Issued for Services 21,000 — Change in Derivative Liability 249,262 (222,145 ) Amortization of Loan Discount 72,089 — Other (41,685 ) — Change in Valuation Allowance 953,120 437,356 Provision for Income Tax Expense (Benefit) $ — $ —
Net operating loss carry-forward	United States Expiring 2029 through 2038 $ 18,500,000 United States indefinite carry forward period 7,800,000 Foreign expiring from 2020 to 2021 26,500,000 Total $ 52,800,000

8. STOCKHOLDERS' EQUITY (Tables

8. STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2020
Equity [Abstract]
Series C preferred stock	Preferred Series C Carrying Value, December 31, 2019 $ 4,333,053 Issuances at Fair Value, Net of Issuance Costs — Bifurcation of Derivative Liability — Relative Fair Value of Warrants – Preferred Stock Discount 4,427 Accretion of Preferred Stock to Redemption Value — Carrying Value, December 31, 2020 $ 4,337,480
Warrant activity	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Intrinsic Value Balance at December 31, 2019 2,166,527 $ 2.45 0.51 $ - Granted 3,391,985 $ 1.31 4.89 $ - Exercised - $ - $ - Forfeited 2,166,527 $ - $ - Balance at December 31, 2020 3,391,985 $ 1.31 4.34 $ - Exercisable at December 31, 2020 3,391,834 $ 1.31 4.34 $ -

10. COMMITMENTS AND CONTINGEN_2

10. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Lease cost	Year Ended December 31, 2020 Operating Lease – Office Lease $ 84,431 Operating Lease – Ground Lease 86,091 Short Term Lease Costs 12,730 Variable Lease Costs — TOTAL $ 183,251
Weighted average remaining lease term and weighted average discount rate	Weighted Average Remaining Lease Term (Years) – Operating Leases 11.00 Weighted Average Discount Rate – Operating Leases 12.50 %
Future minimum lease obligations	YEAR 2021 $ 174,911 2022 179,377 2023 101,499 2024 96,896 2025 99,803 Thereafter 787,681 Total $ 1,440,167 Less Imputed Interest (671,483 ) RIGHT OF USE LIABILITY $ 768,684

11. DERIVATIVE LIABILITIES (Tab

11. DERIVATIVE LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2020
Preferred Series C Stock
Valuation assumption	2020 2019 Annual volatility rate 156% 144% Risk free rate 0.13% 1.58% Remaining Term 1.50 years 0.5 years Fair Value of common stock $0.78 $0.47
Change in the fair value of the derivative liability	Period Ended 2020 2019 Fair value of derivative (stock), beginning of period/year $ 37,038 $ 402,909 Change in fair value of derivative 276,547 (365,871 ) Fair value of derivative on the date of extension 287,728 - Fair value of derivative(stock), end of period/year $ 601,313 $ 37,038
Preferred Series C Warrants
Valuation assumption	2020 2019 Annual volatility rate 156 % 144 % Risk free rate 0.13 % 1.58 % Remaining Term 1.50 years 0.5 years Fair Value of common stock $ 0.78 $ 0.47
Change in the fair value of the derivative liability	Period Ended 2020 2019 Fair value of derivative (warrants), beginning of period/year $ 49,066 $ 571,774 Change in fair value of derivative 367,781 (522,708 ) Fair value of derivative on the date of issuance 400,766 — Fair value of derivative(warrants), end of period/year $ 817,613 $ 49,066
Series D Notes Kicker Warrants
Valuation assumption	2020 Annual volatility rate 156 % Risk free rate 0.13 % Remaining Term 10.00 years Fair Value of common stock $ 0.78
Change in the fair value of the derivative liability	Period Ended 2020 Fair value of derivative (warrants), beginning of period/year — Fair value of derivatives on date of issuance $ 409,998 Change in fair value of derivatives 542,636 Fair value of derivative(warrants), end of period/year $ 952,634

12. NON-CONTROLLING INTEREST (T

12. NON-CONTROLLING INTEREST (Tables)	12 Months Ended
	Dec. 31, 2020
Noncontrolling Interest [Abstract]
Changes in non-controlling interest	2020 2019 Beginning balance $ (5,723,663 ) $ (5,611,528 ) Operating income (loss) (61,589 ) (62,511 ) Share of Other Comprehensive Income (loss) (11,669 ) (49,624 ) Elimination of Non-Controlling Interest (5,796,921 ) — Ending balance $ — $ (5,723,663 )

13. FAIR VALUE OF FINANCIAL I_2

13. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Fair value measurement	Fair Value Measurement at December 31, 2020 Using: Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative Liabilities $ 2,371,560 — — 2,371,560 Totals $ 2,371,560 $ — $ — 2,371,560 Fair Value Measurement at December 31, 2019 Using: Liabilities: Derivative Liabilities $ 86,104 — — 86,104 Totals $ 86,104 $ — $ — 86,104

15. NOTES PAYABLE (Tables)

15. NOTES PAYABLE (Tables)	12 Months Ended
	Dec. 31, 2020
Notes Payable [Abstract]
Notes payable	Balance December 31, 2018 $ 1,803,235 Exchange Rate Adjustment 73,314 Property Holding Taxes - Core Concessions 634,824 20% Down Payment (126,965 ) 2019 Principal Payments (111,977 ) Balance December 31, 2019 2,272,431 Exchange Rate Adjustment (124,352 ) 2020 Principal Payments (66,644 ) Balance December 31, 2020 $ 2,081,435
Maturities of notes payable	Year Ending December 31: 2021 $ 1,984,007 2022 97,428 $ 2,081,435

1. NATURE OF ACTIVITIES AND S_4

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details) - $ / $	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Current exchange rate	19.91	18.86
Weighted average exhange rate for the period ended	21.47	19.25

1. NATURE OF ACTIVITIES AND S_5

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Net loss attributable to common shareholders	$ (5,477,733)	$ (971,655)
Shares:
Weighted average number of common shares outstanding, basic	17,722,825	17,722,825
Weighted average number of common shares outstanding, diluted	17,722,825	17,722,825
Basic loss per share	$ (.31)	$ (0.05)
Diluted loss per share	$ (0.31)	$ (0.05)

1. NATURE OF ACTIVITIES AND S_6

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Investments in affiliate	$ 70,000	$ 70,000
Deposits in U.S. Banks in excess of the FDIC limit	1,507,278
Allowance for doubtful accounts	0	0
IVA receivable	2,179,914	1,297,387
Inventories	603,967	523,089
Currency transaction gains (losses)	$ (361,127)	$ 397,161

2. INVENTORIES (Details)

2. INVENTORIES (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Mined tonnage, gold-silver concentrates, and/or gravity tailings (flotation feed material)	$ 603,967	$ 523,089
Inventory	$ 603,967	$ 523,089

3. PROPERTY AND EQUIPMENT (Deta

3. PROPERTY AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Leasehold improvements	$ 9,340	$ 9,340
Office equipment	31,012	31,012
Office furniture and fixtures	78,802	78,802
Sub-total	119,154	119,154
Less: accumulated depreciation and amortization	(113,176)	(109,927)
Total property	$ 5,978	$ 9,227

3. PROPERTY AND EQUIPMENT (De_2

3. PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Equipment purchased	$ 0	$ 0
Depreciation and amortization	$ 3,249	$ 3,255

4. MINING CONCESSIONS (Details

4. MINING CONCESSIONS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Extractive Industries [Abstract]
San Jose de Gracia ("SJG") concessions	$ 4,132,678	$ 4,132,678
Depletion expense	$ 0	$ 0

5. INVESTMENT IN AFFILIATE_RE_2

5. INVESTMENT IN AFFILIATE/RECEIVABLES FROM AFFILIATE/OTHER ASSETS (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Receivable from DynaNevada de Mexico	$ 71,465	$ 71,156

7. INCOME TAXES (Details)

7. INCOME TAXES (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Prior year	$ 13,780,490	$ 13,343,134
Tax (expense) benefit for current year	953,120	437,596
Total deferred tax asset	14,733,610	13,780,730
Less: valuation allowance	(14,733,610)	(13,780,730)
Net deferred tax asset	$ 0	$ 0

7. INCOME TAXES (Details 1)

7. INCOME TAXES (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
United States	$ (3,955,124)	$ (928,078)
Foreign	(1,410,699)	67,232
Income (loss) before taxes	$ (5,365,823)	$ (860,846)

7. INCOME TAXES (Details 2)

7. INCOME TAXES (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Current
Federal	$ 0	$ 0
State	0	0
Foreign	0	0
Total	0	0
Deferred and Other
Federal	(486,441)	(454,164)
State	0	0
Foreign	(466,679)	16,808
Total	(953,120)	(437,356)
Total tax expense (benefit)	(953,120)	(437,356)
Change in valuation allowance	953,120	437,356
Net tax expense (benefit)	$ 0	$ 0

7. INCOME TAXES (Details 3)

7. INCOME TAXES (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Tax expense (benefit) at statutory rate	$ (1,126,823)	$ (180,778)
Foreign tax rate differential	(126,963)	(34,434)
Stock issued for services	21,000	0
Change in derivative liability	249,262	(222,145)
Amortization of loan discount	72,089	0
Other permanent differences	(41,685)	0
Change in valuation allowance	953,120	437,356
Provision for income tax expense (benefit)	$ 0	$ 0

7. INCOME TAXES (Details 4)

7. INCOME TAXES (Details 4)	Dec. 31, 2020USD ($)
Net operating loss carry-forward	$ 52,800,000
United States Expiring 2029 Through 2038
Net operating loss carry-forward	18,500,000
United States Indefinite Carry Forward Period
Net operating loss carry-forward	7,800,000
Foreign Expiring from 2020 to 2021
Net operating loss carry-forward	$ 26,500,000

8. STOCKHOLDERS' EQUITY (Detail

8. STOCKHOLDERS' EQUITY (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
Preferred Series C, beginning	$ 4,333,053
Preferred Series C, ending	4,337,480
Preferred Series C Stock
Preferred Series C, beginning	4,333,053
Issuances at fair value, net of issuance costs	0
Bifurcation of derivative liability	0
Relative fair value of warrants - preferred stock discount	4,427
Accretion of preferred stock to redemption value	0
Preferred Series C, ending	$ 4,337,480

8. STOCKHOLDERS' EQUITY (Deta_2

8. STOCKHOLDERS' EQUITY (Details 1) - Warrant	12 Months Ended
	Dec. 31, 2020USD ($)$ / sharesshares
Number of Warrants:
Outstanding, beginning | shares	2,166,527
Granted | shares	3,391,985
Exercised | shares	0
Forfeited | shares	(2,166,527)
Outstanding, ending | shares	3,391,985
Exercisable | shares	3,391,834
Weighted Average Exercise Price:
Outstanding, beginning | $ / shares	$ 2.45
Granted | $ / shares	1.31
Exercised | $ / shares	.00
Forfeited | $ / shares	.00
Outstanding, ending | $ / shares	1.31
Exercisable | $ / shares	$ 1.31
Weighted Average Remaining Contractual Life (Years):
Outstanding, beginning	6 months 4 days
Granted	1 year 3 months 22 days
Outstanding, ending	1 year 3 months 22 days
Exercisable	1 year 3 months 22 days
Intrinsic Value:
Outstanding, beginning | $	$ 0
Granted | $	0
Exercised | $	0
Forfeited | $	0
Outstanding, ending | $	0
Exercisable | $	$ 0

8. STOCKHOLDERS' EQUITY (Deta_3

8. STOCKHOLDERS' EQUITY (Details Narrative) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Equity [Abstract]
Series C, par value	$ 0.0001	$ 0.0001
Series C, shares authorized	1,734,992	1,733,221
Series C, shares issued	1,734,992	1,733,221
Series C, shares outstanding	1,734,992	1,733,221
Series A, par value	$ 0.0001	$ 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	$ 0.0001	$ 0.0001
Common stock, shares authorized	40,000,000	25,000,000
Common stock, shares issued	17,722,825	17,722,825
Common stock, shares outstanding	17,722,825	17,722,825
Treasury stock	516,480	778,980

9. RELATED PARTY TRANSACTIONS (

9. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions [Abstract]
Related party consulting and other fees	$ 114,250	$ 146,125
Due to non-controlling interest	$ 0	$ 231,500

10. COMMITMENTS AND CONTINGEN_3

10. COMMITMENTS AND CONTINGENCIES (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
Short term lease costs	$ 12,730
Variable lease costs	0
Total	183,251
Office Lease
Operating lease	84,431
Ground Lease
Operating lease	$ 86,091

10. COMMITMENTS AND CONTINGEN_4

10. COMMITMENTS AND CONTINGENCIES (Details 1)	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Weighted average remaining lease term (years) - operating leases	11 years
Weighted average discount rate - operating leases	12.50%

10. COMMITMENTS AND CONTINGEN_5

10. COMMITMENTS AND CONTINGENCIES (Details 2)	Dec. 31, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
2021	$ 174,911
2022	179,377
2023	101,499
2024	96,896
2025	99,803
Thereafter	787,681
Total	1,440,167
Less: imputed Interest	(671,483)
Right of use liability	$ 768,684

11. DERIVATIVE LIABILITIES (Det

11. DERIVATIVE LIABILITIES (Details) - Preferred Series C Stock - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Annual volatility rate	156.00%
Risk free rate	0.13%
Remaining term	1 year 6 months
Fair value of common stock	$ .78	$ 0.47

11. DERIVATIVE LIABILITIES (D_2

11. DERIVATIVE LIABILITIES (Details 1) - Preferred Series C Stock - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair value of derivative, beginning	$ 37,038	$ 402,909
Change in fair value of derivative	276,547	(365,871)
Fair value of derivative on the date of extension	287,728	0
Fair value of derivative, ending	$ 601,313	$ 37,038

11. DERIVATIVE LIABILITIES (D_3

11. DERIVATIVE LIABILITIES (Details 2) - Preferred Series C Warrants - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Annual volatility rate	156.00%	144.00%
Risk free rate	0.13%	1.58%
Remaining term	1 year 6 months	6 months
Fair value of common stock	$ 0.78	$ 0.47

11. DERIVATIVE LIABILITIES (D_4

11. DERIVATIVE LIABILITIES (Details 3) - Preferred Series C Warrants - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair value of derivative, beginning	$ 49,066	$ 571,774
Change in fair value of derivative	367,781	(522,708)
Fair value of derivative on the date of issuance	400,766	0
Fair value of derivative, ending	$ 817,613	$ 49,066

11. DERIVATIVE LIABILITIES (D_5

11. DERIVATIVE LIABILITIES (Details 4) - Series D Notes Kicker Warrants	12 Months Ended
	Dec. 31, 2020$ / shares
Annual volatility rate	156.00%
Risk free rate	0.13%
Remaining term	1 year 6 months
Fair value of common stock	$ 0.78

11. DERIVATIVE LIABILITIES (D_6

11. DERIVATIVE LIABILITIES (Details 5) - Series D Notes Kicker Warrants	12 Months Ended
	Dec. 31, 2020USD ($)
Fair value of derivative, beginning	$ 0
Change in fair value of derivative	409,998
Fair value of derivative on the date of issuance	542,636
Fair value of derivative, ending	$ 952,634

12. NON-CONTROLLING INTEREST (D

12. NON-CONTROLLING INTEREST (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Noncontrolling Interest [Abstract]
Non-controlling interest, beginning	$ (5,723,663)	$ (5,611,528)
Operating income (loss)	(61,589)	(62,511)
Share of other comprehensive income (loss)	(11,669)	(49,624)
Elimination of non-controlling interest	(5,796,921)	0
Non-controlling interest, ending	$ 0	$ (5,723,663)

13. FAIR VALUE OF FINANCIAL I_3

13. FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Liabilities:
Derivative liabilities	$ 2,371,560	$ 86,104
Total liabilities	2,371,560	86,104
Level 1
Liabilities:
Derivative liabilities	0	0
Total liabilities	0	0
Level 2
Liabilities:
Derivative liabilities	0	0
Total liabilities	0	0
Level 3
Liabilities:
Derivative liabilities	2,371,560	86,104
Total liabilities	$ 2,371,560	$ 86,104

14. REVENUE CONCENTRATION (Deta

14. REVENUE CONCENTRATION (Details Narrative)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Three Customers | Revenue
Concentration risk		100.00%
Two Customers | Revenue
Concentration risk		100.00%
Two Customers | Accounts Receivable
Concentration risk		100.00%
Four Customers | Accounts Receivable
Concentration risk	100.00%

15. NOTES PAYABLE (Details)

15. NOTES PAYABLE (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Notes Payable [Abstract]
Property holding taxes, beginning	$ 2,272,431	$ 1,803,235
Exchange rate adjustment	(124,352)	73,314
Property holding taxes - core concessions		634,824
20% down payment		(126,965)
Principal payments	(66,644)	(111,977)
Property holding taxes, ending	$ 2,081,435	$ 2,272,431

15. NOTES PAYABLE (Details 1)

15. NOTES PAYABLE (Details 1)	Dec. 31, 2020USD ($)
Notes Payable [Abstract]
2021	$ 1,984,007
2022	97,428
Total	$ 2,081,435