Dakota Territory Resource (DTRC) 10-Q 10 Aug 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2017	Jun. 28, 2017
Details
Registrant Name	Dakota Territory Resource Corp
Registrant CIK	1,182,737
SEC Form	10-Q
Period End date	Jun. 30, 2017
Fiscal Year End	--03-31
Trading Symbol	dtrc
Tax Identification Number (TIN)	980,201,259
Number of common stock shares outstanding		58,566,787
Filer Category	Smaller Reporting Company
Current with reporting	Yes
Voluntary filer	No
Well-known Seasoned Issuer	No
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Entity Incorporation, State Country Name	Nevada
Entity Address, Address Line One	10580 N. McCarran Blvd.,
Entity Address, Address Line Two	Building 115-208
Entity Address, City or Town	Reno
Entity Address, State or Province	Nevada
Entity Address, Postal Zip Code	89,503
City Area Code	775
Local Phone Number	747-0667

Balance Sheets Unaudited

Balance Sheets Unaudited - USD ($)	Jun. 30, 2017	Mar. 31, 2017
Current Assets
Cash and cash equivalents	$ 22,483	$ 69,189
Prepaid Expense and Other Assets, Current	7,000	4,000
Total current assets	29,483	73,189
Mineral Properties, Net	216,104	216,104
Total assets	245,587	289,293
Current liabilities:
Accounts Payable and Accrued Liabilities, Current	523,103	501,731
Accounts payable, related party	1,086,242	1,018,742
Line of credit	35,086	36,074
Notes Payable, Current	305,550	305,550
Note payable to related party	320,000	320,000
Convertible Notes Payable, Current	100,000	100,000
Liabilities, Current	2,369,981	2,282,097
Liabilities	2,369,981	2,282,097
Shareholders' deficit:
Preferred Stock	0	0
Common Stock	58,567	58,567
Additional paid-in capital	1,856,036	1,856,036
Accumulated deficit	(4,038,997)	(3,907,407)
Total shareholders' deficit	(2,124,394)	(1,992,804)
Total liabilities and shareholders' deficit	$ 245,587	$ 289,293

Balance Sheets Unaudited - Pare

Balance Sheets Unaudited - Parenthetical - $ / shares	Jun. 30, 2017	Mar. 31, 2017
Details
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Shares, Issued	58,566,787	58,566,787
Common Stock, Shares, Outstanding	58,566,787	58,566,787

Statements of Operations Unaudi

Statements of Operations Unaudited - USD ($)	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating expenses:
Exploration costs	$ 20,500	$ 0
General and administrative expenses	102,909	112,431
Total operating expenses	123,409	112,431
Operating loss	(123,409)	(112,431)
Other Nonoperating Income (Expense)
Interest expense	(8,181)	(7,800)
Total other income (expense)	(8,181)	(7,800)
Net Income (Loss)	$ (131,590)	$ (120,231)
Basic and diluted net loss per common share	$ 0	$ 0
Basic and diluted weighted-average common shares outstanding	58,566,787	56,726,677

Statements of Cash Flows Unaudi

Statements of Cash Flows Unaudited - USD ($)	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Details
Net Income (Loss)	$ (131,590)	$ (120,231)
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(3,000)	2,302
Accounts payable & accrued liabilities	21,372	30,658
Accounts payable, related party	67,500	70,550
Net cash used in operating activities	(45,718)	(16,721)
Cash flows from investing activities:
Repayment of Notes Receivable from Related Parties	0	12,500
Net cash used in investing activities	0	12,500
Cash flows from financing activities:
Proceeds from the issuance of common stock	0	5,000
Proceeds from (repayments of) line of credit	(988)	(1,220)
Net cash provided by financing activities	(988)	3,780
Net increase (decrease) in cash	(46,706)	(441)
Cash and cash equivalents	69,189	15,551
Cash and cash equivalents	22,483	15,110
Supplemental disclosure of cash flow information
Cash paid for interest	0	0
Cash paid for income taxes	$ 0	$ 0

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	3 Months Ended
	Jun. 30, 2017
Notes
Note 1 - Basis of Presentation	Note 1—Basis of Presentation The accompanying unaudited interim financial statements of Dakota Territory Resource Corp. (“we”, “us”, “our”, the “Company”, the “Corporation”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in our annual report on Form 10-K, for the year ended March 31, 2017 as filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended March 31, 2017 as reported in our annual report on Form 10-K, have been omitted. The Company’s absence of revenues, recurring losses from operations, and its need for significant additional financing in order to fund its projected loss in 2018 raise substantial doubt about its ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Note 2 - Related Party Transact

Note 2 - Related Party Transactions	3 Months Ended
	Jun. 30, 2017
Notes
Note 2 - Related Party Transactions	Note 2—Related Party Transactions Effective October 1, 2005, we began paying a management consulting fee to Minera Teles Pires Inc., a company controlled by the President and director of the Company. The agreement provides a fixed fee of $10,000 per month of which $5,000 is paid and the other $5,000 deferred until financing is obtained by us. Additionally, the agreement provides for a payment of $1,500 per month for office rent and expenses. During the three months ended June 30, 2017, we incurred approximately $34,500, in management fees and rent from Minera Teles Pires Inc. As of June 30, 2017, we owed Minera Teles Pires approximately $557,100 for management fees and out of pocket expenses. Effective February 24, 2012, we began paying consulting fees to Jerikodie, Inc., a company controlled by our Vice President and a director of the Company. The agreement provides a fixed fee of $9,000 per month plus approved expenses. During the three months ended June 30, 2017 we incurred approximately $27,000 fees from Jerikodie, Inc. As of June 30, 2017, we owed Jerikodie, Inc. approximately $426,100 for consulting fees and out of pocket expenses. On March 19, 2013 , the Company entered into an agreement with Wm Chris Mathers to compensate Mr. Mathers as the Company’s CFO and agreed to pay Mr. Mathers cash in the amount of $1,000 per month increasing to $2,000 per month on September 1, 2013 and to $3,000 per month on March 1, 2014. During the three months ended June 30, 2017, we incurred $9,000 in compensation to Mr. Mathers. As of June 30, 2017, we owed Mr. Mathers $103,000 for consulting fees.

Note 3 - Mineral Properties

Note 3 - Mineral Properties	3 Months Ended
	Jun. 30, 2017
Notes
Note 3 - Mineral Properties	Note 3 — Mineral Properties On September 26, 2012, the Company was re-organized with North Homestake Mining Company. With this re-organization, the Company acquired 84 unpatented lode mining claims covering approximately 1,600 acres known as the Blind Gold Property located in the Black Hills of South Dakota. On December 28, 2012, the Company acquired 57 unpatented lode mining claims covering approximately 853 acres known as the West False Bottom Creek and Paradise Gulch Claim Group, the City Creek Claims Group, and the Homestake Paleoplacer Claims Group, all located in the Black Hills of South Dakota. The West False Bottom Creek and Paradise Gulch Claims were contiguous to the Blind Gold Property and have been incorporated into the Blind Gold Property. The purchase price was 1,000,000 restricted common shares valued at $0.15 per share, or $150,000. On February 24, 2014, the Company acquired surface and mineral title to the 26.16 acres of the Squaw and Rubber Neck Lodes that comprise Mineral Survey 1706 in the Black Hills of South Dakota. Located immediately to the north and adjoining the Company’s Paleoplacer Property, Mineral Survey 1706 was explored by Homestake Mining Company in the late 1980’s. The Company is required to make annual lease payments of $8,000 for a period of 5 years, of which $8,000 was due upon execution of the agreement. The Company has an option to purchase the mineral property for $120,000. As of June 30, 2017, the Company is current on all required annual lease payments. On March 3, 2014 , The Company plans to commence an exploratory program on these mineral properties as soon as financing can be arranged. June 30, March 31, 2017 2017 Capitalized costs $ 216,104 $ 216,104 Accumulated amortization - - Impairment - - Capitalized costs, net $ 216,104 $ 216,104

Note 4 - Notes Payable

Note 4 - Notes Payable	3 Months Ended
	Jun. 30, 2017
Notes
Note 4 - Notes Payable	Note 4—Notes Payable The following notes payable are unsecured and bear interest at 5% per annum. They are due on demand: Date Maturity Interest rate Principal Interest Total Nov 15, 2005 On demand 5% per annum $ 82,775 $ 47,099 $ 129,874 Dec 01, 2005 On demand 5% per annum $ 18,800 $ 10,697 $ 29,497 Jan 06, 2006 On demand 5% per annum $ 100,000 $ 56,900 $ 156,900 Jul 14, 2006 On demand 5% per annum $ 103,975 $ 59,163 $ 163,138 Total $ 305,550 $ 173,859 $ 479,409 Notes Payable to Related Party The Company had 11 notes payable to its President pursuant to advances which had historically been made by the President. The notes were dated between March 2011 and August 2012, were unsecured, ranged in amount from $10,000 to $50,000, and bore interest at 12% per annum. These notes were re-structured and combined on March 27, 2013 into a single promissory note payable (the “New Note”). In conjunction with this restructuring, the President forgave accrued interest totaling $57,817 (recorded as an equity transaction). The New Note is unsecured, has a principal amount of $265,000, and bears interest at 4% per annum. The Company will apply 10% of the gross proceeds from any equity financing in an amount exceeding $0.5 million (whether one or more transactions) from and after the date hereof to prepay principal and accrued interest. All remaining unpaid principal and interest was due at March 27, 2017 and remains unpaid. On June 23, 2017, the note was amended to mature on March 27, 2018. On August 26, 2016, the Company issued a note payable in the amount of $25,000 to Minera Teles Pires Inc., a Company controlled by our President, for the purpose of funding ongoing operating expenses. The note bears annual interest of 3% and was due and payable on October 26, 2016. This loan remains outstanding as of the date of this filing. On September 15, 2016, the Company issued a note payable in the amount of $30,000 to Minera Teles Pires Inc., a Company controlled by our President, for the purpose of funding ongoing operating expenses. The note bears annual interest of 4% and was due and payable on December 14, 2016. This loan remains outstanding as of the date of this filing.

Note 5 - Convertible Notes Paya

Note 5 - Convertible Notes Payable	3 Months Ended
	Jun. 30, 2017
Notes
Note 5 - Convertible Notes Payable	Note 5 — Convertible Notes Payable On August 14, 2008, the Company executed a 5% convertible note of $100,000 that was due August 13, 2010. The note is now due and payable, however the lender has to date made no request for payment.

Note 6 - Line of Credit

Note 6 - Line of Credit	3 Months Ended
	Jun. 30, 2017
Notes
Note 6 - Line of Credit	Note 6—Line of Credit The Company executed a Line of Credit with Wells Fargo Bank in California . The Line of Credit allows the Company to borrow up to $47,500 . The Line of Credit bears interest at 7.75% per annum, is unsecured , and due on demand . The balance on this Line of Credit at June 30, 2017 was approximately $35,000.

Note 7 - Common Stock

Note 7 - Common Stock	3 Months Ended
	Jun. 30, 2017
Notes
Note 7 - Common Stock	Note 7—Common Stock Our authorized capital stock consists of 300,000,000 shares of common stock, with a par value of $0.001 per share, and 10,000,000 preferred shares with a par value of $0.001 per share. At June 30, 2017, the total issued and outstanding shares were 58,566,787. Common Stock Options and Warrants A summary of the Company's stock option activity and related information for the period ended June 30, 2017 is as follows: Weighted Average Options Price Range Remaining Life (Years) Outstanding March 31, 2017 7,350,000 $ 0.06 – 0.14 6.78 Granted - - - Cancelled/Expired - - - Exercised - - - Outstanding June 30, 2017 7,350,000 0.06 – 0.14 6.53 Exercisable June 30, 2017 7,350,000 $ 0.06 – 0.14 6.53 A summary of the Company's stock warrant activity and related information for the period ended June 30, 2017 is as follows: Weighted Average Warrants Price Range Remaining Life (Years) Outstanding March 31, 2017 1,500,000 $ 0.11 0.17 Granted - - - Cancelled/Expired (1,500,000 ) - - Exercised - - - Outstanding June 30, 2017 - - - Exercisable June 30, 2017 - $ - -

Note 3 - Mineral Properties_ Sc

Note 3 - Mineral Properties: Schedule of Mineral Properties Costs (Tables)	3 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Mineral Properties Costs	June 30, March 31, 2017 2017 Capitalized costs $ 216,104 $ 216,104 Accumulated amortization - - Impairment - - Capitalized costs, net $ 216,104 $ 216,104

Note 7 - Common Stock_ Schedule

Note 7 - Common Stock: Schedule of Share-based Compensation, Stock Options, Activity (Tables)	3 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Share-based Compensation, Stock Options, Activity	Weighted Average Options Price Range Remaining Life (Years) Outstanding March 31, 2017 7,350,000 $ 0.06 – 0.14 6.78 Granted - - - Cancelled/Expired - - - Exercised - - - Outstanding June 30, 2017 7,350,000 0.06 – 0.14 6.53 Exercisable June 30, 2017 7,350,000 $ 0.06 – 0.14 6.53

Note 7 - Common Stock_ Schedu15

Note 7 - Common Stock: Schedule of Share-based Compensation, Warrants, Activity (Tables)	3 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Share-based Compensation, Warrants, Activity	Weighted Average Warrants Price Range Remaining Life (Years) Outstanding March 31, 2017 1,500,000 $ 0.11 0.17 Granted - - - Cancelled/Expired (1,500,000 ) - - Exercised - - - Outstanding June 30, 2017 - - - Exercisable June 30, 2017 - $ - -

Note 2 - Related Party Transa16

Note 2 - Related Party Transactions (Details)	3 Months Ended
	Jun. 30, 2017
Transaction 1
Related Party Transaction, Date	Oct. 1, 2005
Related Party Transaction, Description of Transaction	we began paying a management consulting fee to Minera Teles Pires Inc
Transaction 2
Related Party Transaction, Date	Feb. 24, 2012
Related Party Transaction, Description of Transaction	we began paying consulting fees to Jerikodie, Inc.
Transaction 3
Related Party Transaction, Date	Mar. 19, 2013
Related Party Transaction, Description of Transaction	Company entered into an agreement with Wm Chris Mathers to compensate Mr. Mathers as the Company’s CFO

Note 3 - Mineral Properties_ 17

Note 3 - Mineral Properties: Schedule of Mineral Properties Costs (Details) - USD ($)	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Details
Mineral Properties, Capitalized costs	$ 216,104	$ 216,104
Mineral Properties, Accumulated amortization	0	0
Mineral Properties, Capitalized costs, net	$ 216,104	$ 216,104

Note 4 - Notes Payable (Details

Note 4 - Notes Payable (Details)	3 Months Ended
	Jun. 30, 2017USD ($)
Note1
Debt Instrument, Issuance Date	Nov. 15, 2005
Debt Instrument, Payment Terms	On demand
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Face Amount	$ 82,775
Debt Instrument, Interest	47,099
Long-term Debt	$ 129,874
Note2
Debt Instrument, Issuance Date	Dec. 1, 2005
Debt Instrument, Payment Terms	On demand
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Face Amount	$ 18,800
Debt Instrument, Interest	10,697
Long-term Debt	$ 29,497
Note3
Debt Instrument, Issuance Date	Jan. 6, 2006
Debt Instrument, Payment Terms	On demand
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Face Amount	$ 100,000
Debt Instrument, Interest	56,900
Long-term Debt	$ 156,900
Note4
Debt Instrument, Issuance Date	Jul. 14, 2006
Debt Instrument, Payment Terms	On demand
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Face Amount	$ 103,975
Debt Instrument, Interest	59,163
Long-term Debt	163,138
Total
Debt Instrument, Face Amount	305,550
Debt Instrument, Interest	173,859
Long-term Debt	$ 479,409
Note issued on August 26, 2016
Debt Instrument, Issuance Date	Aug. 26, 2016
Debt Instrument, Payment Terms	was due and payable on October 26, 2016
Debt Instrument, Interest Rate, Stated Percentage	3.00%
Debt Instrument, Face Amount	$ 25,000
Debt Instrument, Description	Company issued a note payable in the amount of $25,000 to Minera Teles Pires Inc.
Debt Instrument, Maturity Date	Oct. 26, 2016
Debt Instrument, Debt Default, Description of Violation or Event of Default	This loan remains outstanding as of the date of this filing
Note issued on September 15, 2016
Debt Instrument, Issuance Date	Sep. 15, 2016
Debt Instrument, Payment Terms	was due and payable on December 14, 2016
Debt Instrument, Interest Rate, Stated Percentage	4.00%
Debt Instrument, Face Amount	$ 30,000
Debt Instrument, Description	Company issued a note payable in the amount of $30,000 to Minera Teles Pires Inc
Debt Instrument, Maturity Date	Dec. 14, 2016
Debt Instrument, Debt Default, Description of Violation or Event of Default	This loan remains outstanding as of the date of this filing

Note 5 - Convertible Notes Pa19

Note 5 - Convertible Notes Payable (Details) - Convertible Note Payable	3 Months Ended
	Jun. 30, 2017USD ($)
Debt Instrument, Issuance Date	Aug. 14, 2008
Debt Instrument, Description	the Company executed a 5% convertible note
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Face Amount	$ 100,000
Debt Instrument, Maturity Date	Aug. 13, 2010
Debt Instrument, Debt Default, Description of Violation or Event of Default	The note is now due and payable, however the lender has to date made no request for payment.

Note 6 - Line of Credit (Detail

Note 6 - Line of Credit (Details)	3 Months Ended
	Jun. 30, 2017USD ($)
Details
Line of Credit Facility, Description	Company executed a Line of Credit with Wells Fargo Bank in California
Line of Credit Facility, Maximum Borrowing Capacity	$ 47,500
Line of Credit Facility, Interest Rate During Period	7.75%
Line of Credit Facility, Collateral	unsecured
Line of Credit Facility, Covenant Terms	due on demand

Note 7 - Common Stock (Details)

Note 7 - Common Stock (Details) - shares	Jun. 30, 2017	Mar. 31, 2017
Details
Common Stock, Shares, Issued	58,566,787	58,566,787

Note 7 - Common Stock_ Schedu22

Note 7 - Common Stock: Schedule of Share-based Compensation, Stock Options, Activity (Details)	3 Months Ended
	Jun. 30, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | shares	7,350,000
Share-based compensation arrangement by share-based payment award, Options outstanding, Weighted Average Remaining Life in Years	6.78
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | shares	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | shares	7,350,000
Share-based compensation arrangement by share-based payment award, Options outstanding, Weighted Average Remaining Life in Years	6.53
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares	7,350,000
Share-based compensation arrangement by share-based payment award, Options exercisable, Weighted Average Remaining Life in Years	6.53
Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 0.06
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	0.06
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares	0.06
Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	0.14
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	0.14
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares	$ 0.14

Note 7 - Common Stock_ Schedu23

Note 7 - Common Stock: Schedule of Share-based Compensation, Warrants, Activity (Details)	3 Months Ended
	Jun. 30, 2017$ / sharesshares
Details
Share-based Compensation Arrangement by Share-based Payment Award, Warrants, Outstanding, Number	1,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Warrants, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 0.11
Share-based compensation arrangement by share-based payment award,Warrants, Weighted Average Remaining Life in Years, Beginning Balance	0.17
Share-based Compensation Arrangement by Share-based Payment Award, Warrants, Granted	0
Share-based Compensation Arrangement by Share-based Payment Award, Warrants, Expirations	(1,500,000)
Share-based Compensation Arrangement by Share-based Payment Award, Warrants, Exercised	0
Share-based Compensation Arrangement by Share-based Payment Award, Warrants, Outstanding, Number	0
Share-based Compensation Arrangement by Share-based Payment Award, Warrants, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 0
Share-based compensation arrangement by share-based payment award,Warrants, Weighted Average Remaining Life in Years, Ending Balance	0