Lode-Star Mining (LSMG) 10-Q 17 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 14, 2021
Cover [Abstract]
Entity Registrant Name	Lode-Star Mining Inc.
Entity Central Index Key	0001319643
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Amendment Flag	false
Current Fiscal Year End Date	--12-31
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 Current	Yes
Entity Incorporation State Country Code	NV
Entity File Number	000-53676
Entity Common Stock, Shares Outstanding		50,634,536
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current Assets
Cash	$ 21,343	$ 12,644
Prepaid fees	3,957	3,940
Total current assets	25,300	16,584
Mineral property interest, unproven	230,180	230,180
Total assets	255,480	246,764
Current Liabilities
Accounts payable and accrued liabilities	132,876	84,181
Due to related parties and accrued interest	2,108,779	2,021,878
Total current liabilities	2,241,655	2,106,059
Capital Stock
Authorized: 480,000,000 voting common shares and 20,000,000 preferred shares, issued: 50,634,536 common shares and no preferred shares at March 31, 2021, 50,605,965 common shares and no preferred shares at December 31, 2020	3,454	3,425
Additional paid-in capital	1,632,152	1,632,181
Accumulated deficit	(3,621,781)	(3,494,901)
Total stockholders' deficiency	(1,986,175)	(1,859,295)
Total liabilities and stockholders' deficiency	$ 255,480	$ 246,764

BALANCE SHEETS (Unaudited) (Par

BALANCE SHEETS (Unaudited) (Parenthetical) - shares	Mar. 31, 2021	Dec. 31, 2020
STOCKHOLDERS' DEFICIENCY
Common shares, authorized	480,000,000	480,000,000
Common shares, issued	50,634,536	50,605,965
Preferred shares, issued	0	0

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenue	$ 0	$ 0
Operating Expenses
Consulting services	31,188	65,850
Corporate support services	495	469
Exploration and evaluation	7,531	0
Mineral option fees	24,976	24,988
Office, foreign exchange and sundry	1,384	3,340
Professional fees	19,831	2,270
Transfer and filing fees	18,725	17,662
Total operating expenses	104,130	114,579
Operating loss	(104,130)	(114,579)
Other Expenses
Interest, bank and finance charges	(22,750)	(18,929)
Net loss and comprehensive loss for the period	$ (126,880)	$ (133,508)
Basic and diluted net loss per common share	$ 0	$ 0
Weighted average number of common shares outstanding - basic and diluted	50,614,536	50,605,965

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating Activities
Net loss for the period	$ (126,880)	$ (133,508)
Adjustments to reconcile net loss to net cash used in operating activities:
Foreign exchange loss (gain)	42	(149)
Stock options issued for services	0	991
Changes in operating assets and liabilities:
Prepaid fees	0	(20,242)
Accounts payable and accrued liabilities	72,950	53,343
Accrued mineral option fees	24,976	24,988
Accrued interest payable	22,611	12,809
Net cash used in operating activities	(6,301)	(61,768)
Financing Activities
Proceeds from loans payable - related party	15,000	65,000
Net cash provided by financing activities	15,000	65,000
Net increase in cash	8,699	3,232
Cash, beginning of period	12,644	10,499
Cash, end of period	21,343	13,731
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for: interest	0	0
Cash paid during the period for: income taxes	0	0
Non-cash Financing Activity
Expenses paid by related party on behalf of the Company	$ 24,254	$ 32,640

STATEMENTS OF CHANGES IN STOCKH

STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIENCY - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Common Shares
Beginning balance, shares	50,605,965	50,605,965
Beginning balance, amount	$ 3,425	$ 3,425
Shares issued on cashless exercise of stock options, shares	28,571
Shares issued on cashless exercise of stock options, amount	$ 29
Net loss for the period
Ending balance, shares	50,634,536	50,605,965
Ending balance, amount	$ 3,454	$ 3,425
Additional Paid-In Capital
Beginning balance, amount	1,632,181	1,628,646
Shares issued on cashless exercise of stock options, amount	(29)
Stock options issued for services		991
Net loss for the period
Ending balance, amount	1,632,152	1,629,637
Accumulated Deficit
Beginning balance, amount	(3,494,901)	(3,001,261)
Net loss for the period	(126,880)	(133,508)
Ending balance, amount	(3,621,781)	(3,134,769)
Beginning balance, amount	(1,859,295)	(1,369,190)
Shares issued on cashless exercise of stock options, amount	0
Stock options issued for services		991
Net loss for the period	(126,880)	(133,508)
Ending balance, amount	$ (1,986,175)	$ (1,501,707)

1. BASIS OF PRESENTATION AND NA

1. BASIS OF PRESENTATION AND NATURE OF OPERATIONS	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NOTE 1 - BASIS OF PRESENTATION AND NATURE OF OPERATIONS	Organization Lode-Star Mining Inc. (“the Company”) was incorporated in the State of Nevada, U.S.A., on December 9, 2004. The Company’s principal executive offices are in Reno, Nevada. The Company was originally formed to acquire exploration stage natural resource properties. The Company acquired a mineral property interest from Lode-Star Gold INC., a private Nevada corporation (“LSG”) on December 11, 2014 in consideration for the issuance of 35,000,000 common shares of the Company. As a result of this transaction, control of the Company was acquired by LSG. Going Concern The accompanying unaudited interim financial statements have been prepared assuming the Company will continue as a going concern. The future of the Company is dependent upon its ability to establish a business and to obtain new financing to execute its business plan. As shown in the accompanying financial statements, the Company has had no revenue and has incurred accumulated losses of $3,621,781 as of March 31, 2021. These factors raise substantial doubt about the Company’s ability to continue as a going concern. To continue as a going concern, the Company will need, among other things, additional capital resources. The Company is significantly dependent upon its ability and will continue to attempt to secure additional equity and/or debt financing. There are no assurances that the Company will be successful and without sufficient financing, it would be unlikely for the Company to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. In March 2020, the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak and the related adverse public health developments have adversely affected workforces, economies, and financial markets, leading to a global economic downturn. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The duration and impact of the COVID-19 outbreak is unknown at this time, as is the efficacy of the government and central bank interventions. Basis of Presentation The unaudited interim financial information furnished herein reflects all adjustments which, in the opinion of management, are necessary to fairly state the Company’s financial position and the results of its operations for the periods presented. These financial statements should be read in conjunction with the Company’s financial statements and notes thereto included in the Company’s report on Form 10-K for the year ended December 31, 2020. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited financial statements for the preceding fiscal year, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. Accordingly, certain footnote disclosures, which would substantially duplicate the disclosures contained in the Company’s financial statements for the fiscal year ended December 31, 2020 have been omitted. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of results for the entire year ending December 31, 2021.

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment. All dollar amounts are in U.S. dollars unless otherwise noted. The financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality. The Company has implemented all applicable new accounting pronouncements that are in effect. Those pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

3. MINERAL PROPERTY INTEREST

3. MINERAL PROPERTY INTEREST	3 Months Ended
	Mar. 31, 2021
Extractive Industries [Abstract]
NOTE 3 - MINERAL PROPERTY INTEREST	The Company’s mineral property interest is a group of thirty-one claims known as the “Goldfield Bonanza Project” (the “Property”), in the State of Nevada. Pursuant to an option agreement dated October 14, 2014 with Lode-Star Gold INC. (“LSG”), a private Nevada corporation, the Company acquired an initial 20% undivided interest in and to the mineral claims owned by LSG and an option to earn a further 60% interest in the claims. LSG received 35,000,000 shares of the Company’s common stock and is its controlling shareholder. Until the Company has earned the additional 60% interest, the net smelter royalty will be split 79.2% to LSG, 19.8% to the Company and 1% to the former Property owner. To earn the additional 60% interest, the Company is required to fund all expenditures on the Property and pay LSG an aggregate of $5 million in cash in the form of a net smelter royalty, commencing after December 11, 2014. If the Company failed to make any cash payments to LSG within one year of the date of the option agreement, it is required to pay LSG an additional $100,000, and in any subsequent years in which the Company fails to complete the payment of the entire $5 million, it must make quarterly cash payments to LSG of $25,000. On January 11, 2017 LSG agreed to defer payment of all amounts due in accordance with the mineral option agreement until further notice. On January 17, 2017, the Company and LSG agreed that as of January 1, 2017, all outstanding balances shall carry a compound interest rate of 5% per annum. It was further agreed that the ongoing payment deferral shall apply to both interest and principal. The total amount of such fees due at March 31, 2021 was $648,889 (December 31, 2020: $623,913), with total interest due in the amount of $97,417 (December 31, 2020: $88,716). On October 31, 2019, the Company and LSG executed an amendment (the “Amendment”) to their mineral option agreement dated October 4, 2014 (the “Option Agreement”). According to the terms of the Option Agreement the Company acquired an initial 20% undivided interest in and to the mineral claims owned by LSG and an option to earn a further 60% interest in the claims. Under the Amendment, the exercise of the 60% option was restructured into two separate 30% options, such that the Company may now earn a 30% interest in the Property (for a total of 50%) (the “Second Option”) by completing the following actions: ● paying LSG $5 million in cash from the Property’s mineral production proceeds in the form of a NSR royalty (the “Initial Payment”); ● paying LSG all accrued and unpaid penalty payments under the Option Agreement; ● repaying to LSG (i) all loans, advances or other payments made by LSG to the Company and (ii) all expenditures on the Property funded by or on behalf of LSG until the date on which the Initial Payment has been completed; and ● funding all expenditures on the Property until the date on which the Initial Payment has been completed. Following the exercise of the Second Option, the Company may earn an additional 30% interest in the Property (for a total of 80%) (the “Third Option”) by completing the following actions: ● paying LSG a further $5 million in cash from the Property’s mineral production proceeds in the form of an NSR royalty (the “Final Payment”); and ● funding all expenditures on the Property from the date on which the Second Option is exercised until the date on which the Final Payment has been completed. The primary effect of the Amendment is therefore to increase to the purchase price for the additional 60% interest in the Property from $5 million to $10 million, while at the same time separating it into tranches. The Company assessed its mineral property interest to the date of issue of these financial statements and concluded that facts and circumstances do not suggest that the mineral property interest’s carrying value exceeds its recoverable amount and therefore no impairment is required.

4. CAPITAL STOCK

4. CAPITAL STOCK	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
NOTE 4 - CAPITAL STOCK	Capitalization The authorized capital of the Company is 500,000,000 shares of capital stock, divided into 480,000,000 shares of common stock with a par value of $0.001 per share, and 20,000,000 shares of preferred stock with a par value of $0.001 per share. The Company reserved 10,000,000 shares of common stock for issuance under its 2016 Omnibus Equity Incentive Plan. The Company has issued 50,634,536 common shares and no preferred shares. During the three months ended March 31, 2021, the Company issued 28,571 shares of its common stock on the cashless conversion of 50,000 options. Options A total of 9,950,000 options are issued and outstanding at March 31, 2021, all of which are vested. On November 20, 2018, the Company granted 500,000 non-qualified stock options pursuant to its Equity Incentive Plan, to key outside consultants, with 50% vesting after one year and 50% vesting after two years. Each option is exercisable into one share of the Company’s common stock at a price of $0.06 per share, for a term of five years. The options had an estimated grant date fair value of $10,408. 50,000 of the options were exercised on March 4, 2021 on a cashless basis, resulting in the issuance of 28,571 common shares. The options were fully expensed by December 31, 2020. For the quarter ended March 31, 2021, $0 (2020 - $991) was included in consulting services expense, based on fair value estimates determined using the Black-Scholes option pricing model with an average risk-free rate of 2.88%, a weighted average life of 5 years, volatility of 195.37%, and dividend yield of 0%. At March 31, 2021, the remaining 450,000 options had an intrinsic value of $25,650 (December 31, 2020: $40,000) based on the exercise price of $0.06 per option and a market price of $0.117 per share. On February 14, 2017, the Company granted 9,500,000 non-qualified stock options pursuant to the Equity Incentive Plan, to key corporate officers and outside consultants, with 25% vesting immediately and a further 25% vesting every six months thereafter for eighteen months. Each option is exercisable into one share of the Company’s common stock at a price of $0.06 per share, equal to the closing price of the common stock on the grant date, for a term of five years. The options were fully amortized by the end of 2018, so no related amounts are included in consulting services expense on these financial statements. At March 31, 2021, the options had an intrinsic value of $541,500 (December 31, 2020 - $760,000) based on the exercise price of $0.06 per option and a market price of $0.117 per share. Summary of option activity in the current three-month period and options outstanding (all fully vested) at March 31, 2021: Options Weighted Intrinsic Balance December 31, 2020 10,000,000 $ 800,000 Issued - Exercised (50,000 ) Expired - Balance March 31, 2021 9,950,000 0.95 $ 567,150 Warrants During the three months ended March 31, 2021, no warrants to purchase shares of common stock were issued, exercised or expired. On November 19, 2020, 3,336,060 warrants issued in 2015 expired without being exercised, leaving no warrants outstanding and no intrinsic value at December 31, 2020 or at March 31, 2021.

5. RELATED PARTY TRANSACTIONS A

5. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
NOTE 5 - RELATED PARTY TRANSACTIONS AND AMOUNTS DUE	At March 31, 2021, the Company had the following amounts due to related parties: i) $377,261 (December 31, 2020: $353,007): unsecured; interest at 5% per annum; with no specific terms of repayment, due to LSG, the Company’s majority shareholder. Accrued interest payable on the loans at March 31, 2021 was $52,118 (December 31, 2020: $47,701). During the current quarter, LSG paid expenses directly on behalf of the Company totaling $24,254 (Q1 2020: $32,640). ii) $745,000 (December 31, 2020: $730,000): unsecured; interest at 5% per annum from January 1, 2015; with no specific terms of repayment, due to LSG, the Company’s majority shareholder. Accrued interest payable on the loan at March 31, 2021 was $141,982 (December 31, 2020: $132,982). During the current quarter, the Company borrowed $15,000 (Q1 2020: $25,000) from LSG. iii) $3,975 (December 31, 2020: $3,915): unsecured; non-interest bearing; with no specific terms of repayment, due to the controlling shareholder of LSG. The change in value during the quarter was due to fluctuation in the US to Canadian dollar exchange rate. iv) $40,000 (December 31, 2020: $40,000): unsecured; interest at 5% per annum; with no specific terms of repayment, due to the controlling shareholder of LSG. Accrued interest payable on the loan at March 31, 2021 was $2,137 (December 31, 2020: $1,644). At March 31, 2021, total interest accrued on the above related party loans was $196,237 (December 31, 2020: $182,327). During the current quarter, there was a $60 foreign exchange loss (2020: $325 loss) due to a related party loan amount in non-US currency. No stock-based compensation to related parties was incurred during the current quarter or in 2020: During the current quarter, the Company incurred $24,976 (2020: $24,988) in mineral option fees payable to LSG, which have been accrued. The total amount of such fees due at March 31, 2021 was $648,889 (December 31, 2020: $623,913), with total interest due in the amount of $97,417 (December 31, 2020: $88,716). At March 31, 2021, the total due to related parties of $2,108,779 (December 31, 2020: $2,021,878) was comprised of the following: ■ Loans and accrued interest - $1,362,473 (December 31, 2020: $1,309,249) ■ Mineral option fees payable and accrued interest - $746,306 (December 31, 2020: $712,629) During the quarter ended March 31, 2021, the Company incurred $25,000 (2020: $25,000 per quarter) in consulting fees for strategic and mine development, payable to a company controlled by the Company’s President. At March 31, 2021, $108,500 (December 31, 2020: $83,500) of those fees was outstanding and included in Accounts Payable. A further $845 included in Accounts Payable at that date was owing to the same company controlled by the President, for expenses outstanding (2020: $422).

6. CONTRACTUAL OBLIGATIONS AND

6. CONTRACTUAL OBLIGATIONS AND COMMITMENTS	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
NOTE 6 - CONTRACTUAL OBLIGATIONS AND COMMITMENTS	See Note 3 for details about the Company’s obligations and commitments regarding its Mineral Property Interest.

4. CAPITAL STOCK (Tables)

4. CAPITAL STOCK (Tables)	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Option activity	Options Weighted Intrinsic Balance December 31, 2020 10,000,000 $ 800,000 Issued - Exercised (50,000 ) Expired - Balance March 31, 2021 9,950,000 0.95 $ 567,150

1. BASIS OF PRESENTATION AND _2

1. BASIS OF PRESENTATION AND NATURE OF OPERATIONS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
State of incorporation	NV
Date of incorporation	Dec. 9, 2004
Accumulated losses	$ (3,621,781)	$ (3,494,901)

3. MINERAL PROPERTY INTEREST (D

3. MINERAL PROPERTY INTEREST (Details Narrative) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Extractive Industries [Abstract]
Mineral option fees payable	$ 648,889	$ 623,913
Interest payable on mineral option fees	$ 97,417	$ 88,716

4. CAPITAL STOCK (Details)

4. CAPITAL STOCK (Details)	3 Months Ended
	Mar. 31, 2021USD ($)shares
Equity [Abstract]
Number of options,outstanding, beginning	10,000,000
Number of options, issued	0
Number of options, exercised	(50,000)
Number of options, expired	0
Number of options, outstanding, ending	9,950,000
Weighted-average remaining contractual term, outstanding, ending	11 months 12 days
Aggregate intrinsic value, outstanding, beginning | $	$ 800,000
Aggregate intrinsic value, outstanding, ending | $	$ 567,150

4. CAPITAL STOCK (Details Narra

4. CAPITAL STOCK (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Common shares, issued	50,634,536		50,605,965
Options issued and outstanding	9,950,000		10,000,000
Options expense	$ 0	$ 991
Warrants issued	0
Warrants exercised	0
Warrants expired	0
Common Shares
Shares issued on cashless exercise of stock options	28,571

6. RELATED PARTY TRANSACTIONS A

6. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Due to related parties	$ 2,108,779		$ 2,021,878
Accrued interest on loan amounts due	196,237		182,327
Foreign exchange (gain) loss	60	$ 325
Stock-based compensation	0	0
Mineral option fees incurred	24,976	24,988
Mineral option fees payable	648,889		623,913
Interest payable on mineral option fees	97,417		88,716
Loans and accrued interest	1,362,473		1,309,249
Mineral option fees payable and accrued interest	746,306		712,629
Consulting services	25,000	$ 25,000
Majority Shareholder 1
Due to related parties	377,261		353,007
Accrued interest on loan amounts due	52,118		47,701
Majority Shareholder 2
Due to related parties	745,000		730,000
Accrued interest on loan amounts due	141,982		132,982
Controlling Shareholder 1
Due to related parties	3,975		3,915
Controlling Shareholder 2
Due to related parties	40,000		40,000
Accrued interest on loan amounts due	2,137		1,644
President 1
Due to related parties	108,500		83,500
President 2
Due to related parties	$ 845		$ 422