Lode-Star Mining (LSMG) 10-Q 10 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 10, 2016
Document And Entity Information
Entity Registrant Name	Lode-Star Mining Inc.
Entity Central Index Key	1,319,643
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		49,127,825
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

INTERIM BALANCE SHEETS (Unaudit

INTERIM BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current
Cash	$ 10,019	$ 12,456
Prepaid fees	3,217	3,217
Total current assets	13,236	15,673
Mineral Property Interest	230,180	230,180
Total Assets	243,416	245,853
Current
Accounts payable and accrued liabilities	25,460	14,302
Due to related parties	700,761	495,384
Loans payable	66,088	76,180
Total current liabilities	792,309	585,866
Contractual Obligations, Commitments And Subsequent Events (Notes 3, 7 and 8)
Capital Stock
Authorized: 480,000,000 voting common shares with a par value of $0.001 per share 20,000,0000 preferred shares with a par value of $0.001 per share Issued: 49,127,825 common shares at September 30, 2016 and December 31, 2015	1,947	1,947
Additional Paid-In Capital	1,070,064	1,070,064
Accumulated Deficit	(1,620,904)	(1,412,024)
Stockholders' deficit	(548,893)	(340,013)
Total liabilities and stockholders' deficit	$ 243,416	$ 245,853

INTERIM BALANCE SHEETS (Parenth

INTERIM BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
STOCKHOLDERS' DEFICIENCY
Common stock, par value	$ 0.001	$ 0.001
Common stock, Authorized	480,000,000	480,000,000
Common stock, Issued	49,127,825	49,127,825
Preferred stock, par value	$ .001	$ .001
Preferred stock, Authorized	20,000,000	20,000,000
Preferred stock, Issued	0	0

INTERIM STATEMENTS OF OPERATION

INTERIM STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 0	$ 0	$ 0	$ 0
Expenses
Consulting services	6,834	6,102	18,657	19,356
Corporate support services	482	1,140	1,625	3,691
Mineral option fees	25,000	0	74,988	0
Office, foreign exchange and sundry	3,789	(2,306)	11,905	3,756
Professional fees	12,206	10,592	36,084	50,301
Transfer and filing fees	5,074	2,470	24,485	29,519
Total expenses	53,385	17,998	167,744	106,623
Operating Loss Before Other Income (Expense)	(53,385)	(17,998)	(167,744)	(106,623)
Other Income (Expense)
Interest, bank and finance charges	(7,374)	(5,544)	(21,023)	(14,613)
Penalties	0	0	(20,113)	0
Total other income (expense)	(7,374)	(5,544)	(41,136)	(14,613)
Net Loss For The Period	$ (60,759)	$ (23,542)	$ (208,880)	$ (121,236)
Basic And Diluted Loss Per Common Share	$ 0	$ 0	$ 0	$ 0
Weighted Average Number Of Common Shares Outstanding	49,127,825	47,658,000	49,127,825	47,253,956

INTERIM STATEMENTS OF CASH FLOW

INTERIM STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Provided By (Used In) Operating Activites
Net loss for the period	$ (208,880)	$ (121,236)
Adjustments to reconcile net loss to net cash used in operating activities:
Foreign exchange loss (gain)	1,486	(3,921)
Changes in operating assets and liabilities:
Prepaid expenses		(2,285)
Accounts payable and accrued liabilities	64,331	(19,458)
Due to related party	74,988	0
Accrued interest payable	20,638	14,102
Net cash used in Operating Activities	(47,437)	(132,798)
Financing Activities
Repayment of loans payable	(15,000)	(4,000)
Proceeds from loans payable – related party	60,000	142,426
Net cash provided by financing activities	45,000	138,426
Net Increase (Decrease) In Cash	(2,437)	5,628
Cash, Beginning Of Period	12,456	5,372
Cash, End Of Period	10,019	11,000
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	53,174	18,393
Common shares issued for debt settlements	$ 0	$ 53,213

1. BASIS OF PRESENTATION AND NA

1. BASIS OF PRESENTATION AND NATURE OF OPERATIONS	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
NOTE 1 - BASIS OF PRESENTATION AND NATURE OF OPERATIONS	Organization and Nature of Operations Lode-Star Mining Inc. (formerly International Gold Corp.) (“the Company”) was incorporated in the State of Nevada, U.S.A., on December 9, 2004. The Company’s principal executive offices are located in Cypress, Texas. The Company was originally formed for the purpose of acquiring 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 (See Note 3) 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. On May 12, 2015, International Gold Corp. completed a merger with its wholly owned subsidiary, Lode-Star Mining Inc., and formally assumed the subsidiary’s name by filing Articles of Merger with the Nevada Secretary of State (the “Name Change”). The subsidiary was incorporated entirely for the purpose of effecting the Name Change and the merger did not affect the Company’s corporate structure in any other way. Going Concern The accompanying 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 a business plan. As shown in the accompanying financial statements, the Company has incurred accumulated losses of $1,620,904 for the period from December 9, 2004 (inception) to September 30, 2016, and has had no revenue. There is no assurance that management’s plans to seek additional capital through private placements of its common stock will be realized, and these factors cast substantial doubt upon the use of the going concern assumption. 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. Basis of Presentation The unaudited 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 third quarter 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, 2015. 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, footnote disclosure, which would substantially duplicate the disclosure contained in the Company’s financial statements for the fiscal year ended December 31, 2015, has been omitted. The results of operations for the nine month period ended September 30, 2016 are not necessarily indicative of results for the entire year ending December 31, 2016. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications on the interim statement of cash flows for the nine months ended September 30, 2015 had no effect on the reported results of operations. Expenses paid by related parties on behalf of the Company were removed from the net change in loan advances and from the change in accounts payable and are shown as a Non-cash Financing Activity. The foreign exchange gain component of the change in loan advances was removed and shown as an adjustment to reconcile net loss to net cash used in operating activities. Accrued interest that was converted to shares has been removed from the change in loan advances and included in the change in accrued interest. The remaining change in loan advances was separated into repayments of loans payable to non-related parties and loan proceeds from related parties. These changes in classification decreased the amount previously reported as Cash Used In Operating Activities for the nine months ended September 30, 2015 from $174,020 to $132,798. Offsetting that change, the amount previously reported for the 2015 period as Cash Provided By Financing Activities decreased from $179,648 to $138,426.

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2016
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	9 Months Ended
	Sep. 30, 2016
MineralPropertyInterestAbstract
NOTE 3 - MINERAL PROPERTY INTEREST	Given that permitting for operations on the Property is still to be completed, at the request of the Company’s management, LSG granted a deferment to January 18, 2017 of payments otherwise due in accordance with the Mineral Option Agreement between the parties. At September 30, 2016, $198,901 was accrued for fees due under the terms of the agreement. The Company assessed its mineral property interest at September 30, 2016 and to the date 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	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
NOTE 4 - CAPITAL STOCK	During the nine months ended September, 2016, the Company had no cash subscriptions for shares of its common stock. No preferred shares have been issued to the date of issue of these financial statements. Summary of warrant activity and warrants outstanding at September 30, 2016: Number of Warrants Exercise Price Weighted Average Exercise Price Weighted Average Life Remaining(Years) Expiry Date Balance, December 31, 2015 3,336,060 $ 0.02 $ 0.02 4.86 November 10, 2020 Granted - $ - $ - - Expired - $ - $ - - Exercised - $ - $ - - Balance outstanding and exercisable at September 30, 2016 3,333,060 $ 0.02 $ 0.02 4.11 November 10, 2020

5. LOANS PAYABLE

5. LOANS PAYABLE	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
NOTE 5 - LOANS PAYABLE	At September 30, 2016, the Company had the following loans payable: i. $1,000 (December 31, 2015 - $1,000): unsecured; interest at 15% per annum; originally due on April 20, 2012. ii. $50,000 (December 31, 2015 - $65,000): unsecured; interest at 10% per annum from January 10, 2015. ● $27,500, and any accrued interest shall become due and payable on written demand in full (not received to date) on the earlier of June 9, 2015 or the date on which the Company completes one or more debt or equity financings that generate aggregate gross proceeds of at least $250,000 ● The balance of the outstanding principal, now $22,500, and any accrued interest shall become due and payable on written demand in full on January 9, 2016 (not received to date) ● The Company shall have the right to repay all or any part of the Principal and any accrued interest to the Lender at any time and from time to time, without any premium iii. $42,075 (December 31, 2015 - $40,789): unsecured; interest at 5% per annum; with no specific terms of repayment, due to a related party, the president of the Company iv. $350,000 (December 31, 2015 - $290,000): unsecured; interest at 5% per annum from January 1, 2015; with no specific terms of repayment, due to a related party, LSG, the Company’s majority shareholder v. $77,140 (December 31, 2015 - $23,966): unsecured; interest at 5% per annum; with no specific terms of repayment, due to a related party, LSG, the Company’s majority shareholder. vi. $3,812 (December 31, 2015 - $3,613): unsecured; non-interest bearing; with no specific terms of repayment, due to a related party, the controlling shareholder of LSG At September 30, 2016, interest totaling $43,921 (December 31, 2015 - $23,283) was accrued on the above loan amounts.

6. RELATED PARTY TRANSACTIONS A

6. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
NOTE 6 - RELATED PARTY TRANSACTIONS AND AMOUNTS DUE	Transactions with related parties were in the normal course of operations and have been valued in these financial statements at the exchange amount, which is the amount of consideration agreed to and established by the related parties. During the nine months ended September 30, 2016, the Company accrued mineral option fees totaling $74,988 due to its majority shareholder under terms of the Mineral Option Agreement between the parties. The balance due at September 30, 2016 was $198,901 (December 31, 2015: $123,913). During the nine months ended September 30, 2016, the majority shareholder of the Company paid a total of $53,174 to various vendors on behalf of the Company. That amount is included in the $77,140 loan balance detailed in Note 5 above. At September 30, 2016, accrued interest was due to related parties in connection with loans detailed above in Note 5, as follows: Loan iii) $4,285 (December 31, 2015 - $2,609) to the president of the Company Loan iv) $22,158 (December 31, 2015 - $10,157) to the majority shareholder of the Company. Loan v) $2,391 (December 31, 2015 - $336) to the majority shareholder of the Company At September 30, 2016, the $700,761 (December 31, 2015: $495,384) total due to related parties is comprised of the following: Loans and accrued interest - $501,860 (December 31, 2015: $371,471) Mineral option fees payable - $198,901(December 31, 2015: $123,913)

7. CONTRACTUAL OBLIGATIONS AND

7. CONTRACTUAL OBLIGATIONS AND COMMITMENTS	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
NOTE 7 - CONTRACTUAL OBLIGATIONS AND COMMITMENTS	Under the terms of the Mineral Option Agreement between the Company and LSG, its majority shareholder, payments are due from the Company to LSG as follows: If the Company fails to make any option cash payments for a period of one year from the Effective Date of the agreement (October 4, 2014) the Company shall pay an additional $100,000 on the first anniversary of the Effective Date and in any subsequent year in which the Company has failed to exercise its option to acquire a further 60% interest in the property and the agreement remains in effect, the Company shall make quarterly cash payments of $25,000, payable on the last day of the applicable quarter, until such time as the option to acquire the additional 60% interest has been exercised. No option payments have been made by the Company to date and amounts totaling $198,901 were included in accrued liabilities at September 30, 2016 (December 31, 2015: $123,913).

8. SUBSEQUENT EVENTS

8. SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
NOTE 8 - SUBSEQUENT EVENTS	Management has evaluated subsequent events and the impact on the reported results and disclosures and has concluded that no other significant events require disclosure as of the date these financial statements were issued.

4. CAPITAL STOCK (Tables)

4. CAPITAL STOCK (Tables)	9 Months Ended
	Sep. 30, 2016
Capital Stock Tables
Summary of warrant activity	Number of Warrants Exercise Price Weighted Average Exercise Price Weighted Average Life Remaining(Years) Expiry Date Balance, December 31, 2015 3,336,060 $ 0.02 $ 0.02 4.86 November 10, 2020 Granted - $ - $ - - Expired - $ - $ - - Exercised - $ - $ - - Balance outstanding and exercisable at September 30, 2016 3,333,060 $ 0.02 $ 0.02 4.11 November 10, 2020

1. BASIS OF PRESENTATION AND 15

1. BASIS OF PRESENTATION AND NATURE OF OPERATIONS (Details Narrative)	9 Months Ended
	Sep. 30, 2016USD ($)
Basis Of Presentation And Nature Of Operations Details Narrative
State of incorporation	State of Nevada, U.S.A.
Date of incorporation	Dec. 9, 2004
Accumulated losses	$ 1,620,904

4. CAPITAL STOCK (Details)

4. CAPITAL STOCK (Details)	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Capital Stock Tables
Number of Warrants, Beginning | shares	3,336,060
Granted | shares	0
Expired | shares	0
Exercised | shares	0
Number of Warrants, Ending | shares	3,336,060
Exercise Price, Beginning | $ / shares	$ .02
Exercise Price, Granted | $ / shares	0
Exercise Price, Expired | $ / shares	0
Exercise Price, Exercised | $ / shares	0
Exercise Price, , Ending | $ / shares	$ .02
Weighted Average Life Remaining (Years), Beginning	4 years 10 months 10 days
Weighted Average Life Remaining (Years), Ending	4 years 1 month 10 days
Expiry Date	Nov. 10, 2020

5. LOANS PAYABLE (Details Narra

5. LOANS PAYABLE (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Accrued interest payable	$ 43,921	$ 23,283
Loans Payable 1
Principal balance	$ 1,000	$ 1,000
Interest rate	15.00%	15.00%
Loans Payable 2
Principal balance	$ 50,000	$ 65,000
Interest rate	10.00%	10.00%
Loans Payable 3
Principal balance	$ 42,075	$ 40,789
Interest rate	5.00%	5.00%
Loans Payable 4
Principal balance	$ 350,000	$ 290,000
Interest rate	5.00%	5.00%
Loans Payable 5
Principal balance	$ 77,140	$ 23,966
Interest rate	5.00%	5.00%
Loans Payable 6
Principal balance	$ 3,812	$ 3,613
Interest rate	0.00%	0.00%

6. RELATED PARTY TRANSACTIONS18

6. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE (Details Narrative) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Due to related parties	$ 700,761	$ 495,384
Loans and accrued interest	501,860	371,471
Mineral option fees payable	198,901	123,913
Loan 1
Accrued interest on loan amounts due	4,285	2,609
Loan 2
Accrued interest on loan amounts due	22,158	10,157
Loan 3
Accrued interest on loan amounts due	$ 2,391	$ 336