Lode-Star Mining (LSMG) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 14, 2017
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, 2017
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	2,017

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current
Cash	$ 2,165	$ 5,134
Total current assets	2,165	5,134
Mineral Property Interest, unproved	230,180	230,180
Total Assets	232,345	235,314
Current
Accounts payable and accrued liabilities	1,494	19,016
Due to related parties and accrued interest	977,819	762,117
Loans payable and accrued interest	51,105	62,310
Total current liabilities	1,030,418	843,443
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, 2017 and December 31, 2016	1,947	1,947
Additional Paid-In Capital	1,463,629	1,070,064
Accumulated Deficit	(2,263,649)	(1,680,140)
Stockholders' deficit	(798,073)	(608,129)
Total liabilities and stockholders' deficit	$ 232,345	$ 235,314

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
STOCKHOLDERS' DEFICIT
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

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenue	$ 0	$ 0	$ 0	$ 0
Expenses
Consulting services	100,659	6,834	411,558	18,657
Corporate support services	499	482	1,440	1,625
Exploration and evaluation	0	0	3,190	0
Mineral option fees	25,012	25,000	75,000	74,988
Office, foreign exchange and sundry	1,799	3,789	5,600	11,905
Professional fees	12,316	12,206	33,842	36,084
Transfer and filing fees	1,909	5,074	19,234	24,485
Total operating expenses	142,194	53,385	549,864	167,744
Operating Loss	(142,194)	(53,385)	(549,864)	(167,744)
Other Income (Expense)
Interest, bank and finance charges	(11,600)	(7,374)	(33,645)	(21,023)
Penalties	0	0	0	(20,113)
Total other expenses	(11,600)	(7,374)	(33,645)	(41,136)
Net Loss	$ (153,794)	$ (60,759)	$ (583,509)	$ (208,880)
Basic And Diluted Loss Per Common Share	$ 0	$ 0	$ (0.01)	$ 0
Weighted Average Number Of Common Shares Outstanding - Basic and Diluted	49,127,825	49,127,825	49,127,825	49,127,825

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating Activities
Net loss for the period	$ (583,509)	$ (208,880)
Adjustments to reconcile net loss to net cash used in operating activities:
Foreign exchange loss	2,103	1,486
Stock options issued for services	393,565	0
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities	36,465	64,331
Due to related parties	75,000	74,988
Accrued interest payable	33,407	20,638
Net cash used in operating activities	(42,969)	(47,437)
Financing Activities
Repayment of loans payable	(15,000)	(15,000)
Proceeds from loans payable – related party	55,000	60,000
Net cash provided by financing activities	40,000	45,000
Net Decrease In Cash	(2,969)	(2,437)
Cash, Beginning Of Period	5,134	12,456
Cash, End Of Period	2,165	10,019
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	$ 53,987	$ 53,174

1. BASIS OF PRESENTATION AND NA

1. BASIS OF PRESENTATION AND NATURE OF OPERATIONS	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
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 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 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 $2,263,649 as of September 30, 2017. These factors raise substantial doubt about the Company’s ability to continue as a going concern. In order 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. 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, 2016. 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 disclosures, which would substantially duplicate the disclosures contained in the Company’s financial statements for the fiscal year ended December 31, 2016, have been omitted. The results of operations for the three and nine month periods ended September 30, 2017 are not necessarily indicative of results for the entire year ending December 31, 2017.

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2017
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, 2017
Mineral Property Interest
NOTE 3 - MINERAL PROPERTY INTEREST	On February 17, 2017, the Company executed an agreement with Scorpio Gold Corporation for a pilot toll milling test of its mineralized material. Presently, the Company is waiting on completion of the pilot test's metallurgical work to further define its milling needs. The Company expects to provide material from its targeted underground zone for more comprehensive milling results when we are permitted to do so. Given that permitting for operations on the Property is still to be completed, 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 September 30, 2017 was $298,913 (December 31, 2016: $223,913), with total interest due in the amount of $8,374 (December 31, 2016: $0). We have agreed with LSG that upon the successful completion of the pilot test and subsequently, a toll milling agreement after permitting is achieved, we will have the basis to form a joint management committee to outline work programs and budgets, as contemplated in our Option agreement dated October 4, 2014, and for us to act as the operator of the property. 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	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 4 - CAPITAL STOCK	During the nine months ended September 30, 2017, the Company had no subscriptions for shares of its common stock and no preferred shares have been issued. Options 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 had an estimated grant date fair value of $536,750. For the nine month period ended September 30, 2017, $393,565 has been 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 1.93%, a weighted average life of 4.92 years, volatility of 192.19% and dividend yield of 0%. The valuation used average weekly pricing. At September 30, 2017, the options had an intrinsic value of $0 based on the exercise price of $0.06 per option and a market price of $0.04 per share. A summary of option activity in the current nine month period and options outstanding at September 30, 2017 is as follows: Options Issued Vested Exercise Price Weighted Average Exercise Price Weighted Average Life Remaining (Years) Expiry Date Intrinsic Value Balance December 31, 2016 - - - - - - - Issued 9,500,000 2,375,000 $ 0.06 $ 0.06 5.00 February 14, 2022 - Expired - - - - - - - Balance September 30, 9,500,000 4,750,000 $ 0.06 $ 0.06 4.38 February 14, 2022 - Warrants During the nine months ended September 30, 2017, no warrants to purchase shares of common stock were issued and no warrants were exercised. At September 30, 2017, warrants issued in 2015 had an intrinsic value of $66,721 based on the exercise price of $0.02 per warrant and a market price of $0.04 per share. A summary of warrant activity in the current nine month period and warrants outstanding at September 30, 2017 is as follows: Number of Warrants Exercise Price Weighted Average Exercise Price Weighted Average Life Remaining (Years) Expiry Date Intrinsic Value Balance December 31, 2016 3,336,060 $ 0.02 $ 0.02 3.86 November 19, 2020 $ 66,721 Issued - - - - - - Expired - - - - - - Exercised - - - - - - Balance outstanding and exercisable at September 30, 2017 3,336,060 $ 0.02 $ 0.02 3.11 November 19, 2020 $ 66, 721

5. LOANS PAYABLE

5. LOANS PAYABLE	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 5 - LOANS PAYABLE	At September 30, 2017, the Company had the following loans payable: i. $1,000 (December 31, 2016 - $1,000): unsecured; interest at 15% per annum; originally due on April 20, 2012. Accrued interest payable on the loan at September 30, 2017 was $3,331 (December 31, 2016: $3,218). During the first nine months of 2017, the Company repaid $0 (2016: $0) on this loan. ii. $30,000 (December 31, 2016 - $45,000): unsecured; interest at 10% per annum from January 10, 2015. ● $27,500 of the outstanding principal, and any accrued interest was 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; ● $2,500 of the outstanding principal, and any accrued interest was due and payable on written demand in full (not received to date) on January 9, 2016 ● The Company has 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. ● The loan is currently in default; there are no changes to the terms due to the loan being in default. ● Accrued interest payable on the loan at September 30, 2017 was $16,774 (December 31, 2016: $13,091). During the first nine months of 2017, the Company repaid $15,000 (2016: $15,000) on this loan. At September 30, 2017, total interest accrued on the above loans was $20,105 (December 31, 2016: $16,309).

6. RELATED PARTY TRANSACTIONS A

6. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
NOTE 6 - RELATED PARTY TRANSACTIONS AND AMOUNTS DUE	At September 30, 2017, the Company had the following amounts due to related parties: i. $41,597 (December 31, 2016 - $39,777): unsecured; interest at 5% per annum; with no specific terms of repayment, due to the President of the Company. Accrued interest payable on the loan at September 30, 2017 was $6,429 (December 31, 2016: $4,655). During the current nine month period, the Company repaid $0 (2016: $0) and borrowed $0 (2016: $0) from the President. The change in value is entirely due to fluctuation in foreign exchange rates. ii. $400,000 (December 31, 2016 - $345,000): 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 September 30, 2017 was $39,762 (December 31, 2016: $25,551). During the nine months ended September 30, 2017, the Company borrowed $55,000 (2016: $60,000) from LSG. iii. $168,675 (December 31, 2016 - $114,688): 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 loan at September 30, 2017 was $10,062 (December 31, 2016: $4,810). During the nine months ended September 30, 2017, LSG paid expenses directly on behalf of the Company totaling $53,987 (2016: $53,174). iv. $4,007 (December 31, 2016 - $3,724): unsecured; non-interest bearing; with no specific terms of repayment, due to the controlling shareholder of LSG. The change in value is entirely due to fluctuation in foreign exchange rates. At September 30, 2017, total interest accrued on the above related party loans was $56,253 (December 31, 2016: $35,016). During the period ended September 30, 2017, there was a $2,103 foreign exchange loss (2016: $1,485) resulting from related party loan amounts in non-US currency. During the nine months ended September 30, 2017, the Company incurred $75,000 (2016: $75,000) in mineral option fees and $8,374 (2016: $0) in interest payable to LSG, which were accrued as of that date. The total amount of such fees due at September 30, 2017 was $298,913 (December 31, 2016: $223,913), with total interest due in the amount of $8,374 (December 31, 2016: $0). At September 30, 2017, the total due to related parties of $977,819 (December 31, 2016: $762,117) is comprised of the following: - Loans and accrued interest - $670,532 (December 31, 2016: $538,204) - Mineral option fees payable and accrued interest - $307,287 (December 31, 2016: $223,913) At no cost to the Company, the President provides a full spectrum of senior management services, functioning also as the Company’s CEO and CFO.

7. CONTRACTUAL OBLIGATIONS AND

7. CONTRACTUAL OBLIGATIONS AND COMMITMENTS	9 Months Ended
	Sep. 30, 2017
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. See Note 3. No mineral option cash payments have been made by the Company to LSG to date and amounts totaling $307,287 were included in due to related parties and accrued interest at September 30, 2017 (December 31, 2016: $223,913). See Note 6.

4. CAPITAL STOCK (Tables)

4. CAPITAL STOCK (Tables)	9 Months Ended
	Sep. 30, 2017
Capital Stock Tables
Summary of Option activity	Options Issued Vested Exercise Price Weighted Average Exercise Price Weighted Average Life Remaining (Years) Expiry Date Intrinsic Value Balance December 31, 2016 - - - - - - - Issued 9,500,000 2,375,000 $ 0.06 $ 0.06 5.00 February 14, 2022 - Expired - - - - - - - Balance September 30, 9,500,000 4,750,000 $ 0.06 $ 0.06 4.38 February 14, 2022 -
Summary of warrant activity	Number of Warrants Exercise Price Weighted Average Exercise Price Weighted Average Life Remaining (Years) Expiry Date Intrinsic Value Balance December 31, 2016 3,336,060 $ 0.02 $ 0.02 3.86 November 19, 2020 $ 66,721 Issued - - - - - - Expired - - - - - - Exercised - - - - - - Balance outstanding and exercisable at September 30, 2017 3,336,060 $ 0.02 $ 0.02 3.11 November 19, 2020 $ 66, 721

1. BASIS OF PRESENTATION AND 14

1. BASIS OF PRESENTATION AND NATURE OF OPERATIONS (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
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	$ (2,263,649)	$ (1,680,140)

4. CAPITAL STOCK (Details)

4. CAPITAL STOCK (Details) - Options	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Number of Options, Outstanding at December 31, 2016	0
Number of Options, Options issued	9,500,000
Number of Options, Options expired	0
Number of Options, Options exercised	0
Number of Options, Outstanding at September 30, 2017	9,500,000
Number of option, Vested at September 30, 2017	4,750,000
Weighted Average Exercise Price, Outstanding (in dollars per share) at December 31, 2016 | $ / shares	$ 0
Weighted Average Exercise Price, Options issued (in dollars per share) | $ / shares	.06
Weighted Average Exercise Price, Options expired (in dollars per share) | $ / shares	0
Weighted Average Exercise Price, Options exercised (in dollars per share) | $ / shares	0
Weighted Average Exercise Price, Outstanding (in dollars per share) at September 30, 2017 | $ / shares	$ .06
Weighted-Average Remaining Contractual Term, Options issued	5 years
Weighted-Average Remaining Contractual Term, Outstanding at September 30, 2017	4 years 4 months 14 days
Expiry Date	Feb. 14, 2022
Aggregate Intrinsic Value, Outstanding (in dollars) at December 31, 2016 | $	$ 0
Aggregate Intrinsic Value, Outstanding (in dollars) at September 30, 2017 | $	$ 0

4. CAPITAL STOCK (Details 1)

4. CAPITAL STOCK (Details 1) - Warrant	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Number of Warrants, Beginning | shares	3,336,060
Issued | shares	0
Exercised | shares	0
Number of Warrants, Ending | shares	3,336,060
Exercise Price, Beginning | $ / shares	$ .02
Exercise Price, Issued | $ / shares	0
Exercise Price, Exercised | $ / shares	0
Exercise Price, , Ending | $ / shares	$ 0.02
Weighted Average Life Remaining (Years), Beginning	3 years 10 months 19 days
Weighted Average Life Remaining (Years), Ending	3 years 1 month 19 days
Expiry Date	Nov. 19, 2020
Intrinsic Value, Beginning | $	$ 66,721
Intrinsic Value, Ending | $	$ 66,721

5. LOANS PAYABLE (Details Narra

5. LOANS PAYABLE (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2015
Loans Payable Details Narrative
Accrued interest payable	$ 20,105	$ 16,309

6. RELATED PARTY TRANSACTIONS18

6. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE (Details Narrative) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Due to related parties	$ 977,819	$ 762,117
Loans and accrued interest	670,532	538,204
Mineral option fees payable	307,287	223,913
Accrued interest on loan amounts due	56,253	35,016
President
Due to related parties	41,597	39,777
Accrued interest on loan amounts due	6,429	4,655
Majority shareholder
Due to related parties	400,000	345,000
Accrued interest on loan amounts due	39,762	25,551
Majority shareholder 2
Due to related parties	168,675	114,688
Accrued interest on loan amounts due	10,062	4,810
Controlling shareholder
Due to related parties	$ 4,007	$ 3,724