Lode-Star Mining (LSMG) 10-Q 9 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 14, 2018
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	Jun. 30, 2018
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	Q2
Document Fiscal Year Focus	2,018

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current
Cash	$ 914	$ 818
Prepaid fees	3,022	3,725
Total current assets	3,936	4,543
Mineral Property Interest, unproven	230,180	230,180
Total Assets	234,116	234,723
Current
Accounts payable and accrued liabilities	7,653	8,048
Due to related parties and accrued interest	1,195,642	1,036,569
Loans payable and accrued interest	38,897	47,055
Total current liabilities	1,242,192	1,091,672
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 June 30, 2018 and December 31, 2017	1,947	1,947
Additional Paid-In Capital	1,560,897	1,512,872
Accumulated Deficit	(2,570,920)	(2,371,768)
Total stockholders' deficiency	(1,008,076)	(856,949)
Total liabilities and stockholders' deficiency	$ 234,116	$ 234,723

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
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

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue	$ 0	$ 0	$ 0	$ 0
Expenses
Consulting services	23,301	106,102	60,420	310,899
Corporate support services	463	466	963	941
Exploration and evaluation	0	3,190	0	3,190
Mineral option fees	25,012	25,012	49,988	49,988
Office, foreign exchange and sundry	6,916	2,897	11,200	3,801
Professional fees	7,359	16,812	29,590	21,526
Transfer and filing fees	2,093	3,008	18,527	17,325
Total operating expenses	65,144	157,487	170,688	407,670
Operating Loss	(65,144)	(157,487)	(170,688)	(407,670)
Other Income (Expense)
Interest, bank and finance charges	(14,465)	(11,270)	(28,464)	(22,045)
Net Loss	$ (79,609)	$ (168,757)	$ (199,152)	$ (429,715)
Basic And Diluted Loss Per Common Share	$ 0	$ 0	$ 0	$ (0.01)
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 ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating Activities
Net loss for the period	$ (199,152)	$ (429,715)
Adjustments to reconcile net loss to net cash used in operating activities:
Foreign exchange loss	558	938
Stock options issued for services	48,025	298,844
Changes in operating assets and liabilities:
Prepaid fees	703	0
Accounts payable and accrued liabilities	26,872	26,072
Due to related parties	49,988	49,988
Accrued interest payable	28,102	21,803
Net cash used in operating activities	(44,904)	(32,070)
Financing Activities
Repayment of loans payable	(10,000)	(10,000)
Proceeds from loans payable – related party	55,000	55,000
Net cash provided by financing activities	45,000	45,000
Net Increase In Cash	96	12,930
Cash, Beginning Of Period	818	5,134
Cash, End Of Period	914	18,064
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	$ 27,266	$ 41,898

1. BASIS OF PRESENTATION AND NA

1. BASIS OF PRESENTATION AND NATURE OF OPERATIONS	6 Months Ended
	Jun. 30, 2018
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 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 $2,570,920 as of June 30, 2018. 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. 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, 2017. 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, 2017, have been omitted. The results of operations for the six months ended June 30, 2018 are not necessarily indicative of results for the entire year ending December 31, 2018.

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2018
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	6 Months Ended
	Jun. 30, 2018
Mineral Property Interest
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 fails 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. 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 June 30, 2018 was $373,901 (December 31, 2017: $323,913), with total interest due in the amount of $21,841 (December 31, 2017: $11,196). The Company has agreed with LSG that upon the successful completion of a toll milling agreement after permitting is achieved, it will have the basis to form a joint management committee to outline work programs and budgets, as contemplated in the option agreement, and for the Company 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	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
NOTE 4 - CAPITAL STOCK	During the six months ended June 30, 2018, the Company did not issue any shares of its common 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. 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. At the date they were granted, the options had an estimated fair value of $536,750. For the six-month period ended June 30, 2018, $48,025 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 2.00%, a weighted average life of 4.844 years, volatility of 190.49% and dividend yield of 0%. The valuation used average weekly pricing. At June 30, 2018, the options had an intrinsic value of $0 based on the exercise price of $0.06 per option and a market price of $0.025 per share. A summary of option activity in the current six-month period and options outstanding at June 30, 2018 is as follows: Options Issued Vested Exercise Price Weighted Average Exercise Price Weighted Average Life Remaining (Years) Expiry Date Intrinsic Value Balance December 31, 2017 9,500,000 4,750,000 $ 0.06 $ 0.06 4.12 February 14, 2022 - Issued - - - - - - - Expired - - - - - - - Exercised - - - - - - - Vested - 2,375,000 $ 0.06 $ 0.06 - February 14, 2022 - Balance June 30, 2018 9,500,000 7,125,000 $ 0.06 $ 0.06 3.63 February 14, 2022 - Warrants During the six months ended June 30, 2018, no warrants to purchase shares of common stock were issued, exercised or expired. At June 30, 2018, warrants issued in 2015 had an intrinsic value of $16,680, based on the exercise price of $0.02 per warrant and a market price of $0.025 per share. A summary of warrant activity in the current six-month period and warrants outstanding at June 30, 2018 is as follows: Number of Warrants Exercise Price Weighted Average Exercise Price Weighted Average Life Remaining (Years) Expiry Date Intrinsic Value Balance December 31, 2017 3,336,060 $ 0.02 $ 0.02 2.88 November 19, 2020 $ 40,033 Issued - - - - - - Expired - - - - - - Exercised - - - - - - Balance outstanding and exercisable at June 30, 2018 3,336,060 $ 0.02 $ 0.02 2.39 November 19, 2020 $ 16,680

5. LOANS PAYABLE

5. LOANS PAYABLE	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
NOTE 5 - LOANS PAYABLE	At June 30, 2018, the Company had the following loans payable: i. $1,000 (December 31, 2017 - $1,000): unsecured; interest at 15% per annum; originally due on April 20, 2012. Accrued interest payable on the loan at June 30, 2018 was $3,443 (December 31, 2017: $3,368). During the first six months of 2018, the Company repaid $0 (2017: $0) on this loan. ii. $15,000 (December 31, 2017 - $25,000): unsecured; interest at 10% per annum from January 10, 2015. ● The outstanding principal, and any accrued interest was due and payable in full on written demand (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 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. ● There are no changes to the terms due to the loan being in default. ● Accrued interest payable on the loan at June 30, 2018 was $19,454 (December 31, 2017: $17,687). During the first six months of 2018, the Company repaid $10,000 (2017: $10,000) on this loan. Total interest accrued on the above loans at June 30, 2018 was $22,897 (December 31, 2017: $21,055).

6. RELATED PARTY TRANSACTIONS A

6. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
NOTE 6 - RELATED PARTY TRANSACTIONS AND AMOUNTS DUE	At June 30, 2018, the Company had the following amounts due to related parties: i. $40,267 (December 31, 2017 - $39,783): 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 June 30, 2018 was $7,722 (December 31, 2017: $6,641). During the current six-month period, the Company made no repayments to or borrowed any additional amounts from the President. The change in value was entirely due to fluctuation in foreign exchange rates. ii. $475,000 (December 31, 2017 - $420,000): 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 June 30, 2018 was $56,357 (December 31, 2017: $45,047). During the six months ended June 30, 2018, the Company borrowed $55,000 (2017: $55,000) from LSG. iii. $201,196 (December 31, 2017 - $173,930): 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 June 30, 2018 was $15,559 (December 31, 2017: $12,334). During the six months ended June 30, 2018, LSG paid expenses directly on behalf of the Company totaling $27,266 (2017: $41,898). iv. $3,800 (December 31, 2017 - $3,725): unsecured; non-interest bearing; with no specific terms of repayment, due to the controlling shareholder of LSG. The change in value was entirely due to fluctuation in foreign exchange rates. Total interest accrued on the above related party loans at June 30, 2018 was $79,637 (December 31, 2017: $64,022). During the period ended June 30, 2018, there was a $558 foreign exchange loss (2017: $938) resulting from related party loan amounts in non-US currency. Stock-based compensation to related parties of $49,286 (2017: $255,403) was also incurred during the period ended June 30, 2018. During the period ended June 30, 2018, the Company incurred $49,988 (2017: $49,988) in mineral option fees and $10,645 (2017: $5,552) in interest payable to LSG, which were accrued as of that date. The total amount of such fees due at June 30, 2018 was $373,901 (December 31, 2017: $323,913), with total interest due in the amount of $21,841 (December 31, 2017: $11,196). At June 30, 2018, the total due to related parties of $1,195,642 (December 31, 2017: $1,036,569) was comprised of the following: ■ Loans and accrued interest - $799,900 (December 31, 2017: $701,460) ■ Mineral option fees payable and accrued interest - $395,742 (December 31, 2017: $335,109) An additional $3,261 (December 31, 2017: $Nil) owing to the Company’s President was outstanding in accounts payable as at June 30, 2018. The President provides a full spectrum of senior management services, functioning also as the Company’s CEO and CFO, at no cost to the Company.

7. CONTRACTUAL OBLIGATIONS AND

7. CONTRACTUAL OBLIGATIONS AND COMMITMENTS	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
NOTE 7 - 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)	6 Months Ended
	Jun. 30, 2018
Capital Stock Tables Abstract
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, 2017 9,500,000 4,750,000 $ 0.06 $ 0.06 4.12 February 14, 2022 - Issued - - - - - - - Expired - - - - - - - Exercised - - - - - - - Vested - 2,375,000 $ 0.06 $ 0.06 - February 14, 2022 - Balance June 30, 2018 9,500,000 7,125,000 $ 0.06 $ 0.06 3.63 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, 2017 3,336,060 $ 0.02 $ 0.02 2.88 November 19, 2020 $ 40,033 Issued - - - - - - Expired - - - - - - Exercised - - - - - - Balance outstanding and exercisable at June 30, 2018 3,336,060 $ 0.02 $ 0.02 2.39 November 19, 2020 $ 16,680

1. BASIS OF PRESENTATION AND 14

1. BASIS OF PRESENTATION AND NATURE OF OPERATIONS (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Basis Of Presentation And Nature Of Operations
State of incorporation	State of Nevada, U.S.A.
Date of incorporation	Dec. 9, 2004
Accumulated losses	$ (2,570,920)	$ (2,371,768)

4. CAPITAL STOCK (Details)

4. CAPITAL STOCK (Details)	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Options Issued
Number of Options, Outstanding at December 31, 2017	9,500,000
Number of Options, Options issued	0
Number of Options, Options expired	0
Number of Options, Options exercised	0
Number of Options, Options vested	0
Number of Options, Outstanding at June 30, 2018	9,500,000
Weighted Average Exercise Price, Options issued (in dollars per share) | $ / shares	$ 0
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 Remaining Contractual Term, Options issued	4 years 1 month 13 days
Weighted-Average Remaining Contractual Term, Outstanding at June 30, 2018	3 years 7 months 13 days
Expiry Date	Feb. 14, 2022
Options Vested
Number of Options, Outstanding at December 31, 2017	4,750,000
Number of Options, Options issued	0
Number of Options, Options expired	0
Number of Options, Options exercised	0
Number of Options, Options vested	2,375,000
Number of Options, Outstanding at June 30, 2018	7,125,000
Options
Weighted Average Exercise Price, Outstanding (in dollars per share) at December 31, 2017 | $ / shares	$ 0.06
Weighted Average Exercise Price, Options vested (in dollars per share) | $ / shares	0.06
Weighted Average Exercise Price, Outstanding (in dollars per share) at June 30, 2018 | $ / shares	$ 0.06
Aggregate Intrinsic Value, Outstanding (in dollars) at December 31, 2017 | $	$ 0
Aggregate Intrinsic Value, Outstanding (in dollars) at June 30, 2018 | $	$ 0

4. CAPITAL STOCK (Details 1)

4. CAPITAL STOCK (Details 1) - Warrant	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Number of Warrants, Beginning | shares	3,336,060
Issued | shares	0
Expired | shares	0
Exercised | shares	0
Number of Warrants, Ending | shares	3,336,060
Exercise Price, Beginning | $ / shares	$ 0.02
Exercise Price, Issued | $ / shares	0
Exercise Price, Expired | $ / shares	0
Exercise Price, Exercised | $ / shares	0
Exercise Price, , Ending | $ / shares	$ 0.02
Weighted Average Life Remaining (Years), Beginning	2 years 10 months 19 days
Weighted Average Life Remaining (Years), Ending	2 years 4 months 19 days
Expiry Date	Nov. 19, 2020
Intrinsic Value, Beginning | $	$ 40,033
Intrinsic Value, Ending | $	$ 16,680

5. LOANS PAYABLE (Details Narra

5. LOANS PAYABLE (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Loans Payable
Accrued interest payable	$ 22,897	$ 21,055

6. RELATED PARTY TRANSACTIONS18

6. RELATED PARTY TRANSACTIONS AND AMOUNTS DUE (Details Narrative) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Due to related parties	$ 1,195,642	$ 1,036,569
Loans and accrued interest	799,900	701,460
Mineral option fees payable	395,742	335,109
President
Due to related parties	40,267	39,783
Loans and accrued interest	7,722	6,641
Majority shareholder
Due to related parties	475,000	420,000
Loans and accrued interest	56,357	45,047
Majority shareholder 2
Due to related parties	201,196	173,930
Loans and accrued interest	15,559	12,334
Controlling shareholder
Due to related parties	$ 3,800	$ 3,725