Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 31, 2016 | Feb. 21, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Li3 Energy, Inc. | |
Entity Central Index Key | 1,334,699 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | LIEG | |
Entity Common Stock, Shares Outstanding | 502,829,707 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 |
Current assets: | ||
Cash | $ 52,291 | $ 382,054 |
Prepaid expenses and advances | 93,310 | 9,169 |
Total current assets | 145,601 | 391,223 |
Equity investment in Minera Li | 6,707,400 | 6,779,337 |
Total assets | 6,853,001 | 7,170,560 |
Current liabilities: | ||
Accounts payable | 390,664 | 360,979 |
Accrued expenses | 333,015 | 306,861 |
Common stock payable | 236,678 | 236,678 |
Notes payable | 0 | 200,000 |
Convertible notes payable, net of discount of $149,857 and $349,081 respectively | 375,143 | 175,919 |
Total current liabilities | 1,335,500 | 1,280,437 |
Long-term notes payable to MSB | 454,901 | 454,901 |
Total liabilities | 1,790,401 | 1,735,338 |
Commitments and contingencies | ||
Common stock subject to rescission, 65,000 shares issued and outstanding | 3,041 | 3,041 |
Stockholders’ Equity: | ||
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 990,000,000 shares authorized; 500,121,178 and 495,153,347 shares issued and outstanding, respectively | 500,121 | 495,153 |
Additional paid-in capital | 72,598,748 | 72,511,626 |
Accumulated deficit | (68,039,310) | (67,574,598) |
Total stockholders' equity | 5,059,559 | 5,432,181 |
Total liabilities and stockholders’ equity | $ 6,853,001 | $ 7,170,560 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 |
Convertible notes payable, net of discount | $ 149,857 | $ 349,081 |
Common stock subject to rescission, shares issued | 65,000 | 65,000 |
Common stock subject to rescission, shares outstanding | 65,000 | 65,000 |
Preferred stock, par value (in dollars 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 value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 990,000,000 | 990,000,000 |
Common stock, shares issued | 500,121,178 | 495,153,347 |
Common stock, shares outstanding | 500,121,178 | 495,153,347 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating expenses: | ||||
Loss from Minera Li equity investment | $ (6,817) | $ (161,848) | $ (71,937) | $ (375,232) |
General and administrative expenses | (126,689) | (194,455) | (345,412) | (370,998) |
Total operating expenses | (133,506) | (356,303) | (417,349) | (746,230) |
Other income (expense): | ||||
Gain on debt extinguishment | 200,000 | 0 | 200,000 | 0 |
Change in fair value of derivative liability instruments | 0 | (6,298) | 0 | (55,678) |
Gain (loss) on foreign currency transactions | 43 | (150) | (2,178) | 6,264 |
Interest expense, net | (122,591) | (30,462) | (245,185) | (55,823) |
Total other income (expense) | 77,452 | (36,910) | (47,363) | (105,237) |
Net loss | $ (56,054) | $ (393,213) | $ (464,712) | $ (851,467) |
Net loss per common share - basic (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Net loss per common share - diluted (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares outstanding - basic (in share) | 499,797,189 | 483,371,280 | 497,475,268 | 483,331,565 |
Weighted average number of common shares outstanding - diluted (in share) | 499,797,189 | 483,371,280 | 497,475,268 | 483,331,565 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Directors and Employees [Member] | Third Party [Member] | Common Stock [Member] | Common Stock [Member]Directors and Employees [Member] | Common Stock [Member]Third Party [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Directors and Employees [Member] | Additional Paid-in Capital [Member]Third Party [Member] | Retained Earnings [Member] | Retained Earnings [Member]Directors and Employees [Member] | Retained Earnings [Member]Third Party [Member] |
Balance at Jun. 30, 2015 | $ 6,251,867 | $ 477,120 | $ 71,808,625 | $ (66,033,878) | ||||||||
Balance (in shares) at Jun. 30, 2015 | 477,119,526 | |||||||||||
Amortization of stock-based compensation | 176 | $ 0 | 176 | 0 | ||||||||
Stock issued for services | $ 226,188 | $ 99,470 | $ 12,213 | $ 5,820 | $ 213,975 | $ 93,650 | $ 0 | $ 0 | ||||
Stock issued for services (in shares) | 12,213,936 | 5,819,885 | ||||||||||
Beneficial conversion feature related to convertible notes payable | 395,200 | 0 | 395,200 | 0 | ||||||||
Net loss | (1,540,720) | 0 | 0 | (1,540,720) | ||||||||
Balance at Jun. 30, 2016 | 5,432,181 | $ 495,153 | 72,511,626 | (67,574,598) | ||||||||
Balance (in shares) at Jun. 30, 2016 | 495,153,347 | |||||||||||
Stock issued for services | $ 92,090 | $ 4,968 | $ 87,122 | $ 0 | ||||||||
Stock issued for services (in shares) | 4,967,831 | |||||||||||
Net loss | (464,712) | $ 0 | 0 | (464,712) | ||||||||
Balance at Dec. 31, 2016 | $ 5,059,559 | $ 500,121 | $ 72,598,748 | $ (68,039,310) | ||||||||
Balance (in shares) at Dec. 31, 2016 | 500,121,178 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (464,712) | $ (851,467) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of convertible debt discount | 199,224 | 4,792 |
Gain on debt extinguishment | (200,000) | 0 |
Loss from Minera Li equity investment | 71,937 | 375,232 |
Stock-based compensation | 0 | 33,176 |
Change in fair value of derivative liabilities | 0 | 55,678 |
Loss (gain) on foreign currency transactions | 2,178 | (6,264) |
Changes in operating assets and liabilities: | ||
Decrease (increase) in prepaid expenses and advances | (84,141) | 21,183 |
Accretion of interest income on MSB receivable | 0 | (1,889) |
Increase in accounts payable | 27,507 | 87,766 |
Increase in accrued expenses | 118,244 | 186,523 |
Net cash used in operating activities | (329,763) | (95,270) |
Cash flows from financing activities | ||
Proceeds from notes payable - Directors | 0 | 40,000 |
Proceeds from notes payable | 0 | 52,500 |
Net cash provided by financing activities | 0 | 92,500 |
Net decrease in cash | (329,763) | (2,770) |
Cash at beginning of the period | 382,054 | 6,217 |
Cash at end of the period | 52,291 | 3,447 |
Supplemental disclosure of cash flow information: | ||
Income taxes | 0 | 0 |
Interest | 0 | 0 |
Non-cash financing transactions: | ||
Debt discount due to derivative conversion feature on convertible notes | 0 | 52,500 |
Settlement of accrued liabilities through issuance of stock | $ 92,090 | $ 97,000 |
NATURE OF BUSINESS AND BASIS OF
NATURE OF BUSINESS AND BASIS OF PRESENTATION | 6 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | NOTE 1. NATURE OF BUSINESS AND BASIS OF PRESENTATION Li3 Energy, Inc. (“Li3 Energy” or the “Company”) was incorporated under the laws of the State of Nevada on June 24, 2005. In 2009, the Company established its business focus and strategy toward identifying and pursuing business opportunities in lithium and industrial minerals mining in the Americas. Part of our strategic plan is to ensure that Minera Li Energy SpA (“Minera Li”) (of which the Company owns a non-controlling interest) explores and develops the existing Maricunga Project in Chile while simultaneously identifying other synergistic opportunities with new projects with production potential that could also be advanced in an accelerated manner, with the goal of becoming a company with valuable lithium, potassium, nitrates and other industrial minerals properties. The Company’s three wholly owned subsidiaries include: Li3 Energy Peru SRL (“Li3 Peru”), a subsidiary formed in Peru to explore mining opportunities in Peru and in South America; Alfredo Holdings, Ltd. (“Alfredo”), an exempted limited company incorporated under the laws of the Cayman Islands; and Li3 Energy Copiapó, SA (“Li3 Copiapó”), a Chilean corporation, which is a subsidiary of Alfredo. Since October 22, 2014, the Company holds 40 100 On January 27, 2014, the Company entered into a transaction with a third party, Minera Salar Blanco SpA (“MSB”, previously BBL SpA), subsequent to which MSB became the majority holder of Minera Li, holding 51 49 60 We have generated no revenues to date and do not anticipate generating any revenues in the near term. Our activities have been limited to capital formation, organization, acquisition of interests in mining properties and limited exploration on the Maricunga Project, of which we currently hold a minority interest. The Company?s operations will be subject to all the risks inherent in the establishment of a developing enterprise and the uncertainties arising from the absence of a significant operating history. We may be unable to locate exploitable quantities of mineral resources or operate on a profitable basis, or we may fail to secure additional funding to support our operations. The accompanying unaudited interim consolidated financial statements of Li3 Energy have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the SEC, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s latest Annual Report on Form 10-K 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 disclosure contained in the audited financial statements for the most recent fiscal year ended June 30, 2016, as reported in the Form 10-K, have been omitted. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Li3 Peru, Alfredo and Li3 Copiapó. As a result of the Company disposing of its controlling interest in Minera Li on January 27, 2014, the Company deconsolidated Minera Li from its consolidated financial statements and now accounts for its remaining 49 60 40 b. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company had no cash equivalents at December 31, 2016 and June 30, 2016. The Company has not experienced any losses on its deposits of cash and cash equivalents. c. Investment in Minera Li As of January 27, 2014, the Company’s investment in Minera Li is accounted for under the equity method in accordance with ASC 323 Equity Investments and Joint Ventures We evaluate equity investments for impairment whenever events or changes in circumstances indicate that the carrying value of the investment may have experienced an ‘‘other-than-temporary’’ decline in value. If such conditions exist, we compare the estimated fair value of the investment to its carrying value to determine if an impairment is indicated and determines whether the impairment is ‘‘other-than-temporary’’ based on an assessment of all relevant factors, including consideration of our intent and ability to retain the investment. d. Income Taxes A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and for net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. For financial statement purposes, we recognize the impact of an uncertain income tax position on the income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company recognizes interest related to income tax matters in income tax expense and penalties related to income tax matters in general and administrative expenses. The Company did not have any uncertain income tax positions or accrued interest included in our consolidated balance sheets at December 31, 2016 or June 30, 2016, and did not recognize any interest in its consolidated statements of operations during the six months ended December 31, 2016 or 2015. e. Fair Value Measurements As defined in FASB ASC Topic No. 820 - 10, fair value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC Topic No. 820 - 10 requires disclosure that establishes a framework for measuring fair value and expands disclosure about fair value measurements. The statement requires fair value measurements be classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that the Company values using observable market data. Substantially all of these inputs are observable in the marketplace throughout the term of the derivative instruments, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e. supported by little or no market activity). The Company’s valuation models are primarily industry standard models. Level 3 instruments include derivative warrant instruments. The Company does not have sufficient corroborating evidence to support classifying these assets and liabilities as Level 1 or Level 2. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The fair value of the Company’s derivative liabilities are estimated using a modified lattice valuation model. f. Beneficial Conversion Feature If the conversion features of conventional convertible debt provide for a rate of conversion that is below market value at issuance, this feature is characterized as a beneficial conversion feature (“BCF”). A BCF is recorded by the Company as a debt discount. In those circumstances, the convertible debt is recorded net of the discount related to the BCF, and the Company amortizes the discount to interest expense, over the life of the debt. g. Earnings (Loss) per Share Basic net earnings per share amounts are computed by dividing the net income available to Li3 Energy, Inc. shareholders by the weighted average number of common shares outstanding over the reporting period. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. For the three and six months ended December 31, 2016 and 2015, the following convertible debt, stock options and warrants to purchase shares of common stock were excluded from the computation of diluted net income or loss per share, as the inclusion of such shares would be anti-dilutive: Three Months Ended December 31, 2016 2015 Stock options 583,333 916,666 Restricted stock units 600,000 800,000 Convertible debt - 5,808,081 Stock warrants 2,380,950 11,955,219 3,564,283 19,479,966 Six Months Ended December 31, 2016 2015 Stock options 583,333 916,666 Restricted stock units 600,000 800,000 Convertible debt - 5,808,081 Stock warrants 2,380,950 11,955,219 3,564,283 19,479,966 h. Foreign Currency The Company has determined that the functional currency of the parent company and each of its foreign subsidiaries is U.S. Dollars. Foreign currency transaction gains and losses are included in the statement of operations as other income (expense). i. Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management has made significant estimates related to the fair value of its mineral assets; the fair value of derivative liabilities; stock-based payments; and contingencies. j. Recent Accounting Pronouncements There were various accounting standards and interpretations issued recently, none of which are expected to a have a material impact on the Company?s consolidated financial position, operations or cash flows. k. Subsequent Events The Company evaluated material events occurring between December 31, 2016 and through the date when the consolidated financial statements were available to be issued for disclosure consideration. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Going Concern [Text Block] | NOTE 3. GOING CONCERN As of December 31, 2016, the Company had no source of current revenue, a cash balance on hand of $ 52,291 1,189,899 The Company’s current negative working capital position is not sufficient to maintain its basic operations for at least the next 12 months. In the course of its development activities, the Company has sustained and continues to sustain losses. The Company cannot predict if and when the Company may generate profits. In the event we identify commercial reserves of lithium or other minerals, we will require substantial additional capital to develop those reserves and certain governmental permits to exploit such resources. The Company expects to finance its future operations primarily through future equity or debt financing. However, there exists substantial doubt about the Company’s ability to continue as a going concern because there is no assurance that it will be able to obtain such capital, through equity or debt financing, or any combination thereof, on satisfactory terms or at all. Additionally, no assurance can be given that any such financing, if obtained, will be adequate to meet the Company’s ultimate capital needs and to support its growth. If adequate capital cannot be obtained on a timely basis and on satisfactory terms, then the Company’s operations would be materially negatively impacted. The Company’s ability to complete additional offerings is dependent on the state of the debt and/or equity markets at the time of any proposed offering, and such market’s reception of the Company and the offering terms. In addition, the Company’s ability to complete an offering may be dependent on the status of its exploration activities, which cannot be predicted. There is no assurance that capital in any form would be available to the Company, and if available, on terms and conditions that are acceptable. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on its ability to obtain the necessary rights to exploit its mineral rights; meet its financial and operational obligations, to obtain additional financing as may be required until such time as it can generate sources of recurring revenues and to ultimately attain profitability. The consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. |
INVESTMENT IN MINERA LI
INVESTMENT IN MINERA LI | 6 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE 4. INVESTMENT IN MINERA LI The Company’s equity investment at December 31, 2016 and June 30, 2016 relates to its 49 December 31, 2016 December 31, 2015 Opening balance - July 1, 2016 and 2015 $ 6,779,337 $ 7,336,375 Less: Equity in loss of Minera Li (71,937) (375,232) Closing balance December 31, 2016 and 2015 $ 6,707,400 $ 6,961,143 Summarized Financial Information of Minera Li Set out below is the summarized financial information of Minera Li, which is accounted for using the equity method. The information reflects the amounts presented in the financial statements of Minera Li adjusted for differences in accounting policies between the Company and Minera Li. Our share of income and losses from our equity method investment in Minera Li is included in loss from Minera Li equity investment in the consolidated statements of operations. December 31, 2016 June 30, 2016 Current assets $ 13,340 $ 47,973 Non-current assets 17,383,067 17,383,067 Total assets $ 17,396,407 $ 17,431,040 Current liabilities $ 1,982,234 $ 1,870,056 Equity 15,414,173 15,560,984 Total liabilities and equity $ 17,396,407 $ 17,431,040 Summarized Statements of Operations Six months ended Six months ended December 31, 2016 December 31, 2015 Revenue $ - $ - Operating expenses: Exploration expenses (50,779) (601,899) General & administrative expenses (96,032) (163,880) Total operating expenses (146,811) (765,779) Net loss $ (146,811) $ (765,779) Three months ended Three months ended December 31, 2016 December 31, 2015 Revenue $ - $ - Operating expenses: Exploration expenses (7,922) (244,661) General & administrative expenses (5,990) (85,640) Total operating expenses (13,912) (330,301) Net loss $ (13,912) $ (330,301) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 5. RELATED PARTY TRANSACTIONS MSB At December 31, 2016, MSB owned 51 49 As of June 30, 2015, the Company had received a total of $ 1,220,000 980,000 8.5 18 1,000,000 1,000,000 134,901 100,000 13 454,901 8.5 5 The total interest accrued on the loans from MSB as of December 31, 2016, and June 30, 2016 was $ 36,760 17,268 19,492 52,368 |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 6. NOTES PAYABLE On January 29, 2016, the Company executed a non-binding letter of intent (“Wealth LOI”) with Wealth Minerals Ltd ("Wealth") for a transaction between the companies and on signing the Wealth LOI, the Company received a payment of $ 50,000 60 150,000 On November 15, 2016, the Company entered into an agreement with Wealth pursuant to which the Wealth LOI was terminated and the Company’s obligation to repay the notes payable to Wealth of $ 200,000 200,000 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 6 Months Ended |
Dec. 31, 2016 | |
Convertible Debt [Abstract] | |
Convertible Debt [Text Block] | NOTE 7. CONVERTIBLE NOTES PAYABLE During May 2016, the Company issued unsecured convertible promissory notes to various individuals for aggregate proceeds of $ 525,000 10 0.0125 395,200 199,224 26,466 149,857 32,678 349,081 6,212 |
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES | 6 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 8. DERIVATIVE LIABILITIES Warrants The Company determined that certain warrants that the Company issued contained provisions that protected holders from future issuances of the Company’s common stock at prices below such warrants’ respective exercise prices and these provisions could have resulted in modification of the warrants exercise price based on a variable that was not an input to the fair value of a “fixed-for-fixed” option as defined under FASB ASC Topic No. 815 - 40. As of December 31, 2016 and June 30, 2016, all derivative warrant instruments had expired. Decrease in Balance at fair value of Balance at June 30, derivative December 31, 2015 liabilities 2015 Lender warrants $ 3,799 $ (3,799) $ - Warrants for advisory services and arranger warrants 241 (241) - $ 4,040 $ (4,040) $ - There were no warrants exercised during the six months ended December 31, 2015. Valuation as of December 31, 2015 Common stock issuable upon exercise of warrants 11,955,219 Market value of common stock on measurement date (1) $ 0.021 Adjusted exercise price $ 0.10-$0.24 Risk free interest rate (2) 0.49 % Warrant lives in years 0.1-0.3 Expected volatility (3) 156 % Expected dividend yields (4) None Assumed stock offerings per year over next two years (5) 1 Probability of stock offering in any year over next two years (6) 100 % Range of percentage of existing shares offered (7) 14 % Offering price range (8) $ 0.03 (1) The market value of common stock is the stock price at the close of trading on the date of issuance or at period-end, as applicable. (2) The risk-free interest rate was determined by management using the 0.5-year Treasury Bill as of the respective offering or measurement date. (3) The historical trading volatility was determined by the Company’s trading history. (4) Management determined the dividend yield to be -0-% based upon its expectation that it will not pay dividends for the foreseeable future. (5) Management estimates the Company will have at least one stock offering in the next year. (6) Management estimates that the probability of a stock offering is 100% during the next year. (7) Management estimates that the range of percentages of existing shares offered in each stock offering will be 14% of the shares outstanding. (8) Represents the estimated offering price range in future offerings as determined by management. Embedded Derivative Instruments On December 8, 2015, the Company issued $ 57,500 52,500 December 8, 2016 86,317 2,417 26,401 The Company determined that the 2015 Convertible Notes contained an embedded derivative instrument as the conversion price was based on a variable that was not an input to the fair value of a “fixed-for-fixed” option as defined under FASB ASC Topic No. 815 40. The fair value of the derivatives was recognized as a derivative instrument at issuance and measured at fair value at each reporting period. The Company repaid the 2015 convertible notes during the year ended June 30, 2016. Valuation as of December 8, December 31, 2015 2015 Common stock issuable upon conversion of debt 5,227,273 5,808,081 Market value of common stock on measurement date (1) $ 0.025 $ 0.021 Adjusted exercise price $ 0.011 $ 0.0099 Risk free interest rate (2) 0.15 % 0.15 % Life in years 1.0 0.9 Expected volatility (3) 156 % 156 % Expected dividend yields (4) None None Assumed stock offerings per year over next two years (5) 1 1 Probability of stock offering in any year over next two years (6) 100 % 100 % Range of percentage of existing shares offered (7) 14 % 15% - 20 % Offering price range (8) $ 0.03 $ 0.03 - $0.04 (1) The market value of common stock is the stock price at the close of trading on the date of issuance or at period-end, as applicable. (2) The risk-free interest rate was determined by management using the 1-year Treasury Bill as of the respective offering or measurement date. (3) The historical trading volatility was determined by the Company’s trading history. (4) Management determined the dividend yield to be -0-% based upon its expectation that it will not pay dividends for the foreseeable future. (5) Management estimates the Company will have at least one stock offering in the next year. (6) Management estimates that the probability of a stock offering is 100% during the next year. (7) Management estimates that the range of percentages of existing shares offered in each stock offering will be 14% of the shares outstanding. (8) Represents the estimated offering price range in future offerings as determined by management. Initial valuation of embedded Increase derivative in Balance at instruments fair value of Balance at June 30, issued during derivative December 31, 2015 the period liabilities 2015 Convertible Notes $ - $ 52,500 $ 59,718 $ 112,218 $ - $ 52,500 $ 59,718 $ 112,218 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 9. STOCKHOLDERS’ EQUITY On October 6, 2016, the Company issued 4,967,831 42,000 50,090 18,070 Stock Option Awards Weighted- Weighted- average average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (years) Value Outstanding at June 30, 2016 916,666 $ 0.23 0.6 $ - Granted - - - - Exercised - - - - Expired/Forfeited (333,333) - - - Outstanding at December 31, 2016 583,333 $ 0.26 0.4 $ - Exercisable at December 31, 2016 583,333 $ 0.26 0.4 $ - |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE 10. FAIR VALUE MEASUREMENTS Significant Unobservable Inputs (Level 3) Six months Ended December 31, 2016 2015 Beginning balance as of June 30 $ - $ 4,040 Change in fair value - 49,380 Additions - - Balance as of September 30 $ - $ 53,420 Change in fair value - 6,298 Additions - 52,500 Ending balance as of December 31 $ - $ 112,218 Change in unrealized gains (losses) included in earnings for the three months ended December 31, 2016 and 2015 $ - $ (6,298) Change in unrealized gains (losses) included in earnings for the six months ended December 31, 2016 and 2015 $ - $ (55,678) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 11. COMMITMENTS AND CONTINGENCIES On December 9, 2016, the Company entered into a binding letter of intent (the “LOI”) with Bearing Resources Ltd., a company incorporated under the laws of British Columbia (“Bearing”). Pursuant to the LOI, the Company agreed to sell its 49 17.7 16,000,000 2.2 The LOI will terminate upon certain events, including if the parties fail to enter into a definitive agreement for the transaction by March 31, 2017, material breaches of the LOI and the discovery of material adverse information during the parties’ respective due diligence investigations. The parties agreed to work exclusively with each other on a definitive agreement until the earlier of (i) the time the LOI is superseded by a definitive agreement and (ii) the termination of the LOI (refer Note 12). |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 12. SUBSEQUENT EVENTS Subsequent to December 31, 2016, the Company issued 2,708,529 On January 27, 2017, the Company and Bearing entered into an agreement and plan of merger under which Bearing has agreed to acquire Li3. Pursuant to the agreement, a newly formed wholly owned subsidiary of Bearing, LI Acquisition Corporation, will merge with and into Li3 (the “Merger”), with Li3 surviving the Merger as a wholly owned subsidiary of Bearing. At the effective time of the Merger, each share of Li3 common stock will be converted into the right to receive common shares of Bearing based upon an aggregate of 16,000,000 As a result, the 16,000,000 common shares of Bearing that the Company’s stockholders will receive will represent approximately 43 The Merger is subject to customary closing conditions, including the approval of the TSX Venture Exchange and of the Company’s shareholders and, if required, of Bearing. |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | a. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Li3 Peru, Alfredo and Li3 Copiapó. As a result of the Company disposing of its controlling interest in Minera Li on January 27, 2014, the Company deconsolidated Minera Li from its consolidated financial statements and now accounts for its remaining 49 60 40 |
Cash and Cash Equivalents, Policy [Policy Text Block] | b. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company had no cash equivalents at December 31, 2016 and June 30, 2016. The Company has not experienced any losses on its deposits of cash and cash equivalents. |
Equity Method Investments, Policy [Policy Text Block] | c. Investment in Minera Li As of January 27, 2014, the Company’s investment in Minera Li is accounted for under the equity method in accordance with ASC 323 Equity Investments and Joint Ventures We evaluate equity investments for impairment whenever events or changes in circumstances indicate that the carrying value of the investment may have experienced an ‘‘other-than-temporary’’ decline in value. If such conditions exist, we compare the estimated fair value of the investment to its carrying value to determine if an impairment is indicated and determines whether the impairment is ‘‘other-than-temporary’’ based on an assessment of all relevant factors, including consideration of our intent and ability to retain the investment. |
Income Tax, Policy [Policy Text Block] | d. Income Taxes A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and for net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. For financial statement purposes, we recognize the impact of an uncertain income tax position on the income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company recognizes interest related to income tax matters in income tax expense and penalties related to income tax matters in general and administrative expenses. The Company did not have any uncertain income tax positions or accrued interest included in our consolidated balance sheets at December 31, 2016 or June 30, 2016, and did not recognize any interest in its consolidated statements of operations during the six months ended December 31, 2016 or 2015. |
Fair Value Measurement, Policy [Policy Text Block] | e. Fair Value Measurements As defined in FASB ASC Topic No. 820 - 10, fair value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC Topic No. 820 - 10 requires disclosure that establishes a framework for measuring fair value and expands disclosure about fair value measurements. The statement requires fair value measurements be classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that the Company values using observable market data. Substantially all of these inputs are observable in the marketplace throughout the term of the derivative instruments, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e. supported by little or no market activity). The Company’s valuation models are primarily industry standard models. Level 3 instruments include derivative warrant instruments. The Company does not have sufficient corroborating evidence to support classifying these assets and liabilities as Level 1 or Level 2. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The fair value of the Company’s derivative liabilities are estimated using a modified lattice valuation model. |
Beneficial Conversion Feature [Policy Text Block] | f. Beneficial Conversion Feature If the conversion features of conventional convertible debt provide for a rate of conversion that is below market value at issuance, this feature is characterized as a beneficial conversion feature (“BCF”). A BCF is recorded by the Company as a debt discount. In those circumstances, the convertible debt is recorded net of the discount related to the BCF, and the Company amortizes the discount to interest expense, over the life of the debt. |
Earnings Per Share, Policy [Policy Text Block] | g. Earnings (Loss) per Share Basic net earnings per share amounts are computed by dividing the net income available to Li3 Energy, Inc. shareholders by the weighted average number of common shares outstanding over the reporting period. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. For the three and six months ended December 31, 2016 and 2015, the following convertible debt, stock options and warrants to purchase shares of common stock were excluded from the computation of diluted net income or loss per share, as the inclusion of such shares would be anti-dilutive: Three Months Ended December 31, 2016 2015 Stock options 583,333 916,666 Restricted stock units 600,000 800,000 Convertible debt - 5,808,081 Stock warrants 2,380,950 11,955,219 3,564,283 19,479,966 Six Months Ended December 31, 2016 2015 Stock options 583,333 916,666 Restricted stock units 600,000 800,000 Convertible debt - 5,808,081 Stock warrants 2,380,950 11,955,219 3,564,283 19,479,966 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | h. Foreign Currency The Company has determined that the functional currency of the parent company and each of its foreign subsidiaries is U.S. Dollars. Foreign currency transaction gains and losses are included in the statement of operations as other income (expense). |
Use of Estimates, Policy [Policy Text Block] | i. Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management has made significant estimates related to the fair value of its mineral assets; the fair value of derivative liabilities; stock-based payments; and contingencies. |
New Accounting Pronouncements, Policy [Policy Text Block] | j. Recent Accounting Pronouncements There were various accounting standards and interpretations issued recently, none of which are expected to a have a material impact on the Company?s consolidated financial position, operations or cash flows. |
Subsequent Events, Policy [Policy Text Block] | k. Subsequent Events The Company evaluated material events occurring between December 31, 2016 and through the date when the consolidated financial statements were available to be issued for disclosure consideration. |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | For the three and six months ended December 31, 2016 and 2015, the following convertible debt, stock options and warrants to purchase shares of common stock were excluded from the computation of diluted net income or loss per share, as the inclusion of such shares would be anti-dilutive: Three Months Ended December 31, 2016 2015 Stock options 583,333 916,666 Restricted stock units 600,000 800,000 Convertible debt - 5,808,081 Stock warrants 2,380,950 11,955,219 3,564,283 19,479,966 Six Months Ended December 31, 2016 2015 Stock options 583,333 916,666 Restricted stock units 600,000 800,000 Convertible debt - 5,808,081 Stock warrants 2,380,950 11,955,219 3,564,283 19,479,966 |
INVESTMENT IN MINERA LI (Tables
INVESTMENT IN MINERA LI (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Summary Investment Holdings [Table Text Block] | The activity of the investment for the six months ended December 31, 2016 and 2015 is as follows: December 31, 2016 December 31, 2015 Opening balance - July 1, 2016 and 2015 $ 6,779,337 $ 7,336,375 Less: Equity in loss of Minera Li (71,937) (375,232) Closing balance December 31, 2016 and 2015 $ 6,707,400 $ 6,961,143 |
Equity Method Investments [Table Text Block] | Summarized Balance Sheets December 31, 2016 June 30, 2016 Current assets $ 13,340 $ 47,973 Non-current assets 17,383,067 17,383,067 Total assets $ 17,396,407 $ 17,431,040 Current liabilities $ 1,982,234 $ 1,870,056 Equity 15,414,173 15,560,984 Total liabilities and equity $ 17,396,407 $ 17,431,040 Summarized Statements of Operations Six months ended Six months ended December 31, 2016 December 31, 2015 Revenue $ - $ - Operating expenses: Exploration expenses (50,779) (601,899) General & administrative expenses (96,032) (163,880) Total operating expenses (146,811) (765,779) Net loss $ (146,811) $ (765,779) Three months ended Three months ended December 31, 2016 December 31, 2015 Revenue $ - $ - Operating expenses: Exploration expenses (7,922) (244,661) General & administrative expenses (5,990) (85,640) Total operating expenses (13,912) (330,301) Net loss $ (13,912) $ (330,301) |
DERIVATIVE LIABILITIES (Tables)
DERIVATIVE LIABILITIES (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Derivative Liabilities [Line Items] | |
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | Decrease in Balance at fair value of Balance at June 30, derivative December 31, 2015 liabilities 2015 Lender warrants $ 3,799 $ (3,799) $ - Warrants for advisory services and arranger warrants 241 (241) - $ 4,040 $ (4,040) $ - |
Schedule of Embedded Derivatives [Table Text Block] | Activity for embedded derivative instruments during the six months ended December 31, 2015 was as follows: Initial valuation of embedded Increase derivative in Balance at instruments fair value of Balance at June 30, issued during derivative December 31, 2015 the period liabilities 2015 Convertible Notes $ - $ 52,500 $ 59,718 $ 112,218 $ - $ 52,500 $ 59,718 $ 112,218 |
Embedded Derivative Financial Instruments [Member] | |
Derivative Liabilities [Line Items] | |
Schedule Of Fair Value Assumptions Used In Derivative Warrant Instruments Valuation [Table Text Block] | The following is a summary of the assumptions used in the modified lattice valuation model as of December 8, 2015 and December 31, 2015, respectively: Valuation as of December 8, December 31, 2015 2015 Common stock issuable upon conversion of debt 5,227,273 5,808,081 Market value of common stock on measurement date (1) $ 0.025 $ 0.021 Adjusted exercise price $ 0.011 $ 0.0099 Risk free interest rate (2) 0.15 % 0.15 % Life in years 1.0 0.9 Expected volatility (3) 156 % 156 % Expected dividend yields (4) None None Assumed stock offerings per year over next two years (5) 1 1 Probability of stock offering in any year over next two years (6) 100 % 100 % Range of percentage of existing shares offered (7) 14 % 15% - 20 % Offering price range (8) $ 0.03 $ 0.03 - $0.04 (1) The market value of common stock is the stock price at the close of trading on the date of issuance or at period-end, as applicable. (2) The risk-free interest rate was determined by management using the 1-year Treasury Bill as of the respective offering or measurement date. (3) The historical trading volatility was determined by the Company’s trading history. (4) Management determined the dividend yield to be -0-% based upon its expectation that it will not pay dividends for the foreseeable future. (5) Management estimates the Company will have at least one stock offering in the next year. (6) Management estimates that the probability of a stock offering is 100% during the next year. (7) Management estimates that the range of percentages of existing shares offered in each stock offering will be 14% of the shares outstanding. (8) Represents the estimated offering price range in future offerings as determined by management. |
Warrant [Member] | |
Derivative Liabilities [Line Items] | |
Schedule Of Fair Value Assumptions Used In Derivative Warrant Instruments Valuation [Table Text Block] | The following is a summary of the assumptions used in the modified lattice valuation model as of December 31, 2015: Valuation as of December 31, 2015 Common stock issuable upon exercise of warrants 11,955,219 Market value of common stock on measurement date (1) $ 0.021 Adjusted exercise price $ 0.10-$0.24 Risk free interest rate (2) 0.49 % Warrant lives in years 0.1-0.3 Expected volatility (3) 156 % Expected dividend yields (4) None Assumed stock offerings per year over next two years (5) 1 Probability of stock offering in any year over next two years (6) 100 % Range of percentage of existing shares offered (7) 14 % Offering price range (8) $ 0.03 (1) The market value of common stock is the stock price at the close of trading on the date of issuance or at period-end, as applicable. (2) The risk-free interest rate was determined by management using the 0.5-year Treasury Bill as of the respective offering or measurement date. (3) The historical trading volatility was determined by the Company’s trading history. (4) Management determined the dividend yield to be -0-% based upon its expectation that it will not pay dividends for the foreseeable future. (5) Management estimates the Company will have at least one stock offering in the next year. (6) Management estimates that the probability of a stock offering is 100% during the next year. (7) Management estimates that the range of percentages of existing shares offered in each stock offering will be 14% of the shares outstanding. (8) Represents the estimated offering price range in future offerings as determined by management. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | There were no stock options issued during the six months ended December 31, 2016. A summary of stock option activity is presented in the table below: Weighted- Weighted- average average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (years) Value Outstanding at June 30, 2016 916,666 $ 0.23 0.6 $ - Granted - - - - Exercised - - - - Expired/Forfeited (333,333) - - - Outstanding at December 31, 2016 583,333 $ 0.26 0.4 $ - Exercisable at December 31, 2016 583,333 $ 0.26 0.4 $ - |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table sets forth a reconciliation of changes in the fair value of financial liabilities classified as level 3 in the fair value hierarchy: Significant Unobservable Inputs (Level 3) Six months Ended December 31, 2016 2015 Beginning balance as of June 30 $ - $ 4,040 Change in fair value - 49,380 Additions - - Balance as of September 30 $ - $ 53,420 Change in fair value - 6,298 Additions - 52,500 Ending balance as of December 31 $ - $ 112,218 Change in unrealized gains (losses) included in earnings for the three months ended December 31, 2016 and 2015 $ - $ (6,298) Change in unrealized gains (losses) included in earnings for the six months ended December 31, 2016 and 2015 $ - $ (55,678) |
NATURE OF BUSINESS AND BASIS 25
NATURE OF BUSINESS AND BASIS OF PRESENTATION (Details Textual) | Oct. 22, 2014 | Jan. 27, 2014 |
Noto Energy [Member] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 40.00% | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |
Minera Li [Member] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 60.00% | 60.00% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 51.00% | |
Noncontrolling Interest, Ownership Percentage by Parent | 49.00% |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation of diluted net loss per share | 3,564,283 | 19,479,966 | 3,564,283 | 19,479,966 |
Stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation of diluted net loss per share | 583,333 | 916,666 | 583,333 | 916,666 |
Restricted stock units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation of diluted net loss per share | 600,000 | 800,000 | 600,000 | 800,000 |
Convertible debt [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation of diluted net loss per share | 0 | 5,808,081 | 0 | 5,808,081 |
Stock warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computation of diluted net loss per share | 2,380,950 | 11,955,219 | 2,380,950 | 11,955,219 |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | Oct. 22, 2014 | Jan. 27, 2014 |
Noto Energy [Member] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | |
Business Acquisition, Percentage of Voting Interests Acquired | 40.00% | |
Minera Li [Member] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 49.00% | |
Business Acquisition, Percentage of Voting Interests Acquired | 60.00% | 60.00% |
GOING CONCERN (Details Textual)
GOING CONCERN (Details Textual) - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Cash and Cash Equivalents, at Carrying Value, Total | $ 52,291 | $ 382,054 | $ 3,447 | $ 6,217 |
Negative Working Capital | $ 1,189,899 |
INVESTMENT IN MINERA LI (Detail
INVESTMENT IN MINERA LI (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||
Opening balance - July 1, 2016 and 2015 | $ 6,779,337 | |
Less: Equity in loss of Minera Li | (71,937) | $ (375,232) |
Closing balance - December 31, 2016 and 2015 | 6,707,400 | |
Minera Li [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Opening balance - July 1, 2016 and 2015 | 6,779,337 | 7,336,375 |
Less: Equity in loss of Minera Li | (71,937) | (375,232) |
Closing balance - December 31, 2016 and 2015 | $ 6,707,400 | $ 6,961,143 |
INVESTMENT IN MINERA LI (Deta30
INVESTMENT IN MINERA LI (Details 1) - Minera Li [Member] - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 13,340 | $ 47,973 |
Non-current assets | 17,383,067 | 17,383,067 |
Total assets | 17,396,407 | 17,431,040 |
Current liabilities | 1,982,234 | 1,870,056 |
Equity | 15,414,173 | 15,560,984 |
Total liabilities and equity | $ 17,396,407 | $ 17,431,040 |
INVESTMENT IN MINERA LI (Deta31
INVESTMENT IN MINERA LI (Details 2) - Minera Li [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Operating expenses: | ||||
Exploration expenses | (7,922) | (244,661) | (50,779) | (601,899) |
General & administrative expenses | (5,990) | (85,640) | (96,032) | (163,880) |
Total operating expenses | (13,912) | (330,301) | (146,811) | (765,779) |
Net loss | $ (13,912) | $ (330,301) | $ (146,811) | $ (765,779) |
INVESTMENT IN MINERA LI (Deta32
INVESTMENT IN MINERA LI (Details Textual) | Dec. 31, 2016 | Dec. 09, 2016 | Jun. 30, 2016 |
Minera Li [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | 49.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jan. 19, 2016USD ($)shares | Jun. 30, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | |
Related Party Transaction [Line Items] | ||||||
Proceeds from Related Party Debt | $ 980,000 | |||||
MSB [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 49.00% | |||||
MSB Loan [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Interest Payable | $ 36,760 | $ 17,268 | ||||
Interest Expense, Debt | $ 19,492 | $ 52,368 | ||||
Notes Payable, Related Parties | $ 1,220,000 | $ 1,220,000 | ||||
Minera Li [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 51.00% | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.50% | |||||
Interest Payable | $ 134,901 | |||||
Securities Loaned, Amount Offset Against Collateral, Total | 1,000,000 | |||||
Notes Payable, Related Parties | 1,000,000 | |||||
Loans Payable, Total | 454,901 | |||||
Proceeds From Loans Payable | $ 100,000 | |||||
Number Of Shares Guaranteed As Security For Loan | 5 | |||||
Minera Li [Member] | MSB Loan [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.50% | 8.50% | ||||
Debt Instrument, Term | 18 months | |||||
Number Of Shares In Related Party | shares | 13 |
NOTES PAYABLE (Details Textual)
NOTES PAYABLE (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Apr. 29, 2016 | Mar. 22, 2016 | Jan. 29, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 15, 2016 | |
Debt Instrument [Line Items] | ||||||||
Gains (Losses) on Extinguishment of Debt, Total | $ 200,000 | $ 0 | $ 200,000 | $ 0 | ||||
Proceeds from Issuance or Sale of Equity | $ 150,000 | $ 50,000 | ||||||
Extension Period of Letter Of Intent | 60 days | |||||||
Notes Payable Terminated | $ 200,000 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | |
May 31, 2016 | Dec. 31, 2016 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | |||
Debt Instrument, Unamortized Discount, Current | $ 149,857 | $ 349,081 | |
2016 Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||
Proceeds from Convertible Debt | $ 525,000 | ||
Amortization of Debt Discount (Premium) | 199,224 | ||
Debt Instrument, Convertible, Conversion Price | $ 0.0125 | ||
Debt Instrument, Convertible, Beneficial Conversion Feature | 395,200 | ||
Interest Expense, Debt | 26,466 | ||
Debt Instrument, Unamortized Discount, Current | 149,857 | 349,081 | |
Interest Payable, Current | $ 32,678 | $ 6,212 |
DERIVATIVE LIABILITIES (Details
DERIVATIVE LIABILITIES (Details) | 6 Months Ended |
Dec. 31, 2015USD ($) | |
Derivative [Line Items] | |
Balance at Begining of Period | $ 4,040 |
Decrease in fair value of derivative liabilities | (4,040) |
Balance at End of Period | 0 |
Lender warrants [Member] | |
Derivative [Line Items] | |
Balance at Begining of Period | 3,799 |
Decrease in fair value of derivative liabilities | (3,799) |
Balance at End of Period | 0 |
Warrants for advisory services and arranger warrants [Member] | |
Derivative [Line Items] | |
Balance at Begining of Period | 241 |
Decrease in fair value of derivative liabilities | (241) |
Balance at End of Period | $ 0 |
DERIVATIVE LIABILITIES (Detai37
DERIVATIVE LIABILITIES (Details 1) - $ / shares | Dec. 08, 2015 | Dec. 31, 2015 | |
Embedded Derivative Financial Instruments [Member] | |||
Derivative [Line Items] | |||
Common stock issuable upon exercise of warrants | 5,227,273 | 5,808,081 | |
Market value of common stock on measurement date | [1] | $ 0.025 | $ 0.021 |
Adjusted exercise price | $ 0.011 | $ 0.0099 | |
Risk free interest rate | [2] | 0.15% | 0.15% |
Warrant lives in years | 1 year | 10 months 24 days | |
Expected volatility | [3] | 156.00% | 156.00% |
Expected dividend yields | [4] | ||
Assumed stock offerings per year over next two years | [5] | 1 | 1 |
Probability of stock offering in any year over next two years | [6] | 100.00% | 100.00% |
Range of percentage of existing shares offered | [7] | 14.00% | |
Offering price range | [8] | $ 0.03 | |
Warrant [Member] | |||
Derivative [Line Items] | |||
Common stock issuable upon exercise of warrants | 11,955,219 | ||
Market value of common stock on measurement date | [1] | $ 0.021 | |
Risk free interest rate | [9] | 0.49% | |
Expected volatility | [3] | 156.00% | |
Expected dividend yields | [4] | ||
Assumed stock offerings per year over next two years | [5] | 1 | |
Probability of stock offering in any year over next two years | [6] | 100.00% | |
Range of percentage of existing shares offered | [7] | 14.00% | |
Offering price range | [8] | $ 0.03 | |
Minimum [Member] | Embedded Derivative Financial Instruments [Member] | |||
Derivative [Line Items] | |||
Range of percentage of existing shares offered | [6] | 15.00% | |
Offering price range | [6] | $ 0.03 | |
Minimum [Member] | Warrant [Member] | |||
Derivative [Line Items] | |||
Adjusted exercise price | $ 0.10 | ||
Warrant lives in years | 1 month 6 days | ||
Maximum [Member] | Embedded Derivative Financial Instruments [Member] | |||
Derivative [Line Items] | |||
Range of percentage of existing shares offered | [5] | 20.00% | |
Offering price range | [4] | $ 0.04 | |
Maximum [Member] | Warrant [Member] | |||
Derivative [Line Items] | |||
Adjusted exercise price | $ 0.24 | ||
Warrant lives in years | 3 months 18 days | ||
[1] | The market value of common stock is the stock price at the close of trading on the date of issuance or at period-end, as applicable. | ||
[2] | The risk-free interest rate was determined by management using the 1-year Treasury Bill as of the respective offering or measurement date. | ||
[3] | The historical trading volatility was determined by the Company’s trading history. | ||
[4] | Management determined the dividend yield to be -0-% based upon its expectation that it will not pay dividends for the foreseeable future. | ||
[5] | Management estimates the Company will have at least one stock offering in the next year. | ||
[6] | Management estimates that the probability of a stock offering is 100% during the next year. | ||
[7] | Management estimates that the range of percentages of existing shares offered in each stock offering will be 14% of the shares outstanding. | ||
[8] | Represents the estimated offering price range in future offerings as determined by management. | ||
[9] | The risk-free interest rate was determined by management using the 0.5-year Treasury Bill as of the respective offering or measurement date. |
DERIVATIVE LIABILITIES (Detai38
DERIVATIVE LIABILITIES (Details 2) | 6 Months Ended |
Dec. 31, 2015USD ($) | |
Schedule of Embedded Derivatives [Line Items] | |
Embedded Derivative, Fair Value of Embedded Derivative, Net, Total | $ 0 |
Initial Valuation Of Embedded Derivative Instruments Issued During Period | 52,500 |
Embedded Derivative, Gain on Embedded Derivative | 59,718 |
Embedded Derivative, Fair Value of Embedded Derivative, Net, Total | 112,218 |
Convertible Notes Payable [Member] | |
Schedule of Embedded Derivatives [Line Items] | |
Embedded Derivative, Fair Value of Embedded Derivative, Net, Total | 0 |
Initial Valuation Of Embedded Derivative Instruments Issued During Period | 52,500 |
Embedded Derivative, Gain on Embedded Derivative | 59,718 |
Embedded Derivative, Fair Value of Embedded Derivative, Net, Total | $ 112,218 |
DERIVATIVE LIABILITIES (Detai39
DERIVATIVE LIABILITIES (Details Textual) - Convertible Notes 2015 [Member] - USD ($) | Dec. 08, 2015 | May 31, 2016 | Dec. 31, 2016 |
Derivative [Line Items] | |||
Debt Instrument, Face Amount | $ 57,500 | ||
Debt Instrument, Convertible, Terms of Conversion Feature | (the “2015 Convertible Notes”), convertible at a price equal to 55% of the lowest daily trading prices of the Company’s common stock for the last 25 trading days prior to conversion, and bearing interest at 10% per annum. | ||
Debt Instrument, Periodic Payment | $ 86,317 | ||
Debt Instrument, Periodic Payment, Interest | 2,417 | ||
Debt Instrument Prepayment Penalty | $ 26,401 | ||
Proceeds from Convertible Debt | $ 52,500 | ||
Debt Instrument, Maturity Date | Dec. 8, 2016 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - Employee Stock Option [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Jun. 30, 2016 | |
Number of Shares | ||
Outstanding, beginning balance | 916,666 | |
Granted | 0 | |
Exercised | 0 | |
Expired/Forfeited | (333,333) | |
Outstanding, ending balance | 583,333 | 916,666 |
Exercisable at December 31, 2016 | 583,333 | |
Weighted-average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 0.23 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Expired/Forfeited (in dollars per share) | 0 | |
Outstanding, ending balance (in dollars per share) | 0.26 | $ 0.23 |
Exercisable at December 31, 2016 | $ 0.26 | |
Weighted-average Remaining Contractual Term (years) | ||
Outstanding | 4 months 24 days | 7 months 6 days |
Exercisable | 4 months 24 days | |
Aggregate Intrinsic Value | ||
Outstanding, beginning balance | $ 0 | |
Granted | 0 | |
Exercised | 0 | |
Expired/Forfeited | 0 | |
Outstanding, ending balance | 0 | $ 0 |
Exercisable | $ 0 |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - Officers And Directors [Member] - USD ($) | Oct. 06, 2016 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Issued During Period, Shares, Issued for Services | 4,967,831 | 2,708,529 |
Accrued Salaries, Current | $ 42,000 | |
Salaries, Wages and Officers' Compensation | 50,090 | |
Adjustments to Additional Paid in Capital, Fair Value | $ 18,070 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Beginning balance | $ 0 | $ 0 | $ 53,420 | $ 4,040 | $ 0 | $ 4,040 |
Change in fair value | 0 | 0 | 6,298 | 49,380 | ||
Additions | 0 | 0 | 52,500 | 0 | ||
Ending balance | 0 | $ 0 | 112,218 | $ 53,420 | 0 | 112,218 |
Change in unrealized gains (losses) included in earnings | $ 0 | $ (6,298) | $ 0 | $ (55,678) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) $ in Millions | Dec. 09, 2016 | Dec. 31, 2016 | Jun. 30, 2016 |
Minera Li [Member] | |||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | 49.00% |
Minera Salar Blanco [Member] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 17.70% | ||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 16,000,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 2.2 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - shares | Oct. 06, 2016 | Jan. 27, 2017 | Dec. 31, 2016 |
Officers And Directors [Member] | |||
Stock Issued During Period, Shares, Issued for Services | 4,967,831 | 2,708,529 | |
Subsequent Event [Member] | LI3 ENERGY, INC. [Member] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 43.00% | ||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 16,000,000 |