Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2019 | Aug. 07, 2019 | |
Details | ||
Registrant CIK | 0001355677 | |
Fiscal Year End | --03-31 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity Registrant Name | Mexus Gold US | |
Entity Incorporation, State or Country Code | NV | |
Entity File Number | 000-52413 | |
Entity Tax Identification Number | 20-4092640 | |
Entity Address, Address Line One | 1805 N. Carson Street, #150 | |
Entity Address, City or Town | Carson City | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89701 | |
Entity Address, Address Description | Address of principal executive offices | |
City Area Code | 916 | |
Local Phone Number | 776 2166 | |
Phone Fax Number Description | Issuer’s Telephone Number | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,273,603,842 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (June 30, 2019 Unaudited) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | |
CURRENT ASSETS | |||
Cash | $ 4,123 | $ 12,029 | |
Prepaid and other assets | 0 | 5,500 | |
TOTAL CURRENT ASSETS | 4,123 | 17,529 | |
FIXED ASSETS | |||
Property and equipment, net of accumulated depreciation | 367,859 | 383,524 | |
TOTAL FIXED ASSETS | 367,859 | 383,524 | |
OTHER ASSETS | |||
Equipment under construction | 17,018 | 17,018 | |
Property costs | 829,947 | 829,947 | |
Other Assets, Noncurrent | 846,965 | 846,965 | |
TOTAL ASSETS | 1,218,947 | 1,248,018 | |
CURRENT LIABILITIES | |||
Accounts payable and accrued liabilities | 185,551 | 254,578 | |
Accounts payable - related party | 426,117 | 434,704 | |
Notes payable (net unamortized debt discount of $162,396 and $94,127, respectively) | 713,675 | 626,190 | |
Notes payable - related parties | 67,410 | 67,410 | |
Promissory notes | 65,000 | 65,000 | |
Convertible promissory note (net of debt discount of $242,602 and $136,355, respectively) | 143,767 | 104,034 | |
Derivative Liability, Current | 276,090 | 113,091 | |
TOTAL CURRENT LIABILITIES | 1,877,610 | 1,665,007 | |
TOTAL LIABILITIES | 1,877,610 | 1,665,007 | |
CONTINGENT LIABILITIES (Note 13) | [1] | ||
STOCKHOLDERS' (DEFICIT) EQUITY | |||
Preferred Stock, Value, Issued | 0 | 0 | |
Common Stock, Value, Issued | 1,167,094 | 1,011,845 | |
Additional paid-in capital | 27,591,983 | 27,064,698 | |
Share subscription payable | 547,830 | 632,840 | |
Accumulated deficit | (29,966,570) | (29,127,372) | |
TOTAL STOCKHOLDERS' (DEFICIT) EQUITY | (658,663) | (416,989) | |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | 1,218,947 | 1,248,018 | |
Series A Convertible | |||
STOCKHOLDERS' (DEFICIT) EQUITY | |||
Preferred Stock, Value, Issued | $ 1,000 | $ 1,000 | |
[1] | Note 13. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (June 30, 2019 Unaudited) - Parenthetical - $ / shares | Jun. 30, 2019 | Mar. 31, 2019 |
Preferred Stock, Shares Authorized | 9,000,000 | 9,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Shares Authorized | 2,000,000,000 | 2,000,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares, Issued | 1,167,098,176 | 1,011,848,975 |
Common Stock, Shares, Outstanding | 1,167,098,176 | 1,011,848,975 |
Series A Convertible | ||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Issued | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Outstanding | 1,000,000 | 1,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
REVENUES | ||
Revenues | $ 0 | $ 0 |
Total revenues | 0 | 0 |
Expenses | ||
Exploration | 194,147 | 222,286 |
General and administrative | 216,639 | 192,726 |
Stock-based expense - consulting services | 238,165 | 69,425 |
Loss on settlement of accounts payable | 16,400 | 23,400 |
Total operating expenses | 665,351 | 507,837 |
OTHER INCOME (EXPENSE) | ||
Foreign exchange | (1,974) | 5,146 |
Interest | (214,847) | (166,683) |
Gain (loss) Loss on settlement of debt | 15,471 | 215,563 |
Loss (gain) on convertible promissory note derivative liability | 27,503 | 68,934 |
Nonoperating Income (Expense) | (173,847) | 122,960 |
NET LOSS BEFORE PROVISION FOR TAX | (839,198) | (384,877) |
Income Tax Expense (Benefit) | 0 | 0 |
Net Income (Loss) Attributable to Parent | $ (839,198) | $ (384,877) |
Earnings Per Share, Basic and Diluted | $ 0 | $ 0 |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 1,100,530,165 | 798,515,804 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' (Deficit) Equity (Unaudited) - USD ($) | Preferred Stock | Preferred Class A | Common Stock | Additional Paid-in Capital | Subscription Payable | Retained Earnings | Total |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance at Mar. 31, 2018 | $ 0 | $ 1,000 | $ 775,919 | $ 25,743,607 | $ 636,565 | $ (26,853,994) | $ 303,097 |
Shares, Outstanding, Beginning Balance at Mar. 31, 2018 | 0 | 1,000,000 | 775,922,947 | ||||
Stock Issued During Period, Value, Issued for Services | $ 0 | $ 0 | $ 4,752 | 93,333 | (28,660) | 0 | 69,425 |
Stock Issued During Period, Shares, Issued for Services | 0 | 0 | 4,752,410 | ||||
Stock Issued During Period, Value, New Issues | $ 0 | $ 0 | $ 26,443 | 219,837 | (52,280) | 0 | 194,000 |
Stock Issued During Period, Shares, New Issues | 0 | 0 | 26,443,000 | ||||
Shares issued for convertible note principal and interest | $ 0 | $ 0 | $ 6,070 | 94,218 | 174,335 | 0 | 274,623 |
Shares issued for convertible note principal and interest, shares | 0 | 0 | 6,069,663 | ||||
Shares issued to settle stock payable, Value | $ 0 | $ 0 | $ 0 | 15,328 | 0 | 0 | 15,328 |
Shares issued to settle stock payable, Shares | 0 | 0 | 0 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 0 | $ 0 | $ 0 | 0 | 0 | (384,877) | (384,877) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance at Jun. 30, 2018 | $ 0 | $ 1,000 | $ 813,184 | 26,166,323 | 729,960 | (27,238,871) | 471,596 |
Shares, Outstanding, Ending Balance at Jun. 30, 2018 | 0 | 1,000,000 | 813,188,020 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance at Mar. 31, 2019 | $ 0 | $ 1,000 | $ 1,011,845 | 27,064,698 | 632,840 | (29,127,372) | (416,989) |
Shares, Outstanding, Beginning Balance at Mar. 31, 2019 | 0 | 1,000,000 | 1,011,848,975 | ||||
Stock Issued During Period, Value, Issued for Services | $ 0 | $ 0 | $ 12,569 | 204,895 | 20,700 | 0 | 238,164 |
Stock Issued During Period, Shares, Issued for Services | 0 | 0 | 12,569,207 | ||||
Stock Issued During Period, Value, New Issues | $ 0 | $ 0 | $ 114,045 | 114,105 | (22,604) | 0 | 205,546 |
Stock Issued During Period, Shares, New Issues | 0 | 0 | 114,044,994 | ||||
Shares issued for convertible note principal and interest | $ 0 | $ 0 | $ 9,635 | 7,471 | (2,106) | 0 | 15,000 |
Shares issued for convertible note principal and interest, shares | 0 | 0 | 9,635,000 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 0 | $ 0 | $ 0 | 0 | 0 | (839,198) | (839,198) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance at Jun. 30, 2019 | $ 0 | $ 1,000 | $ 1,167,094 | 27,591,983 | 547,830 | (29,966,570) | (658,663) |
Shares, Outstanding, Ending Balance at Jun. 30, 2019 | 0 | 1,000,000 | 1,167,098,176 | ||||
Stock Issued During Period, Value, Other | $ 0 | $ 0 | $ 19,000 | 98,400 | (81,000) | 0 | 36,400 |
Stock Issued During Period, Shares, Other | 0 | 0 | 19,000,000 | ||||
Beneficial conversion features | $ 0 | $ 0 | $ 0 | $ 102,414 | $ 0 | $ 0 | $ 102,414 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net Cash Provided by (Used in) Operating Activities | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (839,198) | $ (384,877) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | ||
Depreciation and amortization | 59,790 | 67,388 |
Gain on settlement of debt and accounts payable | (15,471) | (192,163) |
Stock-based compensation - services | 238,164 | 69,425 |
Non cash Interest expense | 194,882 | 162,744 |
Gain on change in fair value of derivative instrument | (27,503) | (68,934) |
Changes in operating assets and liabilities: | ||
Decrease (Increase) of other assets | 5,500 | 0 |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | 27,040 | 40,514 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | (356,796) | (305,903) |
Net Cash Provided by (Used in) Investing Activities | ||
Purchase of equipment | (44,125) | 0 |
Net Cash Provided by (Used in) Investing Activities | (44,125) | 0 |
Net Cash Provided by (Used in) Financing Activities | ||
Proceeds from issuance of notes payable | 184,000 | 186,500 |
Payment of notes payable | (90,000) | (6,500) |
Proceeds from the issuance of convertible promissory note | 205,000 | 0 |
Repayment of convertible promissory note | (111,531) | (183,333) |
Advances from related party | 0 | 3,000 |
Payment of advances from related party | 0 | (3,834) |
Proceeds from issuance of common stock, net | 205,546 | 194,000 |
Net Cash Provided by (Used in) Financing Activities | 393,015 | 189,833 |
Cash and Cash Equivalents, Period Increase (Decrease) | (7,906) | (116,070) |
Supplemental Cash Flow Information | ||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 5,270 | 0 |
Income Taxes Paid, Net | 0 | 0 |
Cash Flow, Noncash Investing and Financing Activities Disclosure | ||
Discount for beneficial conversion feature recognized on issuance of notes payable | 102,414 | 15,328 |
Shares issued for settlement of notes payable | 6,500 | 133,734 |
Shares issued to settle accounts payable | 36,400 | 100,288 |
Note payable issued to settle accounts payable | 66,754 | 0 |
Shares issued in conjunction with notes payable and convertible promissory note | $ 8,500 | $ 40,601 |
Initial value of embedded derivative liability | 190,502 | - |
Reclassification of equipment held for sale of property and equipment | $ 0 | $ 56,438 |
Reclassification of deposit on mineral property to property costs | $ 0 | $ 324,000 |
1. ORGANIZATION AND BUSINESS OF
1. ORGANIZATION AND BUSINESS OF COMPANY | 3 Months Ended |
Jun. 30, 2019 | |
Notes | |
1. ORGANIZATION AND BUSINESS OF COMPANY | 1. ORGANIZATION AND BUSINESS OF COMPANY Mexus Gold US (the Company) was originally incorporated under the laws of the State of Colorado on June 22, 1990 , as U.S.A. Connection, Inc. On October 28, 2005, the Company changed its name to Action Fashions, Ltd. On September 18, 2009 , the Company changed its domicile to Nevada and changed its name to Mexus Gold US to better reflect the Companys new planned principle business operations. The Company has a fiscal year end of March 31. The Company is a mining company engaged in the evaluation, acquisition, exploration and advancement of gold, silver and copper projects in the State of Sonora, Mexico and the Western United States, as well as, the salvage of precious metals from identifiable sources. |
2. BASIS OF PREPARATION
2. BASIS OF PREPARATION | 3 Months Ended |
Jun. 30, 2019 | |
Notes | |
2. BASIS OF PREPARATION | 2. BASIS OF PREPARATION Pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q, the unaudited condensed consolidated financial statements, footnote disclosures and other information normally included in condensed consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The condensed consolidated financial statements contained in this report are unaudited but, in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the condensed consolidated financial statements. All significant inter-company accounts and transactions have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of results for the full year. The condensed consolidated balance sheet at March 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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. Management reviews these estimates and assumptions on an ongoing basis using currently available information. Actual results could differ from those estimates. Three-month figures are not necessarily indicative of the results to be reported Basis of Consolidation The consolidated financial statements include the accounts of the Company and controlled subsidiaries, Mexus Gold Mining, S.A. de C.V. ( Mexus Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent Cash and cash equivalents The Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. Equipment Equipment consists of mining tools and equipment, watercraft and vehicles which are depreciated on a straight-line basis over their expected useful lives as follows (see Note 4): Mining tools and equipment 7 years Watercraft 7 years Vehicles 3 years Equipment under Construction Equipment under construction comprises mining equipment that is currently being fabricated and modified by the Company and is not presently in use. Equipment under construction totaled $17,018 and $17,018 as of June 30, 2019 and March 31, 2019, respectively. Equipment under construction at June 30, 2019 comprises a Hydraulic Drum 12YD, Skid Mounted Mill and Survey Winch Marine. Exploration and Development Costs Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized exploration costs under property, plant and equipment. Property holding costs are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and development costs would be amortized based on the estimated proven and probable reserves benefited. Properties determined to be impaired or that are abandoned are written-down to the estimated fair value. Carrying values do not necessarily reflect present or future values. Mineral Property Rights Costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred either to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven Impairment or Disposal of Long-Lived Assets Long-Lived Assets In accordance with ASC 360, Property Plant and Equipment the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. Fair Value of Financial Instruments ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Included in the ASC Topic 820 framework is a three level valuation inputs hierarchy with Level 1 being inputs and transactions that can be effectively fully observed by market participants spanning to Level 3 where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company. The Company discloses the lowest level input significant to each category of asset or liability valued within the scope of ASC Topic 820 and the valuation method as exchange, income or use. The Company uses inputs which are as observable as possible and the methods most applicable to the specific situation of each company or valued item. The Company's financial instruments consist of cash, accounts payable, accrued liabilities, advances, notes payable, and a promissory note payable. The carrying amount of these financial instruments approximate fair value due to either length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. Secured convertible promissory note derivative liability is measured at fair value on a recurring basis using Level 3 inputs. Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. The notes payable, loans payable and secured convertible promissory notes have fixed interest rates therefore the Company is exposed to interest rate risk in that they could not benefit from a decrease in market interest rates. In seeking to minimize the risks from interest rate fluctuations, the Derivative Instruments Accounting standards require that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure Foreign Currency Translation The Companys functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated to United States dollars in accordance with ASC 740, Foreign Currency Translation Matters, using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. To the extent that the Company incurs transactions that are not denominated in its functional currency, they are undertaken in Mexican Pesos. The Company has not, as of the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. Comprehensive Loss ASC 220, Comprehensive Income establishes standards for the reporting and display of comprehensive loss and its components in the consolidated financial statements. As at June 30, 2019 and 2018, the Company had no items that represent a comprehensive loss, and therefore has not included a schedule of comprehensive loss in the consolidated financial statements. Income Taxes The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Accounting for Income Tax. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. Asset Retirement Obligations In accordance with accounting standards for asset retirement obligations (ASC 410), the Company records the fair value of a liability for an asset retirement obligation (ARO) when there is a legal obligation associated with the retirement of a tangible long-lived asset and the liability can be reasonably estimated. The associated asset retirement costs are supposed to be capitalized as part of the carrying amount of the related mineral properties. As of June 30, 2019 and March 31, 2019, the Company has not recorded AROs associated with legal obligations to retire any of the Companys mineral properties as the settlement dates are not presently determinable. Revenue Recognition In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods or services. The provisions of ASC 606 include a five-step process by which we determine revenue recognition, depicting the transfer of goods or services Stock-based Compensation The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award. ASC 505, "Compensation-Stock Compensation", establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non-employees for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of ASC 505. Per Share Data Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, "Earnings per Share". Basic earnings per common share (EPS) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. At June 30, 2019 June 30, 2019 March 31, 2019 Common stock issuable upon conversion of notes payable and convertible notes payable 129,268,713 77,245,894 Common stock issuable to satisfy stock payable obligations 117,302,207 105,502,659 Total 246,570,920 182,748,553 Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases. corresponding lease liability on the balance sheet for all leases with terms longer than 12 months. ASU 2016-02 is effective for all interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The adoption of ASU 2016-02 on April 1, 2019 did not have a material impact since the Company on the date of adoption had short-term leases and elected not to apply the recognition requirement. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material |
3. GOING CONCERN
3. GOING CONCERN | 3 Months Ended |
Jun. 30, 2019 | |
Notes | |
3. GOING CONCERN | 3. GOING CONCERN The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the three months The Company is dependent upon outside financing to continue operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is managements plans to raise necessary funds through a private placement of its common stock to satisfy the capital requirements of the Companys business plan. There is no assurance that the Company will be able to raise the necessary funds, or that if it is successful in raising the necessary funds, that the Company will successfully execute its business plan. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and/or liabilities that might be necessary should the Company be unable to continue as a going concern. The continuation as a going concern is dependent upon the ability of the Company to meet our obligations on a timely basis, and, ultimately to attain profitability . |
4. PROPERTY & EQUIPMENT
4. PROPERTY & EQUIPMENT | 3 Months Ended |
Jun. 30, 2019 | |
Notes | |
4. PROPERTY & EQUIPMENT | 4. PROPERTY & EQUIPMENT Cost Accumulated Depreciation June 30, 2019 Net Book Value March 31, 2019 Net Book Value Mining tools and equipment $ 1,754,451 $ 1,405,021 $ 349,430 $ 363,710 Vehicles 171,110 152,681 18,429 19,814 $ 1,925,561 $ 1,557,702 $ 367,859 $ 383,524 Depreciation expense for three months ended June 30, 2019 and 2018 was $59,790 and $67,388, respectively. |
5. ACCOUNTS PAYABLE - RELATED P
5. ACCOUNTS PAYABLE - RELATED PARTIES | 3 Months Ended |
Jun. 30, 2019 | |
Notes | |
5. ACCOUNTS PAYABLE - RELATED PARTIES | 5. ACCOUNTS PAYABLE RELATED PARTIES During the three months ended June 30, 2019 and 2018, the Company incurred rent expense to Paul D. Thompson, the sole director and officer of the Company, of $11,400 and $11,400 , respectively. At June 30, 2019 and March 31, 2019, $151,848 and $140,448 for this obligation is outstanding, respectively. Compensation On July 2, 2015, the Company entered into a compensation agreement with Paul D. Thompson, the sole director and officer of the Company. Mr. Thompson is compensated $15,000 per month and has the option to take payment in Company stock valued at an average of 5 days closing price, cash payments or deferred payment in stock or cash. In addition, Mr. Thompson is due 2,000,000 shares of common stock at the end of each fiscal quarter. At June 30, 2019 and March 31, 2019, $274,269 and $294,256 of compensation due is included in accounts payable related party, respectively and $32,600 for 2,000,000 shares and $32,600 for 2,000,000 shares of common stock due is included in share subscriptions payable, respectively. |
6. NOTES PAYABLE AND NOTES PAYA
6. NOTES PAYABLE AND NOTES PAYABLE RELATED PARTY | 3 Months Ended |
Jun. 30, 2019 | |
Notes | |
6. NOTES PAYABLE AND NOTES PAYABLE RELATED PARTY | 6. NOTES PAYABLE AND NOTES PAYABLE RELATED PARTY During the three months ended June 30, 2019, the Company issued the following notes payable: i) On April 5, 2019, the Company issued a promissory note (Note) for $41,000 in cash. The Note earns interest at 12% per annum, matures on April 6, 2020 and is convertible into shares of common stock of the Company, the option of the Holder, at $0.005 per share. This Note were initially recorded net of a debt discount of $41,000 for a beneficial conversion feature with a corresponding increase in additional paid-in capital of $41,000. ii) On April 15, 2019, the Company issued a promissory note (Note) with a principal of amount of $66,754 bearing interest of 10% per annum to settle $66,754 in accounts payable due for accounting fees. The Note is due on June 30, 2020. The holder of the Note may convert principal and interest into shares of common stock of the Company at $0.005 per share. This Note were initially recorded net of a debt discount of $61,414 for a beneficial conversion feature with a corresponding increase in additional paid-in capital of $61,414. iii) On May 14, 2019, the Company issued a promissory note (Note) for $90,000 in cash with a face value of $95,000. The face value of the Note was due on May 24, 2019 plus an additional 1,000,000 shares of common stock of the Company. On May 17, 2019 and June 17, 2019, the Company paid the Note holder $60,000 and $35,000, respectively. The 1,000,000 shares of common stock was valued at $8,500 ($0.0085 per share) and recorded as interest expense. An additional $270 was paid to reimburse the Holder for fees. iv) On March 11, 2019, the Company entered into a loan agreement (Note) for $70,000 in cash with a term of one year and one day. Upon signing the Note, the Company agreed to issue 3,000,000 shares of common stock of the Company. In addition, the Company agreed to issue a warrant with an exercise price of $0.05 per share once the Note is fully settled. The Note also states that the Company will repay the Note from 5% of the net profit from the Santa Elena Caborca gold project net smelter royalty until the Note is paid in full. During the three months ended June 30, 2019, an additional $50,000 in cash was advanced in accordance with the terms of the Note. v) Promissory notes with $3,000 in principal that earn interest at 10% per annum and a term of nine months. During the three months ended June 30, 2019 and 2018, note principal and interest of $6,500 and $0, respectively, was paid through the issuance of 6,500,000 and 0 shares of common stock, respectively. In addition, during the three months ended June 30, 2019 and 2018, the Company paid $90,000 and $6,500 in cash, respectively, to settle debt. At June 30, 2019 and March 31, 2019, the carrying value of the notes totaled $781,085 (net of unamortized debt discount of $162,396 and $693,600 (net of unamortized debt discount of $94,127 ), respectively. At June 30, 2019, $423,702 of these notes were in default. There are no default provisions stated in these notes. At June 30, 2019 and March 31, 2019, accrued interest of $42,851 and $31,332 , respectively, is included in accounts payable and accrued liabilities. Notes payable related party Included in notes payable at June 30, 2019 are notes payable related party of $67,410 and $67,410, respectively, due to Paul Thompson Sr., the sole officer and director of the Company. These notes bear interest of 12% per annum. Interest and amortization of debt discount was $47,914 and $49,225 for the three months ended June 30, 2019 and 2018, respectively. The amount by which the if-converted value of notes payable exceeds principal of notes payable at June 30, 2019 is $28,197. |
7. PROMISSORY NOTES
7. PROMISSORY NOTES | 3 Months Ended |
Jun. 30, 2019 | |
Notes | |
7. PROMISSORY NOTES | 7. PROMISSORY NOTES On April 18, 2013, the Company issued Promissory Notes for $255,000 in cash. The Notes bear interest of 4% per annum and are due on December 31, 2013. The Notes are secured by all of Mexus Gold US shares of stock in Mexus Resources S.A. de C.V. and a personal guarantee of Paul D. Thompson. In addition, a fee of 2,550,000 shares of common stock of the Company valued at $501,075 ($0.1965 per share) was paid to the Note holders on April 18, 2013. These financing fees were capitalized in the consolidated balance sheet as deferred finance expense and were being amortized on a straight-line basis, which approximates the effective interest rate method, as interest expense over the life of the Promissory Notes. On August 24, 2015, $100,000 of these were settled on issuance of a convertible promissory note. On December 1, 2015, $60,000 of these were settled on issuance of a convertible promissory note. On September 19, 2016, the Company issued 570,750 shares of common stock with a fair value $44,234 ($0.0775 per share) to settle a promissory note with principal of $20,000. On March 31, 2017, a promissory note with principal of $10,000 was settled for no consideration and recorded as a gain on the consolidated statement of operations. At June 30, 2019 and March 31, 2019, outstanding Promissory Notes were $65,000 and $65,000, respectively. As of June 30, 2019, the Company has not made the scheduled payments and is in default on this promissory note. The default rate on the notes is seven percent. At June 30, 2019 and March 31, 2019, accrued interest of $32,794 and $31,117, respectively, is included in accounts payable and accrued liabilities. |
8. CONVERTIBLE PROMISSORY NOTES
8. CONVERTIBLE PROMISSORY NOTES | 3 Months Ended |
Jun. 30, 2019 | |
Notes | |
8. CONVERTIBLE PROMISSORY NOTES | 8. CONVERTIBLE PROMISSORY NOTES Power Up Lending Group Ltd. On November 7, 2018, the Company issued a Convertible Promissory Note (Note) to Power Up Lending Group Ltd. (Holder) in the original principal amount of $78,000 less transaction costs of $2,500 bearing a 12% annual interest rate and maturing August 30, 2019 for $75,500 in cash. After 170 days after the issue date, this Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holders option at a variable conversion price calculated at 65% of the market price defined as the average of the lowest two trading prices during the fifteen trading day period ending on the latest complete trading day prior to the conversion date. The Company determined that upon issuance of the Note, the initial fair value of the embedded conversion feature was $50,690 which was recorded as a debt discount. The Company may repay the Note if repaid in cash within 30 days of date of issue at 110% of the original principal amount plus interest, between 31 days and 60 days at 115% of the original principal amount plus interest, between 61 days and 90 days at 120% of the original principal amount plus interest, between 91 days and 120 days at 125% of the original principal amount plus interest, between 121 days and 150 days at 130% of the original principal amount plus interest, and between 151 days and 170 days at 135% of the original principal amount plus interest. Thereafter, the Company does not have the right of prepayment. At March 31, 2019, the Note is recorded at an accreted value of $125,681 less unamortized debt discount of $48,879. On May 10, 2019, the Company paid $111,531 in cash to Power Up Lending Group Ltd. to fully settle the Note resulting in a gain of settlement of $15,471. Interest and amortization of debt discount was $50,203 for the three months ended June 30, 2019. On January 25, 2019, the Company issued a Convertible Promissory Note (Note) to Power Up Lending Group Ltd. (Holder) in the original principal amount of $73,000 less transaction costs of $3,000 bearing a 12% annual interest rate and maturing November 15, 2019 for $70,000 in cash. After 170 days after the issue date, this Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holders option at a variable conversion price calculated at 65% of the market price defined as the average of the lowest two trading prices during the fifteen trading day period ending on the latest complete trading day prior to the conversion date. The Company determined that upon issuance of the Note, the initial fair value of the embedded conversion feature was $76,073, of which $70,000 was recorded as debt discount and the remainder of $6,073 was recorded expensed and included in gain (loss) on derivative liability. The Company may repay the Note in cash if repaid within 30 days of date of issue at 110% of the original principal amount plus interest, between 31 days and 60 days at 115% of the original principal amount plus interest, between 61 days and 90 days at 120% of the original principal amount plus interest, between 91 days and 120 days at 125% of the original principal amount plus interest, between 121 days and 150 days at 130% of the original principal amount plus interest, and between 151 days and 170 days at 135% of the original principal amount plus interest. At June 30, 2019 and March 31, 2019, the Note is recorded at an accreted value of $118,068 and $114,708, respectively, less unamortized debt discount of $52,714 and $87,476, respectively. Interest and amortization of debt discount was $38,122 for the three months ended June 30, 2019. On April 5, 2019, the Company issued a Convertible Promissory Note (Note) to Power Up Lending Group Ltd. (Holder) in the original principal amount of $88,000 less transaction costs of $3,000 bearing a 12% annual interest rate and maturing February 28, 2020 for $85,000 in cash. After 170 days after the issued date, this Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holders option at a variable conversion price calculated at 65% of the market price defined as the average of the lowest two trading prices during the fifteen trading day period ending on the latest complete trading day prior to the conversion date. The Company determined that upon issuance of the Note, the initial fair value of the embedded conversion feature was $74,311 which was recorded as a debt discount. The Company may repay the Note if repaid within 30 days of date of issue at 110% of the original principal amount plus interest, between 31 days and 60 days at 115% of the original principal amount plus interest, between 61 days and 90 days at 120% of the original principal amount plus interest, between 91 days and 120 days at 125% of the original principal amount plus interest, between 121 days and 150 days at 130% of the original principal amount plus interest, and between 151 days and 170 days at 135% of the original principal amount plus interest. At June 30, 2019, the Note is recorded at an accreted value of $139,212 less unamortized debt discount of $92,099. Interest and amortization of debt discount was $36,423 for the three months ended June 30, 2019. On May 9, 2019, the Company issued a Convertible Promissory Note (Note) to Power Up Lending Group Ltd. (Holder) in the original principal amount of $83,000 less transaction costs of $3,000 bearing a 12% annual interest rate and maturing March 15, 2020 for $80,000 in cash. After 170 days after the issued date, this Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holders option at a variable conversion price calculated at 65% of the market price defined as the average of the lowest two trading prices during the fifteen trading day period ending on the latest complete trading day prior to the conversion date. The Company determined that upon issuance of the Note, the initial fair value of the embedded conversion feature was $77,741 which was recorded as a debt discount. The Company may repay the Note if repaid within 30 days of date of issue at 110% of the original principal amount plus interest, between 31 days and 60 days at 115% of the original principal amount plus interest, between 61 days and 90 days at 120% of the original principal amount plus interest, between 91 days and 120 days at 125% of the original principal amount plus interest, between 121 days and 150 days at 130% of the original principal amount plus interest, and between 151 days and 170 days at 135% of the original principal amount plus interest. At June 30, 2019, the Note is recorded at an accreted value of $129,875 less unamortized debt discount of $104,462. Interest and amortization of debt discount was $23,156 for the three months ended June 30, 2019. On June 11, 2019, the Company issued a Convertible Promissory Note (Note) to Power Up Lending Group Ltd. (Holder) in the original principal amount of $42,500 less transaction costs of $2,500 bearing a 12% annual interest rate and maturing April 15, 2020 for $40,000 in cash. After 170 days after the issued date, this Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holders option at a variable conversion price calculated at 65% of the market price defined as the average of the lowest two trading prices during the fifteen trading day period ending on the latest complete trading day prior to the conversion date. The Company determined that upon issuance of the Note, the initial fair value of the embedded conversion feature was $38,450 which was recorded as a debt discount. The Company may repay the Note if repaid within 30 days of date of issue at 110% of the original principal amount plus interest, between 31 days and 60 days at 115% of the original principal amount plus interest, between 61 days and 90 days at 120% of the original principal amount plus interest, between 91 days and 120 days at 125% of the original principal amount plus interest, between 121 days and 150 days at 130% of the original principal amount plus interest, and between 151 days and 170 days at 135% of the original principal amount plus interest. At June 30, 2019, the Note is recorded at an accreted value of $65,793 less unamortized debt discount of $59,906. Interest and amortization of debt discount was $4,334 for the three months ended June 30, 2019. |
9. CONVERTIBLE PROMISSORY NOTE
9. CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY | 3 Months Ended |
Jun. 30, 2019 | |
Notes | |
9. CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY | 9. CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY The Convertible Promissory Notes (Notes) with Power Up Lending Group Ltd. was accounted for under ASC 815. The variable conversion The inputs into the Black-Scholes models are as follows: March 31, 2019 April 5, 2019 May 9, 2019 June 11, 2019 June 30, 2019 Closing share price $0.0112 $0.0119 $0.0080 $0.0088 $0.01 Conversion price $0.0100 $0.0100 $0.0063 $0.0071 $0.0075 Risk free rate 2.44% - 2.56% 2.56% 2.10% 2.10% 2.10% Expected volatility 230% 213% 216% 220% 216% - 256% Dividend yield 0% 0% 0% 0% 0% Expected life (years) 0.42- 0.63 0.88 0.92 0.85 0.38 0.79 The fair value of the conversion option derivative liabilities is $276,090 and $113,091 at June 30, 2019 and March 31, 2019, respectively. The decrease (increase) in the fair value of the conversion option derivative liability for the three months ended June 30, 2019 2018 of $27,503 and $68,934 , respectively, is recorded as a gain (loss) in the condensed consolidated statements of operations. |
10. CONTINGENT LIABILITIES
10. CONTINGENT LIABILITIES | 3 Months Ended |
Jun. 30, 2019 | |
Notes | |
10. CONTINGENT LIABILITIES | 10. CONTINGENT LIABILITIES An asset retirement obligation is a legal obligation associated with the disposal or retirement of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees. While the Company, as of June 30, 2019, does not have a legal obligation associated with the disposal of certain chemicals used in its leaching process, the Company estimates it will incur costs up to $50,000 to neutralize those chemicals at the close of the leaching pond. |
11. STOCKHOLDERS' EQUITY (DEFIC
11. STOCKHOLDERS' EQUITY (DEFICIT) | 3 Months Ended |
Jun. 30, 2019 | |
Notes | |
11. STOCKHOLDERS' EQUITY (DEFICIT) | 11. STOCKHOLDERS EQUITY (DEFICIT) The Preferred Stock, $0.001 par value per share; 9,000,000 shares authorized, 0 issued and outstanding at June 30, 2019 and March 31, 2019. Series A Convertible Preferred Stock (Series A Preferred Stock), $0.001 par value share; 1,000,000 shares authorized: 1,000,000 shares issued and outstanding at June 30, 2019 and March 31, 2019. Holders of Series A Preferred Stock may convert one share of Series A Preferred Stock into ten shares of Common Stock. Holders of Series A Preferred Stock have the number of votes determined by multiplying (a) the number of Series A Preferred Stock held by such Common Stock, par value of $0.001 per share; 2,000,000,000 shares authorized: 1,167,098,176 and 1,011,848,975 shares issued and outstanding at June 30, 2019 and March 31, 2019, respectively. Holders of Common Stock have one vote per share of Common Stock held. Common Stock Issued On April 17, 2019, the Company issued 53,799,286 shares of common stock to satisfy obligations under share subscription agreements of $47,600 for settlement of services, $4,392 for interest and $139,500 for cash receipts included in share subscriptions payable. On April 30, 2019, the Company issued 15,444,439 shares of common stock to satisfy obligations under share subscription agreements of $7,000 for settlement of services and $15,500 for cash receipts included in share subscriptions payable. On May 8, 2019, the Company issued 45,882,143 shares of common stock to satisfy obligations under share subscription agreements of $48,496 for settlement of services, $117,400 to settle accounts payable, $2,254 for interest and $32,100 for cash receipts included in share subscriptions payable. On June 4, 2019, the Company issued 16,678,333 shares of common stock to satisfy obligations under share subscription agreements of $13,291 for settlement of services and $23,000 for cash receipts included in share subscriptions payable. On June 18, 2019, the Company issued 23,445,000 shares of common stock to satisfy obligations under share subscription agreements of $101,078 for settlement of services, $18,050 for cash receipts, $6,500 to settle notes payable and $3,960 for interest included in share subscriptions payable. Common Stock Payable As at June 30, 2019, the Company had total subscriptions payable for 117,302,307 shares of common stock for $148,377 in cash, shares of common stock for interest valued at $38,500 and shares of common stock for services valued at $360,953. |
12. RELATED PARTY TRANSACTIONS
12. RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jun. 30, 2019 | |
Notes | |
12. RELATED PARTY TRANSACTIONS | 12. RELATED PARTY TRANSACTIONS During the three months ended June 30, 2019 and 2018, the Company entered into the following transactions with related parties: Paul D. Thompson, sole director and officer of the Company Taurus Gold, Inc., controlled by Paul D. Thompson Accounts payable related parties Note 5 Notes payable Note 6 |
13. SUBSEQUENT EVENTS
13. SUBSEQUENT EVENTS | 3 Months Ended |
Jun. 30, 2019 | |
Notes | |
13. SUBSEQUENT EVENTS | 13. SUBSEQUENT EVENTS Common Stock Issued On July 2, 2019 , the Company issued 5,000,000 shares of common stock to satisfy obligations under share subscription agreements of $10,000 for cash receipts. On July 9, 2019 , the Company issued 17,314,000 shares of common stock to satisfy obligations under share subscription agreements of $57,200 for settlement of services and $20,785 for cash receipts included in share subscriptions payable. On July 10, 2019 , the Company issued 61,108,334 shares of common stock to satisfy obligations under share subscription agreements of $90,000 for settlement of services and $90,110 for cash receipts included in share subscriptions payable. On July 22, 2019 , the Company issued 22,083,332 shares of common stock to satisfy obligations under share subscription agreements for $25,500 for cash receipts included in share subscriptions payable. On July 29, 2019 , the Company cancelled 1,000,000 shares of common stock originally issued to satisfy obligations under share subscription agreements of $5,000 for cash receipts. Common Stock Payable For the period of July 1, 2019 to August 7, 2019 , the Company issued subscriptions payable for 73,149,997 shares of common stock for $97,500 in cash ($0.0013 per share) . For the period of July 1, 2019 to August 7, 2019 , the Company issued subscriptions payable for 4,000,000 shares of common stock for $38,400 in services ($0.0096 per share) . Power Up Lending Group Ltd. On July 18, 2019 , the Company paid $104,188 in cash to Power Up Lending Group Ltd. to fully settle the Convertible Promissory Note issued on January 25, 2019. The carrying value of the Convertible Promissory Note on June 30, 2019 was $65,354. |
2. BASIS OF PREPARATION_ Basis
2. BASIS OF PREPARATION: Basis of Consolidation (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the Company and controlled subsidiaries, Mexus Gold Mining, S.A. de C.V. ( Mexus |
2. BASIS OF PREPARATION_ Use of
2. BASIS OF PREPARATION: Use of Estimates (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent |
2. BASIS OF PREPARATION_ Cash a
2. BASIS OF PREPARATION: Cash and cash equivalents (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Cash and cash equivalents | Cash and cash equivalents The Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. |
2. BASIS OF PREPARATION_ Equipm
2. BASIS OF PREPARATION: Equipment (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Equipment | Equipment Equipment consists of mining tools and equipment, watercraft and vehicles which are depreciated on a straight-line basis over their expected useful lives as follows (see Note 4): Mining tools and equipment 7 years Watercraft 7 years Vehicles 3 years |
2. BASIS OF PREPARATION_ Equi_2
2. BASIS OF PREPARATION: Equipment under Construction (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Equipment under Construction | Equipment under Construction Equipment under construction comprises mining equipment that is currently being fabricated and modified by the Company and is not presently in use. Equipment under construction totaled $17,018 and $17,018 as of June 30, 2019 and March 31, 2019, respectively. Equipment under construction at June 30, 2019 comprises a Hydraulic Drum 12YD, Skid Mounted Mill and Survey Winch Marine. |
2. BASIS OF PREPARATION_ Explor
2. BASIS OF PREPARATION: Exploration and Development Costs (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Exploration and Development Costs | Exploration and Development Costs Exploration costs incurred in locating areas of potential mineralization or evaluating properties or working interests with specific areas of potential mineralization are expensed as incurred. Development costs of proven mining properties not yet producing are capitalized at cost and classified as capitalized exploration costs under property, plant and equipment. Property holding costs are charged to operations during the period if no significant exploration or development activities are being conducted on the related properties. Upon commencement of production, capitalized exploration and development costs would be amortized based on the estimated proven and probable reserves benefited. Properties determined to be impaired or that are abandoned are written-down to the estimated fair value. Carrying values do not necessarily reflect present or future values. |
2. BASIS OF PREPARATION_ Minera
2. BASIS OF PREPARATION: Mineral Property Rights (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Mineral Property Rights | Mineral Property Rights Costs of acquiring mining properties are capitalized upon acquisition. Mine development costs incurred either to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven Impairment or Disposal of Long-Lived Assets |
2. BASIS OF PREPARATION_ Long-L
2. BASIS OF PREPARATION: Long-Lived Assets (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Long-Lived Assets | Long-Lived Assets In accordance with ASC 360, Property Plant and Equipment the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. |
2. BASIS OF PREPARATION_ Fair V
2. BASIS OF PREPARATION: Fair Value of Financial Instruments (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Included in the ASC Topic 820 framework is a three level valuation inputs hierarchy with Level 1 being inputs and transactions that can be effectively fully observed by market participants spanning to Level 3 where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company. The Company discloses the lowest level input significant to each category of asset or liability valued within the scope of ASC Topic 820 and the valuation method as exchange, income or use. The Company uses inputs which are as observable as possible and the methods most applicable to the specific situation of each company or valued item. The Company's financial instruments consist of cash, accounts payable, accrued liabilities, advances, notes payable, and a promissory note payable. The carrying amount of these financial instruments approximate fair value due to either length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. Secured convertible promissory note derivative liability is measured at fair value on a recurring basis using Level 3 inputs. Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in the interest rates. The notes payable, loans payable and secured convertible promissory notes have fixed interest rates therefore the Company is exposed to interest rate risk in that they could not benefit from a decrease in market interest rates. In seeking to minimize the risks from interest rate fluctuations, the |
2. BASIS OF PREPARATION_ Deriva
2. BASIS OF PREPARATION: Derivative Instruments (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Derivative Instruments | Derivative Instruments Accounting standards require that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure |
2. BASIS OF PREPARATION_ Foreig
2. BASIS OF PREPARATION: Foreign Currency Translation (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Foreign Currency Translation | Foreign Currency Translation The Companys functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated to United States dollars in accordance with ASC 740, Foreign Currency Translation Matters, using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. To the extent that the Company incurs transactions that are not denominated in its functional currency, they are undertaken in Mexican Pesos. The Company has not, as of the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. |
2. BASIS OF PREPARATION_ Compre
2. BASIS OF PREPARATION: Comprehensive Loss (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Comprehensive Loss | Comprehensive Loss ASC 220, Comprehensive Income establishes standards for the reporting and display of comprehensive loss and its components in the consolidated financial statements. As at June 30, 2019 and 2018, the Company had no items that represent a comprehensive loss, and therefore has not included a schedule of comprehensive loss in the consolidated financial statements. |
2. BASIS OF PREPARATION_ Income
2. BASIS OF PREPARATION: Income Taxes (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Accounting for Income Tax. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. |
2. BASIS OF PREPARATION_ Asset
2. BASIS OF PREPARATION: Asset Retirement Obligations (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Asset Retirement Obligations | Asset Retirement Obligations In accordance with accounting standards for asset retirement obligations (ASC 410), the Company records the fair value of a liability for an asset retirement obligation (ARO) when there is a legal obligation associated with the retirement of a tangible long-lived asset and the liability can be reasonably estimated. The associated asset retirement costs are supposed to be capitalized as part of the carrying amount of the related mineral properties. As of June 30, 2019 and March 31, 2019, the Company has not recorded AROs associated with legal obligations to retire any of the Companys mineral properties as the settlement dates are not presently determinable. |
2. BASIS OF PREPARATION_ Revenu
2. BASIS OF PREPARATION: Revenue Recognition (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Revenue Recognition | Revenue Recognition In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods or services. The provisions of ASC 606 include a five-step process by which we determine revenue recognition, depicting the transfer of goods or services |
2. BASIS OF PREPARATION_ Stock-
2. BASIS OF PREPARATION: Stock-based Compensation (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Stock-based Compensation | Stock-based Compensation The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award. ASC 505, "Compensation-Stock Compensation", establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non-employees for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of ASC 505. |
2. BASIS OF PREPARATION_ Per Sh
2. BASIS OF PREPARATION: Per Share Data (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Per Share Data | Per Share Data Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, "Earnings per Share". Basic earnings per common share (EPS) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. At June 30, 2019 June 30, 2019 March 31, 2019 Common stock issuable upon conversion of notes payable and convertible notes payable 129,268,713 77,245,894 Common stock issuable to satisfy stock payable obligations 117,302,207 105,502,659 Total 246,570,920 182,748,553 |
2. BASIS OF PREPARATION_ Recent
2. BASIS OF PREPARATION: Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Policies | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases. corresponding lease liability on the balance sheet for all leases with terms longer than 12 months. ASU 2016-02 is effective for all interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The adoption of ASU 2016-02 on April 1, 2019 did not have a material impact since the Company on the date of adoption had short-term leases and elected not to apply the recognition requirement. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material |
2. BASIS OF PREPARATION_ Equi_3
2. BASIS OF PREPARATION: Equipment: Schedule of Equipment Depreciation (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Tables/Schedules | |
Schedule of Equipment Depreciation | Mining tools and equipment 7 years Watercraft 7 years Vehicles 3 years |
2. BASIS OF PREPARATION_ Per _2
2. BASIS OF PREPARATION: Per Share Data: Schedule of Excluded Outstanding Securities (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Tables/Schedules | |
Schedule of Excluded Outstanding Securities | June 30, 2019 March 31, 2019 Common stock issuable upon conversion of notes payable and convertible notes payable 129,268,713 77,245,894 Common stock issuable to satisfy stock payable obligations 117,302,207 105,502,659 Total 246,570,920 182,748,553 |
4. PROPERTY & EQUIPMENT_ Proper
4. PROPERTY & EQUIPMENT: Property, Plant and Equipment (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Tables/Schedules | |
Property, Plant and Equipment | Cost Accumulated Depreciation June 30, 2019 Net Book Value March 31, 2019 Net Book Value Mining tools and equipment $ 1,754,451 $ 1,405,021 $ 349,430 $ 363,710 Vehicles 171,110 152,681 18,429 19,814 $ 1,925,561 $ 1,557,702 $ 367,859 $ 383,524 |
1. ORGANIZATION AND BUSINESS _2
1. ORGANIZATION AND BUSINESS OF COMPANY (Details) | 3 Months Ended |
Jun. 30, 2019 | |
Details | |
Entity Registrant Name | Mexus Gold US |
Entity Incorporation, Date of Incorporation | Jun. 22, 1990 |
Entity Information, Former Legal or Registered Name | U.S.A. Connection, Inc. |
Entity Information, Date to Change Former Legal or Registered Name | Sep. 18, 2009 |
Entity Incorporation, State or Country Code | NV |
2. BASIS OF PREPARATION_ Equi_4
2. BASIS OF PREPARATION: Equipment: Schedule of Equipment Depreciation (Details) | 3 Months Ended |
Jun. 30, 2019 | |
Mining tools and equipment | |
Property, Plant and Equipment, Useful Life | 7 years |
Watercrafts | |
Property, Plant and Equipment, Useful Life | 7 years |
Vehicles | |
Property, Plant and Equipment, Useful Life | 3 years |
2. BASIS OF PREPARATION_ Equi_5
2. BASIS OF PREPARATION: Equipment under Construction (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Details | ||
Equipment under construction | $ 17,018 | $ 17,018 |
2. BASIS OF PREPARATION_ Per _3
2. BASIS OF PREPARATION: Per Share Data: Schedule of Excluded Outstanding Securities (Details) - shares | Jun. 30, 2019 | Mar. 31, 2019 |
Details | ||
Common stock issuable upon conversion of convertible notes payable | 129,268,713 | 77,245,894 |
Common stock issuable to satisfy stock payable obligations | 117,302,207 | 105,502,659 |
Total Securities Excluded | 246,570,920 | 182,748,553 |
3. GOING CONCERN (Details)
3. GOING CONCERN (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Details | |||
Net Income (Loss) Attributable to Parent | $ (839,198) | $ (384,877) | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | (356,796) | $ (305,903) | |
Accumulated deficit | $ (29,966,570) | $ (29,127,372) |
4. PROPERTY & EQUIPMENT_ Prop_2
4. PROPERTY & EQUIPMENT: Property, Plant and Equipment (Details) | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Equipment | |
Property, Cost | $ 1,754,451 |
Property, Accumulated Depreciation | 1,405,021 |
Property, Net Book Value | 349,430 |
Property, Net Book Value | 363,710 |
Vehicles | |
Property, Cost | 171,110 |
Property, Accumulated Depreciation | 152,681 |
Property, Net Book Value | 18,429 |
Property, Net Book Value | $ 19,814 |
5. ACCOUNTS PAYABLE - RELATED_2
5. ACCOUNTS PAYABLE - RELATED PARTIES (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Rent expense - related party | $ 11,400 | $ 11,400 | |
Rent outstanding - related party | 151,848 | $ 140,448 | |
Accounts payable - related party | 426,117 | 434,704 | |
Share subscription payable | 547,830 | 632,840 | |
Paul D. Thompson, the sole director and officer of the Company | |||
Accounts payable - related party | 274,269 | 294,256 | |
Share subscription payable | $ 32,600 | $ 32,600 |
6. NOTES PAYABLE AND NOTES PA_2
6. NOTES PAYABLE AND NOTES PAYABLE RELATED PARTY (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Long-term Debt | $ 781,085 | $ 693,600 |
Debt Instrument, Unamortized Discount | 162,396 | 94,127 |
Interest Payable, Current | $ 42,851 | $ 31,332 |
Note Payable #1 | ||
Debt Instrument, Issuance Date | Apr. 5, 2019 | |
Debt Instrument, Issuer | Company | |
Debt Instrument, Description | promissory note | |
Debt Instrument, Face Amount | $ 41,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |
Debt Instrument, Maturity Date | Apr. 6, 2020 | |
Debt Instrument, Convertible, Terms of Conversion Feature | convertible into shares of common stock of the Company, the option of the Holder, at $0.005 per share | |
Note Payable #2 | ||
Debt Instrument, Issuance Date | Apr. 15, 2019 | |
Debt Instrument, Issuer | Company | |
Debt Instrument, Description | promissory note | |
Debt Instrument, Face Amount | $ 66,754 | |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |
Debt Instrument, Maturity Date | Jun. 30, 2020 | |
Debt Instrument, Convertible, Terms of Conversion Feature | The holder of the Note may convert principal and interest into shares of common stock of the Company at $0.005 per share | |
Note Payable #3 | ||
Debt Instrument, Issuance Date | May 14, 2019 | |
Debt Instrument, Issuer | Company | |
Debt Instrument, Description | promissory note | |
Debt Instrument, Face Amount | $ 95,000 | |
Debt Instrument, Maturity Date | May 24, 2019 | |
Note Payable #4 | ||
Debt Instrument, Issuance Date | Mar. 11, 2019 | |
Debt Instrument, Issuer | Company | |
Debt Instrument, Description | loan agreement | |
Debt Instrument, Face Amount | $ 70,000 | |
Note Payable #5 | ||
Debt Instrument, Description | Promissory notes | |
Debt Instrument, Face Amount | $ 3,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% |
7. PROMISSORY NOTES (Details)
7. PROMISSORY NOTES (Details) - Promissory Note #1 | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Debt Instrument, Description | Promissory Notes |
Debt Instrument, Face Amount | $ 255,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% |
8. CONVERTIBLE PROMISSORY NOT_2
8. CONVERTIBLE PROMISSORY NOTES (Details) | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Convertible Promissory Note #1 | |
Debt Instrument, Issuer | the Company |
Debt Instrument, Description | Convertible Promissory Note (“Note”) |
Debt Instrument, Face Amount | $ 78,000 |
Debt Instrument, Interest Rate, Stated Percentage | 12.00% |
Debt Instrument, Maturity Date | Aug. 30, 2019 |
Convertible Promissory Note #2 | |
Debt Instrument, Issuer | the Company |
Debt Instrument, Description | Convertible Promissory Note (“Note”) |
Debt Instrument, Face Amount | $ 73,000 |
Debt Instrument, Interest Rate, Stated Percentage | 12.00% |
Debt Instrument, Maturity Date | Nov. 15, 2019 |
Convertible Promissory Note #3 | |
Debt Instrument, Issuer | the Company |
Debt Instrument, Description | Convertible Promissory Note (“Note”) |
Debt Instrument, Face Amount | $ 88,000 |
Debt Instrument, Interest Rate, Stated Percentage | 12.00% |
Debt Instrument, Maturity Date | Feb. 28, 2020 |
Convertible Promissory Note #4 | |
Debt Instrument, Issuer | the Company |
Debt Instrument, Description | Convertible Promissory Note (“Note”) |
Debt Instrument, Face Amount | $ 83,000 |
Debt Instrument, Interest Rate, Stated Percentage | 12.00% |
Debt Instrument, Maturity Date | Mar. 15, 2020 |
Convertible Promissory Note #5 | |
Debt Instrument, Issuer | the Company |
Debt Instrument, Description | Convertible Promissory Note (“Note”) |
Debt Instrument, Face Amount | $ 42,500 |
Debt Instrument, Interest Rate, Stated Percentage | 12.00% |
Debt Instrument, Maturity Date | Apr. 15, 2020 |
9. CONVERTIBLE PROMISSORY NOT_2
9. CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY (Details) | Jun. 30, 2019USD ($)$ / shares | Jun. 11, 2019$ / shares | May 09, 2019$ / shares | Apr. 05, 2019$ / shares | Mar. 31, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) |
Details | |||||||
Closing share price | $ / shares | $ 0.01 | $ 0.0088 | $ 0.0080 | $ 0.0119 | $ 0.0112 | $ 0.01 | |
Conversion price | $ / shares | $ 0.0075 | $ 0.0071 | $ 0.0063 | $ 0.0100 | $ 0.0100 | $ 0.0075 | |
Risk free rate | 0.0210 | 0.0210 | 0.0210 | 0.0256 | 0.0244 | ||
Expected volatility | 2.1600 | 2.2000 | 2.1600 | 2.1300 | 2.3000 | ||
Dividend yield | 0 | 0 | 0 | 0 | 0 | ||
Expected life (years) | 9 months 14 days | 10 months 6 days | 11 months 1 day | 10 months 17 days | 7 months 17 days | ||
Fair value of the conversion option derivative liability | $ | $ 276,090 | $ 113,091 | $ 276,090 | ||||
Increase in the fair value of the conversion option derivative liability | $ | $ 27,503 | $ 68,934 |
11. STOCKHOLDERS' EQUITY (DEF_2
11. STOCKHOLDERS' EQUITY (DEFICIT) (Details) - $ / shares | Jun. 30, 2019 | Jun. 18, 2019 | Jun. 04, 2019 | May 08, 2019 | Apr. 30, 2019 | Apr. 17, 2019 | Mar. 31, 2019 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||||
Preferred Stock, Shares Authorized | 9,000,000 | 9,000,000 | |||||
Preferred Stock, Shares Issued | 0 | 0 | |||||
Preferred Stock, Shares Outstanding | 0 | 0 | |||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||||
Common Stock, Shares Authorized | 2,000,000,000 | 2,000,000,000 | |||||
Common Stock, Shares, Issued | 1,167,098,176 | 1,011,848,975 | |||||
Common Stock, Shares, Outstanding | 1,167,098,176 | 1,011,848,975 | |||||
Shares, Issued | 23,445,000 | 16,678,333 | 45,882,143 | 15,444,439 | 53,799,286 | ||
Series A Convertible | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 | |||||
Preferred Stock, Shares Issued | 1,000,000 | 1,000,000 | |||||
Preferred Stock, Shares Outstanding | 1,000,000 | 1,000,000 |
11. STOCKHOLDERS' EQUITY (DEF_3
11. STOCKHOLDERS' EQUITY (DEFICIT): Common Stock Payable (Details) | Jun. 30, 2019shares |
Details | |
Subscriptions Payable, Common Shares | 117,302,307 |
13. SUBSEQUENT EVENTS_ Common S
13. SUBSEQUENT EVENTS: Common Stock Issued (Details) - shares | 3 Months Ended | |||||
Jun. 30, 2019 | Jun. 18, 2019 | Jun. 04, 2019 | May 08, 2019 | Apr. 30, 2019 | Apr. 17, 2019 | |
Shares, Issued | 23,445,000 | 16,678,333 | 45,882,143 | 15,444,439 | 53,799,286 | |
Event 1 | ||||||
Subsequent Event, Date | Jul. 2, 2019 | |||||
Subsequent Event, Description | Company issued 5,000,000 shares of common stock | |||||
Shares, Issued | 5,000,000 | |||||
Event 2 | ||||||
Subsequent Event, Date | Jul. 9, 2019 | |||||
Subsequent Event, Description | Company issued 17,314,000 shares of common stock | |||||
Shares, Issued | 17,314,000 | |||||
Event 3 | ||||||
Subsequent Event, Date | Jul. 10, 2019 | |||||
Subsequent Event, Description | Company issued 61,108,334 shares of common stock | |||||
Shares, Issued | 61,108,334 | |||||
Event 4 | ||||||
Subsequent Event, Date | Jul. 22, 2019 | |||||
Subsequent Event, Description | Company issued 22,083,332 shares of common stock | |||||
Shares, Issued | 22,083,332 | |||||
Event 5 | ||||||
Subsequent Event, Date | Jul. 29, 2019 | |||||
Subsequent Event, Description | Company cancelled 1,000,000 shares of common stock | |||||
Shares, Issued | 1,000,000 |
13. SUBSEQUENT EVENTS_ Common_2
13. SUBSEQUENT EVENTS: Common Stock Payable (Details) | 3 Months Ended |
Jun. 30, 2019 | |
Event 6 | |
Subsequent Event, Description | Company issued subscriptions payable for 73,149,997 shares of common stock for $97,500 in cash ($0.0013 per share) |
Event 6 | Minimum | |
Subsequent Event, Date | Jul. 1, 2019 |
Event 6 | Maximum | |
Subsequent Event, Date | Aug. 7, 2019 |
Event 7 | |
Subsequent Event, Description | Company issued subscriptions payable for 4,000,000 shares of common stock for $38,400 in services ($0.0096 per share) |
Event 7 | Minimum | |
Subsequent Event, Date | Jul. 1, 2019 |
Event 7 | Maximum | |
Subsequent Event, Date | Aug. 7, 2019 |
13. SUBSEQUENT EVENTS_ Power Up
13. SUBSEQUENT EVENTS: Power Up Lending Group Ltd (Details) - Event 8 | 3 Months Ended |
Jun. 30, 2019 | |
Subsequent Event, Date | Jul. 18, 2019 |
Subsequent Event, Description | Company paid $104,188 in cash to Power Up Lending Group Ltd. |