Restatement to previously issued financial statements [Text Block] | 13. Restatement to previously issued financial statements The following tables reflect the corrections to the affected line items in the previously issued financial statements as of and for the years ended June 30, 2015 and for the quarter ended September 30, 2014. Effect on Condensed Consolidated Balance Sheet Year ended June 30, 2015 As previously Effect of Restatement As Restated reported ASSETS Current Cash and cash equivalents $ 64,099 $ - $ 64,099 Receivable 13,421 - 13,421 Loan receivable 20,000 - 20,000 Prepaid expenses 2,788 - 2,788 Current assets held for sale 14,713 - 14,713 Total current assets 115,021 - 115,021 Deposit on Alta Disposal Morinville Ltd. - - - Investment Held for Sale (Note 15) - - - Total Assets $ 115,021 $ - $ 115,021 LIABILITIES Current Accounts payable and accrued liabilities (note 9) $ 65,962 $ - $ 65,962 Derivative liability – warrants (Note 6) 3,134 140,241 143,375 Derivative liability – convertible promissory notes (Note 6) - 1,646,448 1,646,448 Due to related party (Note 8) 115,000 - 115,000 Convertible promissory notes (Note 6) 300,887 233,107 533,994 Accrued interest – convertible promissory notes (Note 6) 60,022 - 60,022 Liabilities of discontinued operations 6,696 - 6,696 Total Current Liabilities $ 551,701 $ 2,087,796 $ 2,571,497 STOCKHOLDERS’ DEFICIT Capital stock (Note 3) Authorized: Issued and outstanding: - - - 7,574,353 common shares (June 30, 2014 – 47,990) 7,575 - 7,575 Additional paid-in capital 43,165,743 4,217,489 47,383,232 Accumulated other comprehensive loss (29,484 ) - (29,484 ) Deficit accumulated during the exploration (43,267,064 ) (6,237,285 ) (49,504,349 ) Total Lithium Exploration Group, Inc. Stockholders’ Deficit (123,230 ) (2,019,796 ) (2,143,026 ) Non-controlling interest (313,450 ) - (313,450 ) Total Stockholders’ Deficit (436,680 ) (2,019,796 ) (2,456,476 ) Total Liabilities and Stockholders’ Deficit $ 115,021 $ - $ 15,021 Effect on Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) Three months ended September 30, 2014 As previously Effect of reported Restatement As Restated Revenue $ 16,067 $ (16,067 ) $ - Operating Expenses: Mining (Notes 3 & 5) 15,000 - 15,000 Selling, general and administrative (Notes 3 & 5) 502,629 (164,638 ) 337,991 Total operating expenses 517,629 (164,638 ) 352,991 Loss from operations (501,562 ) 148,571 (352,991 ) Other income (expenses) Interest expense (Note 6) (1,562,421 ) 838,350 (724,071 ) Gain (loss) on change in the fair value of derivative liability (Note 6) 2,458,446 764,983 3,223,429 Fair Value of Warrants issued (397,070 ) 397,070 - Amortization of discount on debt discount - (709,644 ) (709,644 ) Equity in income of investment held for sale 48,423 - 48,423 (Loss) income before income taxes 45,816 1,439,329 1,485,145 Provision for Income Taxes (Note 4) - - - (Loss) income from continuing operations 45,816 1,439,329 1,485,145 (Loss) from discontinued operations - (148,571 ) (148,571 ) Net (loss) income 45,816 1,290,758 1,336,574 Less: Net (loss) income attributable to the non-controlling interest (72,800 ) - (72,800 ) Net (loss) income attributable to Lithium Exploration Group, Inc. Common shareholders $ 118,616 $ 1,290,758 $ 1,409,374 Basic and Diluted (loss) income per Common Share 0.00 33,87 22.24 Basic and Diluted Weighted Average Number of Common Shares Outstanding 253,441,532 (253,378,172 ) 63,360 Comprehensive (loss) income : Net (loss) income 45,816 1,290,758 1,336,574 Foreign currency translation adjustment (1,864 ) - (1,864 ) Comprehensive (loss) income 43,952 1,290,758 1,334,710 Comprehensive income (loss) attributable to non-controlling interest (72,800 ) - (72,800 ) Comprehensive (loss) income attributable to Lithium Exploration Group, Inc. $ 116,752 $ 1,290,758 $ 1,407,510 Effect on Condensed Consolidated Statements of Cash Flows Three months ending September 30, 2014 As previously Misstatement As Restated reported Adjustment Cash Flows from Operating Activities Net loss from continuing operations $ 45,816 $ 1,439,329 $ 1,485,145 Loss from discontinued operations - (148,571 ) (148,571 ) Adjustments to reconcile net loss to net cash used in operating activities: Equity in income of investment held for sale (48,423 ) - (48,423 ) Common shares issued for consulting fees 87,000 - 87,000 Interest expense 1,478,356 (838,350 ) 640,006 Amortization of discount on derivative liabilities - 709,644 709,644 Bad debt written-off - - - Common shares issued for interest expenses 31,642 - 31,642 (Gain) loss on change in the fair value of derivative liability (2,458,446 ) (764,983 ) (3,223,429 ) Fair value of warrants issued 397,070 (397,070 ) - Changes in operating assets and liabilities: Receivable, net 4,147 (4,147 ) - Prepaid expenses 18,976 (2,366 ) 16,610 Accrued interest 52,423 - 52,423 Accounts payable and accrued liabilities 101,391 (62,110 ) 39,281 Net cash used in operating activities from continuing operations (290,048 ) (68,623 ) (358,671 ) Net cash used in operating activities from discontinued operations - 65,941 65,941 Net cash used in operating activities (290,048 ) (2,682 ) (292,730 ) Cash Flows from Financing Activities Proceed from issuance of convertible promissory notes 400,000 - 400,000 Net cash provided by financing activities 400,000 - 400,000 Effect of foreign exchange (1,864 ) - (1,864 ) Increase (decrease) in cash and cash equivalents 108,088 (2,684 ) 105,406 Cash and cash equivalents - beginning of period 69,732 (12,100 ) 57,632 Cash and cash equivalents - end of period $ 177,820 $ (14,782 ) $ 163,038 Supplementary disclosure of cash flow information: Cash paid during the period for: $ - $ - Interest $ - $ - Income taxes Supplementary non- cash Investing and Financing Activities: Non-cash investing and financing activities Common stock issued for debt conversion $ 986,034 $ (462,368 ) $ 523,666 Transfer of beneficial conversion feature to fair value of note $ 215,385 $ (215,385 ) $ - Common stock issued on cashless exercise of warrants $ 766,675 $ 1,605,259 $ 2,371,934 Derivative liability re-classed to additional paid in capital $ - $ 919,506 $ 919,506 Debt discount on convertible note and warrants $ - $ 367,333 $ 367,333 Initial derivative liability on note issuance $ - $ 1,007,232 $ 1,007,232 Effect on Condensed Consolidated Statements of Changes in Stockholders’ Deficit Year ended June 30, 2015 As previously reported As Restated Misstatement Adjustment Additional Paid in Capital Beginning Balance $ 38,573,856 $ 538,043 $ 39,111,899 Common shares issued for debt conversion 3,636,984 (1,457,586 ) 2,179,398 Common shares issued for exercise of warrants 767,879 1,962,041 2,729,920 Common shares issued for reclassification of derivative liability on convertible notes - 3,174,990 3,174,990 Closing Balance $ 43,165,743 $ 4,217,488 $ 47,383,231 Accumulated deficit Beginning Balance $ (40,821,871 ) $ (6,166,108 ) $ (46,987,979 ) Net loss for the period (2,445,193 ) (71,176 ) (2,516,369 ) Closing Balance $ (43,267,064 ) $ (6,237,283 ) $ (49,504,347 ) Total Equity Beginning Balance $ (2,355,136 ) $ (5,628,065 ) $ (7,983,201 ) Common shares issued for consulting fees 118,990 118,990 Common shares issued for investor relations 68,000 68,000 Common shares issued for exercise of warrants 767,981 1,962,039 2,730,020 Common shares issued for debt conversion 3,644,405 (1,457,585 ) 2,186,820 Common shares issued for reclassification of derivative liability on convertible notes - 3,174,990 3,174,990 Common shares issued to trust 38 - 38 Foreign exchange translation (23,715 ) (23,715 ) Net loss for the period (2,657,243 ) (71,176 ) (2,728,419 ) Closing Balance $ (436,680 ) $ (2,019,797 ) $ (2,456,477 ) |