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 period ended March 31, 2015. Effect on Condensed Consolidated Balance Sheet Year ended June 30, 2015 As previously Effect of As Restated reported Restatement ASSETS Current Cash and cash equivalents $ 64,099 $ - $ 64,098 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 - 115,020 Total Assets $ 115,021 $ - $ 115,020 LIABILITIES AND DEFICIT Current Accounts payable and accrued liabilities $ 65,962 $ - $ 65,962 Derivative liability – warrants 3,134 140,241 143,375 Derivative liability – convertible promissory notes - 1,646,448 1,646,448 Due to related party 115,000 - 115,000 Convertible promissory notes 300,887 233,107 533,994 Accrued interest – convertible promissory notes 60,022 - 60,022 Liabilities of discontinued operations 6,696 - 6,696 Total Current Liabilities $ 551,701 $ 2,019,796 $ 2,571,497 STOCKHOLDERS DEFICIT Capital stock Nil preferred shares - - - 7,574,353 common shares 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 ) (2,143,027 ) Non-controlling interest (313,450 ) - (313,450 ) Total Deficit (436,680 ) (2,019,796 ) (2,456,477 ) Total Liabilities and Deficit $ 115,021 $ - $ 115,020 Effect on Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) Nine months ended March 31, 2015 As previously reported Effect of Restatement As Restated Revenue $ 57,476 $ (57,476 ) $ - Operating Expenses: Mining (Notes 3 & 5) 31,212 - 31,212 Selling, general and administrative (Notes 3 & 5) 1,308,405 (363,441 ) 944,964 Impairment Loss 624,429 - 624,429 Total operating expenses 1,964,046 (363,441 ) 1,600,605 (Loss) from operations (1,906,570 ) (305,965 ) (1,600,605 ) Other income (expenses) Interest expense (Note 6) (2,818,008 ) 1,484,816 (1,333,192 ) Other Income 80,524 - 80,524 Gain on change in the fair value of derivative liability (Note 6) 3,638,090 (1,763,485 ) 1,874,605 Fair Value of Warrants issued (962,309 ) 170,902 (791,407 ) Amortization of discount on debt discount - (1,483,168 ) (1,483,168 ) Equity in income of investment held for sale (324 ) - (324 ) Loss before income taxes (1,968,597 ) (1,284,971 ) (3,253,568 ) Provision for Income Taxes (Note 4) - - - Loss from continuing operations (1,968,597 ) (1,284,971 ) (3,253,568 ) Loss from discontinued operations - (305,966 ) (305,966 ) Net loss (1,968,597 ) (1,590,937 ) (3,559,534 ) Less: Net loss attributable to the non-controlling interest (149,923 ) - (149,923 ) Net loss attributable to Lithium Exploration Group, Inc. Common $ (1,818,674 ) $ (1,590,937 ) $ (3,409,611 ) Basic and Diluted loss per Common Share 0.04 (15.24 ) (15.28 ) Basic and Diluted Weighted Average Number of Common Shares Outstanding 44,636,800 (44,413,616 ) 223,184 Comprehensive loss : Net loss (1,968,597 ) (1,590,937 ) (3,559,534 ) Foreign currency translation adjustment (21,831 ) - (21,831 ) Comprehensive loss (1,990,428 ) (1,590,937 ) (3,581,365 ) Comprehensive loss attributable to non-controlling interest (149,923 ) - (149,923 ) Comprehensive loss attributable to Lithium Exploration Group, Inc. $ (1,840,505 ) $ (1,590,937 ) $ (3,431,442 ) Effect on Condensed Consolidated Statements of Cash Flows Nine months ending March 31, 2015 As previously Misstatement As Restated reported Adjustment Cash Flows from Operating Activities Net loss from continuing operations $ (1,968,597 ) $ (1,284,971 ) $ (3,253,568 ) Loss from discontinued operations - (305,966 ) (305,966 ) Adjustments to reconcile net loss to net cash used in operating activities: Equity in income of investment held for sale 324 - 324 Common shares issued for consulting fees 118,990 - 118,990 Common shares issued for investor relations 5,000 - 5,000 Interest expense 2,611,775 (1,484,818 ) 1,126,957 Amortization of discount on derivative liabilities - 1,483,168 1,483,168 Bad debt written-off - - - Common shares issued for interest expenses 103,048 - 103,048 Gain on change in the fair value of derivative liability (3,638,090 ) 1,763,485 (1,874,605 ) Fair value of warrants issued 962,309 (170,902 ) 791,407 Due to related party 115,000 - 115,000 Impairment Loss 624,429 - 624,429 Changes in operating assets and liabilities: Receivable, net (7,412 ) 7,412 - Prepaid expenses 19,074 (2,464 ) 16,610 Accrued interest 103,185 2 103,187 Accounts payable and accrued liabilities 52,968 (5,790 ) 47,178 Net cash used in operating activities from continuing operations (887,997 ) (843 ) (898,840 ) Net cash used in operating activities from discontinued operations - (8,212 ) (8,212 ) Net cash used in operating activities (897,997 ) (9,055 ) (907,052 ) Cash Flows from Financing Activities Repayment of related party (45,332 ) - (45,332 ) Proceed from issuance of convertible promissory notes 954,000 - 954,000 Net cash provided by financing activities 908,668 - 908,668 Effect of foreign exchange (21,831 ) - (21,831 ) Decrease in cash and cash equivalents (11,160 ) (9,055 ) (20,215 ) Cash and cash equivalents - beginning of period 69,732 (12,100 ) 57,632 Cash and cash equivalents - end of period $ 58,572 (21,155 ) $ 37,417 Supplementary disclosure of cash flow information: Cash paid during the period for: Interest $ 2,205 (2,205 ) $ - Income taxes $ - $ - Supplementary non- cash Investing and Financing Activities: Non-cash investing and financing activities Common stock issued for debt conversion $ 2,536,097 $ (1,036,895 ) $ 1,499,202 Transfer of beneficial conversion feature to fair value of note $ 518,808 $ (518,808 ) $ - Common stock issued on cashless exercise of warrants $ 779,600 $ 1,663,170 $ 2,442,770 Derivative liability re-classed to additional paid in capital $ - $ 2,312,157 $ 2,312,157 Debt discount on convertible note and warrants $ - $ 901,327 $ 901,327 Initial derivative liability on note issuance $ - $ 2,018,791 $ 2,018,791 Effect on Condensed Consolidated Statements of Changes in Stockholders’ Deficit Year ended June 30, 2015 As previously Misstatement reported Adjustment As Restated 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 - 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 Income (Loss) for the year (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 Income (Loss) for the year (2,657,243 ) (71,176 ) (2,728,419 ) Closing Balance $ (436,680 ) $ (2,019,797 ) $ (2,456,477 ) |