Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jul. 31, 2014 | Sep. 10, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Star Gold Corp. | ' |
Entity Central Index Key | '0001401835 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Jul-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--04-30 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 36,595,726 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Jul. 31, 2014 | Apr. 30, 2014 |
Statement of Financial Position [Abstract] | ' | ' |
Cash and cash equivalents | $616,359 | $542,757 |
Prepaid expenses | 72,530 | 31,549 |
TOTAL CURRENT ASSETS | 688,889 | 574,306 |
EQUIPMENT AND MINING INTERESTS, net (NOTE 4) | 440,331 | 432,811 |
RESTRICTED CASH | 21,600 | 21,600 |
TOTAL ASSETS | 1,150,820 | 1,028,717 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 72,760 | 39,734 |
Other accrued liabilities | 6,629 | 7,396 |
TOTAL CURRENT LIABILITIES | 79,389 | 47,130 |
TOTAL LIABILITIES | 79,389 | 47,130 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
Common Stock, $.001 par value 300,000,000 shares authorized, 36,595,726 and 34,981,326 shares issued and outstanding, respectively | $36,596 | $34,981 |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred Stock, $.001 par value; 10,000,000 shares authorized, none issued and outstanding | ' | ' |
Additional paid-in capital | 9,030,612 | 8,670,797 |
Accumulated deficit | -7,995,777 | -7,724,191 |
TOTAL STOCKHOLDERS' EQUITY | 1,071,431 | 981,587 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,150,820 | $1,028,717 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Jul. 31, 2014 | Apr. 30, 2014 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred Stock $.001 par value; authorized | 10,000,000 | 10,000,000 |
Preferred Stock, $0.001 par value; issued and outstanding | ' | ' |
Common Stock, $.001 par value, authorized | 300,000,000 | 300,000,000 |
Common Stock, $0.001 par value, issued and outstanding | $36,595,726 | $34,981,326 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Income Statement [Abstract] | ' | ' |
Mineral exploration expense | $89,093 | $461,342 |
Legal and professional fees | 24,597 | 38,197 |
Management and administrative | 156,409 | 91,477 |
Depreciation | 1,480 | 1,478 |
Directors fees | ' | 750 |
TOTAL OPERATING EXPENSES | 271,579 | 593,244 |
LOSS FROM OPERATIONS | -271,579 | -593,244 |
Interest income (expense) | -7 | 103 |
TOTAL OTHER INCOME (EXPENSE) | -7 | 103 |
NET LOSS BEFORE INCOME TAXES | -271,586 | -593,141 |
Provision for income taxes | ' | ' |
NET LOSS | ($271,586) | ($593,141) |
Basic and diluted loss per share | ($0.01) | ($0.02) |
Basic and diluted weighted average number shares outstanding | 35,016,422 | ' |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Statement of Cash Flows [Abstract] | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES: | ($253,810) | ($483,830) |
Net loss | -271,586 | -593,141 |
Stock based compensation | 25,017 | 50,079 |
Depreciation | 1,480 | 1,478 |
Prepaid expenses | -40,980 | 48,859 |
Accounts payable | 33,026 | 7,647 |
Other accrued liabilities | -767 | 1,248 |
Net cash used by operating activities | -253,810 | -483,830 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Payments for mining interests | -9,000 | -14,000 |
Net cash used by investing activities | -9,000 | -14,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net proceeds from issuance of stock and warrants | 336,412 | ' |
Collection of receivable from sale of stock | ' | 334,000 |
Net cash provided by financing activities | 336,412 | 334,000 |
Net increase in cash and cash equivalents | 73,602 | -163,830 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 542,757 | 353,571 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $616,359 | $189,741 |
Nature_of_Operations
Nature of Operations | 3 Months Ended |
Jul. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of Operations | ' |
NOTE 1 - NATURE OF OPERATIONS | |
Star Gold Corp. (the "Company") was initially incorporated as Elan Development, Inc., in the State of Nevada on December 8, 2006. The Company was originally organized to explore mineral properties in British Columbia, Canada but the Company is currently focusing on gold, silver and other base metal-bearing properties in Nevada. | |
The financial statement represents those of an exploration stage company whose main focus is in the exploration of gold bearing properties. The Company's main business consists of assembling and/or acquiring land packages and mining claims the Company believes have potential mining reserves, and expending capital to explore these claims by drilling, geophysical work or other exploration work deemed necessary. The business is a high risk business as there is no guarantee that the Company's exploration work will ultimately discover or produce any economically viable minerals. | |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended | ||||
Jul. 31, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Significant Accounting Policies | ' | ||||
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES | |||||
Basis of Presentation | |||||
This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. The accompanying unaudited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of our management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the three month period ended July 31, 2014 are not necessarily indicative of the results that may be expected for the full year ending April 30, 2015. All amounts presented are in U.S. dollars. For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended April 30, 2014. | |||||
Use of Estimates | |||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management assumptions and estimates relate to asset impairments and stock option valuation. Actual results could differ from these estimates and assumptions and could have a material effect on the Company’s reported financial position and results of operations. | |||||
New Accounting Pronouncement | |||||
In June 2014 the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-10 (“the ASU”). This update changes the requirements for disclosures as it relates to exploration stage entities. The ASU specifies that the ‘inception–to-date’ information is no longer required to be presented in the financial statements of an exploration stage entity. The amendments in the ASU are effective for annual reporting periods beginning after December 15, 2014 and interim periods therein, with early application permitted for any financial statements that have not yet been issued. The Company has elected to apply the amendments as of April 30, 2014. | |||||
Cash and cash equivalents | |||||
For the purposes of the statement of cash flows, the Company considers all highly liquid investments with original maturities of three months or less when acquired to be cash equivalents. | |||||
Restricted cash | |||||
Restricted cash represents collateral for bonds held for exploration permits. | |||||
Fair Value Measures | |||||
ASC Topic 820 "Fair Value Measurements and Disclosures" ("ASC 820") requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: | |||||
Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||
Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quote prices for similar assets or liabilities in active markets; quoted prices for identical assets in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |||||
Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |||||
Mining Interests and Mineral Exploration Expenditures | |||||
Exploration costs are expensed in the period in which they occur. The Company capitalizes costs for acquiring and leasing mining properties and expenses costs to maintain mineral rights as incurred. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mining interests are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. | |||||
Equipment | |||||
Equipment is stated at cost. Depreciation of equipment is calculated using the straight-line method over the estimated useful lives of the assets, which ranges from three to seven years. Maintenance and repairs are charged to operations as incurred. Significant improvements are capitalized and depreciated over the useful life of the assets. Gains or losses on disposition or retirement of property and equipment are recognized in operating expenses. | |||||
Reclamation and Remediation | |||||
The Company's operations are subject to standards for mine reclamation that have been established by various governmental agencies. In the period in which the Company incurs a contractual obligation for the retirement of tangible long-lived assets, the Company will record the fair value of an asset retirement obligation as a liability. A corresponding asset will also be recorded and depreciated over the life of the asset. After the initial measurement of an asset retirement obligation, the liability will be adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. To date, the Company has not incurred any contractual obligation requiring recording either a liability or associated asset. | |||||
Impaired Asset Policy | |||||
The Company periodically reviews its long-lived assets to determine if any events or changes in circumstances have transpired which indicate that the carrying value of its assets may not be recoverable, pursuant to guidance established in ASC Topic 360, "Accounting for the Impairment or Disposal of Long-lived Assets". The Company determines impairment by comparing the undiscounted net future cash flows estimated to be generated by its assets to their respective carrying amounts. If impairment is deemed to exist, the assets will be written down to fair value. | |||||
Stock-based Compensation | |||||
The Company estimates the fair value of options to purchase common stock using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), employee forfeiture rate, the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of fair value of stock-based compensation. Options granted have a ten year maximum term and varying vesting periods as determined by the Board. The value of common stock awards is determined based on the closing price of the Company’s stock on the date of the award. | |||||
Loss Per Share | |||||
Basic Earnings Per Share ("EPS") is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants. | |||||
The dilutive effect of outstanding securities for the three months ended July 31, 2014 and 2013, would be as follows: | |||||
31-Jul-14 | 31-Jul-13 | ||||
Stock options | 3,572,000 | 3,196,000 | |||
Warrants | 4,670,214 | 1,727,948 | |||
Total Possible Dilution | 8,242,214 | 4,923,948 | |||
At July 31, 2014 and 2013, respectively, the effect of the Company's outstanding options and common stock equivalents would have been anti-dilutive. | |||||
Income Taxes | |||||
The Company recognizes provision for income tax using the liability method. Deferred income tax liabilities or assets at the end of each period are determined using the tax rates expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized. | |||||
Reclassifications | |||||
Certain reclassifications have been made to the prior period financial statements in order to conform to the 2014 presentation. These reclassifications have no effect on net loss, total assets or accumulated deficit. |
Prepaid_Expenses
Prepaid Expenses | 3 Months Ended | ||||
Jul. 31, 2014 | |||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||
Prepaid Expenses | ' | ||||
NOTE 3– PREPAID EXPENSES | |||||
The following is a summary of the Company’s prepaid expenses at July 31, 2014 and April 30, 2014: | |||||
31-Jul-14 | 30-Apr-14 | ||||
Deposit on exploration drilling | $ 50,000 | $ - | |||
Directors and officers liability insurance | 22,530 | 31,549 | |||
Total prepaid expenses | $ 72,530 | $ 31,549 |
Equipment_and_Mining_Interests
Equipment and Mining Interests | 3 Months Ended | |||||||
Jul. 31, 2014 | ||||||||
Extractive Industries [Abstract] | ' | |||||||
Equipment and Mining Interests | ' | |||||||
NOTE 4 – EQUIPMENT AND MINING INTERESTS | ||||||||
The following is a summary of the Company's equipment and mining interests at July 31, 2014 and April 30, 2014, respectively: | ||||||||
31-Jul-14 | 30-Apr-14 | |||||||
Equipment | $ 28,992 | $ 28,992 | ||||||
Less accumulated depreciation | (14,661) | (13,181) | ||||||
Equipment, net of accumulated depreciation | 14,331 | 15,811 | ||||||
Mining interests | 426,000 | 417,000 | ||||||
Total | $ 440,331 | $ 432,811 | ||||||
The Longstreet Property | ||||||||
The schedule of remaining annual payments, minimum expenditures and number of stock options to be issued pursuant to the Longstreet Agreement is as follows: | ||||||||
Required expenditure | Payment to optioner | Annual stock option obligation | Annual stock grant obligation | |||||
15-Jan-15 | $ 550,000 | $ 56,000 | 25,000 | 25,000 | ||||
15-Jan-16 | 750,000 | 56,000 | 25,000 | 25,000 | ||||
15-Jan-17 | 1,000,000 | 56,000 | 25,000 | 25,000 | ||||
Total | $ 2,300,000 | $ 168,000 | 75,000 | 75,000 | ||||
Under terms of the agreement, during the year ended April 30, 2014, the Company paid $39,000, issued 25,000 shares of common stock with fair value of $5,000 based on the price of common stock on the date of issuance, and issued options to purchase 25,000 shares of common stock with fair value of $5,000 (Note 6). Through January 15, 2014 (the “Measurement Date), the Company has incurred eligible exploration expenditures per the terms of the agreement of $1,545,478 compared to a cumulative required exploration expenditure through the same date of $1,250,000, creating a surplus of $295,478 as of the Measurement Date. | ||||||||
Excalibur Property | ||||||||
The Excalibur Property Option Agreement has been amended revising the payment date of the final required expenditure from April 30, 2014 to October 31, 2014. | ||||||||
As of July 31, 2014, the schedule of remaining minimum expenditures pursuant to the Excalibur Property agreement is as follows: | ||||||||
Required expenditure | ||||||||
31-Oct-14 | $ 175,000 | |||||||
Total | $ 175,000 | |||||||
The Excalibur Property Option Agreement has been subsequently amended, revising the payment date of the required 2014 expenditures to October 31, 2015. (Note 8). | ||||||||
The Jet Property | ||||||||
Under terms of the agreement, during the year ended April 30, 2014, the Company paid $5,000 on this property to the optioner. | ||||||||
As of July 31, 2014, the schedule of remaining annual payments and minimum expenditures pursuant to the Jet Property Option Agreement is as follows: | ||||||||
Required expenditure | Payment to optioner | |||||||
7-Jul-14 | $ 10,000 | $ 5,000 | ||||||
August 31, 2014 (2011 to 2013 extended) | 20,000 | - | ||||||
7-Jul-15 | 10,000 | 5,000 | ||||||
7-Jul-16 | 10,000 | 5,000 | ||||||
7-Jul-17 | 10,000 | 5,000 | ||||||
Total | $ 60,000 | $ 20,000 | ||||||
The Jet Property Option Agreement was subsequently amended, revising the payment date of the required 2011 to 2014 expenditures to July 7, 2017 (Note 8). | ||||||||
The following is a summary of capitalized mineral interests as of July 31, 2014 and April 30, 2014, respectively: | ||||||||
31-Jul-14 | 30-Apr-14 | |||||||
Longstreet Property | $ 229,500 | $ 220,500 | ||||||
Excalibur Property | 176,500 | 176,500 | ||||||
Jet Property | 20,000 | 20,000 | ||||||
Total | $ 426,000 | $ 417,000 |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Jul. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
NOTE 5 - RELATED PARTY TRANSACTIONS | |
On September 1, 2011, the Company moved its offices to Coeur d’Alene, Idaho and leased office space for $2,500 per month plus a proportionate share of utilities and insurance from Marlin Property Management, LLC (“Marlin”) an entity owned by the spouse of the Company’s then President and current Chairman of the Board. For the three months ended July 31, 2014 and 2013, $8,584 and $8,413, respectively, was paid to this related entity inclusive of the Company’s pro-rata share of common expenses. |
Warrants_and_Options_to_Purcha
Warrants and Options to Purchase Common Stock | 3 Months Ended | |||||||||
Jul. 31, 2014 | ||||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||||
Warrants and Options to Purchase Common Stock | ' | |||||||||
NOTE 6- WARRANTS AND OPTIONS TO PURCHASE COMMON STOCK | ||||||||||
The following is a summary of the Company’s warrants outstanding: | ||||||||||
Shares | Weighted Average Exercise Price | Expiration Date | ||||||||
Outstanding at April 30, 2013 | 1,727,948 | $ 0.67 | ||||||||
Issued - October 4, 2013 | 2,161,600 | 0.50 | 4-Oct-14 | |||||||
Balance outstanding at April 30, 2014 | 3,889,548 | $ 0.62 | ||||||||
Expired - June 18, ,2014 | (833,334) | (0.75) | ||||||||
Issued - July 29, 2014 | 1,614,000 | 0.23 | 29-Jul-19 | |||||||
Balance outstanding at July 31, 2014 | 4,670,214 | $ 0.46 | ||||||||
The composition of the Company’s warrants outstanding at July 31, 2014, is as follows: | ||||||||||
Issue Date | Warrants | Exercise price | Expiration Date | |||||||
18-Jan-13 | 894,614 | 0.80 | 1/18/15 | |||||||
4-Oct-13 | 2,161,600 | 0.50 | 10/4/14 | |||||||
29-Jul-14 | 1,614,000 | 0.23 | 7/29/19 | |||||||
4,670,214 | $ 0.46 | |||||||||
Options issued for mining interests | ||||||||||
In consideration for mining interests on several properties (see Note 4), the Company is obligated to issue a total of 400,000 stock options based on "fair market price" which for financial statement purposes is considered to be the closing price of the Company's common stock on the issue dates. | ||||||||||
The following is a summary of the Company’s options issued and outstanding in conjunction with certain mining interest agreements on several properties for the three months ended July 31, 2014 and July 31, 2013, respectively: | ||||||||||
For the three months ended | For the three months ended | |||||||||
31-Jul-14 | 31-Jul-13 | |||||||||
Shares | Price (a) | Shares | Price (a) | |||||||
Beginning balance, outstanding | 325,000 | $ 0.36 | 300,000 | $ 0.37 | ||||||
Issued | - | - | - | - | ||||||
Exercised | - | - | - | - | ||||||
Expired | - | - | - | - | ||||||
Balance outstanding | 325,000 | $ 0.36 | 300,000 | $ 0.37 | ||||||
(a) Weighted average exercise price per share. | ||||||||||
Future remaining stock option obligations under the terms of property agreements detailed in Note 5 are as follows: | ||||||||||
Fiscal year ending April 30, | Stock options | |||||||||
2015 | 25,000 | |||||||||
2016 | 25,000 | |||||||||
2017 | 25,000 | |||||||||
75,000 | ||||||||||
Options issued for consulting services | ||||||||||
As per an agreement with Terre Partners, a limited liability company, fully executed on October 3, 2012, in consideration for consulting and advisory services rendered, the Company is obligated to issue a total of 1,000 stock options based on 5 day variable weighted-average price (VWAP) at the end of each month of the associated consulting contract. The consultant options vest on the first day of the following month of service and are exercisable for a period of six months following the termination of the agreement. The Company has estimated the fair value of these option grants using the Black-Scholes model with the following information and range of assumptions: | ||||||||||
For the three months ended | ||||||||||
31-Jul-14 | 31-Jul-13 | |||||||||
Options issued | 3,000 | 3,000 | ||||||||
Weighted average volatility | 261.2% to 279.4% | 356.7% to 473.9% | ||||||||
Expected dividends | - | - | ||||||||
Expected term (years) | 1 | 1 | ||||||||
Risk-free rate | 0.10% to 0.11% | 0.11% to 0.18% | ||||||||
The following is a summary of the Company’s options issued and outstanding associated with certain consulting agreements: | ||||||||||
For the three months ended | For the three months ended | |||||||||
31-Jul-14 | 31-Jul-13 | |||||||||
Shares | Price (a) | Shares | Price (a) | |||||||
Beginning balance, outstanding | 12,000 | $ 0.34 | 8,000 | $ 0.46 | ||||||
Issued | 3,000 | 0.24 | 3,000 | 0.45 | ||||||
Exercised | - | - | - | - | ||||||
Expired | (3,000) | 0.45 | - | - | ||||||
Ending balance, outstanding | 12,000 | $ 0.29 | 11,000 | $ 0.46 | ||||||
(a) | Weighted average exercise price per share | |||||||||
Total charged against operations under the option grants for consulting services was $652 and $1,141, for the three months ended July 31, 2014 and 2013, respectively. These costs are classified as management and administrative expense. | ||||||||||
Options issued under the 2011 Stock Option/Restricted Plan | ||||||||||
On May 22, 2013 the Board of Directors authorized the grant of 675,000 options to purchase shares of common stock of the Company to various directors, officers and consultants. The options have an exercise price of $0.29 based on the closing price of the Company’s common stock on the date of grant and vest over one year. | ||||||||||
On February 13, 2014, the Board of Directors authorized the grant of 350,000 options to purchase shares of common stock of the Company to a director. These options have an exercise price of $0.28 based on the closing price of the Company’s common stock on the date of grant and vest over one year. | ||||||||||
The fair value of each option award was estimated on the date of the grant using the information and assumptions noted in the following table: | ||||||||||
Three months ended July 31, | ||||||||||
2014 | 2013 | |||||||||
Options issued | N/A | 675,000 | ||||||||
Expected volatility | N/A | 305.30% | ||||||||
Weighted average volatility | N/A | 305.30% | ||||||||
Expected dividends | - | - | ||||||||
Expected term (years) | N/A | 3.1 | ||||||||
Risk-free rate | N/A | 0.11% | ||||||||
The following is a summary of the Company’s options issued and outstanding in conjunction with the Company’s Stock Option Plan: | ||||||||||
For the three months ended | For the three months ended | |||||||||
31-Jul-14 | 31-Jul-13 | |||||||||
Shares | Price (a) | Shares | Price (a) | |||||||
Beginning balance, outstanding | 3,235,000 | $ 0.38 | 2,215,000 | $ 0.43 | ||||||
Issued | - | - | 675,000 | 0.29 | ||||||
Exercised | - | - | - | - | ||||||
Forfeited or rescinded | - | - | -5,000 | -0.78 | ||||||
Ending balance, outstanding | 3,235,000 | $ 0.38 | 2,885,000 | $ 0.40 | ||||||
(a) Weighted average exercise price per shares | ||||||||||
The following table summarizes additional information about the options under the Company’s Stock Option Plan as of July 31, 2014: | ||||||||||
Options outstanding | Options exercisable | |||||||||
Date of Grant | Shares | Price (a) | Life | Shares | Price (a) | |||||
27-May-11 | 283,333 | $ 0.90 | 6.83 | 283,333 | $ 0.90 | |||||
22-May-12 | 226,667 | 0.78 | 7.64 | 188,904 | 0.78 | |||||
18-Jun-12 | 1,700,000 | 0.3 | 8.14 | 1,700,000 | 0.3 | |||||
22-May-13 | 675,000 | 0.29 | 9.07 | 675,000 | 0.29 | |||||
13-Feb-14 | 350,000 | 0.28 | 9.55 | 175,500 | 0.28 | |||||
Total options | 3,235,000 | $ 0.38 | 8.34 | 3,022,237 | $ 0.38 | |||||
The total value of the Plan stock option awards is expensed ratably over the vesting period of the employees receiving the awards. As of July 31, 2014, total unrecognized compensation cost related to stock-based options and awards is $78,126 and the related weighted average period over which it is expected to be recognized is approximately .26 years. | ||||||||||
The average remaining contractual term of the options both outstanding and exercisable at July 31, 2014 was 8.40 years. No options were exercised during the three months ended July 31, 2014. | ||||||||||
Total compensation charged against operations under the plan for employees and advisors was $24,365 and $48,937 for the three months ended July 31, 2014 and 2013, respectively. These costs are classified under management and administrative expense. | ||||||||||
The following is a summary of the Company’s stock options outstanding and vested: | ||||||||||
Shares | Weighted Average Exercise Price | Expiration Date | ||||||||
Options issued for mining interests | 325,000 | $ 0.36 | April 11, 2019 through January 15, 2023 | |||||||
Options issued for consulting services | 12,000 | 0.29 | May 1, 2014 through July 1, 2015 | |||||||
Options issued under the 2011 Stock Option/Restricted Plan | 3,235,000 | 0.38 | May 30, 2021 through February 13, 2024 | |||||||
Outstanding at April 30, 2014 | 3,572,000 | $ 0.38 | ||||||||
Total vested stock options | 3,271,737 | |||||||||
The aggregate intrinsic value of all options vested and exercisable at July 31, 2014, was $8,843 based on the Company's closing price of $0.28 per common share at July 31, 2014. The Company's current policy is to issue new shares to satisfy option exercises. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Jul. 31, 2014 | |
Equity [Abstract] | ' |
Stockholders' Equity | ' |
NOTE 7 – STOCKHOLDERS’ EQUITY | |
On July 29, 2014, the Company issued 1,614,400 shares of its common stock and warrants to purchase an additional 1,614,400 shares of its common stock to nine investors pursuant to a private placement of its securities (the “Offering”). The Offering consisted of the sale of “units” of the Company’s securities at the per unit price of $0.23. Warrants issued pursuant to the Offering entitle the holders thereof to purchase shares of common stock for the price of $0.23 per share. The term of each warrant is for five (5) years commencing with its issuance date. The Company closed the offering and raised a total of $336,412, net of offering costs. | |
Subsequent_Events
Subsequent Events | 3 Months Ended | |||||||
Jul. 31, 2014 | ||||||||
Subsequent Events [Abstract] | ' | |||||||
Subsequent Events | ' | |||||||
NOTE 8 – SUBSEQUENT EVENTS | ||||||||
Excalibur Property | ||||||||
On August 21, 2014, the Excalibur Property Option Agreement (Note 4) was amended revising the payment date of the final required expenditure from October 31, 2014 to October 31, 2015. | ||||||||
The schedule of remaining minimum expenditures pursuant to the amended Excalibur Property agreement is as follows: | ||||||||
Required expenditure | ||||||||
31-Oct-15 | $ 175,000 | |||||||
Total | $ 175,000 | |||||||
The Jet Property | ||||||||
On August 21, 2014, the Jet Property Option Agreement (See Note 4) was amended, revising the payment date of the required 2011 to 2013 expenditures to August 31, 2014. As consideration for the amendments, Star Gold Corp. shall pay the claims filing fees of for 2014. | ||||||||
The schedule of remaining annual payments and minimum expenditures pursuant to the Jet Property Option Agreement is as follows: | ||||||||
Required expenditure | Payment to optioner | |||||||
7-Jul-15 | $ 10,000 | $ 5,000 | ||||||
7-Jul-16 | 10,000 | 5,000 | ||||||
7-Jul-17 | 40,000 | 10,000 | ||||||
Total | $ 60,000 | $ 20,000 | ||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 3 Months Ended | ||||
Jul. 31, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Basis of Presentation | ' | ||||
Basis of Presentation | |||||
This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. The accompanying unaudited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of our management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the three month period ended July 31, 2014 are not necessarily indicative of the results that may be expected for the full year ending April 30, 2015. All amounts presented are in U.S. dollars. For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended April 30, 2014. | |||||
Use of Estimates | ' | ||||
Use of Estimates | |||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management assumptions and estimates relate to asset impairments and stock option valuation. Actual results could differ from these estimates and assumptions and could have a material effect on the Company’s reported financial position and results of operations. | |||||
New Accounting Pronouncement | ' | ||||
New Accounting Pronouncement | |||||
In June 2014 the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-10 (“the ASU”). This update changes the requirements for disclosures as it relates to exploration stage entities. The ASU specifies that the ‘inception–to-date’ information is no longer required to be presented in the financial statements of an exploration stage entity. The amendments in the ASU are effective for annual reporting periods beginning after December 15, 2014 and interim periods therein, with early application permitted for any financial statements that have not yet been issued. The Company has elected to apply the amendments as of April 30, 2014. | |||||
Cash and cash equivalents | ' | ||||
Cash and cash equivalents | |||||
For the purposes of the statement of cash flows, the Company considers all highly liquid investments with original maturities of three months or less when acquired to be cash equivalents. | |||||
Restricted cash | ' | ||||
Restricted cash | |||||
Restricted cash represents collateral for bonds held for exploration permits. | |||||
Fair Value Measures | ' | ||||
Fair Value Measures | |||||
ASC Topic 820 "Fair Value Measurements and Disclosures" ("ASC 820") requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: | |||||
Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||
Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quote prices for similar assets or liabilities in active markets; quoted prices for identical assets in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |||||
Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |||||
Mining Interests and Mineral Exploration Expenditures | ' | ||||
Mining Interests and Mineral Exploration Expenditures | |||||
Exploration costs are expensed in the period in which they occur. The Company capitalizes costs for acquiring and leasing mining properties and expenses costs to maintain mineral rights as incurred. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mining interests are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. | |||||
Equipment | ' | ||||
Equipment | |||||
Equipment is stated at cost. Depreciation of equipment is calculated using the straight-line method over the estimated useful lives of the assets, which ranges from three to seven years. Maintenance and repairs are charged to operations as incurred. Significant improvements are capitalized and depreciated over the useful life of the assets. Gains or losses on disposition or retirement of property and equipment are recognized in operating expenses. | |||||
Reclamation and Remediation | ' | ||||
Reclamation and Remediation | |||||
The Company's operations are subject to standards for mine reclamation that have been established by various governmental agencies. In the period in which the Company incurs a contractual obligation for the retirement of tangible long-lived assets, the Company will record the fair value of an asset retirement obligation as a liability. A corresponding asset will also be recorded and depreciated over the life of the asset. After the initial measurement of an asset retirement obligation, the liability will be adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. To date, the Company has not incurred any contractual obligation requiring recording either a liability or associated asset. | |||||
Impaired Asset Policy | ' | ||||
Impaired Asset Policy | |||||
The Company periodically reviews its long-lived assets to determine if any events or changes in circumstances have transpired which indicate that the carrying value of its assets may not be recoverable, pursuant to guidance established in ASC Topic 360, "Accounting for the Impairment or Disposal of Long-lived Assets". The Company determines impairment by comparing the undiscounted net future cash flows estimated to be generated by its assets to their respective carrying amounts. If impairment is deemed to exist, the assets will be written down to fair value. | |||||
Stock-based Compensation | ' | ||||
Stock-based Compensation | |||||
The Company estimates the fair value of options to purchase common stock using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), employee forfeiture rate, the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of fair value of stock-based compensation. Options granted have a ten year maximum term and varying vesting periods as determined by the Board. The value of common stock awards is determined based on the closing price of the Company’s stock on the date of the award. | |||||
Loss Per Share | ' | ||||
Loss Per Share | |||||
Basic Earnings Per Share ("EPS") is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants. | |||||
The dilutive effect of outstanding securities for the three months ended July 31, 2014 and 2013, would be as follows: | |||||
31-Jul-14 | 31-Jul-13 | ||||
Stock options | 3,572,000 | 3,196,000 | |||
Warrants | 4,670,214 | 1,727,948 | |||
Total Possible Dilution | 8,242,214 | 4,923,948 | |||
At July 31, 2014 and 2013, respectively, the effect of the Company's outstanding options and common stock equivalents would have been anti-dilutive. | |||||
Income Taxes | ' | ||||
Income Taxes | |||||
The Company recognizes provision for income tax using the liability method. Deferred income tax liabilities or assets at the end of each period are determined using the tax rates expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized. | |||||
Reclassifications | ' | ||||
Reclassifications | |||||
Certain reclassifications have been made to the prior period financial statements in order to conform to the 2014 presentation. These reclassifications have no effect on net loss, total assets or accumulated deficit. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 3 Months Ended | ||||
Jul. 31, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Dilutive Effect of Outstanding Securities | ' | ||||
31-Jul-14 | 31-Jul-13 | ||||
Stock options | 3,572,000 | 3,196,000 | |||
Warrants | 4,670,214 | 1,727,948 | |||
Total Possible Dilution | 8,242,214 | 4,923,948 |
Prepaid_Expenses_Tables
Prepaid Expenses (Tables) | 3 Months Ended | ||||
Jul. 31, 2014 | |||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||
Prepaid Expenses | ' | ||||
31-Jul-14 | 30-Apr-14 | ||||
Deposit on exploration drilling | $ 50,000 | $ - | |||
Directors and officers liability insurance | 22,530 | 31,549 | |||
Total prepaid expenses | $ 72,530 | $ 31,549 |