Restatement | 9 Months Ended |
Feb. 28, 2014 |
Notes to Financial Statements | ' |
Restatement | ' |
Note 12: Restatement |
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During the six months ended November 30, 2013, the management of the Company discovered and realized that the Independent Association agreement entered into on May 23, 2013 with Barry Wattenberg, appointing him as the Executive of the Company, was not considered and the effect of the compensation agreed upon in the agreement was not recorded during the audit period May 31, 2013 and three month period ended August 31, 2013. The Company has filed an amended 10KA for the year ended May 31, 2013 correcting the errors and filed the financials with corrected numbers. The Company also filed an amended 10QA for the three month period ended August 31, 2013 to correct the errors and filed financials with the corrected numbers. |
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Balance Sheet | As Originally | Adjustments | As | | |
As of May 31, 2013 | Filed | Increase/(Decrease) | Restated | | |
| | | | | |
ASSETS | | | | | |
| | | | | |
Current assets | | | | | |
Cash and cash equivalents | $ 121,849 | $ - | $ 121,849 | | |
Prepaid expenses | 12,753 | - | 12,753 | | |
Advance on mineral claims | 67,000 | - | 67,000 | | |
Total current assets | 201,602 | - | 201,602 | | |
| | | | | |
Other assets | | | | | |
| | | | | |
Mineral claims (Note 5) | 50,000 | - | 50,000 | | |
Website – net of amortization (Note 4) | 3,556 | - | 3,556 | | |
Total other assets | 53,556 | - | 53,556 | | |
| | | | | |
Total assets | $ 255,158 | $ - | $ 255,158 | | |
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LIABILITIES & STOCKHOLDERS’ DEFICIT | | | | | |
| | | | | |
Current liabilities | | | | | |
Accounts payable and accrued liabilities (Note 6) | $ 34,846 | $ - | $ 34,846 | | |
Other loans (Note 12 ) | 11,641 | - | 11,641 | | |
Due to related party (Note 9) | 109,178 | - | 109,178 | | |
| | | | | |
Letter of credit, net of beneficial conversion feature discount of $172,967 respectively (Note 10) | 153,033 | - | 153,033 | | |
Total current liabilities | 308,698 | - | 308,698 | | |
| | | | | |
Total liabilities | 308,698 | - | 308,698 | | |
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Stockholders’ deficit | | | | | |
| | | | | |
Common stock $0.001 par value; authorized 2,250,000,000 shares; issued and outstanding: 75,750,000. | 75,750 | - | 75,750 | | |
Additional paid-in capital | 799,684 | 289,995 | 1,089,679 | | |
Stock payable | 88,500 | - | 88,500 | | |
Deficit accumulated during the exploration stage | (1,017,474) | (289,995) | (1,307,469) | | |
| | | | | |
Total stockholders’ deficit | (53,540) | - | (53,540) | | |
| | | | | |
Total liabilities and stockholders’ deficit | $ 255,158 | $ - | $ 255,158 | | |
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| | | | | |
Statements of Operations | | | | | |
(Expressed in U.S. Dollars) | | | | | |
For the year ended May 31, 2013 | | | | | |
| | | | | |
| As Originally | Adjustments | As | | |
| Filed | Increase/(Decrease) | Restated | | |
| | | | | |
Revenue | $ - | $ - | $ - | | |
| | | | | |
Expenses | | | | | |
| | | | | |
Impairment loss on mineral claim | $ - | $ - | $ - | | |
Legal and accounting | 31,589 | - | 31,589 | | |
General and administrative | 64,166 | - | 64,166 | | |
Management fees | 22,500 | - | 22,500 | | |
Stock based compensation | 586,184 | 289,995 | 876,179 | | |
Exploration costs | 15,057 | - | 15,057 | | |
Amortization | 444 | - | 444 | | |
Total expenses | 719,940 | 289,995 | 1,009,935 | | |
| | | | | |
Operating loss | (719,940) | - | (1,009,935) | | |
| | | | | |
Other expenses | | | | | |
Interest expense | (91,768) | - | (91,768) | | |
| | | | | |
Net loss | $ (811,708) | $ (289,995) | $ (1,101,703) | | |
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| | | |
Statements of Operations | | | |
(Expressed in U.S. Dollars) | | | |
From Inception (January 10, 2007) through May 31, 2013 | | |
| | | |
| As Originally | Adjustments | As |
| Filed | Increase/(Decrease) | Restated |
| | | |
Revenue | $ - | $ - | $ - |
| | | |
Expenses | | | |
| | | |
Impairment loss on mineral claim | $ 13,512 | $ - | $ 13,512 |
Legal and accounting | 98,198 | - | 98,198 |
General and administrative | 142,061 | - | 142,061 |
Management fees | 22,500 | - | 22,500 |
Stock based compensation | 586,184 | 289,995 | 876,179 |
Exploration costs | 15,057 | - | 15,057 |
Amortization | 444 | - | 444 |
Total expenses | 877,956 | 289,995 | 1,167,951 |
| | | |
Operating loss | (877,956) | (289,995) | (1,167,951) |
| | | |
Other expenses | | | |
Interest expense | (91,768) | - | (91,768) |
| | | |
Net loss | $ (969,724) | $ (289,995) | $ (1,259,719) |
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Statement of Cash Flows | | | |
For the year ended May 31, 2013 | | | |
(Audited) | | | |
| As Originally | Adjustments | As |
Filed | Increase/(Decrease) | Restated |
Cash flows from operating activities: | | | |
Net loss | $ (811,708) | $ (289,995) | $ (1,101,703) |
Adjustments to reconcile net loss to net cash used in operating activities | | | |
Amortization | 444 | - | 444 |
Amortization of beneficial conversion feature | 87,033 | - | 87,033 |
Stock based compensation | 586,184 | 289,995 | 876,179 |
Changes in operating assets and liabilities: | | | |
Increase in prepaid expenses | (12,753) | - | (12,753) |
Increase in accounts payable and accrued liabilities | 28,969 | - | 28,969 |
Net cash used in operating activities | (121,831) | - | (121,831) |
Cash flows from investing activities: | | | |
Purchase of mineral claims | (50,000) | - | (50,000) |
Advance for claim acquisition | (25,000) | - | (25,000) |
Website development cost | (4,000) | - | (4,000) |
Net cash used in investing activities | (79,000) | - | (79,000) |
Cash flows from financing activities: | | | |
Bank overdraft | - | - | - |
Proceeds from sale of common stock | - | - | - |
Contributed capital by related party | - | - | - |
Proceeds from other loans | 11,641 | - | 11,641 |
Repayment of loan from related party | (122,250) | - | (122,250) |
Proceeds from loan from related party | 106,830 | - | 106,830 |
Proceeds from letter of credit | 326,000 | | 326,000 |
Net cash used in financing activities | 322,221 | - | 322,221 |
(Decrease) increase in cash and cash equivalents | 121,390 | - | 121,390 |
Cash and cash equivalents, beginning of year | 459 | - | 459 |
Cash and cash equivalents, end of year | $ 121,849 | $ - | $ 121,849 |
Non – cash investing and financing activities: | | | |
Beneficial conversion feature | $ 260,000 | $ - | $ 260,000 |
Stock payable for advance on acquisition of mineral claim | $ 42,000 | $ - | $ 42,000 |
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| | | | | |
Statement of Cash Flows | | | | | |
From Inception (January 10, 2007) through May 31, 2013 | | | | | |
(Audited) | | | | | |
| As Originally | Adjustments | As | | |
Filed | Increase/(Decrease) | Restated | | |
Cash flows from operating activities: | | | | | |
Net loss | $ (969,723) | $ (289,995) | $ (1,259,719) | | |
Adjustments to reconcile net loss to net cash used in operating activities | | | | | |
Amortization | 444 | - | 444 | | |
Amortization of beneficial conversion feature | 91,768 | - | 91,768 | | |
Stock based compensation | 586,184 | 289,995 | 876,179 | | |
Changes in operating assets and liabilities: | | | | | |
Increase in prepaid expenses | (12,753) | - | (12,753) | | |
Increase in accounts payable and accrued liabilities | 30,111 | - | 30,111 | | |
Mineral property expenditures written down | 13,512 | - | 13,512 | | |
Net cash used in operating activities | (260,458) | - | (260,458) | | |
Cash flows from investing activities: | | | | | |
Purchase of mineral claims | (63,512) | - | (63,512) | | |
Advance for claim acquisition | (25,000) | - | (25,000) | | |
Website development cost | (4,000) | - | (4,000) | | |
Net cash used in investing activities | (92,512) | - | (92,512) | | |
Cash flows from financing activities: | | | | | |
Bank overdraft | - | - | - | | |
Proceeds from sale of common stock | 27,000 | - | 27,000 | | |
Contributed capital by related party | 1,000 | - | 1,000 | | |
Proceeds from other loans | 11,641 | - | 11,641 | | |
Repayment of loan from related party | (122,000) | - | (122,000) | | |
Proceeds from loan from related party | 231,178 | - | 231,178 | | |
Proceeds from letter of credit | 326,000 | | 326,000 | | |
Net cash used in financing activities | 474,819 | - | 474,819 | | |
(Decrease) increase in cash and cash equivalents | 121,849 | - | 121,849 | | |
Cash and cash equivalents, beginning of year | - | - | - | | |
Cash and cash equivalents, end of year | $ 121,849 | $ - | $ 121,849 | | |
Non – cash investing and financing activities: | | | | | |
Beneficial conversion feature | $ 260,000 | $ - | $ 260,000 | | |
Stock payable for advance on acquisition of mineral claim | $ 42,000 | $ - | $ 42,000 | | |
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Balance Sheet | As Originally | Adjustments | As | | |
As of August 31, 2013 | Filed | Increase/(Decrease) | Restated | | |
| | | | | |
ASSETS | | | | | |
| | | | | |
Current assets | | | | | |
Cash and cash equivalents | $ 89,403 | $ - | $ 89,403 | | |
Prepaid expenses | 9,702 | - | 9,702 | | |
Advance on mineral claims | 67,000 | - | 67,000 | | |
Total current assets | 166,105 | - | 166,105 | | |
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Other assets | | | | | |
| | | | | |
Mineral claims (Note 5) | 83,480 | - | 83,480 | | |
Website – net of amortization (Note 4) | 3,222 | - | 3,222 | | |
Total other assets | 86,702 | - | 86,702 | | |
Total assets | $ 252,807 | $ - | $ 252,807 | | |
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LIABILITIES & STOCKHOLDERS’ DEFICIT | | | | | |
| | | | | |
Current liabilities | | | | | |
Accounts payable and accrued liabilities (Note 6) | $ 29,510 | $ - | $ 29,510 | | |
Accrued Management fee due to related party | 87,500 | - | 87,500 | | |
Other loans (Note 11) | 7,266 | - | 7,266 | | |
Due to related party (Note 9) | 109,178 | - | 109,178 | | |
Letter of credit, net of beneficial conversion feature discount of $98,607, respectively (Note 10) | 352,393 | - | 352,393 | | |
Total current liabilities | 585,847 | - | 585,847 | | |
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Total liabilities | 585,847 | - | 585,847 | | |
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Stockholders’ deficit | | | | | |
Common stock $0.001 par value; authorized 2,250,000,000 | | | | | |
shares; issued and outstanding: 75,750,000, respectively. | 75,750 | - | 75,750 | | |
Additional paid-in capital | 1,004,350 | 300,512 | 1,304,862 | | |
Stock payable | 88,500 | - | 88,500 | | |
Deficit accumulated during the exploration stage | (1,501,640) | (300,512) | (1,802,152) | | |
| | | | | |
Total stockholders’ deficit | (333,040) | - | (333,040) | | |
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Total liabilities and stockholders’ deficit | $ 252,807 | $ - | $ 252,807 | | |
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Statements of Operations | | | | | |
(Expressed in U.S. Dollars) | | | | | |
For the three months ended August 31, 2013 | | | | | |
| As Originally | Adjustments | As | | |
| Filed | Increase/(Decrease) | Restated | | |
Revenue | $ - | $ - | $ - | | |
Expenses | | | | | |
Impairment loss on mineral claim | $ - | $ - | $ - | | |
Legal and accounting | 6,900 | - | 6,900 | | |
General and administrative | 19,370 | - | 19,370 | | |
Management fees | 161,500 | - | 161,500 | | |
Stock based compensation | 204,666 | 10,517 | 215,183 | | |
Exploration costs | 12,655 | - | 12,655 | | |
Amortization | 333 | - | 333 | | |
Total expenses | 405,424 | 10,517 | 415,941 | | |
Operating loss | (405,424) | - | (415,941) | | |
Other expenses | | | | | |
Interest expense | (78,742) | - | (78,742) | | |
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Net loss | $ (484,166) | $ (10,517) | $ (494,683) | | |
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Statements of Operations | | | | | |
(Expressed in U.S. Dollars) | | | | | |
From Inception (January 10, 2007) through August 31, 2013 | | | | |
| | | | | |
| As Originally | Adjustments | As | | |
| Filed | Increase/(Decrease) | Restated | | |
Revenue | $ - | $ - | $ - | | |
Expenses | | | | | |
Impairment loss on mineral claim | $ 13,512 | $ - | $ 13,512 | | |
Legal and accounting | 105,098 | - | 105,098 | | |
General and administrative | 161,430 | - | 161,430 | | |
Management fees | 184,000 | - | 184,000 | | |
Stock based compensation | 790,850 | 300,512 | 1,091,362 | | |
Exploration costs | 27,712 | - | 27,712 | | |
Amortization | 777 | - | 777 | | |
Total expenses | 1,283,379 | 300,512 | 1,583,891 | | |
Operating loss | (1,283,379) | (300,512) | (1,583,891) | | |
Other expenses | | | | | |
Interest expense | (170,510) | - | (170,510) | | |
Net loss | $ (1,453,889) | $ (300,512) | ($1,754,401) | | |
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Statement of Cash Flows | | | | | |
For the period ended August 31, 2013 | | | | | |
| As Originally | Adjustments | As | | |
Filed | Increase/(Decrease) | Restated | | |
Cash flows from operating activities: | | | | | |
Net loss | $ (484,166) | $ (10,517) | $(494,683) | | |
Adjustments to reconcile net loss to net cash used in operating activities | | | | | |
Amortization | 334 | - | 334 | | |
Amortization of beneficial conversion feature | 74,360 | - | 74,360 | | |
Stock based compensation | 204,666 | 10,517 | 215,183 | | |
Changes in operating assets and liabilities: | | | | | |
Increase in prepaid expenses | 3,051 | - | 3,051 | | |
Increase in accrued management fee due to related party | 87,500 | - | 87,500 | | |
Increase in accounts payable and accrued liabilities | (5,336) | - | (5,336) | | |
Net cash used in operating activities | (119,591) | - | (119,591) | | |
Cash flows from investing activities: | | | | | |
Purchase of mineral claims | (33,480) | - | (33,480) | | |
Advance for claim acquisition | - | - | - | | |
Website development cost | - | - | - | | |
Net cash used in investing activities | (33,480) | - | (33,480) | | |
Cash flows from financing activities: | | | | | |
Bank overdraft | - | - | - | | |
Proceeds from sale of common stock | - | - | - | | |
Contributed capital by related party | - | - | - | | |
Payments to other loans | (4,375) | - | (4,375) | | |
Repayment of loan from related party | - | - | - | | |
Proceeds from loan from related party | - | - | - | | |
Proceeds from letter of credit | 125,000 | - | 125,000 | | |
Net cash used in financing activities | 120,625 | - | 120,625 | | |
(Decrease) increase in cash and cash equivalents | (32,446) | - | (32,446) | | |
Cash and cash equivalents, beginning of year | 121,849 | - | 121,849 | | |
Cash and cash equivalents, end of year | $ 89,403 | $ - | $89,403 | | |
Non – cash investing and financing activities: | | | | | |
Beneficial conversion feature | $ - | $ - | $ - | | |
Stock payable for advance on acquisition of mineral claim | $ - | $ - | $ - | | |
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Statement of Cash Flows | | | | | |
From Inception (January 10, 2007) through August 31, 2013 | | | | |
| | | | | |
| As Originally | Adjustments | As | | |
Filed | Increase/(Decrease) | Restated | | |
Cash flows from operating activities: | | | | | |
Net loss | $ (1,453,889) | $ (300,512) | ($1,754,401) | | |
Adjustments to reconcile net loss to net cash used in operating activities | | | | | |
Impairment loss on mineral claim | 13,512 | - | 13,512 | | |
Amortization | 778 | - | 778 | | |
Amortization of beneficial conversion feature | 161,393 | - | 161,393 | | |
Stock based compensation | 790,850 | 300,512 | 1,091,362 | | |
Changes in operating assets and liabilities: | | | | | |
Increase in prepaid expenses | (9,702) | - | (9,702) | | |
Increase in accrued management fee due to related party | 87,500 | - | 87,500 | | |
Increase in accounts payable and accrued liabilities | 29,510 | - | 29,510 | | |
Net cash used in operating activities | (380,049) | - | (380,049) | | |
Cash flows from investing activities: | | | | | |
Purchase of mineral claims | (96,992) | - | (96,992) | | |
Advance for claim acquisition | (25,000) | - | (25,000) | | |
Website development cost | (4,000) | - | (4,000) | | |
Net cash used in investing activities | (125,992) | - | (125,992) | | |
Cash flows from financing activities: | | | | | |
Proceeds from sale of common stock | 27,000 | - | 27,000 | | |
Contributed capital by related party | 1,000 | - | 1,000 | | |
Proceeds to other loans | 7,266 | - | 7,266 | | |
Repayment of loan from related party | (122,000) | - | (122,000) | | |
Proceeds from loan from related party | 231,178 | - | 231,178 | | |
Proceeds from letter of credit | 451,000 | - | 451,000 | | |
Net cash used in financing activities | 595,444 | - | 595,444 | | |
(Decrease) increase in cash and cash equivalents | 89,403 | - | 89,403 | | |
Cash and cash equivalents, beginning of period | - | - | - | | |
Cash and cash equivalents, end of period | $ 89,403 | $ - | $ 89,403 | | |
Non – cash investing and financing activities: | | | | | |
Beneficial conversion feature | $ 260,000 | $ - | $ 260,000 | | |
Stock payable for advance on acquisition of mineral claim | $ 42,000 | $ - | $ 42,000 | | |
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