Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2021 | Jul. 11, 2021 | |
Details | ||
Registrant CIK | 0001445942 | |
Fiscal Year End | --08-31 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-53482 | |
Entity Registrant Name | TEXAS MINERAL RESOURCES CORP. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-0294969 | |
Entity Address, Address Line One | 539 El Paso Street | |
Entity Address, City or Town | Sierra Blanca | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 79851 | |
Entity Address, Address Description | Address of Principal Executive Offices | |
City Area Code | 915 | |
Local Phone Number | 369-2133 | |
Phone Fax Number Description | Registrant’s Telephone Number, including Area Code | |
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 | 71,904,028 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | May 31, 2021 | Aug. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 4,909,383 | $ 2,746,451 |
Prepaid expenses and other current assets | 115,850 | 183,199 |
Total current assets | 5,025,233 | 2,929,650 |
Mineral properties, net | 164,350 | 354,234 |
Deposits | 12,620 | 7,500 |
TOTAL ASSETS | 5,234,783 | 3,291,384 |
Property and equipment, net | 32,580 | 0 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 144,215 | 502,427 |
Advances due to related party | 11,000 | 591,401 |
Total current liabilities | 155,215 | 1,093,828 |
Total liabilities | 155,215 | 1,093,828 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock, Value | 0 | 0 |
Common Stock, Value | 719,040 | 713,233 |
Additional paid-in capital | 41,150,947 | 40,376,847 |
Accumulated deficit | (36,790,419) | (38,892,524) |
Total shareholders' equity | 5,079,568 | 2,197,556 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 5,234,783 | $ 3,291,384 |
BALANCE SHEETS - Parenthetical
BALANCE SHEETS - Parenthetical - $ / shares | May 31, 2021 | Aug. 31, 2020 |
Details | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 71,904,028 | 71,323,278 |
Common Stock, Shares, Outstanding | 71,904,028 | 71,323,278 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
OPERATING EXPENSES | ||||
Exploration costs | $ 63,408 | $ 69,212 | $ 159,755 | $ 75,399 |
General and administrative expenses | 345,307 | 226,798 | 1,080,184 | 542,763 |
Total operating expenses | 408,715 | 296,010 | 1,239,939 | 618,162 |
LOSS FROM OPERATIONS | (408,715) | (296,010) | (1,239,939) | (618,162) |
OTHER INCOME (EXPENSE) | ||||
Loss on settlement of accrued liability | 0 | 0 | 0 | (66,335) |
Gain on sale of interest in mineral properties | 3,326,899 | 0 | 3,326,899 | 0 |
Interest expense | 0 | (3,430) | 0 | (9,684) |
Grant income, net of grant related expenses | 0 | 0 | 11,078 | 0 |
Other income (expense) | 716 | 0 | 4,067 | 0 |
Total other income (expense) | 3,327,615 | (3,430) | 3,342,044 | (76,019) |
NET INCOME (LOSS) | $ 2,918,900 | $ (299,440) | $ 2,102,105 | $ (694,181) |
Earnings Per Share, Basic and Diluted | ||||
Earnings Per Share, Basic | $ 0.04 | $ (0.01) | $ 0.03 | $ (0.01) |
Earnings Per Share, Diluted | $ 0.04 | $ (0.01) | $ 0.03 | $ (0.01) |
Earnings Per Share, Diluted, Other Disclosures | ||||
Weighted Average Number of Shares Outstanding, Basic | 71,697,503 | 57,448,168 | 71,558,951 | 58,662,191 |
Weighted Average Number of Shares Outstanding, Diluted | 73,051,883 | 57,448,168 | 72,844,871 | 58,662,191 |
STATEMENTS OF SHAREHOLDERS' EQU
STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
Equity Balance, Starting at Aug. 31, 2019 | $ 0 | $ 562,050 | $ 37,940,809 | $ (37,751,695) | $ 751,164 |
Shares Outstanding, Starting at Aug. 31, 2019 | 0 | 56,204,994 | |||
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | $ 0 | $ 100 | (100) | 0 | 0 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0 | 10,000 | |||
Stock Issued During Period, Value, Issued for Services | $ 0 | $ 135 | 4,865 | 0 | 5,000 |
Stock Issued During Period, Shares, Issued for Services | 0 | 13,514 | |||
Net Income (Loss) | $ 0 | $ 0 | 0 | (93,622) | (93,622) |
Shares Outstanding, Ending at Nov. 30, 2019 | 0 | 56,228,508 | |||
Equity Balance, Ending at Nov. 30, 2019 | $ 0 | $ 562,285 | 37,945,574 | (37,845,317) | 662,542 |
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | $ 0 | $ 46,362 | 426,138 | 0 | 472,500 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0 | 4,636,375 | |||
Stock Issued During Period, Value, Issued for Services | $ 0 | $ 1,309 | 147,359 | 0 | 148,668 |
Stock Issued During Period, Shares, Issued for Services | 0 | 130,892 | |||
Net Income (Loss) | $ 0 | $ 0 | 0 | (301,119) | (301,119) |
Shares Outstanding, Ending at Feb. 29, 2020 | 0 | 60,995,775 | |||
Equity Balance, Ending at Feb. 29, 2020 | $ 0 | $ 609,956 | 38,519,071 | (38,146,436) | 982,591 |
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | $ 876 | 55,125 | 0 | 56,001 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 87,501 | |||
Stock Issued During Period, Value, Stock Options Exercised | $ 0 | $ 162 | (162) | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 167,173 | |||
Cash received for unissued shares | $ 0 | $ 0 | 3,195 | 0 | 3,195 |
Net Income (Loss) | $ 0 | $ 0 | 0 | (299,440) | (299,440) |
Shares Outstanding, Ending at May. 31, 2020 | 0 | 61,250,449 | |||
Equity Balance, Ending at May. 31, 2020 | $ 0 | $ 610,994 | 38,577,229 | (38,445,876) | 742,347 |
Equity Balance, Starting at Aug. 31, 2020 | $ 0 | $ 713,233 | 40,376,847 | (38,892,524) | 2,197,556 |
Shares Outstanding, Starting at Aug. 31, 2020 | 0 | 71,323,278 | |||
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | $ 0 | 190,367 | 0 | $ 190,367 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | 53,500 | ||
Common stock issued as payment of accrued directors fees, Value | $ 619 | 91,881 | 0 | $ 92,500 | |
Common stock issued as payment of accrued directors fees, Shares | 61,936 | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | $ 0 | $ 0 | 24,500 | 0 | 24,500 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0 | 0 | |||
Net Income (Loss) | $ 0 | $ 0 | 0 | (339,683) | (339,683) |
Shares Outstanding, Ending at Nov. 30, 2020 | 0 | 71,385,214 | |||
Equity Balance, Ending at Nov. 30, 2020 | $ 0 | $ 713,852 | 40,683,595 | (39,232,207) | 2,165,240 |
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | $ 400 | 203,922 | 0 | 204,322 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 40,042 | |||
Common stock issued as payment of accrued directors fees, Shares | 70,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ 0 | $ 1,696 | (1,696) | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 169,506 | |||
Stock Issued During Period, Value, New Issues | $ 0 | $ 700 | (700) | 0 | 0 |
Stock Issued During Period, Shares, New Issues | 0 | ||||
Net Income (Loss) | $ 0 | $ 0 | 0 | (477,112) | (477,112) |
Shares Outstanding, Ending at Feb. 28, 2021 | 0 | 71,664,762 | |||
Equity Balance, Ending at Feb. 28, 2021 | $ 0 | $ 716,648 | 40,885,121 | (39,709,319) | 1,892,450 |
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | $ 132 | 211,286 | 0 | $ 211,418 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 13,266 | 53,500 | ||
Stock Issued During Period, Value, Stock Options Exercised | $ 0 | $ 2,260 | 54,540 | 0 | $ 56,800 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 226,000 | |||
Net Income (Loss) | $ 0 | $ 0 | 0 | 2,918,900 | 2,918,900 |
Shares Outstanding, Ending at May. 31, 2021 | 0 | 71,904,028 | |||
Equity Balance, Ending at May. 31, 2021 | $ 0 | $ 719,040 | $ 41,150,947 | $ (36,790,419) | $ 5,079,568 |
STATEMENTS OF CASHFLOWS
STATEMENTS OF CASHFLOWS - USD ($) | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 2,102,105 | $ (694,181) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Discount accretion on note payable | 0 | 11,291 |
Stock based compensation | 606,107 | 98,334 |
Gain on sale of interest in mineral properties | (3,326,899) | 0 |
Loss on settlement of accrued liability | 0 | 66,335 |
Depreciation expense | 2,327 | 0 |
Changes in current assets and liabilities: | ||
Prepaid expenses and other current assets | 67,349 | (21,454) |
Accounts payable and accrued liabilities | (265,712) | (356,648) |
Net cash used in operating activities | (814,723) | (896,323) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of interest in mineral properties | 3,000,000 | 0 |
Purchases of property and equipment | (34,907) | 0 |
Purchases of mineral properties | (212,444) | 0 |
Payment of deposit | (5,120) | 0 |
Net cash used in investing activities | 2,747,529 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments on note payable | 0 | (107,958) |
Payments on advances due to related party | 0 | (4,000) |
Advances from related parties | 148,826 | 100,917 |
Proceeds from exercise of common stock warrants and options | 81,300 | 475,695 |
Net cash provided by financing activities | 230,126 | 464,654 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 2,162,932 | (431,669) |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 2,746,451 | 1,824,546 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 4,909,383 | 1,392,877 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest paid | 0 | 0 |
Taxes paid | 0 | 0 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Common stock issued as payment of accrued expenses | 92,500 | 0 |
Advances from related parties assumed in sale of interest in mineral properties | $ 729,227 | $ 0 |
NOTE 1 - GENERAL
NOTE 1 - GENERAL | 9 Months Ended |
May 31, 2021 | |
Notes | |
NOTE 1 - GENERAL | NOTE 1 GENERAL Basis of Presentation The accompanying unaudited interim financial statements of Texas Mineral Resources Corp. (we, us, our, the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (SEC), and should be read in conjunction with the audited financial statements and notes thereto contained in our annual report on Form 10-K, for the year ended August 31, 2020, dated November 30, 2020 as filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the interim financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2020 as reported in our annual report on Form 10-K, have been omitted. Grant Income Grants received from government and other agencies in advance of a specific project are deferred and recognized as other income in the statements of operations in the period they are earned and the related project costs are incurred. For the nine and three months ended May 31, 2021, the Company recognized $150,000 and $0, respectively, of grant income which is presented in other income net of grant related expenses totaling $138,922 and $0, respectively. Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-06, Debt Debit with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging Contracts in Entitys Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entitys Own Equity. |
NOTE 2 - MINERAL PROPERTIES AND
NOTE 2 - MINERAL PROPERTIES AND PARTICIPATION IN SUCH MINERAL PROPERTIES | 9 Months Ended |
May 31, 2021 | |
Notes | |
NOTE 2 - MINERAL PROPERTIES AND PARTICIPATION IN SUCH MINERAL PROPERTIES | NOTE 2 MINERAL PROPERTIES AND PARTICIPATION IN SUCH MINERAL PROPERTIES We are a mining company and substantially all of our business consists of owning and holding a 20% membership interest (being a certificate of interest or participation) in Round Top Mountain Development Company, LLC, a Delaware limited liability company (Round Top), the entity that owns the mineral leases and mineral assets. In August 2018, the Company and Morzev Pty. Ltd. (Morzev) entered into an agreement (the 2018 Option Agreement) whereby Morzev was granted the exclusive right to earn and acquire a 70% interest in the Companys Round Top Project (Project or Round Top or Round Top Project) by financing $10 million of expenditures in connection with the Project, increasable to an 80% interest for an additional $3 million payment to the Company. Morzev began operating as USA Rare Earth, LLC (USARE) and in May 2019 notified the Company that it was nominating USARE as the optionee under the terms of the 2018 Option Agreement. In August 2019, the Company and USARE entered into an amended and restated option agreement as further amended on June 29, 2020 (the 2019 Option Agreement and collectively with the 2018 Option Agreement, the Option Agreement), whereby the Company restated its agreement to grant USARE the exclusive right to earn and acquire a 70% interest, increasable to an 80% interest, in the Round Top Project. The 2019 Option Agreement has substantially similar terms to the 2018 Option Agreement. On May 17, 2021, and in accordance with the terms of the Option Agreement, the Company and USARE entered into a contribution agreement (Contribution Agreement) whereby the Company and USARE contributed assets to Round Top, a wholly-owned subsidiary of the Company, in exchange for their ownership interests in Round Top, of which the Company now owns membership interests equating to 20% of Round Top and USARE owns membership interests equating to 80% of Round Top. Concurrently therewith, the Company and USARE as the two members entered into a limited liability company agreement (Operating Agreement) governing the operations of Round Top which contains customary and industry standard terms as contemplated by the OptionAgreement. USARE will serve as manager of Round Top and Mr. Gorski, on behalf of the Company, will serve as one of the three members of the management committee. In connection with USARE meeting its obligations to acquire a 70% interest in Round Top and exercising its right to an additional 10% interest, the Company received total consideration of approximately $3,728,000, consisting of the $3 million upon exercise of the option and an assumption of approximately $728,000 in advances from related parties, and derecognized 80% of the carrying amount of mineral properties, or approximately $402,000. The resulting gain on sale of interest in mineral properties in the amount of approximately $3,326,000 is included as its own line item in other income (expense). Upon entry into the Contribution Agreement, the Company assigned the following contracts and assets to Round Top in exchange for its 20% membership interest in Round Top: · · · · · and USARE assigned the following assets to Round Top (or the Company, as applicable) for its 80% membership interest in Round Top: · · · · The Operating Agreement provides for the following: Interests Cash Calls multiplied by divided by Management Management Committee Meetings · · · · · · · · · Manager Each member has the right to elect not to contribute fully or not to contribute at all to an adopted Budget. If a member does not contribute fully or at all, the other member has the right to make up some or all of the shortfall. In either case, the ownership interests of the members are recalculated and the non-contributing member is diluted on a straight-line basis. The same process is applied if the manager proposes to amend an adopted Budget by more than 15% and the proposal is approved. Distributions or expense to the Company, and the monthly cash call or monthly cash calls will be recovered by USARE solely out of the Companys proportional interest in such products when sold. Involuntary Resignation Elimination of Interest August 2010 Mineral Lease On August 17, 2010, the Company executed a mineral lease with the Texas General Land Office covering Sections 7 and 18 of Township 7, Block 71 and Section 12 of Block 72, covering approximately 860 acres at Round Top Mountain in Hudspeth County, Texas. The mineral lease issued by the Texas General Land Office gives the Company the right to explore, produce, develop, mine, extract, mill, remove, and market beryllium, uranium, rare earth elements, all other base and precious metals, industrial minerals and construction materials and all other minerals excluding oil, gas, coal, lignite, sulfur, salt, and potash. The term of the lease is nineteen years so long as minerals are produced in paying quantities. Under the terms of the mineral lease, the Company will pay the State of Texas a total lease bonus of $142,518. The Company paid $44,718 upon the execution of the lease and will pay the remaining $97,800 upon submission of a supplemental plan of operations to conduct mining. Upon sale of any minerals removed from Round Top, the Company will pay the State of Texas a $500,000 minimum advance royalty. Thereafter, if paying quantities of minerals are obtained, the Company will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 1/4%) of the market value of all other minerals removed and sold. If paying quantities have not been obtained, the Company may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule: Per Acre Amount Total Amount September 2, 2020 2024 $ 150 $ 134,155 September 2, 2025 2029 200 178,873 In August 2020, the Company paid a delay rental to the State of Texas in the amount of $134,155. November 2011 Mineral Lease On November 1, 2011, the Company executed a mineral lease with the State of Texas covering approximately 90 acres of land that is adjacent to the August 2010 Lease. Under the lease, the Company paid the State of Texas a lease bonus of $20,700 upon the execution of the lease. Upon the sale of minerals removed from Round Top, the Company will pay the State of Texas a $50,000 minimum advance royalty. Thereafter, if paying quantities of minerals are obtained, the Company will pay the State of Texas a production royalty equal to eight percent (8%) of the market value of uranium and other fissionable materials removed and sold from Round Top and six and one quarter percent (6 1/4%) of the market value of all other minerals. If paying quantities have not been obtained, the Company may pay additional delay rental fees to extend the term of the lease for successive one (1) year periods pursuant to the following schedule: Per Acre Amount Total Amount November 1, 2020 2024 $ 150 $ 13,500 November 1, 2025 2029 200 18,000 In August 2020, the Company paid a delay rental to the State of Texas of $13,500. March 2013 Surface Lease On March 6, 2013, the Company purchased the surface lease at the Round Top Project, known as the West Lease, from the Southwest Wildlife and Range Foundation (since renamed the Rio Grande Foundation) for $500,000 cash and 1,063,830 shares of common stock valued at $500,000. The Company also agreed to support the Foundation through an annual payment of $45,000 for ten years to support conservation efforts within the Rio Grande Basin, particularly Lake Amistad, a large and well-known fishing lake near Del Rio, Texas. In connection with the January 2019 settlement with the Foundation, the balance was paid off as of August, 2020. The West Lease comprises approximately 54,990 acres. Most importantly, the purchase of the surface lease provides the Company unrestricted surface access for the potential development and mining of the Round Top Project. October 2014 Surface Option and Water Lease On October 29, 2014, the Company announced the execution of agreements with the Texas General Land Office securing the option to purchase the surface rights covering the potential Round Top project mine and plant areas and, separately, a lease to develop the water necessary for the potential Round Top project mining operations. The option to purchase the surface rights covers approximately 5,670 acres over the mining lease and the additional acreage adequate to site all potential heap leaching and processing operations as currently anticipated by the Company. The Company may exercise the option for all or part of the option acreage at any time during the remaining sixteen-year primary term of the mineral lease. The option can be maintained through annual payments of $10,000. The purchase price will be the appraised value of the surface at the time of option exercise. All annual payments have been made as of the date of this filing. The ground water lease secures the right to develop the ground water within a 13,120-acre lease area located approximately 4 miles from the Round Top deposit. The lease area contains five existing water wells. It is anticipated that all potential water needs for the Round Top project mine operations would be satisfied by the existing wells covered by this water lease. This lease terms include an annual minimum production payment of $5,000 prior to production of water for the operation. After initiation of production, the Company will pay $0.95 per thousand gallons or $20,000 annually, whichever is greater. This lease remains in effect so long as the mineral lease is in effect. The minimum production payment for all fiscal years have been made as of the date of this filing. Assignment of Leases to Round Top In May 2021, these leases, including the rights and payment obligations, were assigned to Round Top. |
NOTE 3 - SHAREHOLDERS' EQUITY
NOTE 3 - SHAREHOLDERS' EQUITY | 9 Months Ended |
May 31, 2021 | |
Notes | |
NOTE 3 - SHAREHOLDERS' EQUITY | NOTE 3 SHAREHOLDERS EQUITY Capital Stock Our authorized capital stock consists of 100,000,000 shares of common stock, with a par value of $0.01 per share, and 10,000,000 preferred shares with a par value of $0.001 per share. All shares of common stock have equal voting rights and, when validly issued and outstanding, are entitled to one non-cumulative vote per share in all matters to be voted upon by shareholders. The shares of common stock have no pre-emptive, subscription, conversion or redemption rights and may be issued only as fully paid and non-assessable shares. Holders of the common stock are entitled to equal ratable rights to dividends and distributions with respect to the common stock, as may be declared by our Board of Directors (our Board) out of funds legally available. In the event of a liquidation, dissolution or winding up of the affairs of the Company, the holders of common stock are entitled to share ratably in all assets remaining available for distribution to them after payment or provision for all liabilities and any preferential liquidation rights of any preferred stock then outstanding. In January 2020, the Company entered into three separate consulting agreements for total consideration of 699,999 shares of common stock (233,333 per agreement). The common stock underlying the agreements had a total value of $448,000, based on the $0.64 quoted market price of the common stock on the date the consulting agreements were reached. The right to receive the common stock is subject to ratable vesting over a 24-month period and at May 31, 2021, 495,833 shares had vested and 87,501 had been issued. The Company recognized approximately $168,000 and $56,000 of compensation expense under these consulting agreements during the nine and three months ended May 31, 2021 and included the expense in general and administrative expenses. The consultants have requested that the Company hold the remaining shares issuable under the consulting agreements in trust to allow the consultants to request their shares as they vest. In October 2020, the Company issued 61,936 shares of common stock to Directors as payment for accrued fees totaling $92,500 earned in June through August 2020. During the quarter ended November 30, 2020, the Company recognized stock compensation and a corresponding charge to additional paid-in capital in the amount of $52,899 for directors fees earned during the quarter. The Company issued the related 40,042 shares of common stock in December 2020. During the quarter ended November 30, 2020, the Company granted a total of 53,500 stock options with a fair value of $81,468 on the date of grant to a consultant. The fair value of the options was determined using the Black-Scholes option-pricing model. The weighted average assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.28% (ii) estimated volatility of 208.05% (iii) dividend yield of 0.00% and (iv) expected life of all options of 4.6 years. The Company recognized the full $81,468 as compensation expense during the three months ended November 30, 2020. During the three months ended November 30, 2020, the holders of 70,000 common stock warrants with an exercise price of $0.35 per share, exercised such warrants for total consideration of $24,500. The shares of common stock underlying the warrants were issued to the holders in December 2020. During the three months ended February 28, 2021, the Company recognized stock compensation and a corresponding charge to additional paid-in capital in the amount of $41,500 for directors fees earned during the quarter. The Company issued the related 13,266 In December 2020, the Company issued 33,064 shares of common stock to a consultant under a cashless option exercise. In January 2021, the Company issued 136,442 shares of common stock to a former director under a cashless warrant exercise. During the quarter ended February 28, 2021, the Company granted a total of 53,500 stock options with a fair value of $106,821 on the date of grant to a consultant. The fair value of the options was determined using the Black-Scholes option-pricing model. The weighted average assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.28% (ii) estimated volatility of 205.28% (iii) dividend yield of 0.00% and (iv) expected life of all options of 4 years. The Company recognized the full $106,821 as compensation expense during the three months ended February 28, 2021. In April 2021, 120,000 common stock options were exercised by a consultant at an exercise price of $0.30 per option for cash totaling $36,000. In May 2021, 100,000 common stock options and 4,000 common stock warrants were exercised by an investor at exercise prices ranging from $0.10 - $0.20 per option/warrant for cash totaling $20,800. During the quarter ended May 31, 2021, the Company granted a total of 43,500 stock options with a fair value of $105,918 on the date of grant to a consultant. The fair value of the options was determined using the Black-Scholes option-pricing model. The weighted average assumptions used to calculate the fair market value are as follows: (i) risk-free interest rate of 0.28% (ii) estimated volatility of 208.05% (iii) dividend yield of 0.00% and (iv) expected life of all options of 4 years. The Company recognized the full $105,918 as compensation expense during the three months ended May 31, 2021. During the three months ended May 31, 2021, the Company recognized stock compensation and a corresponding charge to additional paid-in capital in the amount of $49,500 for directors fees earned during the quarter. The Company issued the related 30,037shares of common stock in June 2021. The Company had 71,904,028 shares of common stock outstanding as of May 31, 2021. |
NOTE 4 - EARNINGS (LOSS) PER SH
NOTE 4 - EARNINGS (LOSS) PER SHARE | 9 Months Ended |
May 31, 2021 | |
Notes | |
NOTE 4 - EARNINGS (LOSS) PER SHARE | NOTE 4 EARNINGS (LOSS) PER SHARE Basic and diluted earnings per share for the nine and three months ended May 31, 2021 were calculated as follows: Nine Months Ended Three Months Ended Numerator for both basic and diluted earnings per share: Net income $ 2,102,105 $ 2,918,900 Denominator: Weighted average shares outstanding basic 71,558,951 71,697,503 Effect of dilutive securities: Options and warrants 1,285,920 1,354,380 Weighted average shares outstanding - diluted 72,844,871 73,051,883 Basic earnings per share $ 0.03 $ 0.04 Diluted earnings per share $ 0.03 $ 0.04 For the nine and three months ended May 31, 2020, all potential shares were anti-dilutive and thus excluded from the diluted loss per share calculation. |
NOTE 5 - SUBSEQUENT EVENTS
NOTE 5 - SUBSEQUENT EVENTS | 9 Months Ended |
May 31, 2021 | |
Notes | |
NOTE 5 - SUBSEQUENT EVENTS | NOTE 5 SUBSEQUENT EVENTS None. |
NOTE 1 - GENERAL_ Basis of Pres
NOTE 1 - GENERAL: Basis of Presentation (Policies) | 9 Months Ended |
May 31, 2021 | |
Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim financial statements of Texas Mineral Resources Corp. (we, us, our, the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (SEC), and should be read in conjunction with the audited financial statements and notes thereto contained in our annual report on Form 10-K, for the year ended August 31, 2020, dated November 30, 2020 as filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the interim financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2020 as reported in our annual report on Form 10-K, have been omitted. |
NOTE 1 - GENERAL_ Grant Income
NOTE 1 - GENERAL: Grant Income (Policies) | 9 Months Ended |
May 31, 2021 | |
Policies | |
Grant Income | Grant Income Grants received from government and other agencies in advance of a specific project are deferred and recognized as other income in the statements of operations in the period they are earned and the related project costs are incurred. For the nine and three months ended May 31, 2021, the Company recognized $150,000 and $0, respectively, of grant income which is presented in other income net of grant related expenses totaling $138,922 and $0, respectively. |
NOTE 1 - GENERAL_ Recent Accoun
NOTE 1 - GENERAL: Recent Accounting Pronouncements (Policies) | 9 Months Ended |
May 31, 2021 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-06, Debt Debit with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging Contracts in Entitys Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entitys Own Equity. |
NOTE 4 - EARNINGS (LOSS) PER _2
NOTE 4 - EARNINGS (LOSS) PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 9 Months Ended |
May 31, 2021 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Nine Months Ended Three Months Ended Numerator for both basic and diluted earnings per share: Net income $ 2,102,105 $ 2,918,900 Denominator: Weighted average shares outstanding basic 71,558,951 71,697,503 Effect of dilutive securities: Options and warrants 1,285,920 1,354,380 Weighted average shares outstanding - diluted 72,844,871 73,051,883 Basic earnings per share $ 0.03 $ 0.04 Diluted earnings per share $ 0.03 $ 0.04 |
NOTE 3 - SHAREHOLDERS' EQUITY (
NOTE 3 - SHAREHOLDERS' EQUITY (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2021 | Dec. 31, 2020 | May 31, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | |
Details | |||||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 53,500 | 53,500 | |||
Fair value of options | $ 81,468 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used | Black-Scholes option-pricing model | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.28% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 208.05% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years 7 months 6 days | ||||
Stock Issued During Period, Shares, New Issues | 136,442 | 33,064 | |||
Common Stock, Shares, Outstanding | 71,904,028 | 71,323,278 |
NOTE 4 - EARNINGS (LOSS) PER _3
NOTE 4 - EARNINGS (LOSS) PER SHARE: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Details | ||||
NET INCOME (LOSS) | $ 2,918,900 | $ (299,440) | $ 2,102,105 | $ (694,181) |
Weighted Average Number of Shares Outstanding, Basic | 71,697,503 | 57,448,168 | 71,558,951 | 58,662,191 |
Options and warrants | $ 1,354,380 | $ 1,285,920 | ||
Weighted Average Number of Shares Outstanding, Diluted | 73,051,883 | 57,448,168 | 72,844,871 | 58,662,191 |
Earnings Per Share, Basic | $ 0.04 | $ (0.01) | $ 0.03 | $ (0.01) |
Earnings Per Share, Diluted | $ 0.04 | $ (0.01) | $ 0.03 | $ (0.01) |