Texas Mineral Resources (TMRC) 10-Q 14 Apr 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Feb. 28, 2023	Apr. 06, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Feb. 28, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--08-31
Entity File Number	000-53482
Entity Registrant Name	TEXAS MINERAL RESOURCES CORP.
Entity Central Index Key	0001445942
Entity Tax Identification Number	87-0294969
Entity Incorporation, State or Country Code	DE
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
City Area Code	915
Local Phone Number	369-2133
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		72,956,224

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Feb. 28, 2023	Aug. 31, 2022
CURRENT ASSETS
Cash and cash equivalents	$ 1,537,415	$ 1,838,300
Short-term investments		505,611
Prepaid expenses and other current assets	64,146	293,130
Total current assets	1,601,561	2,637,041
Property and equipment, net		23,853
Mineral properties, net	415,607	415,607
Deposits	7,500	7,500
TOTAL ASSETS	2,024,668	3,084,001
CURRENT LIABILITIES
Accounts payable and accrued liabilities	40,898	41,101
Total current liabilities and liabilities	40,898	41,101
SHAREHOLDERS’ EQUITY
Preferred stock, par value $0.001; 10,000,000 shares authorized, no shares issued and oustanding as of February 28, 2023 and August 31, 2022
Common stock, par value $0.01; 100,000,000 shares authorized, 72,918,912 and 72,869,220 shares issued and oustanding as of February 28, 2023 and August 31, 2022, respectively	729,189	728,692
Additional paid-in capital	42,247,654	42,066,269
Accumulated deficit	(40,993,073)	(39,752,061)
Total shareholders’ equity	1,983,770	3,042,900
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 2,024,668	$ 3,084,001

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Feb. 28, 2023	Aug. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	72,918,912	72,869,220
Common stock, outstanding	72,918,912	72,869,220

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
OPERATING EXPENSES
Exploration costs	$ 398,184	$ 510,594	$ 629,559	$ 581,752
General and administrative expenses	284,187	351,776	626,378	691,281
Total operating expenses	682,371	862,370	1,255,937	1,273,033
LOSS FROM OPERATIONS	(682,371)	(862,370)	(1,255,937)	(1,273,033)
OTHER INCOME (EXPENSE)
Grant income (expense), net		(70,083)		93
Other income (expense)	9,531	1,741	14,925	3,366
Total other income (expense)	9,531	(68,342)	14,925	3,459
NET LOSS	$ (672,840)	$ (930,712)	$ (1,241,012)	$ (1,269,574)
Net loss per share:
Basic net loss per share	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.02)
Diluted net loss per share	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.02)
Weighted average shares outstanding:
Basic weighted average shares outstanding	72,911,801	72,178,243	72,896,768	72,069,147
Diluted weighted average shares outstanding	72,911,801	72,178,243	72,896,768	72,069,147

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,241,012)	$ (1,269,574)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	1,164	3,490
Loss on disposal of property and equipment	22,689
Stock based compensation	181,882	291,688
Changes in current assets and liabilities:
Prepaid expenses and other current assets	228,984	27,953
Accounts payable and accrued liabilities	(203)	(115,713)
Accounts payable - related party		(5,000)
Net cash used in operating activities	(806,496)	(1,067,156)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturing short-term investment	505,611
Purchases of mineral properties		(202,852)
Payment of deposit		5,120
Net cash provided by (used in) investing activities	505,611	(197,732)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of common stock warrants and options		171,000
Net cash provided by financing activities		171,000
NET CHANGE IN CASH AND CASH EQUIVALENTS	(300,885)	(1,093,888)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,838,300	5,106,653
CASH AND CASH EQUIVALENTS, END OF PERIOD	1,537,415	4,012,765
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid
Taxes paid

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Aug. 31, 2021		$ 719,341	$ 41,332,478	$ (36,848,322)	$ 5,203,497
Beginning balance, shares at Aug. 31, 2021		71,934,065
Common stock and stock options issued for services			129,788		129,788
Stock based compensation		$ 412	41,090		41,502
Stock based compensation, shares		41,231
Net loss				(338,862)	(338,862)
Ending balance, value at Nov. 30, 2021		$ 719,753	41,503,356	(37,187,184)	5,035,925
Ending balance, shares at Nov. 30, 2021		71,975,296
Beginning balance, value at Aug. 31, 2021		$ 719,341	41,332,478	(36,848,322)	5,203,497
Beginning balance, shares at Aug. 31, 2021		71,934,065
Net loss					(1,269,574)
Ending balance, value at Feb. 28, 2022		$ 725,765	41,788,742	(38,117,896)	4,396,611
Ending balance, shares at Feb. 28, 2022		72,576,515
Beginning balance, value at Nov. 30, 2021		$ 719,753	41,503,356	(37,187,184)	5,035,925
Beginning balance, shares at Nov. 30, 2021		71,975,296
Common stock and stock options issued for services			78,896		78,896
Stock based compensation		$ 312	41,190		41,502
Stock based compensation, shares		31,218
Warrant conversion		$ 5,700	165,300		171,000
Warrant conversion, shares		570,001
Net loss				(930,712)	(930,712)
Ending balance, value at Feb. 28, 2022		$ 725,765	41,788,742	(38,117,896)	4,396,611
Ending balance, shares at Feb. 28, 2022		72,576,515
Beginning balance, value at Aug. 31, 2022		$ 728,692	42,066,269	(39,752,061)	3,042,900
Beginning balance, shares at Aug. 31, 2022		72,869,220
Common stock and stock options issued for services			55,310		55,310
Stock based compensation		$ 269	48,896		49,165
Stock based compensation, shares		26,833
Net loss				(568,172)	(568,172)
Ending balance, value at Nov. 30, 2022		$ 728,961	42,170,475	(40,320,233)	2,579,203
Ending balance, shares at Nov. 30, 2022		72,896,053
Beginning balance, value at Aug. 31, 2022		$ 728,692	42,066,269	(39,752,061)	3,042,900
Beginning balance, shares at Aug. 31, 2022		72,869,220
Net loss					(1,241,012)
Ending balance, value at Feb. 28, 2023		$ 729,189	42,247,654	(40,993,073)	1,983,770
Ending balance, shares at Feb. 28, 2023		72,918,912
Beginning balance, value at Nov. 30, 2022		$ 728,961	42,170,475	(40,320,233)	2,579,203
Beginning balance, shares at Nov. 30, 2022		72,896,053
Common stock and stock options issued for services			37,905		37,905
Stock based compensation		$ 228	39,274		39,502
Stock based compensation, shares		22,859
Net loss				(672,840)	(672,840)
Ending balance, value at Feb. 28, 2023		$ 729,189	$ 42,247,654	$ (40,993,073)	$ 1,983,770
Ending balance, shares at Feb. 28, 2023		72,918,912

GENERAL

GENERAL	6 Months Ended
	Feb. 28, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	NOTE 1 – GENERAL Exploration-Stage Company Since January 1, 2009, the Company has been classified as an “exploration stage” company for purposes of Regulation S-K Item 1300 of the U.S. Securities and Exchange Commission (“SEC”). Under SEC Regulation S-K Item 1300, companies engaged in significant mining operations are classified into three categories, referred to as “stages” - exploration, development, and production. Exploration stage includes all companies that do not have established reserves in accordance with Item 1300. Such companies are deemed to be “in the search for mineral deposits.” Notwithstanding the nature and extent of development-type or production-type activities that have been undertaken or completed, a company cannot be classified as a development or production stage company unless it has established reserves in accordance with Item 1300. Basis of Presentation The accompanying unaudited interim consolidated 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 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, 2022, dated November 29, 2022 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 financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended August 31, 2022 as reported in our annual report on Form 10-K, have been omitted. Principles of Consolidation The consolidated financial statements include the accounts of Texas Mineral Resources Corp and its proportionate interest in the assets, liabilities, and operations of Round Top Mountain Development Company, LLC (“RTMD”). All significant intercompany balances and transactions have been eliminated. Going Concern These financial statements have been prepared assuming that the Company will continue as a going concern. The Company has an accumulated deficit from inception through February 28, 2023, of approximately $ 40,993,000 On February 28, 2023, the Company had a working capital surplus of approximately $ 1,561,000 In accordance with our current projected budget, the Company does not have sufficient capital to fund its share of total cash calls required under the RTMD agreement and expected general and administrative expenses during the fiscal year ending August 31, 2023. Failure by the Company to fund required cash calls to Round Top would result in significant dilution to its 20

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Feb. 28, 2023
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 2 – 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 Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.

JOINT VENTURE ARRANGEMENTS

JOINT VENTURE ARRANGEMENTS	6 Months Ended
	Feb. 28, 2023
Equity Method Investments and Joint Ventures [Abstract]
JOINT VENTURE ARRANGEMENTS	NOTE 3 – JOINT VENTURE ARRANGEMENTS The Company accounts for its interest in RTMD using the proportionate consolidation method, which is an exception available to entities in the extractive industries, thereby recognizing its pro-rata share of the assets, liabilities, and operations of RTMD in the appropriate classifications in the financial statements.

MINERAL PROPERTIES

MINERAL PROPERTIES	6 Months Ended
	Feb. 28, 2023
Extractive Industries [Abstract]
MINERAL PROPERTIES	NOTE 4 – MINERAL PROPERTIES The following discussion under “RTMD Mineral Properties” provides a history of the ownership and obligations of the Round Top Project, of which we hold a 20 RTMD Mineral Properties August 2010 Lease On August 17, 2010, the Company executed a new mining 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 Under the terms of the lease, the Company is obligated to pay the State of Texas a total lease bonus of $ 142,518 44,718 97,800 500,000 eight six and one quarter 1 Schedule of August 2010 Lease Per Acre Amount Total Amount September 2, 2020 – 2024 $ 150 $ 134,155 September 2, 2025 – 2029 200 178,873 In August 2022, our joint venture partner paid the State of Texas a delay rental to extend the term of the lease in an amount equal to $ 134,155 November 2011 Lease On November 1, 2011, the Company executed a mining lease with the State of Texas covering approximately 90 20,700 50,000 eight six and one quarter 1 Schedule of November 2011 Lease Per Acre Amount Total Amount November 1, 2020 – 2024 $ 150 $ 13,500 November 1, 2025 – 2029 200 18,000 In August 2022, our joint venture partner paid the State of Texas a delay rental to extend the term of the lease in an amount equal to $ 13,500 March 2013 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 1,063,830 500,000 45,000 ten years 54,990 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 mine operations. The option to purchase the surface rights covers approximately 5,670 sixteen-year 10,000 The ground water lease secures the right to develop the ground water within a 13,120 4 five 5,000 0.95 20,000 Santa Fe Gold Corporation In November 2021, the Company entered into a mineral exploration and option agreement with Santa Fe Gold Corporation (“Santa Fe”). Under the option agreement, the Company and Santa Fe plan to pursue, negotiate and subsequently enter into a joint venture agreement to jointly explore and develop a target silver property to be selected by the Company among patented and unpatented mining claims held by Santa Fe within the Black Hawk Mining District in Grant County, New Mexico. Completion of a joint venture agreement, if any, is subject to the successful outcome of a multi-phase exploration plan leading to a bankable feasibility study to be undertaken in the near future by the Company. Under the contemplated terms of the proposed joint venture agreement, the Company would be project operator and initially own 50.5 49.5 Under the terms of the option agreement, the Company plans to conduct a district-wide evaluation among the patented and unpatented claims held by Santa Fe, consisting of geologic mapping, sampling, trenching, radiometric surveying, geophysics, drilling and/or other methods as warranted. Based on the district-wide evaluation, the Company will designate one 80 1,300 75 two 60

SHAREHOLDERS_ EQUITY

SHAREHOLDERS’ EQUITY	6 Months Ended
	Feb. 28, 2023
Equity [Abstract]
SHAREHOLDERS’ EQUITY	NOTE 5 – SHAREHOLDERS’ EQUITY The Company’s authorized capital stock consists of 100,000,000 0.01 10,000,000 0.001 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. 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 common stock are entitled to equal ratable rights to dividends and distributions with respect to the common stock, as may be declared by the Company’s Board of Directors (the “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 October 2022, we issued 26,833 During the quarter ended November 30, 2022, the Company recognized stock compensation and a corresponding charge to additional paid-in capital in the amount of $ 49,165 22,859 During the quarter ended November 30, 2022, the Company granted a total of 30,000 0.30 55,310 4.00 201.75 0.00 5 55,310 During the quarter ended February 28, 2023, the Company recognized stock compensation and a corresponding charge to additional paid-in capital in the amount of $ 39,502 37,311 During the quarter ended February 28, 2023, the Company granted a total of 30,000 1.97 37,905 4.00 201.75 0.00 5 37,905

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Feb. 28, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 6 – SUBSEQUENT EVENTS On March 3, 2023, our chairman of the board of directors was granted an option to purchase 500,000 1.31 March 2, 2028

MINERAL PROPERTIES (Tables)

MINERAL PROPERTIES (Tables)	6 Months Ended
	Feb. 28, 2023
Extractive Industries [Abstract]
Schedule of August 2010 Lease	Schedule of August 2010 Lease Per Acre Amount Total Amount September 2, 2020 – 2024 $ 150 $ 134,155 September 2, 2025 – 2029 200 178,873
Schedule of November 2011 Lease	Schedule of November 2011 Lease Per Acre Amount Total Amount November 1, 2020 – 2024 $ 150 $ 13,500 November 1, 2025 – 2029 200 18,000

GENERAL (Details Narrative)

GENERAL (Details Narrative) - USD ($)	Feb. 28, 2023	Aug. 31, 2022
Accumulated deficit	$ (40,993,073)	$ (39,752,061)
Working capital surplus	$ 1,561,000
Round Top Mountain Development Company LLC [Member]
Ownership interest	20%

Schedule of August 2010 Lease (

Schedule of August 2010 Lease (Details)	Feb. 28, 2023 USD ($) $ / a
September 2, 2020 - 2024 [Member]
Property, Plant and Equipment [Line Items]
Per Acre Amount | $ / a	150
Total Amount | $	$ 134,155
September 2, 2025 - 2029 [Member]
Property, Plant and Equipment [Line Items]
Per Acre Amount | $ / a	200
Total Amount | $	$ 178,873

Schedule of November 2011 Lease

Schedule of November 2011 Lease (Details)	Feb. 28, 2023 USD ($) $ / a
November 1, 2020 - 2024 [Member]
Property, Plant and Equipment [Line Items]
Per Acre Amount | $ / a	150
Total Amount | $	$ 13,500
November 1, 2025 - 2029 [Member]
Property, Plant and Equipment [Line Items]
Per Acre Amount | $ / a	200
Total Amount | $	$ 18,000

MINERAL PROPERTIES (Details Nar

MINERAL PROPERTIES (Details Narrative)						1 Months Ended
	Nov. 08, 2021 a mi	Oct. 29, 2014 USD ($) a well mi $ / gal	Mar. 06, 2013 USD ($) a shares	Nov. 01, 2011 USD ($) a	Aug. 17, 2010 USD ($) a	Aug. 31, 2022 USD ($)	Feb. 28, 2023
Texas General Land Office [Member] | August 2010 Lease [Member]
Mining lease - acres | a					860
Lease Bonus					$ 142,518
Payment of lease bonus					44,718
Lease bonus due					97,800
Minimum advance royalty due					$ 500,000
Production royalty of market value of uranium and fissionable materials					8%
Production royalty of market value of other minerals					6.25%
Lease extension period					1 year
Payment of delay rental						$ 134,155
Texas General Land Office [Member] | November 2011 Lease [Member]
Mining lease - acres | a				90
Lease Bonus				$ 20,700
Minimum advance royalty due				$ 50,000
Production royalty of market value of uranium and fissionable materials				8%
Production royalty of market value of other minerals				6.25%
Lease extension period				1 year
Payment of delay rental						$ 13,500
Texas General Land Office [Member] | October 2014 Surface Option and Water Lease [Member]
Surface rights - acres | a		5,670
Mineral lease term		16 years
Periodic option annual payment due		$ 10,000
Ground water lease - acres | a		13,120
Distance from project mine | mi		4
Number of existing water wells | well		5
Annual minimum production payment		$ 5,000
Production payment, amount per gallon | $ / gal		0.00095
Production payment, annual amount		$ 20,000
Rio Grande Foundation [Member] | March 2013 Lease [Member]
Cash paid for lease			$ 500,000
Shares issued for lease | shares			1,063,830
Value of shares issued for lease			$ 500,000
Periodic payment for conservation efforts			$ 45,000
Payment period for conservation efforts			10 years
Surface rights - acres | a			54,990
Round Top Mountain Development Company LLC [Member]
Ownership interest							20%
Santa Fe Joint Venture [Member]
Controlling ownership interest	50.50%
Area of project | a	80
Area of property covered under agreement | a	1,300
Percentage of known mining district covered	75%
Area of interest radius | mi	2
Exercise period of option	60 days
Santa Fe Joint Venture [Member] | Santa Fe Gold Corporation [Member]
Ownership interest	49.50%

SHAREHOLDERS_ EQUITY (Details N

SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($)	1 Months Ended			3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Oct. 31, 2022	Feb. 28, 2023	Nov. 30, 2022	Aug. 31, 2022
Class of Stock [Line Items]
Common stock, authorized				100,000,000		100,000,000
Common stock, par value (in dollars per share)				$ 0.01		$ 0.01
Preferred stock, authorized				10,000,000		10,000,000
Preferred stock, par value (in dollars per share)				$ 0.001		$ 0.001
Director [Member] | Share-Based Payment Arrangement [Member]
Class of Stock [Line Items]
Number of shares issued		22,859	26,833
Compensation expense				$ 39,502	$ 49,165
Director [Member] | Share-Based Payment Arrangement [Member] | Subsequent Event [Member]
Class of Stock [Line Items]
Number of shares issued	37,311
Consultant [Member] | Share-Based Payment Arrangement, Option [Member]
Class of Stock [Line Items]
Compensation expense				$ 37,905	$ 55,310
Number of options granted				30,000	30,000
Exercise price of options granted				$ 1.97	$ 0.30
Fair value of options granted				$ 37,905	$ 55,310
Fair value assumptions - Risk free interest rate				4%	4%
Fair value assumptions - Volatilty				201.75%	201.75%
Fair value assumptions - Dividend yield				0%	0%
Fair value assumptions - Expected term				5 years	5 years

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Board of Directors Chairman [Member] - Share-Based Payment Arrangement, Option [Member] - Subsequent Event [Member]	Mar. 03, 2023 $ / shares shares
Subsequent Event [Line Items]
Number of options granted | shares	500,000
Exercise price per share | $ / shares	$ 1.31
Options expiration date	Mar. 02, 2028