Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Aug. 31, 2014 | Oct. 17, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'First American Silver Corp. | ' |
Entity Central Index Key | '0001456802 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Aug-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--11-30 | ' |
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 | ' | 60,970,567 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
BALANCE_SHEETS_unaudited
BALANCE SHEETS (unaudited) (USD $) | Aug. 31, 2014 | Nov. 30, 2013 |
Current Assets | ' | ' |
Cash and cash equivalents | ' | $80 |
Accounts receivable - other | ' | 6,433 |
Prepaid expenses | 26,126 | 19,514 |
Total Current Assets | 26,126 | 26,027 |
Other Assets | ' | ' |
Reclamation bond | 591 | 591 |
Website - net | ' | 2,167 |
Total Other Assets | 591 | 2,758 |
Total Assets | 26,717 | 28,785 |
Current Liabilities | ' | ' |
Accounts payable | 67,312 | 56,866 |
Accrued expenses | 28,800 | 18,125 |
Due to related party | 4,361 | 25,000 |
Notes payable - current portion | 200,750 | 168,750 |
Total Current Liabilities | 301,223 | 268,741 |
Long-term Debt | ' | 45,000 |
Total liabilities | 301,223 | 313,741 |
Stockholders' Equity (Deficit) | ' | ' |
Preferred stock, par value $0.001, 20,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, par value $0.001, 3,500,000,000 shares authorized, 62,050,567 shares issued and outstanding (58,448,067 - 2013) | 62,051 | 58,448 |
Additional paid-in capital | 1,089,374 | 1,023,302 |
Deficit accumulated during the exploration stage | -1,425,931 | -1,366,706 |
Total Stockholders' Equity (Deficit) | -274,506 | -284,956 |
Total Liabilities and Stockholders' Equity (Deficit) | $26,717 | $28,785 |
BALANCE_SHEETS_unaudited_Paren
BALANCE SHEETS (unaudited) (Parenthetical) (USD $) | Aug. 31, 2014 | Nov. 30, 2013 |
Stockholders' Equity (Deficit) | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 3,500,000,000 | 3,500,000,000 |
Common stock, shares issued | 62,050,567 | 58,448,067 |
Common stock, shares outstanding | 62,050,567 | 58,448,067 |
STATEMENTS_OF_OPERATIONS_unaud
STATEMENTS OF OPERATIONS (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | 76 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | |
Statements Of Operations | ' | ' | ' | ' | ' |
REVENUES | ' | $32,650 | ' | $32,650 | ' |
OPERATING EXPENSES | ' | ' | ' | ' | ' |
Exploration costs | ' | ' | ' | ' | 172,697 |
Accounting and legal | 1,500 | 21,641 | 1,500 | 69,355 | 335,714 |
Impairment loss on mineral properties | ' | 40,000 | ' | 40,000 | 429,929 |
Consulting fees | 53,786 | 10,000 | 81,286 | 42,807 | 322,184 |
Transfer agent and filing fees | 1,450 | ' | 5,700 | ' | 19,967 |
Miscellaneous fees | ' | ' | ' | ' | 5,536 |
Incorporation costs | ' | ' | ' | ' | 1,387 |
General and administrative | 1,519 | 10,589 | 3,553 | 18,971 | 182,410 |
TOTAL OPERATING EXPENSES | 58,255 | 82,230 | 92,039 | 171,133 | 1,469,824 |
LOSS FROM OPERATIONS | -58,255 | -49,580 | -92,039 | -138,483 | -1,469,824 |
OTHER INCOME (EXPENSES) | ' | ' | ' | ' | ' |
Interest expense | -12,894 | -5,951 | -40,209 | -12,220 | -67,213 |
Impairment of website | ' | ' | -1,667 | ' | -1,667 |
Gain on sale of rights | 74,690 | ' | 74,690 | ' | 74,690 |
Exercise of option on mining claims | ' | ' | ' | ' | 38,083 |
TOTAL OTHER INCOME (EXPENSE) | 61,796 | -5,951 | 32,814 | -12,220 | 43,893 |
LOSS BEFORE PROVISION FOR INCOME TAX | 3,541 | -55,531 | -59,225 | -150,703 | -1,425,931 |
PROVISION FOR INCOME TAX | 0 | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | $3,541 | ($55,531) | ($59,225) | ($150,703) | ($1,425,931) |
INCOME (LOSS) PER SHARE: BASIC AND DILUTED | $0 | $0 | $0 | $0 | ' |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | 60,612,768 | 57,247,217 | 59,362,638 | 56,219,504 | ' |
STATEMENT_OF_STOCKHOLDERS_EQUI
STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $) | Common Stock | Additional Paid-In Capital | Common Stock Warrants | Deficit Accumulated During the Exploration Stage | Total |
Beginning Balance, Amount at Apr. 29, 2008 | ' | ' | ' | ' | ' |
Beginning Balance, Shares at Apr. 29, 2008 | ' | ' | ' | ' | ' |
Shares issued to founder on June 30, 2008 @ $0.00028 per share, Shares | 52,500,000 | ' | ' | ' | ' |
Shares issued to founder on June 30, 2008 @ $0.00028 per share, Amount | 1,500 | 13,500 | ' | ' | 15,000 |
Private placement on April 30, 2008 @ $0.00143 per share, Shares | 24,500,000 | ' | ' | ' | ' |
Private placement on April 30, 2008 @ $0.00143 per share, Amount | 700 | 34,300 | ' | ' | 35,000 |
Net loss | ' | ' | ' | -13,639 | -13,639 |
Ending Balance, Amount at Nov. 30, 2008 | 2,200 | 47,800 | ' | -13,639 | 36,361 |
Ending Balance, Shares at Nov. 30, 2008 | 77,000,000 | ' | ' | ' | ' |
Net loss | ' | ' | ' | -16,345 | -16,345 |
Ending Balance, Amount at Nov. 30, 2009 | 2,200 | 47,800 | ' | -29,984 | 20,016 |
Ending Balance, Shares at Nov. 30, 2009 | 77,000,000 | ' | ' | ' | ' |
Adjust for 35:1 forward stock split | 74,800 | -74,800 | ' | ' | 0 |
Private placement on October 29, 2010 @ $0.25 per share, Shares | 1,000,000 | ' | ' | ' | ' |
Private placement on October 29, 2010 @ $0.25 per share, Amount | 1,000 | 236,518 | 12,482 | ' | 250,000 |
Common stock issued in relation to acquisition of mineral properties, Shares | 300,000 | ' | ' | ' | ' |
Common stock issued in relation to acquisition of mineral properties, Amount | 300 | 149,700 | ' | ' | 150,000 |
Net loss | ' | ' | ' | -45,762 | -45,762 |
Ending Balance, Amount at Nov. 30, 2010 | 78,300 | 359,218 | 12,482 | -75,746 | 374,254 |
Ending Balance, Shares at Nov. 30, 2010 | 78,300,000 | ' | ' | ' | ' |
Private placement on October 29, 2010 @ $0.25 per share, Shares | 1,000,000 | ' | ' | ' | ' |
Private placement on October 29, 2010 @ $0.25 per share, Amount | 1,000 | 217,365 | 131,635 | ' | 350,000 |
Common stock issued in relation to acquisition of mineral properties, Shares | 100,000 | ' | ' | ' | ' |
Common stock issued in relation to acquisition of mineral properties, Amount | 100 | 102,900 | ' | ' | 103,000 |
Cancellation of common shares, Shares | -23,850,000 | ' | ' | ' | ' |
Cancellation of common shares, Amount | -23,850 | 23,850 | ' | ' | 0 |
Common stock issued for services, Shares | 50,000 | ' | ' | ' | ' |
Common stock issued for services, Amount | 50 | 15,200 | ' | ' | 15,250 |
Options issued to consultant | ' | 50,855 | ' | ' | 50,855 |
Net loss | ' | ' | ' | -537,359 | -537,359 |
Ending Balance, Amount at Nov. 30, 2011 | 55,600 | 769,388 | 144,117 | -613,105 | 356,000 |
Ending Balance, Shares at Nov. 30, 2011 | 55,600,000 | ' | ' | ' | ' |
Common stock issued in relation to acquisition of mineral properties, Shares | 75,000 | ' | ' | ' | ' |
Common stock issued in relation to acquisition of mineral properties, Amount | 75 | 12,675 | ' | ' | 12,750 |
Common stock issued for services, Shares | 25,000 | ' | ' | ' | ' |
Common stock issued for services, Amount | 25 | 2,725 | ' | ' | 2,750 |
Expiration of warrants | ' | 12,482 | -12,482 | ' | ' |
Net loss | ' | ' | ' | -558,465 | -558,465 |
Ending Balance, Amount at Nov. 30, 2012 | 55,700 | 797,270 | 131,635 | -1,171,570 | -186,965 |
Ending Balance, Shares at Nov. 30, 2012 | 55,700,000 | ' | ' | ' | ' |
Common stock issued in relation to acquisition of mineral properties, Shares | 1,000,000 | ' | ' | ' | ' |
Common stock issued in relation to acquisition of mineral properties, Amount | 1,000 | 39,000 | ' | ' | 40,000 |
Common stock issued for services, Shares | 25,000 | ' | ' | ' | ' |
Common stock issued for services, Amount | 25 | 725 | ' | ' | 750 |
Expiration of warrants | ' | 131,635 | -131,635 | ' | ' |
Common stock issued for loan extension, Shares | 846,000 | ' | ' | ' | ' |
Common stock issued for loan extension, Amount | 846 | 27,234 | ' | ' | 28,080 |
Common stock issued to pay accounts payable, Shares | 877,067 | ' | ' | ' | ' |
Common stock issued to pay accounts payable, Amount | 877 | 25,454 | ' | ' | 26,331 |
Board member debt forgiveness | ' | 1,984 | ' | ' | 1,984 |
Net loss | ' | ' | ' | -195,136 | -195,136 |
Ending Balance, Amount at Nov. 30, 2013 | 58,448 | 1,023,302 | ' | -1,366,706 | -284,956 |
Ending Balance, Shares at Nov. 30, 2013 | 58,448,067 | ' | ' | ' | ' |
Common stock issued for loan extension, Shares | 1,714,500 | ' | ' | ' | ' |
Common stock issued for loan extension, Amount | 1,715 | 30,290 | ' | ' | 32,005 |
Common stock to settle accounts payable, Shares | 1,888,000 | ' | ' | ' | ' |
Common stock to settle accounts payable, Amount | 1,888 | 35,782 | ' | ' | 37,670 |
Net loss | ' | ' | ' | -59,225 | -59,225 |
Ending Balance, Amount at Aug. 31, 2014 | $62,051 | $1,089,374 | ' | ($1,425,931) | ($274,506) |
Ending Balance, Shares at Aug. 31, 2014 | 62,050,567 | ' | ' | ' | ' |
STATEMENTS_OF_CASH_FLOWS_unaud
STATEMENTS OF CASH FLOWS (unaudited) (USD $) | 9 Months Ended | 76 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net loss for the period | ($59,225) | ($150,703) | ($1,425,931) |
Adjustments to Reconcile Net Loss to Net Cash Provided by (Used in) Operating Activities: | ' | ' | ' |
Depreciation and amortization | 500 | 2,789 | 9,055 |
Accretion included in interest | ' | 2,484 | 2,484 |
Write down of website | 1,667 | ' | 1,667 |
Stock issued for services | 16,286 | ' | 35,036 |
Stock issued for mineral property payment | ' | ' | 40,000 |
Stock issued for loan extension fees | 32,005 | ' | 60,085 |
Stock options issued for services | ' | ' | 50,855 |
Impairment loss on mineral properties | ' | 40,000 | 429,929 |
Gain on sale of rights | -74,690 | ' | -74,690 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable - other | 6,433 | ' | ' |
Prepaid expenses | -6,612 | 15,000 | -28,610 |
Accounts payable | 52,389 | -16,669 | 110,756 |
Accrued expenses | 14,806 | 9,738 | 32,931 |
Net Cash Used in Operating Activities | -16,441 | -47,351 | -756,433 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Purchase of property and equipment | ' | ' | -5,722 |
Reclamation bond | ' | ' | -591 |
Website development costs | ' | ' | -5,000 |
Acquisition of mineral properties | ' | ' | -164,179 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | -175,492 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from (repayment to) related party debt | 4,361 | -18,352 | 56,175 |
Proceeds from the issuance of common stock | ' | ' | 650,000 |
Proceeds from notes payable | 12,000 | 58,750 | 250,750 |
Payments on notes payable | ' | ' | -25,000 |
Net Cash Provided by Financing Activities | 16,361 | 40,398 | 931,925 |
Net Increase (Decrease) in Cash and Cash Equivalents | -80 | -6,953 | ' |
Cash and Cash Equivalents, Beginning of Period | 80 | 7,003 | ' |
Cash and Cash Equivalents, End of Period | ' | 50 | ' |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' | ' |
Cash paid for income taxes | ' | ' | ' |
Cash paid for interest | ' | ' | ' |
SUPPLEMENTAL NON-CASH INAVESTING AND FINANCING ACTIVITES: | ' | ' | ' |
Cancellation of common shares | ' | ' | 23,850 |
Common stock issued to acquire mineral properties | ' | ' | $265,750 |
NATURE_OF_OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Aug. 31, 2014 | |
Notes to Financial Statements | ' |
Note 1. NATURE OF OPERATIONS | ' |
Mayetok, Inc. (“the Company”) was incorporated in the state of Nevada on April 29, 2008. | |
On June 8, 2010, the Company changed its name to First American Silver Corp. | |
In October 2010, the Company entered into Property Option Agreements to acquire 100% interests in three mineral properties located in Nevada. On April 15, 2011 the Company entered into a Property Option Agreement with Pyramid Lake LLC and Anthony A. Longo to acquire a 100% interest in the Esmeralda Property, also located in Nevada. These properties have been acquired for prospecting, exploration and production of gold, silver, and all other metals. Development and exploration activities are currently being undertaken. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Aug. 31, 2014 | |
Notes to Financial Statements | ' |
Note 2. SIGNIFICANT ACCOUNTING POLICIES | ' |
Exploration Stage Company | |
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to accounting and reporting by exploration-stage companies. An exploration-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from. | |
Basis of Presentation | |
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. | |
Accounting Basis | |
The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a November 30 fiscal year end. | |
Risks and Uncertainties | |
The Company's operations are subject to significant risk and uncertainties including financial, operational, technological, and regulatory risks including the potential risk of business failure. See Note 13 regarding going concern matters. | |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments with maturities of three months or less to be cash equivalents. At August 31, 2014 and November 30, 2013, respectively, the Company had $0 and $80 of unrestricted cash to be used for future business operations. | |
The Company's bank accounts are deposited in insured institutions. The funds are insured up to $250,000. At times, the Company's bank deposits may exceed the insured amount. Management believes it has little risk related to the excess deposits. | |
Fair Value of Financial Instruments | |
The Company's financial instruments consist of cash, prepaid expenses, accounts payable, accrued expenses, notes payable, and note payable-related party. The carrying amount of these financial instruments approximates fair value due to either length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. | |
Concentrations of Credit Risk | |
The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents. | |
Stock-Based Compensation | |
The Company accounts for employee stock-based compensation in accordance with the guidance of ASC Topic 718, Compensation – Stock Compensation which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. There has been no stock-based compensation issued to employees. | |
The Company follows ASC Topic 505-50, formerly EITF 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees. In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital over the period during which services are rendered. | |
Income Taxes | |
Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of August 31, 2014, there have been no interest or penalties incurred on income taxes. | |
Use of Estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Revenue Recognition | |
The Company is in the exploration stage and has yet to realize revenues from operations. Once the Company has commenced operations, it will recognize revenues when delivery of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved by its customers, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is probable. | |
Basic Income (Loss) Per Share | |
Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. | |
On June 8, 2010, the Company affected a 35:1 forward stock split of its common shares. All share and per share data have been adjusted to reflect such stock split. | |
Dividends | |
The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during the periods shown. | |
Mineral Properties | |
Costs of exploration are expensed as incurred. Mineral property acquisition costs are capitalized including licenses and lease payments. Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company's title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects. | |
Mineral properties are analyzed for impairment on an annual basis, or more often if warranted by circumstances. Impairment losses are recorded on mineral properties used in operations when indicators of impairment are present. | |
Property and Equipment | |
Property and equipment are stated at cost. Depreciation is computed on the straight line method over the estimated useful lives of the assets, which range from three to seven years. | |
Reclassifications | |
Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements. | |
Recent Accounting Pronouncements | |
First American Silver does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flows. |
PREPAID_EXPENSES
PREPAID EXPENSES | 9 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Note 3. PREPAID EXPENSES | ' | ||||||||
Prepaid expenses consisted of the following:: | |||||||||
August 31, | 30-Nov-13 | ||||||||
2014 | |||||||||
Loan extension fees | $ | 26,126 | $ | 19,514 | |||||
Other | - | - | |||||||
Total prepaid expenses | $ | 26,126 | $ | 19,514 |
WEBSITE
WEBSITE | 9 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Note 4. WEBSITE | ' | ||||||||
The cost of developing the Company website has been capitalized and is being amortized over a 5 year period using straight-line amortization: Website development costs consisted of the following: | |||||||||
August 31, | November 30, | ||||||||
2014 | 2013 | ||||||||
Website development costs | $ | 5,000 | $ | 5,000 | |||||
Less: accumulated amortization | (3,333 | ) | (2,833 | ) | |||||
Less: writedown | (1,667 | ) | - | ||||||
Website development costs, net | $ | - | $ | 2,167 | |||||
Amortization expense was $500 and $500 for the nine months ended August 31, 2014 and 2013, respectively. | |||||||||
The Company has determined that its website should be subject to a impairment allowance of $1,667 as a result of the website no longer being applicable to the current business of the Company. |
NOTES_PAYABLE
NOTES PAYABLE | 9 Months Ended | ||||||||||||||
Aug. 31, 2014 | |||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||
Note 5. NOTES PAYABLE | ' | ||||||||||||||
Notes payable consisted of the following at August 31, 2014: | |||||||||||||||
Date of Note | Note Amount | Interest Rate | Interest Accrued | ||||||||||||
Maturity Date | Collateral | ||||||||||||||
12-Jun-14 | $ | 6,250 | 8 | % | 12-Jun-15 | None | $ | 609 | |||||||
18-Jun-14 | $ | 50,000 | 8 | % | 18-Jun-15 | None | $ | 8,811 | |||||||
22-Aug-14 | $ | 55,000 | 8 | % | 22-Aug-15 | None | $ | 8,908 | |||||||
1-Nov-13 | $ | 25,000 | 8 | % | 1-Nov-14 | None | $ | 3,660 | |||||||
5-Feb-14 | $ | 15,000 | 8 | % | 5-Feb-15 | None | $ | 1,880 | |||||||
22-Feb-14 | $ | 30,000 | 8 | % | 22-Feb-15 | None | $ | 3,649 | |||||||
10-Mar-14 | $ | 12,000 | 8 | % | 10-Mar-15 | None | $ | 458 | |||||||
17-Apr-14 | $ | 7,500 | 8 | % | 17-Apr-15 | None | $ | 825 | |||||||
Total | $ | 200,750 | $ | 28,800 |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Aug. 31, 2014 | |
Notes to Financial Statements | ' |
Note 6. RELATED PARTY TRANSACTIONS | ' |
On August 19, 2013, the president loaned the Company $25,000. The note bears interest at 8% and matures on August 19, 2014. The note is not secured and all principal and interest are due to be repaid on the maturity date. As of August 31, 2014, this note was forgiven. |
CAPITAL_STOCK
CAPITAL STOCK | 9 Months Ended |
Aug. 31, 2014 | |
Notes to Financial Statements | ' |
Note 7. CAPITAL STOCK | ' |
The company has 3,500,000,000 common shares authorized at a par value of $0.001 per share. | |
The company has 20,000,000 preferred shares authorized at a par value of $0.001 per share. | |
In 2008, the Company issued 77,000,000 common shares for total proceeds of $50,000. | |
On June 8, 2010, the Company affected a 35:1 forward stock split of its common shares. All share and per share data have been adjusted to reflect such stock split. | |
On October 29, 2010, the Company completed a private placement whereby it issued 1,000,000 units at $0.25 each for gross proceeds of $250,000 to an unrelated third party. Each unit consists of one common share and one share purchase warrant exercisable at a price of $0.50 expiring on October 29, 2012. | |
On November 26, 2010, the Company issued 300,000 common shares as part of the acquisition of interests in three mineral properties. These shares were valued at a fair market value of $.50 per share on the date of issuance for total value of $150,000. | |
On December 20, 2010, the Company cancelled 23,850,000 common shares. | |
On April 15, 2011, the Company issued 100,000 common shares as part of the acquisition of an interest in a mineral property. These shares were valued at a fair market value of $1.03 per share on the date of issuance for total value of $103,000. | |
On July 1, and October 1, 2011, the Company issued 25,000 common shares to a consultant for services. The shares issued on July 1, 2011 were valued at $4,500; the shares issued on October 1, 2011 were valued at $10,725. | |
On July 13, 2011, the Company completed a private placement whereby it issued 1,000,000 units at $0.35 each for gross proceeds of $350,000 to an unrelated third party. Each unit consists of one common share and one share purchase warrant exercisable at a price of $0.65 expiring on July 13, 2013. | |
On April 15, 2011, the Company issued 100,000 common shares as part of the acquisition of an interest in a mineral property. These shares were valued at a fair market value of $1.03 per share on the date of issuance for total value of $103,000. | |
On April 15, 2011, the Company issued 100,000 common shares as part of the acquisition of an interest in a mineral property. These shares were valued at a fair market value of $1.03 per share on the date of issuance for total value of $103,000. | |
On July 1, and October 1, 2011, the Company issued 25,000 common shares to a consultant for services. The shares issued on July 1, 2011 were valued at $4,500; the shares issued on October 1, 2011 were valued at $10,725. | |
On July 13, 2011, the Company completed a private placement whereby it issued 1,000,000 units at $0.35 each for gross proceeds of $350,000 to an unrelated third party. Each unit consisted of one common share and one share purchase warrant exercisable at a price of $0.65 expiring on July 13, 2013. | |
On January 1, 2012, the Company issued 25,000 common shares to a consultant for services. The shares were valued at a fair market value of $0.13/share on the date of issuance for a total value of $3,250. | |
On January 26, 2012, the Company issued 75,000 common shares as part of the acquisition of interests in three mineral properties. These shares were valued at a fair market value of $0.13/share on the date of issuance for a total value of $9,750. | |
On June 18, 2013, the Company issued 270,000 to extend the maturity date of a note payable to June 18, 2014. The value of these shares has been included in prepaid expenses and will amortize to interest expense over the term of the extension period (1 year). | |
On August 22, 2013, the Company issued 396,000 to extend the maturity date of a note payable to August 22, 2014. The value of these shares has been included in prepaid expenses and will amortize to interest expense over the term of the extension period (1 year). | |
On September 27, 2013, the Company issued 1,000,000 shares to Pyramid Lake LLC in consideration for the April 15, 2012 option payment on the Esmeralda Property. | |
On September 28, 2013, the Company issued 25,000 common shares to a consultant for services. The shares were valued at a fair market value of $0.03/share on the date of issuance for a total value of $750. | |
On October 16, 2013, the Company issued 403,000 common shares to retire $12,109 of accounts payable owing to a former consultant. | |
On November 1, 2013, the Company issued 180,000 to extend the maturity date of a note payable to November 1, 2014. The value of these shares has been included in prepaid expenses and will amortize to interest expense over the term of the extension period (1 year). | |
On November 30, 2013, the Company issued 68,667 common shares to retire $2,060 of accounts payable owing to a former consultant. | |
On November 30, 2013, the Company issued 405,400 shares to its president to retire $12,162 of accounts payable owing. | |
On February 4, 2014, 162,000 shares of common stock valued at $2,754 were issued to a lender to extend a $15,000 loan. | |
On February 21, 2014, 324,000 shares of common stock valued at $6,480 were issued to a lender to extend a $30,000 loan. | |
On April 17, 2014, 162,000 shares of common stock valued at $1,620 were issued to a lender to extend a $7,500 loan. | |
On June 18, 2014, 540,000 shares of common stock valued at $10,800 were issued to a lender to extend a $50,000 loan. | |
On August 22, 2014, 540,000 shares of common stock valued at $10,800 were issued to a lender to extend a $55,000 loan. | |
On April 30, 2014, 1,000,000 shares of common stock valued at $20,000 were issued to settle accounts payable. | |
On August 14, 2014, 888,000 shares of common stock valued at $17,670 were to settle accounts payable. |
GOING_CONCERN
GOING CONCERN | 9 Months Ended |
Aug. 31, 2014 | |
Notes to Financial Statements | ' |
Note 8. GOING CONCERN | ' |
The accompanying financial statements have been prepared assuming that First American Silver, Inc. will continue as a going concern. The Company has a working capital deficit, has not yet received revenue from sales of products or services, and has incurred losses from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Without realization of additional debt or capital, it would be unlikely for the Company to continue as a going concern. The financial statements do not include any adjustments that might result from this uncertainty. | |
The Company’s activities to date have been supported by debt and equity financing. It has sustained losses in all previous reporting periods with an inception to date loss of approximately $1,425,000 as of August 31, 2014. Management continues to seek funding from its shareholders and other qualified investors. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Aug. 31, 2014 | |
Notes to Financial Statements | ' |
Note 9. COMMITMENTS AND CONTINGENCIES | ' |
On September 22, 2011, the Company entered into a License and Assignment Agreement with its President, Mr. Tom Menning, whereby Mr. Menning has assigned 80% of his rights to participate on a 50% basis with ongoing and future projects operated, controlled and conveyed within the area of interest. | |
Under the terms of the License Agreement, the Company will finance the cost of pursuing rights for 80% percent of future proceeds received from the rights. The term of the agreement is 10 years with an option to renew for an additional 10 years. | |
The Company is currently a plaintiff in two separate legal actions in relation to the above mentioned license agreement whereby the Company wishes to obtain mining claims that were placed on auction. Currently discovery is ongoing and management intends to pursue the claims while being receptive to potential settlement. | |
The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities that become available. They may face a conflict in selecting between the Company and other business interests. The Company has not formulated a policy for the resolution of such conflicts. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Aug. 31, 2014 | |
Notes to Financial Statements | ' |
Note 10. SUBSEQUENT EVENTS | ' |
In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Aug. 31, 2014 | |
Significant Accounting Policies Policies | ' |
Exploration Stage Company | ' |
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to accounting and reporting by exploration-stage companies. An exploration-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from. | |
Basis of Presentation | ' |
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. | |
Accounting Basis | ' |
The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a November 30 fiscal year end. | |
Risks and Uncertainties | ' |
The Company's operations are subject to significant risk and uncertainties including financial, operational, technological, and regulatory risks including the potential risk of business failure. See Note 13 regarding going concern matters. | |
Cash And Cash Equivalents | ' |
The Company considers all highly liquid investments with maturities of three months or less to be cash equivalents. At August 31, 2014 and November 30, 2013, respectively, the Company had $0 and $80 of unrestricted cash to be used for future business operations. | |
The Company's bank accounts are deposited in insured institutions. The funds are insured up to $250,000. At times, the Company's bank deposits may exceed the insured amount. Management believes it has little risk related to the excess deposits. | |
Fair Value of Financial Instruments | ' |
The Company's financial instruments consist of cash, prepaid expenses, accounts payable, accrued expenses, notes payable, and note payable-related party. The carrying amount of these financial instruments approximates fair value due to either length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. | |
Concentrations of Credit Risk | ' |
The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents. | |
Stock-Based Compensation | ' |
The Company accounts for employee stock-based compensation in accordance with the guidance of ASC Topic 718, Compensation – Stock Compensation which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. There has been no stock-based compensation issued to employees. | |
The Company follows ASC Topic 505-50, formerly EITF 96-18, “Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,” for stock options and warrants issued to consultants and other non-employees. In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair market value of the option or warrant, whichever can be more clearly determined. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital over the period during which services are rendered. | |
Income Taxes | ' |
Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of August 31, 2014, there have been no interest or penalties incurred on income taxes. | |
Use of Estimates | ' |
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Revenue Recognition | ' |
The Company is in the exploration stage and has yet to realize revenues from operations. Once the Company has commenced operations, it will recognize revenues when delivery of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved by its customers, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is probable. | |
Basic Income (Loss) Per Share | ' |
Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. | |
On June 8, 2010, the Company affected a 35:1 forward stock split of its common shares. All share and per share data have been adjusted to reflect such stock split. | |
Dividends | ' |
The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during the periods shown. | |
Mineral Properties | ' |
Costs of exploration are expensed as incurred. Mineral property acquisition costs are capitalized including licenses and lease payments. Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company's title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects. | |
Mineral properties are analyzed for impairment on an annual basis, or more often if warranted by circumstances. Impairment losses are recorded on mineral properties used in operations when indicators of impairment are present. | |
Property and Equipment | ' |
Property and equipment are stated at cost. Depreciation is computed on the straight line method over the estimated useful lives of the assets, which range from three to seven years. | |
Reclassifications | ' |
Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements. | |
Recent Accounting Pronouncements | ' |
First American Silver does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flows. |
PREPAID_EXPENSES_Tables
PREPAID EXPENSES (Tables) | 9 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Prepaid Expenses Tables | ' | ||||||||
Prepaid expenses | ' | ||||||||
Prepaid expenses consisted of the following:: | |||||||||
August 31, | 30-Nov-13 | ||||||||
2014 | |||||||||
Loan extension fees | $ | 26,126 | $ | 19,514 | |||||
Other | - | - | |||||||
Total prepaid expenses | $ | 26,126 | $ | 19,514 |
WEBSITE_Tables
WEBSITE (Tables) | 9 Months Ended | ||||||||
Aug. 31, 2014 | |||||||||
Website Tables | ' | ||||||||
Schedule of Website costs | ' | ||||||||
Website development costs consisted of the following: | |||||||||
August 31, | November 30, | ||||||||
2014 | 2013 | ||||||||
Website development costs | $ | 5,000 | $ | 5,000 | |||||
Less: accumulated amortization | (3,333 | ) | (2,833 | ) | |||||
Less: writedown | (1,667 | ) | - | ||||||
Website development costs, net | $ | - | $ | 2,167 |
NOTES_PAYABLE_Tables
NOTES PAYABLE (Tables) | 9 Months Ended | ||||||||||||||
Aug. 31, 2014 | |||||||||||||||
Notes Payable Tables | ' | ||||||||||||||
NOTES PAYABLE | ' | ||||||||||||||
Notes payable consisted of the following at August 31, 2014: | |||||||||||||||
Date of Note | Note Amount | Interest Rate | Interest Accrued | ||||||||||||
Maturity Date | Collateral | ||||||||||||||
12-Jun-14 | $ | 6,250 | 8 | % | 12-Jun-15 | None | $ | 609 | |||||||
18-Jun-14 | $ | 50,000 | 8 | % | 18-Jun-15 | None | $ | 8,811 | |||||||
22-Aug-14 | $ | 55,000 | 8 | % | 22-Aug-15 | None | $ | 8,908 | |||||||
1-Nov-13 | $ | 25,000 | 8 | % | 1-Nov-14 | None | $ | 3,660 | |||||||
5-Feb-14 | $ | 15,000 | 8 | % | 5-Feb-15 | None | $ | 1,880 | |||||||
22-Feb-14 | $ | 30,000 | 8 | % | 22-Feb-15 | None | $ | 3,649 | |||||||
10-Mar-14 | $ | 12,000 | 8 | % | 10-Mar-15 | None | $ | 458 | |||||||
17-Apr-14 | $ | 7,500 | 8 | % | 17-Apr-15 | None | $ | 825 | |||||||
Total | $ | 200,750 | $ | 28,800 | |||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | Aug. 31, 2014 | Nov. 30, 2013 |
Significant Accounting Policies Details Narrative | ' | ' |
Amount of unrestricted cash to be used on future business operations | $0 | $80 |
Interest or penalties incurred on income taxes. | ' | ' |
PREPAID_EXPENSES_Details
PREPAID EXPENSES (Details) (USD $) | Aug. 31, 2014 | Nov. 30, 2013 |
Prepaid Expenses Details | ' | ' |
Loan extension fees | $26,126 | $19,514 |
Other | ' | ' |
Total Prepaid expenses | $26,126 | $19,514 |
WEBSITE_Details
WEBSITE (Details) (USD $) | Aug. 31, 2014 | Nov. 30, 2013 |
Website Details | ' | ' |
Website development costs | $5,000 | $5,000 |
Less: accumulated amortization | -3,333 | -2,833 |
Less: writedown | -1,667 | ' |
Website development costs, net | ' | $2,167 |
WEBSITE_Details_Narrative
WEBSITE (Details Narrative) (USD $) | 9 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Website Details Narrative | ' | ' |
Website amortized period | '5 years | ' |
Amortization Expense | $500 | $500 |
NOTES_PAYABLE_Details
NOTES PAYABLE (Details) (USD $) | 9 Months Ended |
Aug. 31, 2014 | |
Note Amount | $200,750 |
Interest accured | 28,800 |
June 12, 2014 [Member] | ' |
Note Amount | 6,250 |
Interest Rate | 8.00% |
Maturity Date | '2015-06-12 |
Collateral | 'None |
Interest accured | 609 |
June 18, 2014 [Member] | ' |
Note Amount | 50,000 |
Interest Rate | 8.00% |
Maturity Date | '2015-06-18 |
Collateral | 'None |
Interest accured | 8,811 |
August 22, 2014 [Member] | ' |
Note Amount | 55,000 |
Interest Rate | 8.00% |
Maturity Date | '2015-08-22 |
Collateral | 'None |
Interest accured | 8,908 |
November 1, 2013 [Member] | ' |
Note Amount | 25,000 |
Interest Rate | 8.00% |
Maturity Date | '2014-11-01 |
Collateral | 'None |
Interest accured | 3,660 |
February 5, 2014 [Member] | ' |
Note Amount | 15,000 |
Interest Rate | 8.00% |
Maturity Date | '2015-02-05 |
Collateral | 'None |
Interest accured | 1,880 |
February 22, 2014 [Member] | ' |
Note Amount | 30,000 |
Interest Rate | 8.00% |
Maturity Date | '2015-02-22 |
Collateral | 'None |
Interest accured | 3,649 |
March 10, 2014 [Member] | ' |
Note Amount | 12,000 |
Interest Rate | 8.00% |
Maturity Date | '2015-03-10 |
Collateral | 'None |
Interest accured | 458 |
April 17, 2014 [Member] | ' |
Note Amount | 7,500 |
Interest Rate | 8.00% |
Interest accured | $825 |
April 17, 2014 [Member] | ' |
Maturity Date | '2015-04-17 |
Collateral | 'None |
CAPITAL_STOCK_Details_Narrativ
CAPITAL STOCK (Details Narrative) (USD $) | Nov. 30, 2013 |
Capital Stock Details Narrative | ' |
Common Shares issued | 68,667 |
Accounts payable to former consultant. | $2,060 |
Shares issued to president | 405,400 |
Account payable | $12,162 |
GOING_CONCERN_Details_Narrativ
GOING CONCERN (Details Narrative) (USD $) | Aug. 31, 2014 |
Going Concern Details Narrative | ' |
Loss in all previous reporting periods | $1,425,000 |