Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Nov. 30, 2013 | Jan. 11, 2013 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Laredo Resources Corp. | ' |
Entity Central Index Key | '0001499871 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Nov-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--08-31 | ' |
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 | ' | 178,500,000 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
Current assets | ' | ' |
Cash | $693 | $692 |
Prepaid assets | ' | 1,000 |
Total Current Assets | 693 | 1,692 |
Property option | 736,414 | ' |
Intangible asset, net of accumulated amortization of $4,580 and $3,209, respectively | 11,920 | 13,291 |
TOTAL ASSETS | 749,027 | 14,983 |
Current liabilities | ' | ' |
Accounts payable and accrued liabilities | 160,272 | 123,400 |
Advances from related party | 147,222 | 105,901 |
Advances for property option | 716,414 | ' |
Accrued interest, related party | 1,456 | 1,156 |
Convertible note payable, related party | 14,300 | ' |
Notes payable, related party | 20,000 | 20,000 |
Total Current Liabilities | 1,059,664 | 250,457 |
Stockholders' deficit | ' | ' |
Common stock: $.00001 par value, 1,969,999,900 shares authorized ,value 178,500,000 shares issued and outstanding | 1,785 | 1,785 |
Additional paid-in capital | 283,901 | 269,601 |
Deficit accumulated during the exploration stage | -596,323 | -506,860 |
Total Stockholders' Deficit | -310,637 | -235,474 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | 749,027 | 14,983 |
Series A convertible preferred Stock | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock, value | ' | ' |
Series B Preferred Stock | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock, value | ' | ' |
Series C convertible preferred stock | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock, value | ' | ' |
Series D Preferred Stock | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock, value | ' | ' |
Balance_Sheets_Parenthetical_U
Balance Sheets (Parenthetical) (Unaudited) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
Current assets | ' | ' |
Intangible asset, net of accumulated amortization | $4,580 | $3,209 |
Stockholders' deficit | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, Authorized | 1,969,999,900 | 1,969,999,900 |
Common stock, Issued | 178,500,000 | 178,500,000 |
Common stock, outstanding | 178,500,000 | 178,500,000 |
Series A convertible preferred Stock | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, Authorized | 100 | 100 |
Preferred stock, Issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Series B Preferred Stock | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, Authorized | 10,000,000 | 10,000,000 |
Preferred stock, Issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Series C convertible preferred stock | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, Authorized | 10,000,000 | 10,000,000 |
Preferred stock, Issued | 286,566 | 286,566 |
Preferred stock, outstanding | 286,566 | 286,566 |
Series D Preferred Stock | ' | ' |
Stockholders' deficit | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, Authorized | 10,000,000 | 10,000,000 |
Preferred stock, Issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 39 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | |
Statements Of Operations | ' | ' | ' |
Revenues | ' | ' | ' |
Operating Expenses | ' | ' | ' |
Amortization expense | 1,371 | ' | 4,580 |
Accounting and audit | 6,015 | 9,476 | 70,241 |
Foreign exchange loss | ' | 54 | 790 |
Legal and professional fees | 2,139 | 21,684 | 84,937 |
General and administrative | 1,077 | 1,558 | 49,990 |
Management Fees | 48,900 | 16,000 | 125,200 |
Mineral property exploration costs | ' | ' | 14,500 |
Transfer and filing fees | 1,061 | 20,682 | 37,077 |
Impairment of mineral property option | ' | ' | 20,000 |
Total operating expenses | 60,563 | 69,454 | 407,315 |
Net loss from operations | -60,563 | -69,454 | -407,315 |
Other income (expense) | ' | ' | ' |
Forgiveness of debt | ' | ' | 10,000 |
Interest and financing expense | -28,900 | -401 | -48,493 |
Net other income (expense) | -28,900 | -401 | -38,493 |
Net loss | ($89,463) | ($69,855) | ($445,808) |
Basic loss per share | ' | ' | ' |
Weighted average number of shares outstanding - Basic | 178,500,000 | 178,500,000 | ' |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | 39 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net loss | ($89,463) | ($69,855) | ($445,808) |
Adjustment to reconcile Net loss to net cash used by operating activities: | ' | ' | ' |
Non cash interest expense - capital contribution | ' | 25 | 1,822 |
Forgiveness of debt | ' | ' | -10,000 |
Write off of property option | ' | ' | 20,000 |
Amortization expense | 1,371 | ' | 4,580 |
Interest and amortization of beneficial conversion feature | 28,600 | ' | 28,600 |
Changes in assets and liabilities: | ' | ' | ' |
Prepaid expenses | 1,000 | ' | ' |
Accrued interest, related party | 300 | 376 | 5,570 |
Accounts payable and accrued liabilities | 36,872 | 49,788 | 160,722 |
Advances from related party | 41,321 | ' | 147,222 |
Net Cash Used in Operating Activities | 20,001 | -19,666 | -87,292 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Acquisition of property option | -20,000 | ' | -20,000 |
Acquisition of intangibles | ' | ' | -26,500 |
Net Cash Used in Investing Activities | -20,000 | ' | -46,500 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Capital stock issued | ' | ' | 27,985 |
Notes payable, related party | ' | 20,000 | 106,500 |
Net Cash Provided by Financing Activates | ' | 20,000 | 134,485 |
Net change in cash and cash equivalents | 1 | 334 | 693 |
Cash and cash equivalents, beginning of the period | 692 | ' | 693 |
Cash and cash equivalents, end of the period | 693 | 702 | 693 |
Non-cash transactions: | ' | ' | ' |
Accrual of mineral property | ' | ' | 10,000 |
Accounts payable settled in connection with sale of subsidiary | ' | 450 | 450 |
Accrued interest, related party, settled in connection with sale of subsidiary | ' | 4,114 | 4,114 |
Note payable, related party, settled in connection with sale of subsidiary | ' | 86,500 | 86,500 |
Gain from foreign exchange | ' | ' | 2,324 |
Payments made on behalf of the Company for property option | 716,414 | ' | 716,414 |
Convertible note issued in exchange for accrued interest expense | $14,300 | ' | $14,300 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Nov. 30, 2013 | |
Basis Of Presentation | ' |
Note 1- Basis of Presentation | ' |
While the information presented in the accompanying November 30, 2013 financial statements is unaudited, it includes all adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the period presented in accordance with the accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. These financial statements should be read in conjunction with the Company’s August 31, 2013 audited financial statements (notes thereto) included in the Company’s Form 10-K. | |
Operating results for the three months ended November 30, 2013 are not necessarily indicative of the results that can be expected for the year ending August 31, 2014. |
Nature_of_Operations_and_Abili
Nature of Operations and Ability to Continue as a Going Concern | 3 Months Ended |
Nov. 30, 2013 | |
Nature Of Operations And Ability To Continue As Going Concern | ' |
Note 2 - Nature of Operations and Ability to Continue as a Going Concern | ' |
The Company was incorporated in the state of Nevada, United States of America on August 17, 2010. The Company’s year-end is August 31. | |
On August 31, 2010, the Company incorporated a wholly-owned subsidiary, LRE Exploration LLC, (“LRE”) in the State of Nevada, United States of America (“USA”) for the purpose of mineral exploration in the USA. This subsidiary was sold in September 2012. | |
On November 30, 2010, LRE began its operations by entering into a property option agreement with Arbutus Minerals LLC. (“Arbutus”) whereby the Company was granted an option to earn up to a 100% interest in 20 mineral claims (the “ABR Claims”) located approximately 15 miles north of Elko, Nevada. During the year ended August 31, 2012, the Company abandoned the property. | |
Effective October 30, 2012, the Company increased the number of authorized common shares of the Company from 90,000,000 to 4,500,000,000 shares per director’s resolution dated October 30, 2012. The Company also conducted a fifty to one forward stock split of the Company’s issued and outstanding common shares per director’s resolution. Following this stock split, the number of outstanding shares of the Company’s common stock increased from 3,570,000 shares to 178,500,000 shares. All share and per share information in these financial statements has been retro-actively restated for all periods presented to give effect of this stock split. | |
These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. The Company has yet to achieve profitable operations, has accumulated losses of $596,323 since its inception and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company’s ability to continue as a going concern. | |
The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing from shareholders or other sources to meet its obligations and repay its liabilities arising from normal business operations when they become due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available or on acceptable terms, if at all. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the company cannot continue in existence. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Nov. 30, 2013 | |
Summary Of Significant Accounting Policies | ' |
Note 3 - Summary of Significant Accounting Policies | ' |
Use of Estimates | |
The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are stated in US dollars. The preparation of financial statements in conformity with U.S. GAAP 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 of the financial statements and the reported amounts of expense during the reporting period. Actual results could differ from those estimates. | |
Principles of Consolidation | |
These financial statements include the accounts of the Company and LRE Exploration LLC. (“LRE”), until LRE was disposed of by sale to the former president on September 10, 2012. Accordingly, the balance sheets, statements of operations and cash flows presented include the results of LRE from August 31, 2010 to September 10, 2012, and the balance sheet presented at November 31, 2013 and August 31, 2013 is solely that of Laredo Resources Corp. All significant inter-company transactions and balances have been eliminated. | |
Exploration Stage Company | |
The Company is an exploration stage company. All losses accumulated since inception are considered part of the Company’s exploration stage activities. | |
Cash and cash equivalents | |
The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. | |
The Company minimizes its credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits. At November 30, 2013, the balance did not exceed the federally insured limit. | |
Intangible Asset | |
The Company has applied the provision of ASC topic 350 - Intangible - goodwill and other, in accounting for its intangible asset. The intangible asset is being amortized by the straight line method on the basis of a useful life of 3 years. The intangible asset consists of website development costs. The balance at November 30, 2013 was $11,920 and 13,291, net of accumulated amortization of $4,580 and $3,209. Amortization expense for the three months period ended November 30, 2013 and 2012 are $1,371 and $- respectively. | |
Mineral Property Option | |
The Company is primarily engaged in the acquisition, exploration and development of mineral properties. | |
Mineral property acquisition costs are capitalized in accordance with FASB ASC 930, “Extractive Activities-Mining,” when management has determined that probable future benefits consisting of a contribution to future cash inflows have been identified and adequate financial resources are available or are expected to be available as required to meet the terms of property acquisition and budgeted exploration and development expenditures. Mineral property acquisition costs are expensed as incurred if the criteria for capitalization are not met. | |
In the event that mineral property acquisition costs are paid with Company shares, those shares are recorded at the estimated fair value at the time the shares are due in accordance with the terms of the property agreements. | |
Mineral property exploration costs are expensed as incurred. | |
When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves and pre-feasibility, the costs incurred to develop such property are capitalized. | |
Estimated future removal and site restoration costs, when determinable are provided over the life of proven reserves on a units-of-production basis. Costs, which include production equipment removal and environmental remediation, are estimated each period by management based on current regulations, actual expenses incurred, and technology and industry standards. Any charge is included in exploration expense or the provision for depletion and depreciation during the period and the actual restoration expenditures are charged to the accumulated provision amounts as incurred. | |
To date the Company has not established any proven or probable reserves on its mineral properties. | |
On April 4th, 2013, a related party paid $20,000 on behalf of Laredo towards the property title rights to the Pony Mountain Gold Property. There are no terms of repayment and bears no interest. | |
As per the September 6th, 2013, Memorializing Agreement, Laredo negotiated the property title rights to the Pony Mountain Gold Property via a third party, through the securitization of the third party's payments with Laredo Series C convertible preferred stock. Each share of Series C convertible preferred stock accounts for $2.50 of value paid by the third party. As of November 30, 2013, the third party had paid $716,414 on behalf of Laredo which caused Laredo to issue 286,566 shares of Series C preferred stock. These shares are held as collateral and only the company can release the shares to the third party. See Note 7 for details. The total purchase price for these rights is $3,000,000. However, the Company does not have title to the property and, therefore, has only recorded payments made through November 30, 2013 toward the total purchase price in the financial statements. | |
Asset Retirement Obligations | |
Asset retirement obligations (“ARO”) associated with the retirement of a tangible long-lived asset, are recognized as liabilities in the period in which it is incurred and becomes determinable, with an offsetting increase in the carrying amount of the associated assets. The cost of tangible long-lived assets, including the initially recognized ARO, is amortized, such that the cost of the ARO is recognized over the useful life of the assets. The ARO is recorded at fair value, and accretion expense is recognized over time as the discounted fair value is accreted to the expected settlement value. | |
The fair value of the ARO is measured using expected future cash flow, discounted at the Company’s credit-adjusted risk-free interest rate. As of November 30, 2013 and August 31, 2013, the Company has determined no provision for ARO’s is required. | |
Impairment of Long- Lived Assets | |
The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The assets are subject to impairment consideration under FASB ASC 360-10-35-17 if events or circumstances indicate that their carrying amount might not be recoverable. When the Company determines that an impairment analysis should be done, the analysis will be performed using the rules of FASB ASC 930-360-35, Asset Impairment, and 360- 0 through 15-5, Impairment or Disposal of Long- Lived Assets. | |
Foreign Currency Translation | |
The Company’s functional currency is the United States dollar as substantially all of the Company’s operations are in the USA. The Company uses the United States dollar as its reporting currency for consistency with registrants of the Securities and Exchange Commission (“SEC”). | |
Assets and liabilities denominated in a foreign currency are translated at the exchange rate in effect at the balance sheet date and capital accounts are translated at historical rates. Income statement accounts are translated at the average rates of exchange prevailing during the period. | |
Translation adjustments from the use of different exchange rates from period to period are included in the Accumulated Other Comprehensive Income account in Stockholders’ Equity, if applicable. | |
Transactions undertaken in currencies other than the functional currency of the entity are translated using the exchange rate in effect as of the transaction date. Any exchange gains and losses are included in the statements of operations. | |
Earnings per share | |
In accordance with accounting guidance now codified as FASB ASC Topic 260, “Earnings per Share,” basic earnings per share (“EPS”) is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted method. Diluted EPS excludes all dilutive potential of shares of common stock if their effect is anti-dilutive. As there are no common stock equivalents outstanding, diluted and basic loss per share are the same. | |
Income Taxes | |
The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and loss carry-forwards and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |
The effect of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized. | |
Reclassifications | |
Certain reclassifications have been made to prior year financial statements in order for them to be in conformity with the current year presentation. The reclassifications had no impact on change in net assets. | |
Newly Issued Accounting Pronouncements | |
The Company feels there are no newly issued accounting pronouncements that will materially impact its financial position, cash flows or results of operations. |
Financial_Instruments
Financial Instruments | 3 Months Ended |
Nov. 30, 2013 | |
Financial Instruments | ' |
Note 4 - Financial Instruments | ' |
Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. | |
The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk. | |
In addition to defining fair value, the standard expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: | |
Level 1 - inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. | |
Level 2 - inputs are based upon significant observable inputs other than quoted prices included in Level 1, such as quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 - inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. | |
The carrying value of the Company’s financial assets and liabilities which consist of cash, accounts payable and accrued liabilities, and notes payable in management’s opinion approximates fair value due to the short maturity of such instruments. These financial assets and liabilities are valued using level 3 inputs, except for cash which is at level 1. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, exchange or credit risks arising from these financial instruments. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Nov. 30, 2013 | |
Related Party Transactions | ' |
Note 5 - Related Party Transactions | ' |
During the quarter ended November 30, 2013, the Company’s CEO paid various invoices on behalf of the Company. These are shown on the balance sheet as Advances from related party and amount to $147,222. |
Advance_for_Mineral_Property_O
Advance for Mineral Property Option | 3 Months Ended |
Nov. 30, 2013 | |
Advance For Mineral Property Option | ' |
Note 6 - Advance for Mineral Property Option | ' |
On April 4th, 2013, a related party paid $20,000 on behalf of Laredo towards the property title rights to the Pony Mountain Gold Property. There are no terms of repayment and bears no interest. | |
As per the September 6th, 2013, Memorializing Agreement, Laredo negotiated the property title rights to the Pony Mountain Gold Property via a third party, Magna Manage Ltd. (Magna), through the securitization of Magna’s payments with Laredo Series C convertible preferred stock. Each share of Series C convertible preferred stock accounts for $2.50 of value paid by Magna on behalf of Laredo. As of November 30, 2013, Magna had paid $716,414 on behalf of Laredo which caused Laredo to issue 286,566 shares of Series C preferred stock. These shares are held as collateral and only the company can release the shares to Magna. See Note 7 for details. The total purchase price for these rights is $3,000,000. However, the Company does not have title to the property and, therefore, has only recorded payments made through November 30, 2013 toward the total purchase price in the financial statements. |
Convertible_Note_Payable
Convertible Note Payable | 3 Months Ended |
Nov. 30, 2013 | |
Convertible Note Payable | ' |
Note 7 - Convertible Note Payable | ' |
On November 30, 2013, the Company issued a convertible promissory note to a third party, with a principal amount totaling $14,300. The note is due and payable in full on demand, and bears ten percent interest per annum. At any time prior to the payment in full of the entire balance of the notes, the creditor has the option of converting all or any portion of the unpaid balance of the note into shares of common stock at a conversion price equal to $0.00001 per share, subject to adjustment upon certain events and not exceed 4.99% of the total issued and outstanding shares of common stock. Assuming no adjustment to the conversion price, if the entire principal balance was converted, 8,907,150 (limited by 4.99% of the common shares issued and outstanding) shares of the Company’s common stock would be issued. | |
The Company evaluated the terms of the notes and concluded that the notes did not result in a derivative; however, the Company concluded that there was a beneficial conversion feature since the notes were convertible into shares of common stock at a discount to the market value of the common stock. The discount related to the beneficial conversion feature was valued at $14,300 at inception based on the intrinsic value of the discount. The discount was fully amortized at November 30, 2013 due to the short-term nature of the notes. For the three months ended November 30, 2013, $14,300 was charged to interest expense associated with the amortization of the debt discount. |
Capital_Stock
Capital Stock | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Capital Stock | ' | ||||||||
Note 8 - Capital Stock | ' | ||||||||
On September 17, 2013, the Company created the following series of Preferred | |||||||||
Series | Number of | Par Value | |||||||
Authorized Shares | |||||||||
Convertible Preferred Stock A | 100 | $ | 0.001 | ||||||
Preferred Stock B | 10,000,000 | $ | 0.001 | ||||||
Convertible Preferred Stock C | 10,000,000 | $ | 0.0001 | ||||||
Preferred Stock D | 10,000,000 | $ | 0.001 | ||||||
Stock: | |||||||||
Each share of Series A preferred stock is convertible into the number of shares of common stock equal to four times the sum of all shares of common stock issued and outstanding plus all shares of Series B, C and D preferred stock issued and outstanding divided by the number of shares of Series A preferred stock issued and outstanding at the time of conversion. | |||||||||
Each share of Series C preferred stock is convertible into the number of shares of the Company’s common stock equal to the price of the Series C preferred stock stated in the Company’s amended certificate of incorporation divided by the par value of Series C preferred stock. Shares of Series C preferred stock may not be converted into shares of common stock for a period of six months. The holders of Series B preferred stock are entitled to receive dividends when, and if declared by the Board of Directors, in its sole discretion. Upon liquidation, dissolution or winding up of the corporation, whether voluntarily or involuntarily, before any distribution or payment shall be made to the holders of any stock ranking junior to the Series C preferred stock, the holders of the Series C preferred stock are entitled to be paid out of the assets of the corporation an amount equal to $1.00 per share or in the event of an aggregate subscription by a single subscriber for Series C preferred stock in excess of $100,000, $0.997 per share (as adjusted for any stock dividends, combinations, splits and recapitalization), plus all declared but unpaid dividends, for each share of Series C preferred stock held. After the payment of the full applicable preference value of each share of the Series C preferred stock, the remaining assets of the corporation legally available for distribution, if any, will be distributed ratably to the holders of the corporation’s common stock. | |||||||||
The Company also changed the number of authorized shares of common stock to 1,969,999,900 and changed the par value from $.001 to $.00001. All disclosures have been restated to reflect the change in par value. | |||||||||
286,566 shares of Series C convertible preferred stock was issued during the quarter ended November 30, 2013 as repayment of Magna’s $716,414 of payments on the Pony property. The Company determined there is no derivative associated with this issuance as the shares of stock must be held for at least six months in order to be converted into common stock. In addition, the Company determined there will be no value for these shares shown on the financial statements as these shares are held as | |||||||||
collateral related to the Pony property purchase and only the Company can release the shares. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Nov. 30, 2013 | |
Subsequent Events | ' |
Note 9 - Subsequent Events | ' |
In accordance with ASC 855-10, management has evaluated subsequent events through the date the financial statements were issued. | |
There are no subsequent events to disclose. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Nov. 30, 2013 | |
Summary Of Significant Accounting Policies Policies | ' |
Use of Estimates | ' |
The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are stated in US dollars. The preparation of financial statements in conformity with U.S. GAAP 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 of the financial statements and the reported amounts of expense during the reporting period. Actual results could differ from those estimates. | |
Principles of Consolidation | ' |
These financial statements include the accounts of the Company and LRE Exploration LLC. (“LRE”), until LRE was disposed of by sale to the former president on September 10, 2012. Accordingly, the balance sheets, statements of operations and cash flows presented include the results of LRE from August 31, 2010 to September 10, 2012, and the balance sheet presented at November 31, 2013 and August 31, 2013 is solely that of Laredo Resources Corp. All significant inter-company transactions and balances have been eliminated. | |
Exploration Stage Company | ' |
The Company is an exploration stage company. All losses accumulated since inception are considered part of the Company’s exploration stage activities. | |
Cash and cash equivalents | ' |
The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. | |
The Company minimizes its credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits. At November 30, 2013, the balance did not exceed the federally insured limit. | |
Intangible Assets | ' |
The Company has applied the provision of ASC topic 350 - Intangible - goodwill and other, in accounting for its intangible asset. The intangible asset is being amortized by the straight line method on the basis of a useful life of 3 years. The intangible asset consists of website development costs. The balance at November 30, 2013 was $11,920 and 13,291, net of accumulated amortization of $4,580 and $3,209. Amortization expense for the three months period ended November 30, 2013 and 2012 are $1,371 and $- respectively. | |
Mineral Property option | ' |
The Company is primarily engaged in the acquisition, exploration and development of mineral properties. | |
Mineral property acquisition costs are capitalized in accordance with FASB ASC 930, “Extractive Activities-Mining,” when management has determined that probable future benefits consisting of a contribution to future cash inflows have been identified and adequate financial resources are available or are expected to be available as required to meet the terms of property acquisition and budgeted exploration and development expenditures. Mineral property acquisition costs are expensed as incurred if the criteria for capitalization are not met. | |
In the event that mineral property acquisition costs are paid with Company shares, those shares are recorded at the estimated fair value at the time the shares are due in accordance with the terms of the property agreements. | |
Mineral property exploration costs are expensed as incurred. | |
When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves and pre-feasibility, the costs incurred to develop such property are capitalized. | |
Estimated future removal and site restoration costs, when determinable are provided over the life of proven reserves on a units-of-production basis. Costs, which include production equipment removal and environmental remediation, are estimated each period by management based on current regulations, actual expenses incurred, and technology and industry standards. Any charge is included in exploration expense or the provision for depletion and depreciation during the period and the actual restoration expenditures are charged to the accumulated provision amounts as incurred. | |
To date the Company has not established any proven or probable reserves on its mineral properties. | |
On April 4th, 2013, a related party paid $20,000 on behalf of Laredo towards the property title rights to the Pony Mountain Gold Property. There are no terms of repayment and bears no interest. | |
As per the September 6th, 2013, Memorializing Agreement, Laredo negotiated the property title rights to the Pony Mountain Gold Property via a third party, through the securitization of the third party's payments with Laredo Series C convertible preferred stock. Each share of Series C convertible preferred stock accounts for $2.50 of value paid by the third party. As of November 30, 2013, the third party had paid $716,414 on behalf of Laredo which caused Laredo to issue 286,566 shares of Series C preferred stock. These shares are held as collateral and only the company can release the shares to the third party. See Note 7 for details. The total purchase price for these rights is $3,000,000. However, the Company does not have title to the property and, therefore, has only recorded payments made through November 30, 2013 toward the total purchase price in the financial statements. | |
Asset Retirement Obligations | ' |
Asset retirement obligations (“ARO”) associated with the retirement of a tangible long-lived asset, are recognized as liabilities in the period in which it is incurred and becomes determinable, with an offsetting increase in the carrying amount of the associated assets. The cost of tangible long-lived assets, including the initially recognized ARO, is amortized, such that the cost of the ARO is recognized over the useful life of the assets. The ARO is recorded at fair value, and accretion expense is recognized over time as the discounted fair value is accreted to the expected settlement value. | |
The fair value of the ARO is measured using expected future cash flow, discounted at the Company’s credit-adjusted risk-free interest rate. As of November 30, 2013 and August 31, 2013, the Company has determined no provision for ARO’s is required. | |
Impairment of Long- Lived Assets | ' |
The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The assets are subject to impairment consideration under FASB ASC 360-10-35-17 if events or circumstances indicate that their carrying amount might not be recoverable. When the Company determines that an impairment analysis should be done, the analysis will be performed using the rules of FASB ASC 930-360-35, Asset Impairment, and 360- 0 through 15-5, Impairment or Disposal of Long- Lived Assets. | |
Foreign Currency Translation | ' |
The Company’s functional currency is the United States dollar as substantially all of the Company’s operations are in the USA. The Company uses the United States dollar as its reporting currency for consistency with registrants of the Securities and Exchange Commission (“SEC”). | |
Assets and liabilities denominated in a foreign currency are translated at the exchange rate in effect at the balance sheet date and capital accounts are translated at historical rates. Income statement accounts are translated at the average rates of exchange prevailing during the period. | |
Translation adjustments from the use of different exchange rates from period to period are included in the Accumulated Other Comprehensive Income account in Stockholders’ Equity, if applicable. | |
Transactions undertaken in currencies other than the functional currency of the entity are translated using the exchange rate in effect as of the transaction date. Any exchange gains and losses are included in the statements of operations. | |
Earnings per share | ' |
In accordance with accounting guidance now codified as FASB ASC Topic 260, “Earnings per Share,” basic earnings per share (“EPS”) is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted method. Diluted EPS excludes all dilutive potential of shares of common stock if their effect is anti-dilutive. As there are no common stock equivalents outstanding, diluted and basic loss per share are the same. | |
Income Taxes | ' |
The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and loss carry-forwards and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |
The effect of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized. | |
Reclassifications | ' |
Certain reclassifications have been made to prior year financial statements in order for them to be in conformity with the current year presentation. The reclassifications had no impact on change in net assets. | |
Newly Issued Accounting Pronouncements | ' |
The Company feels there are no newly issued accounting pronouncements that will materially impact its financial position, cash flows or results of operations. |
Capital_Stock_Tables
Capital Stock (Tables) | 3 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Capital Stock Tables | ' | ||||||||
Schedule of preferred stock | ' | ||||||||
Series | Number of | Par Value | |||||||
Authorized Shares | |||||||||
Convertible Preferred Stock A | 100 | $ | 0.001 | ||||||
Preferred Stock B | 10,000,000 | $ | 0.001 | ||||||
Convertible Preferred Stock C | 10,000,000 | $ | 0.0001 | ||||||
Preferred Stock D | 10,000,000 | $ | 0.001 |
Nature_of_Operations_and_Abili1
Nature of Operations and Ability to Continue as a Going Concern (Details Narrative) (USD $) | Nov. 30, 2013 |
Nature Of Operations And Ability To Continue As Going Concern Details Narrative | ' |
Accumulated losses | $596,323 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details Narrative) (USD $) | 3 Months Ended | 39 Months Ended | ||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Aug. 31, 2013 | |
Summary Of Significant Accounting Policies Details Narrative | ' | ' | ' | ' |
Intangible asset useful life | '3 years | ' | ' | ' |
Intangible assets, net | $11,920 | ' | $11,920 | $13,291 |
Accumulated amortization | 4,580 | ' | 4,580 | 3,209 |
Amortization expense | 1,371 | ' | 4,580 | ' |
Amount paid by third party behalf of Laredo | 716,414 | ' | 716,414 | ' |
Series C preferred stock issued by Laredo | 286,566 | ' | 286,566 | ' |
Purchase price of rights | $3,000,000 | ' | $3,000,000 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
Related Party Transactions Details Narrative | ' | ' |
Advances from related party | $147,222 | $105,901 |
Advance_for_Mineral_Property_O1
Advance for Mineral Property Option (Details Narrative) (USD $) | Nov. 30, 2013 |
Advance For Mineral Property Option Details Narrative | ' |
Amount paid by third party behalf of Laredo | $716,414 |
Series C preferred stock issued by Laredo | 286,566 |
Purchase price of rights | $3,000,000 |
Convertible_Note_Payable_Detai
Convertible Note Payable (Details Narrative) (USD $) | 3 Months Ended |
Nov. 30, 2013 | |
Convertible Note Payable Details Narrative | ' |
Convertible promissory note to a third party, principal amount | $14,300 |
Interest rate on note | 10.00% |
Interest expense | $14,300 |
Capital_Stock_Details
Capital Stock (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
Series A convertible preferred Stock | ' | ' |
Preferred stock, Number of Authorized Shares | 100 | 100 |
Preferred stock, par value | $0.00 | $0.00 |
Series B Preferred Stock | ' | ' |
Preferred stock, Number of Authorized Shares | 10,000,000 | 10,000,000 |
Preferred stock, par value | $0.00 | $0.00 |
Series C convertible preferred stock | ' | ' |
Preferred stock, Number of Authorized Shares | 10,000,000 | 10,000,000 |
Preferred stock, par value | $0.00 | $0.00 |
Series D Preferred Stock | ' | ' |
Preferred stock, Number of Authorized Shares | 10,000,000 | 10,000,000 |
Preferred stock, par value | $0.00 | $0.00 |
Capital_Stock_Details_Narrativ
Capital Stock (Details Narrative) (USD $) | 3 Months Ended | 39 Months Ended | |||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | |
Series C convertible preferred stock | Series C convertible preferred stock | ||||
Preferred stock, Issued | ' | ' | ' | 286,566 | 286,566 |
Repayment of Magna's of payments on the Pony property | $716,414 | ' | $716,414 | ' | ' |