| ORGANIZATION, BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
1 – ORGANIZATION, BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization
and Description of Business On
July 27, 2016, Jupiter Gold Corporation (“Jupiter Gold” or the “Company”) was incorporated under the laws of
the Republic of the Marshall Islands. Concurrently, Atlas Lithium Corporation (“Atlas Lithium”), a U.S. corporation, exchanged
its 99.99 4,000,000 27.42 The
Company has 100 154,000 The Company also owns a Quartzite deposit located in Minas Gerais,
which, after a drilling campaign, received all permits necessary and was subject to a trial mining period in 2023. We intend to start
mining operations and generate revenues from Quartzite sales in 2024. Basis
of Presentation The
consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles (“GAAP”)
of the United States of America and are expressed in United States dollars. For the years ended December 31, 2023, 2022 and 2021, the
consolidated financial statements include the accounts of the Company and its 99.99 All
material intercompany accounts and transactions have been eliminated in consolidation. Use
of Estimates 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 contingencies at the date of the financial statements and the reported amount
of revenues and expenses during the reporting period. Actual results may differ from those estimates. Going
Concern The
consolidated financial statements have been prepared on a going concern basis which contemplates the realization of assets and the settlement
of liabilities in the normal course of business. The Company has limited working capital, has incurred losses since its inception, and
has not yet generated material revenues from the sale of its products or services. These factors create substantial doubt about the Company’s
ability to continue as a going concern. The consolidated financial statements do not include any adjustment that might be necessary if
the Company is unable to continue as a going concern. The
ability of the Company to continue as a going concern is dependent on the Company generating cash from its operations, the sale of its
stock and/or obtaining debt financing. During the year ended December 31, 2023, the Company funded operations primarily through the sale
of equity securities and loans from related parties. Fair
Value of Financial Instruments Jupiter
Gold follows the guidance of Accounting Standards Codification (“ASC”) Topic 820 – Fair Value Measurement and Disclosure.
Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants as of the measurement date. The guidance also establishes a hierarchy for inputs used
in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the
most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability
and are developed based on market data obtained from sources independent of Jupiter Gold. Unobservable inputs are inputs that reflect
Jupiter Gold’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes
three levels of inputs that may be used to measure fair value: Level
1. Observable inputs such as quoted prices in active markets; Level
2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level
3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. As
of December 31, 2023, Jupiter Gold did not have any level 2 or 3 assets or liabilities. Jupiter
Gold’s financial instruments consist of cash and cash equivalents, accounts payable, and accrued expenses. 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 consolidated financial statements. Cash
and Cash Equivalents The
Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent
that the funds are not being held for investment purposes. Funds held in Brazilian banks are insured up to 250,000 3,652 Property
and Equipment Property
and equipment are stated at cost. Major improvements and betterments are capitalized. Maintenance and repairs are expensed as incurred.
Depreciation is computed using the straight-line method over the estimated useful life. At the time of retirement or other disposition
of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected
in the statements of operations as other gain or loss, net. The
diamond and gold processing plant and other machinery are depreciated over an estimated useful life of ten years five years three years Mineral
Properties Costs
of exploration, carrying and retaining unproven mineral lease properties are expensed as incurred. Mineral property acquisition costs,
including licenses and lease payments, are capitalized. Impairment losses are recorded on mineral properties used in operations when
indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’
carrying amount. The Company did not recognize any impairment losses related to mineral properties held during the years ended December
31, 2023, 2022 and 2021. For
intangible assets purchased in a business combination, the estimated fair values of the assets received are used to establish their recorded
values. For intangible assets acquired in a non-monetary exchange, the estimated fair values of the assets transferred (or the estimated
fair values of the assets received, if more clearly evident) are used to establish their recorded values, unless the values of neither
the assets received nor the assets transferred are determinable within reasonable limits, in which case the assets received are measured
based on the carrying values of the assets transferred. Valuation techniques consistent with the market approach, income approach and/or
cost approach are used to measure fair value. These rights are held in perpetuity provided the Company remains in compliance with various
government regulations and industry requirements. Impairment
of Long-Lived Assets For
long-lived assets, such as property and equipment and intangible assets subject to amortization, Jupiter Gold continually monitors events
and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes
in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value
of such assets will be recovered through undiscounted expected future cash flows. If the total of the future undiscounted cash flows
is less than the carrying amount of those assets, Jupiter Gold recognizes an impairment loss based on the excess of the carrying amount
over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs
to sell. Stock-Based
Compensation The
Company records stock-based compensation in accordance with ASC Topic 718, Compensation - Stock Compensation. ASC 718 requires companies
to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the
employee’s requisite service period. Under ASC 718, volatility is based on the historical volatility of our stock or the expected
volatility of the stock of similar companies. The expected life assumption is primarily based on historical exercise patterns and employee
post-vesting termination behavior. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield
curve in effect at the time of grant. The
Company utilizes the Black-Scholes option-pricing model, which was developed for use in estimating the fair value of options. Option-pricing
models require the input of highly complex and subjective variables including the expected life of options granted and the expected volatility
of our stock price over a period equal to or greater than the expected life of the options. Because changes in the subjective assumptions
can materially affect the estimated value of our employee stock options, it is management’s opinion that the Black-Scholes option-pricing
model may not provide an accurate measure of the fair value of our employee stock options. Although the fair value of employee stock
options is determined in accordance with ASC Topic 718 using an option-pricing model, that value may not be indicative of the fair value
observed in a willing buyer/willing seller market transaction. On
June 20, 2018, the FASB issued ASU 2018-07 which simplifies the accounting for share-based payments granted to nonemployees for goods
and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based
payments granted to employees. Equity classified share-based payments for employees are fixed at the time of grant. Equity-classified
nonemployee share-based payment awards are measured at the grant date of the award which is the same as share-based payments for employees.
The Company adopted the requirements of the new rule as of January 1, 2019, the effective date of the new guidance. Foreign
Currency Jupiter
Gold’s subsidiary, MJL, uses its local currency as its functional currency. Resulting translation gains or losses are recognized
as a component of accumulated other comprehensive income. Transaction gains or losses related to balances denominated in a currency other
than the functional currency are recognized in the consolidated statements of operations. Basic
Earnings (Loss) Per Share The
Company computes loss per share in accordance with ASC Topic 260, Earnings per Share, which requires presentation of both basic and diluted
earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common
shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all
dilutive potential common shares outstanding during the period. As of December 31, 2023, the Company’s potentially dilutive securities
relate to common stock issuable in connection with options. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. Recent
Accounting Pronouncements The
Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not
believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position
or results of operations except as noted below: In
August 2020, the FASB issued ASU No. 2020-06, Debt - Debt 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. ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible
debt instruments and convertible preferred stock. Limiting the accounting models will result in fewer embedded conversion features being
separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation
models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition
of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued
with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives
scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06
will be effective January 1, 2024, for the Company. Early adoption is permitted, but no earlier than January 1, 2021, including interim
periods within that year. The Company is evaluating the effect of the adoption of ASU 2020-06 on the consolidated financial statements,
but currently does not believe ASU 2020-06 will have a significant impact on the Company’s accounting for its convertible debt
instruments. The effect will largely depend on the composition and terms of the financial instruments at the time of adoption. In
February 2020, the FASB issued ASU 2020-02, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC
Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards
Update No. 2016-02, Leases (Topic 842), which amends the effective date of the original pronouncement for smaller reporting companies.
ASU 2016-13 and its amendments will be effective for the Company for interim and annual periods in fiscal years beginning after December
15, 2022. The Company believes the adoption will modify the way the Company analyzes financial instruments, but it does not anticipate
a material impact on results of operations. The Company is in the process of determining the effects adoption will have on its consolidated
financial statements. In
August 2023, the FASB issued ASU 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial
Measurement, which clarifies the business combination accounting for joint venture formations. The amendments in the ASU seek to reduce
diversity in practice that has resulted from a lack of authoritative guidance regarding the accounting for the formation of joint ventures
in separate financial statements. The amendments also seek to clarify the initial measurement of joint venture net assets, including
businesses contributed to a joint venture. The guidance is applicable to all entities involved in the formation of a joint venture. The
amendments are effective for all joint venture formations with a formation date on or after January 1, 2025. Early adoption and retrospective
application of the amendments are permitted. We do not expect adoption of the new guidance to have a material impact on our consolidated
financial statements and disclosures. In
November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, amending reportable
segment disclosure requirements to include disclosure of incremental segment information on an annual and interim basis. Among the disclosure
enhancements are new disclosures regarding significant segment expenses that are regularly provided to the chief operating decision-maker
and included within each reported measure of segment profit or loss, as well as other segment items bridging segment revenue to each
reported measure of segment profit or loss. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15,
2023, and for interim periods within fiscal years beginning after December 15, 2024, and are applied retrospectively. Early adoption
is permitted. We are currently evaluating the impact of this update on our consolidated financial statements and disclosures. In
December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, amending income tax disclosure
requirements for the effective tax rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal
years beginning after December 15, 2024 and are applied prospectively. Early adoption and retrospective application of the amendments
are permitted. We do not expect adoption of the new guidance to have a material impact on our consolidated financial statements and disclosures. |
