Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Feb. 29, 2016 | Apr. 21, 2016 | |
Document and Entity Information: | ||
Entity Registrant Name | AMERICAN INTERNATIONAL VENTURES INC /DE/ | |
Document Type | 10-Q | |
Document Period End Date | Feb. 29, 2016 | |
Trading Symbol | aivn | |
Amendment Flag | false | |
Entity Central Index Key | 5,656 | |
Current Fiscal Year End Date | --05-31 | |
Entity Common Stock, Shares Outstanding | 211,649,945 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
AMERICAN INTERNATIONAL VENTURES
AMERICAN INTERNATIONAL VENTURES, INC. (An Exploration Stage Company) CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Feb. 29, 2016 | May. 31, 2015 |
Current Assets | ||
Cash | $ 248,022 | $ 22,121 |
Miscellaneous receivables | 21,172 | 22,748 |
Total current assets | 269,194 | 44,869 |
Fixed Assets | ||
Vehicles | 150,039 | 150,039 |
Mining equipment | 502,400 | 502,400 |
Office furniture and equipment | 32,444 | 30,022 |
Total fixed assets | 684,883 | 682,461 |
Less accumulated depreciation | 337,645 | 261,299 |
Net fixed assets | 347,238 | 421,162 |
Other Assets | ||
Investment in securities | 6,380 | 6,380 |
Mining claims | 911,707 | 861,707 |
Total other assets | 918,087 | 868,087 |
TOTAL ASSETS | 1,534,519 | 1,334,118 |
Current Liabilities | ||
Current portions of notes payable | 13,248 | 89,500 |
Accounts payable and accrued expenses | 78,534 | 149,250 |
Taxes payable | 65,223 | 73,027 |
Advances from officers and directors | 113,994 | 238,325 |
Total current liabilities | 270,999 | 550,102 |
Long Term Liabilities | ||
Long term portions of notes payable | 9,577 | 14,707 |
Warrant liability | 27,150 | 27,150 |
Total long term liabilities | 36,727 | 41,857 |
Total Liabilities | 307,726 | 591,959 |
Stockholders' Equity | ||
Common stock - authorized, 400,000,000 shares of $.00001 par value; issued and outstanding, 211,649,945 and 212,899,945 shares, respectively | 2,170 | 2,129 |
Additional paid in capital | 7,369,794 | 7,204,086 |
Accumulated deficit | (6,119,261) | (6,435,968) |
Total American International Ventures, Inc. stockholders' equity | 1,252,703 | 770,247 |
Non controlling interest | (25,910) | (28,088) |
Total stockholders' equity | 1,226,793 | 742,159 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,534,519 | $ 1,334,118 |
Statement of Financial Position
Statement of Financial Position - Parenthetical - $ / shares | Feb. 29, 2016 | May. 31, 2015 |
Statement of financial position | ||
Common Stock, Par Value | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares Issued | 211,649,945 | 212,949,945 |
Common Stock, Shares Outstanding | 211,649,945 | 212,949,945 |
AMERICAN INTERNATIONAL VENTURE4
AMERICAN INTERNATIONAL VENTURES, INC. (An Exploration Stage Company) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Income statement | ||||
Sales | $ 58,278 | |||
Cost of goods sold | 30,340 | |||
Gross profit | 27,938 | |||
Administrative expenses | $ 292,933 | $ (51,854) | $ 407,682 | 479,661 |
Operating loss | (292,933) | (51,854) | (407,682) | (451,723) |
Other Income and Expense: | ||||
Change in valuation of warrants | 108,600 | |||
Gain (loss) on sales of mining rights | (48,000) | 719,398 | (206,500) | |
Interest income | 12 | (109) | 12 | 2,973 |
Interest expense | (780) | (3,437) | 7,157 | (37,144) |
Total other income (expense) | (768) | (51,546) | 726,567 | (132,071) |
Net income (loss) before taxes | (293,701) | (103,400) | 318,885 | (583,794) |
Provision for income taxes | 5,008 | |||
Net Loss | (293,701) | (103,400) | 318,885 | (588,802) |
Net income ( loss) attributable to noncontrolling interests | (1,153) | (2,178) | 11,919 | |
Net income (loss) attributable to American International Ventures, Inc. | $ (294,854) | $ (103,400) | $ 316,707 | $ (576,883) |
Net income (loss) Per Share - Basic and Diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted Average Number of Shares Outstanding | 216,444,389 | 210,294,389 | 212,344,389 | 208,879,044 |
AMERICAN INTERNATIONAL VENTURE5
AMERICAN INTERNATIONAL VENTURES, INC. (An Exploration Stage Company) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Feb. 29, 2016 | Feb. 28, 2015 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 318,885 | $ (588,802) |
Charges and credits not requiring the use of cash: | ||
Depreciation | 76,345 | 41,719 |
Gain on sale of securities | (1,500) | |
Equity items issued for services | 60,750 | 246,800 |
Loss (gain) on sale of mining claim | 208,000 | |
Interest charge related to debt discount | 526 | |
Gain on revaluation of warrants | (108,600) | |
Changes in assets and liabilities: | ||
Increase (decrease) in accounts payable and accrued expenses | (70,716) | 58,259 |
Increases in taxes payable | (7,804) | 4,793 |
Decrease in miscellaneous receivables | 1,575 | |
Decrease (increase) in inventory | 31,228 | |
Net cash consumed by operating activities | 379,035 | (107,577) |
Cash Flows From Investing Activities: | ||
Purchases of fixed assets | (2,421) | |
Investment in mining claims | (50,000) | |
Net cash consumed by investing activities | (52,421) | |
Cash Flows From Financing Activities: | ||
Contributions to paid in capital | 105,000 | |
Proceeds from issuances of demand notes | 105,325 | |
Payments on notes payable | (81,382) | (8,840) |
Repayment of advances from officers and directors | (124,331) | |
Net Cash provided by financing activities | (100,713) | 96,485 |
Net change in cash | 225,901 | (11,092) |
Cash balance, beginning of period | 22,121 | 12,862 |
Cash balance, end of period | $ 248,022 | $ 1,770 |
1. Basis of Presentation
1. Basis of Presentation | 9 Months Ended |
Feb. 29, 2016 | |
Notes | |
1. Basis of Presentation | 1. BASIS OF PRESENTATION The unaudited interim consolidated financial statements of American International Ventures, Inc. ("the Company") as of February 29, 2016 and for the three and nine month periods ended February 29, 2016 and February 28, 2015 have been prepared in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of such periods. The results of operations for the nine-month period ended February 29, 2016 are not necessarily indicative of the results to be expected for the full fiscal year ending May 31, 2016. Certain information and disclosures normally included in the notes to financial statements have been condensed or omitted as permitted by the rules and regulations of the Securities and Exchange Commission, although the Company believes the disclosure is adequate to make the information presented not misleading. The accompanying unaudited financial statements should be read in conjunction with the financial statements of the Company for the year ended May 31, 2015. |
2. Background
2. Background | 9 Months Ended |
Feb. 29, 2016 | |
Notes | |
2. Background | 2. BACKGROUND On March 23, 2012, the Company entered into a share exchange agreement with Placer Gold Prospecting, Inc. (Placer), a Company that was formed on January 25, 2012. This share exchange agreement was treated as a reverse recapitalization, under which the legal acquiree (Placer) was treated as the accounting acquirer and the equity accounts of the Company were adjusted to reflect a reorganization. Inasmuch as Placer was treated as the accounting acquirer, whenever historical financial information is presented, it is Placer information. On May 3, 2013, the Company formed a subsidiary in Baja California to exploit a mining claim acquired by the subsidiary. It remained inactive until June 1, 2013 at which time it became operational, on a limited basis. A problem with the mining permit caused suspension of mining activities in May 2014. The Company is working to resolve that problem. |
Note 3. Summary of Significant
Note 3. Summary of Significant Accounting Policies | 9 Months Ended |
Feb. 29, 2016 | |
Notes | |
Note 3. Summary of Significant Accounting Policies | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Cash For purposes of the Statement of Cash Flows, the Company considers all short-term debt securities purchased with an original maturity of three months or less to be cash equivalents. b. Fair Value of Financial Instruments The carrying amounts of the Companys financial instruments, which include cash equivalents, accounts payable and accrued expenses, and notes payable, approximate their fair values at February 29, 2016. c. Income (Loss) Per Share Basic earnings (loss) per share is computed by dividing the net income (loss) available to common shareholders for the period by the weighted average number of shares of common stock outstanding during that period. During periods in which a net loss has occurred, outstanding options, warrants, and convertible notes are excluded from the calculation of weighted average number of shares outstanding as their inclusion would be anti-dilutive. d. Income Taxes The Company accounts for income taxes in accordance with current accounting guidance, which requires the use of the liability method. Accordingly, deferred tax liabilities and assets are determined based on differences between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Current income taxes are based on the income that is currently taxable. e. Marketable Securities Marketable securities, when owned, are classified as available-for-sale and are carried at fair value. Unrealized gains and losses on these securities are recognized as increases or decreases in accumulated other comprehensive income. f. Fixed Assets Fixed assets are recorded at cost. Depreciation is computed using the straight line method, with useful lives of seven years for mining equipment and five years for vehicles. g. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. h. Advertising Costs The Company expenses advertising costs when the advertisement occurs. There was no advertising expense in the three and nine month periods ended February 29, 2016. i. Segment Reporting The Company is organized in one reporting and accountable segment. j. Recognition of Revenue Revenue is realized from product sales. Recognition occurs upon shipment to customers, and where the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. Additional revenue from royalties is recognized when persuasive evidence of an arrangement exits; the amount due is fixed or determinable; and collectability is reasonably assured. k. Stock Based Compensation The cost of equity instruments issued to non-employees in return for goods and services is measured by the fair value of the goods or services received or fair value of the equity instruments issued, whichever is the more readily determinable. The cost of employee services received in exchange for equity instruments is based on the grant date fair value of the equity instruments issued. l. Investments in Mining Claims Mining claims held for development are recorded at the cost of the claims, plus related acquisition costs. These costs will be amortized when extraction begins. m. Exploration Stage Accounting The Company is an exploration stage company, as defined in pronouncements of the Financial Accounting Standards Board (FASB) and Industry Guide #7 of the Securities and Exchange Commission. Generally accepted accounting principles govern the recognition of revenue by an exploration stage enterprise and the accounting for costs and expenses. As an exploration stage company it is also required to make additional disclosures as defined under the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 915, Development-Stage Entities. Additional disclosures required are that our financial statements be identified as those of an exploration stage company, and that the statements of operations, changes in stockholders deficit and cash flows disclose activity since the date of its Inception (January 21, 1998). Effective June 10, 2014, the FASB changed its regulations with respect to development stage entities and these additional disclosures are no longer required for annual reporting periods beginning after December 15, 2015, with the option for entities to early adopt these new provisions. The Company has elected to early adopt these provisions and consequently these additional disclosures are not included in its financial statements. n. Mine Development Costs Mine development costs include engineering and metallurgical studies, and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines. The definition of proven and probable reserves is set forth in SEC Industry Guide 7. Proven reserves are reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; (b) grade and/or quality are computed from the results of detailed sampling; and (c) the sites for inspection, sampling and measurement are spaced so closely and the geologic character is so well defined that size, shape, depth and mineral content of reserves are well-established. Probable reserves are reserves for which quantity and grade and/or quality are computed from information similar to that used for proven reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation. In addition, reserves cannot be considered proven and probable until they are supported by a feasibility study, indicating that the reserves have had the requisite geologic, technical and economic work performed and are economically and legally extractable at the time of the reserve determination. Costs incurred at a mine site before proven reserves have been established are expensed as mine development costs. At the point proven reserves have been established at a mine site, such costs will be capitalized and will be written off as depletion expense as the minerals are extracted. As of February 29, 2016, none of the mine concessions met the requirements for proven reserves; development costs are therefore expensed. o. Impairment The Company performs a review for potential impairment of long-lived assets whenever an event or change in circumstances indicates that the carrying value of an asset may not be recoverable. p. Foreign Currency Translation The assets of the Mexican subsidiary are in Mexico. The Mexican subsidiary depends on the ability of the parent company to raise cash which is transferred to the subsidiary to meet its operating cash needs. Therefore, the Company's management has determined that the functional currency of the Mexican subsidiary is the US dollar. Since that is the case, the Company remeasures its subsidiary financial statements in US dollars. Any gains or losses are reflected on the Statements of Operations. The accounts of the Mexican subsidiary are remeasured in US dollars as follows: (a) Monetary assets and liabilities are translated based on the rates of exchange in effect at balance sheet dates. (b) Non-monetary assets, liabilities, and equity accounts are translated at the exchange rates prevailing at the times of acquisition of assets, assumption of liabilities or equity investments. (c) Revenues and expenses are translated at the average exchange rates for each period, except for charges for amortization and depreciation of non-monetary assets which are translated at the rates associated with the assets. q. New Accounting Pronouncements The Company does not believe the adoption of recently issued pronouncements will have a significant effect on Company results of operations, financial position, or cash flows. |
4. Going Concern and Liquidity
4. Going Concern and Liquidity | 9 Months Ended |
Feb. 29, 2016 | |
Notes | |
4. Going Concern and Liquidity | 4. GOING CONCERN AND LIQUIDITY As shown in the accompanying financial statements, the Company has experienced losses since its inception. It also had a working capital deficiency at February 29, 2016 and presently does not have sufficient resources to meet its outstanding liabilities or accomplish its objectives during the next twelve months. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The financial statements do not include adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation. |
5. Debt Obligations
5. Debt Obligations | 9 Months Ended |
Feb. 29, 2016 | |
Notes | |
5. Debt Obligations | 5. DEBT OBLIGATIONS On August 31, 2014, the Company defaulted on its obligation for $130,000 of convertible notes. The obligation for all but $60,000 of these notes has been satisfied. |
5. Warrant Liability
5. Warrant Liability | 9 Months Ended |
Feb. 29, 2016 | |
Notes | |
5. Warrant Liability | 6. WARRANT LIABILITY During the year ended May 31, 2013, the Company issued 2,715,000 warrants to an investment banker; these warrants have "full-ratchet anti-dilution protection". In accordance with pronouncements of the Financial Accounting Standards Board, these warrants have been classified as liabilities. They will be periodically revalued by use of a Black Sholes valuation model. Changes in the value will be recorded on the statement of operations. During the nine month periods ended February 29, 2016 and February 28, 2015, the value was reduced by $0 and $108,600, respectively. |
7. Capital Stock
7. Capital Stock | 9 Months Ended |
Feb. 29, 2016 | |
Notes | |
7. Capital Stock | 7. CAPITAL STOCK The following is a summary of stock activity during the quarter: Shares Amount Balance May 31, 2015 212,949,945 $2,129 Shares issued for services (1,285,000) (12) Balance February 29, 2016 211,664,945 $2,117 |
8. Supplementary Cash Flow Info
8. Supplementary Cash Flow Information | 9 Months Ended |
Feb. 29, 2016 | |
Notes | |
8. Supplementary Cash Flow Information | 8. SUPPLEMENTARY CASH FLOW INFORMATION There was no cash paid for interest in the nine-month period ended February 29, 2016 and $25,743 paid in cash in the nine-month period ended February 28, 2015; there was no cash paid for income taxes during either of the nine month periods. On June 16, 2014, the Company sold its El Tule Canyon mining claim and the remainder of the Gypsy claim for 1,500,000 shares of restricted common stock of the buyer; these shares were valued at $1,500, which brings to 6,500,000 the number of shares of the buyer that are owned by the Company. |
9. Warrants
9. Warrants | 9 Months Ended |
Feb. 29, 2016 | |
Notes | |
9. Warrants | 9. WARRANTS There were 2,715,000 warrants outstanding at February 29, 2016, as presented below:. Number of Warrants Exercise Price Weighted Life (in Years) 2,715,000(A) $0.125 2.63 (A) These warrants were principally issued for services. They were valued using a Black Scholes valuation model. |
10. Related Party Transactions
10. Related Party Transactions | 9 Months Ended |
Feb. 29, 2016 | |
Notes | |
10. Related Party Transactions | 10. RELATED PARTY TRANSACTIONS During the nine month period ended February 29, 2016, the Company issued shares (valued at $31,775) to its directors. The Company repaid $124,331 of shareholder loans during the current nine month period. During the 2015 nine month period, the Company received $105,325 of shareholder loans. |
11. Subsequent Events
11. Subsequent Events | 9 Months Ended |
Feb. 29, 2016 | |
Notes | |
11. Subsequent Events | 11. SUBSEQUENT EVENTS On January 12, 2016 Jose G. Garcia was appointed Chief Executive Officer of the Company (see 8K filed January 15, 2016). On January 22, 2016 Kevin Gillen was appointed Chief Operating Officer (see 8K filed on January 25, 2016). Mr. Gillen is the son-in-law of Mr. Wagenti. |
Note 3. Summary of Significan17
Note 3. Summary of Significant Accounting Policies: A. Cash (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
A. Cash | a. Cash For purposes of the Statement of Cash Flows, the Company considers all short-term debt securities purchased with an original maturity of three months or less to be cash equivalents. |
Note 3. Summary of Significan18
Note 3. Summary of Significant Accounting Policies: B. Fair Value of Financial Instruments (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
B. Fair Value of Financial Instruments | b. Fair Value of Financial Instruments The carrying amounts of the Companys financial instruments, which include cash equivalents, accounts payable and accrued expenses, and notes payable, approximate their fair values at February 29, 2016. |
Note 3. Summary of Significan19
Note 3. Summary of Significant Accounting Policies: C. Income (loss) Per Share (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
C. Income (loss) Per Share | c. Income (Loss) Per Share Basic earnings (loss) per share is computed by dividing the net income (loss) available to common shareholders for the period by the weighted average number of shares of common stock outstanding during that period. During periods in which a net loss has occurred, outstanding options, warrants, and convertible notes are excluded from the calculation of weighted average number of shares outstanding as their inclusion would be anti-dilutive. |
Note 3. Summary of Significan20
Note 3. Summary of Significant Accounting Policies: D. Income Taxes (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
D. Income Taxes | d. Income Taxes The Company accounts for income taxes in accordance with current accounting guidance, which requires the use of the liability method. Accordingly, deferred tax liabilities and assets are determined based on differences between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Current income taxes are based on the income that is currently taxable. |
Note 3. Summary of Significan21
Note 3. Summary of Significant Accounting Policies: E. Marketable Securities (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
E. Marketable Securities | e. Marketable Securities Marketable securities, when owned, are classified as available-for-sale and are carried at fair value. Unrealized gains and losses on these securities are recognized as increases or decreases in accumulated other comprehensive income. |
Note 3. Summary of Significan22
Note 3. Summary of Significant Accounting Policies: F. Fixed Assets (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
F. Fixed Assets | f. Fixed Assets Fixed assets are recorded at cost. Depreciation is computed using the straight line method, with useful lives of seven years for mining equipment and five years for vehicles. |
Note 3. Summary of Significan23
Note 3. Summary of Significant Accounting Policies: G. Use of Estimates (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
G. Use of Estimates | g. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. |
Note 3. Summary of Significan24
Note 3. Summary of Significant Accounting Policies: H. Advertising Costs (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
H. Advertising Costs | h. Advertising Costs The Company expenses advertising costs when the advertisement occurs. There was no advertising expense in the three and nine month periods ended February 29, 2016. |
Note 3. Summary of Significan25
Note 3. Summary of Significant Accounting Policies: I. Segment Reporting (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
I. Segment Reporting | i. Segment Reporting The Company is organized in one reporting and accountable segment. |
Note 3. Summary of Significan26
Note 3. Summary of Significant Accounting Policies: J. Recognition of Revenue (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
J. Recognition of Revenue | j. Recognition of Revenue Revenue is realized from product sales. Recognition occurs upon shipment to customers, and where the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. Additional revenue from royalties is recognized when persuasive evidence of an arrangement exits; the amount due is fixed or determinable; and collectability is reasonably assured. |
Note 3. Summary of Significan27
Note 3. Summary of Significant Accounting Policies: K. Stock Based Compensation (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
K. Stock Based Compensation | k. Stock Based Compensation The cost of equity instruments issued to non-employees in return for goods and services is measured by the fair value of the goods or services received or fair value of the equity instruments issued, whichever is the more readily determinable. The cost of employee services received in exchange for equity instruments is based on the grant date fair value of the equity instruments issued. |
Note 3. Summary of Significan28
Note 3. Summary of Significant Accounting Policies: L. Investments in Mining Claims (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
L. Investments in Mining Claims | l. Investments in Mining Claims Mining claims held for development are recorded at the cost of the claims, plus related acquisition costs. These costs will be amortized when extraction begins. |
Note 3. Summary of Significan29
Note 3. Summary of Significant Accounting Policies: M. Exploration Stage Accounting (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
M. Exploration Stage Accounting | m. Exploration Stage Accounting The Company is an exploration stage company, as defined in pronouncements of the Financial Accounting Standards Board (FASB) and Industry Guide #7 of the Securities and Exchange Commission. Generally accepted accounting principles govern the recognition of revenue by an exploration stage enterprise and the accounting for costs and expenses. As an exploration stage company it is also required to make additional disclosures as defined under the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 915, Development-Stage Entities. Additional disclosures required are that our financial statements be identified as those of an exploration stage company, and that the statements of operations, changes in stockholders deficit and cash flows disclose activity since the date of its Inception (January 21, 1998). Effective June 10, 2014, the FASB changed its regulations with respect to development stage entities and these additional disclosures are no longer required for annual reporting periods beginning after December 15, 2015, with the option for entities to early adopt these new provisions. The Company has elected to early adopt these provisions and consequently these additional disclosures are not included in its financial statements. |
Note 3. Summary of Significan30
Note 3. Summary of Significant Accounting Policies: N. Mine Development Costs (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
N. Mine Development Costs | n. Mine Development Costs Mine development costs include engineering and metallurgical studies, and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines. The definition of proven and probable reserves is set forth in SEC Industry Guide 7. Proven reserves are reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; (b) grade and/or quality are computed from the results of detailed sampling; and (c) the sites for inspection, sampling and measurement are spaced so closely and the geologic character is so well defined that size, shape, depth and mineral content of reserves are well-established. Probable reserves are reserves for which quantity and grade and/or quality are computed from information similar to that used for proven reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation. In addition, reserves cannot be considered proven and probable until they are supported by a feasibility study, indicating that the reserves have had the requisite geologic, technical and economic work performed and are economically and legally extractable at the time of the reserve determination. Costs incurred at a mine site before proven reserves have been established are expensed as mine development costs. At the point proven reserves have been established at a mine site, such costs will be capitalized and will be written off as depletion expense as the minerals are extracted. As of February 29, 2016, none of the mine concessions met the requirements for proven reserves; development costs are therefore expensed. |
Note 3. Summary of Significan31
Note 3. Summary of Significant Accounting Policies: O. Impairment (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
O. Impairment | o. Impairment The Company performs a review for potential impairment of long-lived assets whenever an event or change in circumstances indicates that the carrying value of an asset may not be recoverable. |
Note 3. Summary of Significan32
Note 3. Summary of Significant Accounting Policies: P. Foreign Currency Translation (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
P. Foreign Currency Translation | p. Foreign Currency Translation The assets of the Mexican subsidiary are in Mexico. The Mexican subsidiary depends on the ability of the parent company to raise cash which is transferred to the subsidiary to meet its operating cash needs. Therefore, the Company's management has determined that the functional currency of the Mexican subsidiary is the US dollar. Since that is the case, the Company remeasures its subsidiary financial statements in US dollars. Any gains or losses are reflected on the Statements of Operations. The accounts of the Mexican subsidiary are remeasured in US dollars as follows: (a) Monetary assets and liabilities are translated based on the rates of exchange in effect at balance sheet dates. (b) Non-monetary assets, liabilities, and equity accounts are translated at the exchange rates prevailing at the times of acquisition of assets, assumption of liabilities or equity investments. (c) Revenues and expenses are translated at the average exchange rates for each period, except for charges for amortization and depreciation of non-monetary assets which are translated at the rates associated with the assets. |
Note 3. Summary of Significan33
Note 3. Summary of Significant Accounting Policies: Q. New Accounting Pronouncements (Policies) | 9 Months Ended |
Feb. 29, 2016 | |
Policies | |
Q. New Accounting Pronouncements | q. New Accounting Pronouncements The Company does not believe the adoption of recently issued pronouncements will have a significant effect on Company results of operations, financial position, or cash flows. |
7. Capital Stock_ Schedule of S
7. Capital Stock: Schedule of Stockholders Equity (Tables) | 9 Months Ended |
Feb. 29, 2016 | |
Tables/Schedules | |
Schedule of Stockholders Equity | Shares Amount Balance May 31, 2015 212,949,945 $2,129 Shares issued for services (1,285,000) (12) Balance February 29, 2016 211,664,945 $2,117 |
9. Warrants_ Schedule of Stockh
9. Warrants: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables) | 9 Months Ended |
Feb. 29, 2016 | |
Tables/Schedules | |
Schedule of Stockholders' Equity Note, Warrants or Rights | Number of Warrants Exercise Price Weighted Life (in Years) 2,715,000(A) $0.125 2.63 |
5. Debt Obligations (Details)
5. Debt Obligations (Details) | Feb. 29, 2016USD ($) |
Details | |
Debt Instrument, Debt Default, Amount | $ 60,000 |
5. Warrant Liability (Details)
5. Warrant Liability (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Feb. 29, 2016 | Feb. 28, 2015 | May. 31, 2013 | |
Details | |||
Issuance of Stock and Warrants for Services or Claims | $ 2,715,000 | ||
Adjustment of Warrants Granted for Services | $ 0 | $ 108,600 |
7. Capital Stock_ Schedule of38
7. Capital Stock: Schedule of Stockholders Equity (Details) - USD ($) | 9 Months Ended | |
Feb. 29, 2016 | May. 31, 2015 | |
Details | ||
Balance, stock | 211,664,945 | 212,949,945 |
Balance, value | $ 2,117 | $ 2,129 |
Shares issued for service, stock | (1,285,000) | |
Shares issued for service, value | $ (12) |
8. Supplementary Cash Flow In39
8. Supplementary Cash Flow Information (Details) - USD ($) | Jun. 16, 2014 | Feb. 28, 2015 |
Details | ||
Interest Paid | $ 25,743 | |
Noncash or Part Noncash Acquisition, Investments Acquired | $ 1,500 | |
Investment Owned, Balance, Shares | 6,500,000 |
9. Warrants_ Schedule of Stoc40
9. Warrants: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) | Feb. 29, 2016$ / sharesshares |
Details | |
Class of Warrant or Right, Outstanding | shares | 2,715,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.125 |
10. Related Party Transactions
10. Related Party Transactions (Details) - USD ($) | 9 Months Ended | |
Feb. 29, 2016 | Feb. 28, 2015 | |
Details | ||
Shares issued for convertible debt, value | $ 31,775 | |
Payments for Loans | $ 124,331 | |
Notes Payable, Related Parties | $ 105,325 |