Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2018 | Mar. 04, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | MINERAL MOUNTAIN MINING & MILLING CO | |
Entity Central Index Key | 66,600 | |
Document Type | 10-Q/A | |
Document Period End Date | Dec. 31, 2018 | |
Amendment Flag | true | |
Amendment Description | Mineral Mountain Mining & Milling Company (we, our, the Company) is filing this Amendment No. 2 on Form 10-Q/A (the Amendment) to update the signature page, the certifications of our Chief Executive Officer/Chief Financial Officer in Exhibits 31.1 and 32.1 and to provide our amended financial statements (the html format was filed on March 6, 2019) formatted in Extensible Business Reporting Language (XBRL). | |
Current Fiscal Year End Date | --09-30 | |
Is Entity's Reporting Status Current? | Yes | |
Is Entity Emerging Growth Company? | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 66,619,733 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,019 |
CONSOLIDATED BALANCE SHEETS (RE
CONSOLIDATED BALANCE SHEETS (RESTATED) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 41,671 | $ 1,900 |
Total Current Assets | 41,671 | 1,900 |
TOTAL ASSETS | 41,671 | 1,900 |
CURRENT LIABILITIES | ||
Accounts payable | 16,685 | 21,084 |
Accrued interest | 7,500 | 8,002 |
Deferred payroll | 47,970 | 74,257 |
Notes payable - related party | 57,000 | 57,000 |
Convertible debt, net | 5,351 | |
Derivative liability | 95,405 | |
Total Current Liabilities | 229,911 | 160,343 |
TOTAL LIABILITIES | 229,911 | 160,343 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $.10 par value, 10,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.001 par value, 100,000,000 shares authorized; 64,371,162 and 60,436,162 shares issued and outstanding | 64,371 | 60,436 |
Additional paid-in capital | 3,074,665 | 2,752,600 |
Shares to be issued | 55,000 | |
Accumulated deficit | (3,327,276) | (3,026,479) |
Total Stockholders' Deficit | (188,240) | (158,443) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 41,671 | $ 1,900 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (RESTATED) (Parenthetical) - $ / shares | Dec. 31, 2018 | Sep. 30, 2018 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 64,371,162 | 60,436,162 |
Common stock, outstanding | 64,371,162 | 60,436,162 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (RESTATED) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements Of Operations | ||
REVENUES | ||
OPERATING EXPENSES | ||
Professional fees | 55,542 | 14,325 |
General and administrative | 78,591 | 34,757 |
Officers' fees | 99,110 | |
Mineral property expense | 27,301 | |
TOTAL OPERATING EXPENSES | 260,544 | 49,082 |
LOSS FROM OPERATIONS | (260,544) | (49,082) |
OTHER INCOME (EXPENSES) | ||
Interest expense | (4,848) | (1,302) |
Loss on issuance of convertible debt | (71,158) | |
Gain on revaluation of derivative | 35,753 | |
TOTAL OTHER INCOME (EXPENSES) | (40,253) | (1,302) |
LOSS BEFORE TAXES | (300,797) | (50,384) |
INCOME TAXES | ||
NET LOSS | $ (300,797) | $ (50,384) |
NET LOSS PER COMMON SHARE, BASIC AND DILUTED | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF COMMON STOCK SHARES OUTSTANDING, BASIC AND DILUTED | 65,592,829 | 55,882,829 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (RESTATED) - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Shares to be Issued | Total |
Beginning balance, shares at Sep. 30, 2016 | 48,816,162 | ||||
Beginning balance, amount at Sep. 30, 2016 | $ 48,816 | $ 2,349,186 | $ (2,409,117) | $ 40,000 | $ 28,885 |
Common stock issued for cash, shares | 3,000,000 | ||||
Common stock issued for cash, amount | $ 3,000 | 50,333 | (40,000) | 13,333 | |
Common stock issued for services, shares | 2,000,000 | ||||
Common stock issued for services, amount | $ 2,000 | 38,000 | 40,000 | ||
Warrants | 6,667 | 6,667 | |||
Net loss | (154,028) | (154,028) | |||
Ending balance, shares at Sep. 30, 2017 | 53,816,162 | ||||
Ending balance, amount at Sep. 30, 2017 | $ 53,816 | 2,444,186 | (2,563,145) | (65,143) | |
Common stock issued for cash, shares | 3,700,000 | ||||
Common stock issued for cash, amount | $ 3,700 | 127,801 | 131,501 | ||
Common stock issued for services, amount | |||||
Net loss | (50,384) | (50,384) | |||
Ending balance, shares at Dec. 31, 2017 | 57,516,162 | ||||
Ending balance, amount at Dec. 31, 2017 | $ 57,516 | 2,571,987 | (2,613,529) | (15,974) | |
Beginning balance, shares at Sep. 30, 2017 | 53,816,162 | ||||
Beginning balance, amount at Sep. 30, 2017 | $ 53,816 | 2,444,186 | (2,563,145) | (65,143) | |
Common stock issued for cash, amount | $ 224,100 | ||||
Common stock issued for services, shares | 30,000 | ||||
Common stock issued for services, amount | $ 45,500 | ||||
Common stock issued for reimbursement of mineral claims, shares | 500,000 | ||||
Ending balance, shares at Sep. 30, 2018 | 60,436,162 | ||||
Ending balance, amount at Sep. 30, 2018 | $ 60,436 | 2,752,600 | (3,026,479) | 55,000 | $ (158,443) |
Beginning balance, shares at Dec. 31, 2017 | 57,516,162 | ||||
Beginning balance, amount at Dec. 31, 2017 | $ 57,516 | 2,571,987 | (2,613,529) | (15,974) | |
Common stock issued for cash, shares | 2,060,000 | ||||
Common stock issued for cash, amount | $ 2,060 | 90,539 | 55,000 | 279,100 | |
Common stock issued for services, shares | 300,000 | ||||
Common stock issued for services, amount | $ 300 | 45,200 | 45,500 | ||
Common stock issued for reimbursement of mineral claims, shares | 500,000 | ||||
Common stock issued for reimbursement of mineral claims, amount | $ 500 | 4,540 | 5,040 | ||
Warrants issued for directors' fees | 39,194 | 39,194 | |||
Exercise of warrants, shares | 60,000 | ||||
Exercise of warrants, amount | $ 60 | 1,140 | 1,200 | ||
Net loss | (463,334) | (463,334) | |||
Ending balance, shares at Sep. 30, 2018 | 60,436,162 | ||||
Ending balance, amount at Sep. 30, 2018 | $ 60,436 | 2,752,600 | (3,026,479) | 55,000 | (158,443) |
Common stock issued for cash, shares | 3,925,000 | ||||
Common stock issued for cash, amount | $ 3,925 | 170,075 | (55,000) | 119,000 | |
Common stock issued for services, shares | 200,000 | ||||
Common stock issued for services, amount | $ 200 | 49,800 | 50,000 | ||
Common stock issued for director’s fees, shares | 110,000 | ||||
Common stock issued for director’s fees, amount | $ 110 | 21,890 | 22,000 | ||
Common stock issued for officer’s fees, shares | 4,000,000 | ||||
Common stock issued for officer’s fees, amount | $ 4,000 | 76,000 | 80,000 | ||
Rescinded shares, shares | (4,300,000) | ||||
Rescinded shares, amount | $ (4,300) | 4,300 | |||
Net loss | (300,797) | (300,797) | |||
Ending balance, shares at Dec. 31, 2018 | 64,371,162 | ||||
Ending balance, amount at Dec. 31, 2018 | $ 64,371 | $ 3,074,665 | $ 3,327,276 | $ (188,240) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (RESTATED) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (300,797) | $ (50,384) |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||
Amortization of debt discount | 5,351 | |
Common stock issued for services | 50,000 | |
Common stock issued for officers’ and directors’ fees | 22,000 | |
Loss on issuance of convertible debt | 71,158 | |
Gain on revaluation of derivative liabilities | (35,753) | |
Changes in assets and liabilities: | ||
Decrease (increase) in prepaid expense | (1,397) | |
Increase (decrease) in accounts payable | (4,339) | (10,803) |
Increase (decrease) in accrued interest | (502) | 1,302 |
Decrease (increase) in deferred payroll | 53,713 | |
Net cash used by operating activities | (139,229) | (61,282) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of common stock and warrants | 119,000 | 131,500 |
Proceeds from convertible debt | 60,000 | |
Net cash provided by financing activities | 179,000 | 131,500 |
INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS | 39,771 | 70,218 |
Cash, beginning of period | 1,900 | 5,011 |
Cash, end of period | 41,671 | 75,229 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | ||
Income taxes paid |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS | Mineral Mountain Mining & Milling Company (“the Company”) was incorporated under the laws of the State of Idaho on August 4, 1932 and is publicly held. The Company was incorporated for the purpose of mining and exploring for non-ferrous and precious metals, primarily silver, lead and copper. The Company has two wholly owned subsidiaries, Nomadic Gold Mines, Inc., an Alaska corporation, and Lander Gold Mines, Inc., a Wyoming corporation. The Company currently holds 66 claim blocks in Alaska, through its subsidiary, Nomadic Gold Mines, Inc. The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles in the United States of America for complete financial statements. These unaudited interim financial statements should be read in conjunction with the Company’s audited financial statements for the year ended September 30, 2018. In the opinion of management, the unaudited interim financial statements furnished herein includes all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented. Operating results for the three month period ended December 31, 2018 are not necessarily indicative of the results that may be expected for the year ending September 30, 2019. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (RESTATED) | 3 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (RESTATED) | This summary of significant accounting policies of Mineral Mountain Mining & Milling Company and its two wholly owned subsidiaries is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States and have been consistently applied in the preparation of the financial statements. Fair Value of Financial Instruments The Company’s financial instruments as defined by ASC 825-10-50, include cash, receivables, accounts payable and accrued expenses. All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at September 30, 2018 and December 31, 2018. The standards under ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. FASB ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: 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 of no market data, which require the reporting entity to develop its own assumptions. The Company has convertible debt of $5,351 measured at fair value at December 31, 2018. Going Concern As shown in the accompanying financial statements, the Company has incurred cumulative operating losses since inception. As of December 31, 2018, the Company has limited financial resources with which to achieve its objectives and attain profitability and positive cash flows from operations. As shown in the accompanying balance sheets and statements of operations, the Company has an accumulated deficit of $3,327,276. The Company’s working capital deficit is $188,240. Achievement of the Company’s objectives will depend on its ability to obtain additional financing, to generate revenue from current and planned business operations, and to effectively operating and capital costs. The Company plans to fund its future operations by potential sales of its common stock or by issuing debt securities. However, there is no assurance that the Company will be able to achieve these objectives, therefore substantial doubt about its ability to continue as a going concern exists. Provision for Taxes Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition |
RESTATEMENT OF FINANCIAL STATEM
RESTATEMENT OF FINANCIAL STATEMENTS | 3 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 3 - RESTATEMENT OF FINANCIAL STATEMENTS | In November 2018, information came to the attention of Company management that led it to investigate whether one of the Company’s property and mineral leases, its Alaska Mineral Lease, qualified for early adoption of ASU No. 2016-02, resulting in the recognition of a right of use asset and lease liability in accordance with ASC 842, was the absolute best accounting practice or whether the scope exception applied and the lease payments should have been expensed as incurred in accordance with the scope exception of ASC 842. Company management concluded on February 14, 2019 and notified the Board that a portion of its financial statements should no longer be relied upon because of an error in such financial statements. Company management further concluded that the Company could properly early adopt ASC 842, but that we determined the scope exception applied and that it should account for the Alaska Mineral Lease payments as expenses as incurred pursuant to the scope exception of ASC 842. On February 15, 2019, the Company’s independent registered public accounting firm, Fruci & Associates II, PLLC (“Fruci”), concurred with these conclusions and that the financial statements should be amended to reflect this change, including in the financial statements for the quarter ending December 31, 2018. The Company determined that it had made an error in how it implemented ASU No. 2016-02, Leases as it relates to the Alaska Mineral Lease and Option to Purchase. The ASU-842-10-15 scope exception states that the topic does not apply to “Leases to explore for or use minerals, oil, natural gas, and similar nonregenerative resources. This includes rights to explore for those natural resources and rights to use the land in which those natural resources are contained (that is, unless those rights of use include more than the right to explore for natural resources), but not equipment used to explore for the natural resources.” The Company believed that there was an infrastructure asset present on the Company’s leased property in the form of unpaved roads and an exclusive right to use that infrastructure pursuant to the terms of the Alaska Mineral Lease that met the requirement that the lease include more that the right to explore for natural resources. Company Management has since determined that this infrastructure asset may not meet that criteria, and as a result the Company has restated the accompanying financial statements to reflect this change. The effects of the adjustments on the Company’s previously issued financial statements for the quarters ended December 31, 2018 and December 31, 2017 are summarized as follows: Originally Restatement As Consolidated Balance Sheets (Restated) Reported Adjustment Restated As of December 31, 2017 Investment in mineral lease $ 336,000 $ (336,000 ) $ - Mineral lease, net $ 176,818 $ (176,818 ) $ - Accrued lease payments $ 10,000 $ (10,000 ) $ - Long term mineral lease liability $ 232,318 $ (232,318 ) $ - Accumulated deficit $ (2,343,029 ) $ (270,500 ) $ (2,613,529 ) Earnings per share $ - $ - $ - Consolidated Statements of Operations For the quarter ended December 31, 2017 Mineral Property Expense $ 10,000 (10,000 ) - Total operating expenses $ 59,082 $ (10,000 ) $ 49,082 Consolidated Statements of Cash Flows For the quarter ended December 31, 2017 Decrease in accounts payable $ (2,200 ) $ (8,603 ) $ (10,803 ) Originally Restatement As Consolidated Balance Sheets (Restated) Reported Adjustment Restated As of December 31, 2018 Investment in mineral lease $ 336,000 $ (336,000 ) $ - Mineral lease, net $ 101,498 $ (101,498 ) $ - Long term mineral lease liability $ 216,817 $ (216,817 ) $ - Accumulated deficit $ (3,106,595 ) $ (270,681 ) $ (3,327,276 ) Earnings per share $ - $ - $ - A discussion of the Company’s improvements in its disclosure controls and procedures is contained in Item 9A of the “Controls and Procedures” section in the Company’s Amended Annual Report on Form 10-K/A for the year ending September 30, 2018. |
MINING CLAIMS AND LAND (RESTATE
MINING CLAIMS AND LAND (RESTATED) | 3 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 4 - MINING CLAIMS AND LAND (RESTATED) | Alaska Mineral Lease and Option to Purchase On April 5, 2016, the Company signed a Lease Agreement with Option to Purchase thirty contiguous mining claims known as the Caribou Mining Claims consisting of 4,800 acres in the State of Alaska. The agreement consists of two parts, an Option to Purchase and until such time as the Option to Purchase is exercised, the Agreement is considered a lease. This was a related party transaction. Option to Purchase The Option to Purchase may be exercised without pre-payment penalty at any time prior to the ninth anniversary of the effective date of the agreement which would be April 5, 2025 by remitting $5,000,000. In order to maintain the Option to Purchase the Company must make expenditures for work on the property as follows: Work Expenditure Commitments Due Before Amount December 1, 2019 $ 150,000 December 1, 2020 250,000 December 1, 2021 500,000 December 1, 2022 1,000,000 December 1, 2023 1,000,000 December 1, 2024 1,000,000 Total $ 3,900,000 Lease In order to maintain the Option to Purchase the Company shall make the following lease payments. Lease Payment Obligations Date Due Amount April 5, 2016 $ 20,000 April 5, 2016 5,000 April 5, 2019 10,000 April 5, 2020 20,000 April 5, 2021 40,000 April 5, 2022 70,000 April 5, 2023 100,000 Total $ 265,000 Paid during year ended September 30, 2017 0 Balance at September 30, 2017 $ 240,000 Paid during year ended September 30, 2018 0 Balance at September 30, 2018 $ 240,000 Paid during the period ended December 31, 2018 0 Balance at December 31, 2018 240,000 There was additional consideration of 11,200,000 shares of common stock valued at $336,000 recorded as mineral property expense. In addition, under the agreement a royalty equal to two percent (2%) of the net smelter returns derived by the Company shall be payable, without regard to whether the Option to Purchase has been exercised. No royalties have been incurred as of December 31, 2018 or September 30, 2018. On August 17, 2018, the Company agreed to an amendment to Lease Agreement with Option to Purchase, with effect on April 18, 2016, for the Caribou Mining Claims modifying the payment schedules for the lease payments and option to purchase to accommodate the Company’s efforts to secure additional capital investment for the Caribou Mining Claims resulting in significant savings and flexibility to the Company. Lewis Mineral Lease and Option to Purchase On December 18, 2017, the Company signed a Lease Agreement with Option to Purchase sixteen unpatented mining claims known as the Lewiston Claims and three patented mining claims known as the Hidden Hand, Morris and Casselton Claims, located in the State of Wyoming. The agreement consists of two parts, an option to purchase and until such time as the Option to Purchase is exercised, the Agreement is considered a lease. Option to Purchase The Option to Purchase may be exercised without pre-payment penalty at any time prior to the seventh anniversary of the effective date of the agreement which would be December 18, 2024 by remitting $1,000,000. In order to maintain the Option to Purchase the Company must make six annual payments all of which will be credited to the purchase price beginning on December 18, 2018 and continuing until December 18, 2023. Lease In order to maintain the Option to Purchase the Company shall make the following lease payments. Lease Payment Obligations Date Due Amount June 18, 2018 $ 20,000 December 18, 2018 30,000 December 18, 2019 30,000 December 18, 2020 30,000 December 18, 2021 30,000 December 18, 2022 30,000 December 18, 2023 30,000 Total $ 200,000 The parties to the lease amended the payment schedule to indefinitely defer $35,000 in lease payments from the June 18, 2018 and December 18, 2018 payment periods. There was additional consideration of 500,000 warrants to purchase shares of common stock value. In addition, under the agreement a royalty equal to three percent (3%) of the net smelter returns derived by the Company shall be payable, without regard to whether the Option to Purchase has been exercised. No royalties have been incurred as of December 31, 2018. The parties to the lease amended the payment schedule to defer $7,500 in lease payments indefinitely. Helen G Mineral Lease On March 8, 2018, the Company signed a Lease Agreement for three patented mining claims known as the Helen G. (a/k/a Allen G), Mill and Star Lode Claims, located in the State of Wyoming. Under the agreement a royalty shall be paid as follows: • If the monthly average per troy ounce of gold is over $1,500 the royalty shall be 3.5% of net smelter returns. • If the monthly average per troy ounce of gold is greater than $1,400 but less than $1,500, the royalty shall be 3.0% of net smelter returns. • If the monthly average per troy ounce of gold is greater than $1,300 but less than $1,400, the royalty shall be 2.5% of net smelter returns. • If the monthly average per troy ounce of gold is $1,300 or less the royalty shall be 2.0% of net smelter returns. No royalties have been incurred as of December 31, 2018. Lease In order to maintain its lease the Company shall make a $2,500 advance royalty payments at execution of the agreement and on each yearly anniversary for as long as the agreement is in effect. These advance royalty payments will be credited to the production royalty payments owed above. The failure of the Company to timely tender the advance royalty payment may terminate this lease. |
EQUITY PURCHASE AGREEMENT
EQUITY PURCHASE AGREEMENT | 3 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 5 - EQUITY PURCHASE AGREEMENT | The Company entered into an Equity Purchase Agreement, dated as of October 1, 2018 (the “Equity Purchase Agreement”), by and between the Company and Crown Bridge Partners, LLC (the “Crown Bridge”) pursuant to which the Company has agreed to issue to Crown Bridge shares of the Company’s Common Stock, $0.001 par value (the “Common Stock”), in an amount up to Five Million Dollars ($5,000,000.00) (the “Shares”), in accordance with the terms of the Equity Purchase Agreement. In connection with the transactions contemplated by the Equity Purchase Agreement, the Company is required to register with the SEC the following shares of Common Stock: (1) 8,000,000 Put Shares to be issued to the Investors upon purchase from the Company by the Investors from time to time pursuant to the terms and conditions of the Equity Purchase Agreement; (2) 1,428,571 shares of Common Stock to be issued by the Company to the Investors as a commitment fee pursuant to the Equity Purchase Agreement; and (3) the Company also has entered into a Registration Rights Agreement, of even date with the Equity Purchase Agreement with the Investors (the “Registration Rights Agreement”) pursuant to which the Company agreed, among other things, to register the Put Shares under the Securities Act of 1933, as amended (the “Securities Act”) relating to the resale of the Put Shares. The Company intends to use the proceeds of the revolving credit line for general corporate purposes, which may include (i) acquisitions, (ii) refinancing or repayment of indebtedness, (iii) capital expenditures and working capital, (iv) investing in equipment and property development (which may include funding associated with exploration), and (v) pursuing other business opportunities both related and unrelated to our existing mining activities. |
CONVERTIBLE DEBT
CONVERTIBLE DEBT | 3 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 6 - CONVERTIBLE DEBT | On or about November 27, 2018, the Company issued a convertible promissory note with Power Up Lending Group Ltd. (“Power Up”) for the principal sum of $63,000.00, together with interest, with a maturity date of November 27, 2019. The Company agreed to pay interest on the unpaid principal balance at the rate of 12%per annum from the date thereof until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment. Power Up has the right at any time during the period beginning 180 days following the date of the Note to convert all or any part of the outstanding and unpaid principal amount of the Note into fully paid and non-assessable shares of Common Stock. The conversion price shall be equal to the Variable Conversion Price, which is 58% multiplied by the Market Price (representing a discount rate of 42%), in which Market Price is the average of the lowest two (2) Trading Prices for the Company’s Common Stock during the preceding 15 trading day period prior to the Conversion Date. The Company paid $3,000 as a fee which is recorded as a debt discount and being amortized over the life of the loan. The conversion feature of the note represents an embedded derivative. A derivative liability with an intrinsic value of $0.1770 was $131,158 using a binomial pricing model and was calculated as a discount to the note. That amount is recorded as a new contra-note payable amount (similar to the recorded OID and transaction costs and amounts discussed immediately below), but only for an amount not in excess of and thus capped by the otherwise undiscounted amount of the note payable. Because of the derivative nature of the $131,158 valuation of the conversion feature, $71,158 is recorded as an expense in the current period and reported as a loss on issuance of convertible debt. |
COMMON STOCK
COMMON STOCK | 3 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 7 - COMMON STOCK | Upon formation the authorized capital of the Company was 2,000,000 shares of common stock with a par value of $.05, in 1953 the Company increased the authorized capital to 3,000,000 shares of common stock, in 1985 the authorized capital was again increased to 10,000,000 shares of common stock, and in 2014 the Company increased the authorized capital to 100,000,000 shares of common stock with a par value of $.001 and 10,000,000 shares of preferred stock with a par value of $.10. During the year ended September 30, 2018, the Company issued 5,760,000 shares of common stock for cash of $224,100; 1,275,000 shares of common stock for cash of $55,000 that were unissued as of September 30, 2018; 300,000 shares of common stock for services valued at $45,500; and 500,000 shares of common stock for reimbursement of mineral claim fees. Additionally, 280,000 warrants were issued for directors fees at an exercise price of $0.02 and a term of two years. The fair value of the warrants was estimated using the Black Scholes Option Price Calculation. The following assumptions were made to value the warrants on the date of issuance: strike price of $0.02, risk free interest rate of 1.99%, expected life of two years, and expected volatility of 495.28%. The fair value of the warrants totaled $39,194 at the issuance date and this amount was recorded as equity. Also during the period 60,000 options were exercised at a price of $.02 for cash in the amount of $1200.00 During the three month period ended December 31, 2018, the Company issued 2,650,000 shares of common stock for cash of $119,000; 1,275,000 shares that were paid for but unissued as of September 30, 2018; 200,000 shares of common stock for services valued at $50,000; 110,000 shares for directors’ fees valued at $22,000; and 4,000,000 shares for settlement of accumulated officers’ fees valued at $80,000. Additionally, in 2016, former management of the Company negotiated a contract with M6 Limited, a stock promotion company, in which M6 would collectively receive an advanced payment of 4.3 million shares of Company common stock for certain promotional services. M6 itself received 2 million shares, an affiliated company, Maximum Harvest LLC, received 1.3 million shares and an affiliate of M6, Hahn M. Nguyen, received 1 million shares. In 2018, current management determined that it was not in the best interest of the Company to pursue the services and therefore terminated the contract with M6. The 4.3 million shares of common stock have been rescinded and, with the consent of M6, the process for the physical return of the shares is near completion. The following warrants were outstanding at December 31, 2018: Warrant Type Warrants Issued and Unexercised Exercise Price Expiration Date Warrants 1,000,000 $ 0.05 December 2021 Warrants 500,000 $ 0.10 December 2021 Warrants 220,000 $ 0.02 January 2020 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 8 - RELATED PARTY TRANSACTIONS | During the year ended September 30, 2016 the Company issued a note payable to a family member of an officer in the amount of $15,000. $3,000 was converted to 300,000 shares of common stock and $5,000 was repaid in cash. The note bears interest at a rate of 10% beginning on July 24, 2016 and, in the event of demand for payment, a default interest rate of 15% applies. The balance of principal and interest at December 31, 2018 and September 30, 2018 was $9,967 and $9,660, respectively. Also during the year ended September 30, 2016, the Company through its wholly owned subsidiary, Nomadic Gold Mines, Inc, entered into a lease agreement with option to purchase with Ben Porterfield, a related party. See Note 4. During the year ended September 30, 2017 the Company issued two notes payable to Premium Exploration Mining in the amount of $35,000 and $15,000 each having an interest rate of 5%, the balance of principal and interest at December 31, 2018 and September 30, 2018 was $57,127 and $55,342, respectively, the companies had directors in common until October 31, 2018. A family member of an officer provides investor relations consulting services and other administrative functions to the Company, during the period ended December 31, 2018, $10,000 was paid in cash for consulting; during the period ended December 31, 2017, $4,500 was paid in cash for consulting. |
INCOME TAXES (RESTATED)
INCOME TAXES (RESTATED) | 3 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 9 - INCOME TAXES (RESTATED) | Topic 740 in the Accounting Standards Codification (ASC 740) prescribes recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. At December31, 2018 the Company had taken no tax positions that would require disclosure under ASC 740. The Company files income tax returns in the U.S. federal jurisdiction and the State of Idaho. The Company is currently in arrears in filing their federal and state tax returns, both jurisdictions statute of limitations of three years does not begin until the tax returns are filed. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. Significant components of the deferred tax assets at an anticipated tax rate 21% for the period ended December 31, 2018 and September 30, 2018 are as follows: December 31, 2018 September 30, 2018 Net operating loss carryforwards 3,327,276 3,026,479 Deferred tax asset 1,031,937 968,769 Valuation allowance for deferred asset (1,031,937 ) (968,769 ) Net deferred tax asset - - At December 31, 2018 and September 30, 2018, the Company has net operating loss carryforwards of approximately $3,327,276 and $3,026,479 which will begin to expire in the year 2031. The change in the allowance account from September 30, 2018 to December 31, 2018 was $63,168. On December 22, 2017 H.R. 1, originally known as the Tax Cuts and Jobs Act, (the “Tax Act”) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowered the U.S. federal corporate income tax rate (“Federal Tax Rate”) from 35% to 21% effective January 1, 2018. The Company will compute its income tax expense for the December 31, 2017 fiscal year using a Federal Tax Rate of 21%. The remeasurement of the deferred tax assets resulted in a $99,337 reduction in tax assets to $1,031,937 from an estimate of $1,131,274 that the assets would have been using a 35% effective tax rate. |
SUBSEQUENT EVENTS (RESTATED)
SUBSEQUENT EVENTS (RESTATED) | 3 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
NOTE 10 - SUBSEQUENT EVENTS (RESTATED) | On or about October 1, 2018, the Company entered into an Equity Purchase Agreement, by and between the Company and Crown Bridge Partners, LLC (see Note 4 above for a discussion of this Agreement), and on or about November 27, 2018, the Company issued a convertible promissory note with Power Up Lending Group Ltd. (“Power Up”) for the principal sum of $63,000.00 (see Note 5 above for a discussion of this Agreement). Pursuant to a Board of Directors resolution dated November 8, 2018, the Board of Directors authorized the Company to investigate and negotiate a merger with Newco, two newly formed corporate entities with unrelated businesses. The investigation is continuing and negotiations for a proposed merger have not commenced. Pursuant to a Board of Directors resolution dated December 13, 2018, the Company was authorized to renew the contract with Peter Papasavas of Papasavas Law Group, LLC to act as outside general counsel to provide legal services for a flat fee of one million shares issued upon an agreed upon date and the payment of a retainer in the amount of $10,000 in January 2019, and an additional nine (9) monthly installments of $5,000. In November 2018, information came to the attention of Company management that led it to investigate whether one of the Company’s property and mineral leases, its Alaska Mineral Lease, qualified for early adoption of ASU No. 2016-02, resulting in the recognition of a right of use asset and lease liability in accordance with ASC 842, was the absolute best accounting practice or whether the scope exception applied and the lease payments should have been expensed as incurred in accordance with the scope exception of ASC 842. Company management concluded on February 14, 2019 and notified the Board that a portion of its financial statements should no longer be relied upon because of an error in such financial statements. Company management further concluded that the Company could properly early adopt ASC 842, but that we determined the scope exception applied and that it should account for the Alaska Mineral Lease payments as expenses as incurred pursuant to the scope exception of ASC 842. On February 15, 2019, the Company’s independent registered public accounting firm, Fruci & Associates II, PLLC (“Fruci”), concurred with these conclusions and that the financial statements should be amended to reflect this change, including in the financial statements for the quarter ending December 31, 2019. See Note 3. Management has evaluated subsequent events through the date these financial statements were available to be issued. Based on our evaluation no other material events have occurred that require disclosure. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (RESTATED) (Policies) | 3 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies Restated | |
Fair Value of Financial Instruments | The Company’s financial instruments as defined by ASC 825-10-50, include cash, receivables, accounts payable and accrued expenses. All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at September 30, 2018 and December 31, 2018. The standards under ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. FASB ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: 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 of no market data, which require the reporting entity to develop its own assumptions. The Company has convertible debt of $5,351 measured at fair value at December 31, 2018. |
Going Concern | As shown in the accompanying financial statements, the Company has incurred cumulative operating losses since inception. As of December 31, 2018, the Company has limited financial resources with which to achieve its objectives and attain profitability and positive cash flows from operations. As shown in the accompanying balance sheets and statements of operations, the Company has an accumulated deficit of $3,327,276. The Company’s working capital deficit is $188,240. Achievement of the Company’s objectives will depend on its ability to obtain additional financing, to generate revenue from current and planned business operations, and to effectively operating and capital costs. The Company plans to fund its future operations by potential sales of its common stock or by issuing debt securities. However, there is no assurance that the Company will be able to achieve these objectives, therefore substantial doubt about its ability to continue as a going concern exists. |
Provision for Taxes | Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition |
RESTATEMENT OF FINANCIAL STAT_2
RESTATEMENT OF FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Restatement Of Financial Statements | |
Condensed financial statements | Originally Restatement As Consolidated Balance Sheets (Restated) Reported Adjustment Restated As of December 31, 2017 Investment in mineral lease $ 336,000 $ (336,000 ) $ - Mineral lease, net $ 176,818 $ (176,818 ) $ - Accrued lease payments $ 10,000 $ (10,000 ) $ - Long term mineral lease liability $ 232,318 $ (232,318 ) $ - Accumulated deficit $ (2,343,029 ) $ (270,500 ) $ (2,613,529 ) Earnings per share $ - $ - $ - Consolidated Statements of Operations For the quarter ended December 31, 2017 Mineral Property Expense $ 10,000 (10,000 ) - Total operating expenses $ 59,082 $ (10,000 ) $ 49,082 Consolidated Statements of Cash Flows For the quarter ended December 31, 2017 Decrease in accounts payable $ (2,200 ) $ (8,603 ) $ (10,803 ) Originally Restatement As Consolidated Balance Sheets (Restated) Reported Adjustment Restated As of December 31, 2018 Investment in mineral lease $ 336,000 $ (336,000 ) $ - Mineral lease, net $ 101,498 $ (101,498 ) $ - Long term mineral lease liability $ 216,817 $ (216,817 ) $ - Accumulated deficit $ (3,106,595 ) $ (270,681 ) $ (3,327,276 ) Earnings per share $ - $ - $ - |
MINING CLAIMS AND LAND (RESTA_2
MINING CLAIMS AND LAND (RESTATED) (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Work expenditure commitments | Work Expenditure Commitments Due Before Amount December 1, 2019 $ 150,000 December 1, 2020 250,000 December 1, 2021 500,000 December 1, 2022 1,000,000 December 1, 2023 1,000,000 December 1, 2024 1,000,000 Total $ 3,900,000 |
Alaska Mineral Lease [Member] | |
Lease payment obligations | Lease Payment Obligations Date Due Amount April 5, 2016 $ 20,000 April 5, 2016 5,000 April 5, 2019 10,000 April 5, 2020 20,000 April 5, 2021 40,000 April 5, 2022 70,000 April 5, 2023 100,000 Total $ 265,000 Paid during year ended September 30, 2017 0 Balance at September 30, 2017 $ 240,000 Paid during year ended September 30, 2018 0 Balance at September 30, 2018 $ 240,000 Paid during the period ended December 31, 2018 0 Balance at December 31, 2018 240,000 |
Lewis Mineral Lease [Member] | |
Lease payment obligations | Lease Payment Obligations Date Due Amount June 18, 2018 $ 20,000 December 18, 2018 30,000 December 18, 2019 30,000 December 18, 2020 30,000 December 18, 2021 30,000 December 18, 2022 30,000 December 18, 2023 30,000 Total $ 200,000 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Common Stock Tables Abstract | |
Summary of warrants outstanding | Warrant Type Warrants Issued and Unexercised Exercise Price Expiration Date Warrants 1,000,000 $ 0.05 December 2021 Warrants 500,000 $ 0.10 December 2021 Warrants 220,000 $ 0.02 January 2020 |
INCOME TAXES (RESTATED) (Tables
INCOME TAXES (RESTATED) (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Summary of the deferred tax assets | December 31, 2018 September 30, 2018 Net operating loss carryforwards 3,327,276 3,026,479 Deferred tax asset 1,031,937 968,769 Valuation allowance for deferred asset (1,031,937 ) (968,769 ) Net deferred tax asset - - |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) | 3 Months Ended |
Dec. 31, 2018 | |
Organization And Description Of Business | |
Date of incorporation | Aug. 4, 1932 |
State of incorporation | Idaho |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (RESTATED) (Details Narrative) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 |
Summary Of Significant Accounting Policies Restated Details Narrative Abstract | ||
Convertible debt, net | $ 5,351 | |
Accumulated deficit | (3,327,276) | $ (3,026,479) |
Working capital deficit | $ (188,240) |
RESTATEMENT OF FINANCIAL STAT_3
RESTATEMENT OF FINANCIAL STATEMENTS (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Accumulated deficit | $ (3,327,276) | $ (3,026,479) | |
Originally Reported [Member] | |||
Investment in mineral lease | 336,000 | $ 336,000 | |
Mineral lease, net | 101,498 | 176,818 | |
Accrued lease payments | 10,000 | ||
Long term mineral lease liability | 216,817 | 232,318 | |
Accumulated deficit | $ (3,106,595) | $ (2,343,029) | |
Earnings per share | |||
Restatement Adjustment [Member] | |||
Investment in mineral lease | $ (336,000) | $ (336,000) | |
Mineral lease, net | (101,498) | (176,818) | |
Accrued lease payments | (10,000) | ||
Long term mineral lease liability | (216,817) | (232,318) | |
Accumulated deficit | $ (270,681) | $ (270,500) | |
Earnings per share | |||
Restated [Member] | |||
Investment in mineral lease | |||
Mineral lease, net | |||
Accrued lease payments | |||
Long term mineral lease liability | |||
Accumulated deficit | $ (3,327,276) | $ (2,613,529) | |
Earnings per share |
RESTATEMENT OF FINANCIAL STAT_4
RESTATEMENT OF FINANCIAL STATEMENTS (Details 1) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Mineral Property Expense | $ 27,301 | |
Originally Reported [Member] | ||
Mineral Property Expense | 10,000 | |
Total operating expenses | 59,082 | |
Restatement Adjustment [Member] | ||
Mineral Property Expense | (10,000) | |
Total operating expenses | (10,000) | |
Restated [Member] | ||
Mineral Property Expense | ||
Total operating expenses | $ 49,082 |
RESTATEMENT OF FINANCIAL STAT_5
RESTATEMENT OF FINANCIAL STATEMENTS (Details 2) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Decrease in accounts payable | $ (4,339) | $ (10,803) |
Originally Reported [Member] | ||
Decrease in accounts payable | (2,200) | |
Restatement Adjustment [Member] | ||
Decrease in accounts payable | (8,603) | |
Restated [Member] | ||
Decrease in accounts payable | $ (10,803) |
MINING CLAIMS AND LAND (RESTA_3
MINING CLAIMS AND LAND (RESTATED) (Details) | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Work Expenditure Commitments | $ 3,900,000 |
December 1, 2019 [Member] | |
Work Expenditure Commitments | 150,000 |
December 1, 2020 [Member] | |
Work Expenditure Commitments | 250,000 |
December 1, 2021 [Member] | |
Work Expenditure Commitments | 500,000 |
December 1, 2022 [Member] | |
Work Expenditure Commitments | 1,000,000 |
December 1, 2023 [Member] | |
Work Expenditure Commitments | 1,000,000 |
December 1, 2024 [Member] | |
Work Expenditure Commitments | $ 1,000,000 |
MINING CLAIMS AND LAND (RESTA_4
MINING CLAIMS AND LAND (RESTATED) (Details 1) | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Lease Payment Obligations | $ 7,500 |
Alaska Mineral Lease [Member] | |
Lease Payment Obligations | 265,000 |
Paid during year ended September 30, 2017 | 0 |
Balance at September 30, 2017 | 240,000 |
Paid during year ended September 30, 2018 | 0 |
Balance at September 30, 2018 | 240,000 |
Paid during the period ended December 31, 2018 | 0 |
Balance at December 31, 2018 | 240,000 |
Alaska Mineral Lease [Member] | April 5, 2016 [Member] | |
Lease Payment Obligations | $ 20,000 |
Lease payment obligations, due date | Apr. 5, 2016 |
Alaska Mineral Lease [Member] | April 5, 2016 [Member] | |
Lease Payment Obligations | $ 5,000 |
Lease payment obligations, due date | Apr. 5, 2016 |
Alaska Mineral Lease [Member] | April 5, 2019 [Member] | |
Lease Payment Obligations | $ 10,000 |
Lease payment obligations, due date | Apr. 5, 2019 |
Alaska Mineral Lease [Member] | April 5, 2020 [Member] | |
Lease Payment Obligations | $ 20,000 |
Lease payment obligations, due date | Apr. 5, 2020 |
Alaska Mineral Lease [Member] | April 5, 2021 [Member] | |
Lease Payment Obligations | $ 40,000 |
Lease payment obligations, due date | Apr. 5, 2021 |
Alaska Mineral Lease [Member] | April 5, 2022 [Member] | |
Lease Payment Obligations | $ 70,000 |
Lease payment obligations, due date | Apr. 5, 2022 |
Alaska Mineral Lease [Member] | April 5, 2023 [Member] | |
Lease Payment Obligations | $ 100,000 |
Lease payment obligations, due date | Apr. 5, 2023 |
MINING CLAIMS AND LAND (RESTA_5
MINING CLAIMS AND LAND (RESTATED) (Details 2) | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Lease Payment Obligations | $ 7,500 |
Lewis Mineral Lease [Member] | |
Lease Payment Obligations | 200,000 |
Lewis Mineral Lease [Member] | June 18, 2018 [Member] | |
Lease Payment Obligations | $ 20,000 |
Lease payment obligations, due date | Jun. 18, 2018 |
Lewis Mineral Lease [Member] | December 18, 2018 [Member] | |
Lease Payment Obligations | $ 30,000 |
Lease payment obligations, due date | Dec. 18, 2018 |
Lewis Mineral Lease [Member] | December 18, 2019 [Member] | |
Lease Payment Obligations | $ 30,000 |
Lease payment obligations, due date | Dec. 18, 2019 |
Lewis Mineral Lease [Member] | December 18, 2020 [Member] | |
Lease Payment Obligations | $ 30,000 |
Lease payment obligations, due date | Dec. 18, 2020 |
Lewis Mineral Lease [Member] | December 18, 2021 [Member] | |
Lease Payment Obligations | $ 30,000 |
Lease payment obligations, due date | Dec. 18, 2021 |
Lewis Mineral Lease [Member] | December 18, 2022 [Member] | |
Lease Payment Obligations | $ 30,000 |
Lease payment obligations, due date | Dec. 18, 2022 |
Lewis Mineral Lease [Member] | December 18, 2023 [Member] | |
Lease Payment Obligations | $ 30,000 |
Lease payment obligations, due date | Dec. 18, 2023 |
MINING CLAIMS AND LAND (RESTA_6
MINING CLAIMS AND LAND (RESTATED) (Details Narrative) - USD ($) | Apr. 05, 2016 | Dec. 31, 2018 |
Lease payments | $ 7,500 | |
Advance royalty payments | 2,500 | |
Lease payment obligations indefinitely deferred | $ 35,000 | |
Description for change in payment schedule of lease payments | The parties to the lease amended the payment schedule to indefinitely defer $35,000 in lease payments from the June 18, 2018 and December 18, 2018 payment periods | |
Alaska Mineral Lease [Member] | ||
Additional consideration shares of common stock, shares | 11,200,000 | |
Additional consideration shares of common stock, value | $ 336,000 | |
Option to purchase description | the ninth anniversary of the effective date of the agreement which would be April 5, 2025 by remitting $5,000,000. | |
Lease payments | $ 265,000 | |
Lewis Mineral Lease [Member] | ||
Option to purchase description | the seventh anniversary of the effective date of the agreement which would be December 18, 2024 by remitting $1,000,000. | |
Lease payments | $ 200,000 | |
Helen G Mineral Lease [Member] | ||
Lease agreement description | Under the agreement a royalty shall be paid as follows: · If the monthly average per troy ounce of gold is over $1,500 the royalty shall be 3.5% of net smelter returns. · If the monthly average per troy ounce of gold is greater than $1,400 but less than $1,500, the royalty shall be 3.0% of net smelter returns. · If the monthly average per troy ounce of gold is greater than $1,300 but less than $1,400, the royalty shall be 2.5% of net smelter returns. · If the monthly average per troy ounce of gold is $1,300 or less the royalty shall be 2.0% of net smelter returns. | |
Warrants [Member] | Lewis Mineral Lease [Member] | ||
Additional consideration shares of common stock, shares | 500,000 | |
Lease Agreement [Member] | Option [Member] | ||
Lease agreement description | Company signed a Lease Agreement with Option to Purchase thirty contiguous mining claims known as the Caribou Mining Claims consisting of 4,800 acres in the State of Alaska. The agreement consists of two parts, an Option to Purchase and until such time as the Option to Purchase is exercised, the Agreement is considered a lease. This was a related party transaction. |
EQUITY PURCHASE AGREEMENT (Deta
EQUITY PURCHASE AGREEMENT (Details Narrative) - Subsequent Event [Member] - Equity Purchase Agreement [Member] - Crown Bridge Partners, LLC [Member] - October 1, 2018 [Member] | Dec. 31, 2018USD ($)$ / sharesshares |
Common stock, par value | $ / shares | $ 0.001 |
Put shares reserved for future issuance | 8,000,000 |
Common stock shares reserved for future issuance | 1,428,571 |
Maximum [Member] | |
Proceeds receivable from issuance of common stock under agreement | $ | $ 5,000,000 |
CONVERTIBLE DEBT (Details Narra
CONVERTIBLE DEBT (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |
Nov. 27, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss on issuance of convertible debt | $ (71,158) | ||
Convertible promissory note [Member] | Power Up Lending Group Ltd. [Member] | |||
Convertible Debt | $ 63,000 | ||
Maturity date | Nov. 27, 2019 | ||
Unpaid principal balance, interest rate | 12.00% | ||
Terms of conversion feature | Power Up has the right at any time during the period beginning 180 days following the date of the Note to convert all or any part of the outstanding and unpaid principal amount of the Note into fully paid and non-assessable shares of Common Stock | ||
Conversion Price description | The conversion price shall be equal to the Variable Conversion Price, which is 58% multiplied by the Market Price (representing a discount rate of 42%), in which Market Price is the average of the lowest two (2) Trading Prices for the Company's Common Stock during the preceding 15 trading day period prior to the Conversion Date | ||
Payment of fee recorded as debt discount | $ 3,000 | ||
Derivative liability, intrinsic value | $ 0.1770 | ||
Derivative liability | $ 131,158 | ||
Loss on issuance of convertible debt | $ (71,158) |
COMMON STOCK (Details)
COMMON STOCK (Details) - Warrants [Member] | 3 Months Ended |
Dec. 31, 2018$ / sharesshares | |
December 2021 [Member] | |
Warrants Issued and Unexercised | shares | 1,000,000 |
Exercise Price | $ / shares | $ 0.05 |
Expiration Date | Dec. 31, 2021 |
December 2021 [Member] | |
Warrants Issued and Unexercised | shares | 500,000 |
Exercise Price | $ / shares | $ 0.10 |
Expiration Date | Dec. 31, 2021 |
January 2020 [Member] | |
Warrants Issued and Unexercised | shares | 220,000 |
Exercise Price | $ / shares | $ 0.02 |
Expiration Date | Jan. 31, 2020 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Capital stock, shares authorized | 2,000,000 | |||||
Capital stock value | $ 0.05 | |||||
Increased the authorized capital shares of common stock description | In 1953 the Company increased the authorized capital to 3,000,000 shares of common stock, in 1985 the authorized capital was again increased to 10,000,000 shares of common stock, and in 2014 the Company increased the authorized capital to 100,000,000 shares of common stock with a par value of $.001 | |||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||
Preferred stock, par value | $ 0.10 | $ 0.10 | $ 0.10 | |||
Preferred stock, authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||
Common stock issued for services, shares | 30,000 | 4,300,000 | ||||
Common stock issued for services, amount | $ 50,000 | $ 45,500 | $ 45,500 | $ 40,000 | $ 40,000 | |
Treasury stock, common, shares | 4,300,000 | |||||
Strike price per share | $ 0.02 | $ 0.02 | ||||
Risk free interest rate | 1.99% | |||||
Expected life | 2 years | |||||
Expected volatility | 495.28% | |||||
Common stock issued for cash, shares | 2,650,000 | 5,760,000 | ||||
Common stock issued for cash, amount | $ 119,000 | 131,501 | $ 279,100 | $ 224,100 | $ 13,333 | |
Common stock unissued for cash, shares | 1,275,000 | |||||
Common stock unissued for cash, amount | $ 55,000 | |||||
Common stock issued for reimbursement of mineral claims, shares | 500,000 | |||||
Additional warrants issued to directors fees shares | 110,000 | 280,000 | 280,000 | |||
Additional warrants issued to directors fees amount | $ 22,000 | |||||
Warrants term | 2 years | 2 years | ||||
Warrants issued for directors fees, exercise price | $ 0.02 | |||||
Fair value of warrants | $ 39,194 | |||||
Option issued | 60,000 | 60,000 | ||||
Options exercise price | $ 0.02 | |||||
Option value | $ 1,200 | $ 1,200 | ||||
Common stock shares issued for compensation, shares | 4,000,000 | |||||
Common stock shares issued for compensation, value | $ 80,000 | |||||
Hahn M. Nguyen [Member] | ||||||
Common stock issued for services, shares | 1,000,000 | |||||
M6 [Member] | ||||||
Common stock issued for services, shares | 2,000,000 | |||||
Maximum Harvest LLC [Member] | ||||||
Common stock issued for services, shares | 1,300,000 | |||||
Common Stock | ||||||
Common stock issued for services, shares | 200,000 | 300,000 | 2,000,000 | |||
Common stock issued for services, amount | $ 200 | $ 300 | $ 2,000 | |||
Common stock issued for cash, amount | $ 3,925 | $ 3,700 | $ 2,060 | $ 3,000 | ||
Common stock issued for reimbursement of mineral claims, shares | 500,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | |
Payment of consulting fees | $ 10,000 | $ 4,500 | |||
Premium Exploration Mining [Member] | |||||
Note payable | 57,127 | $ 55,342 | |||
Premium Exploration Mining [Member] | Notes Payable [Member] | |||||
Note payable | $ 35,000 | ||||
Interest rate | 5.00% | ||||
Premium Exploration Mining [Member] | Notes Payable Two [Member] | |||||
Note payable | $ 15,000 | ||||
Interest rate | 5.00% | ||||
Related Party [Member] | |||||
Note payable | $ 9,967 | $ 15,000 | $ 9,660 | ||
Repayment of related party debt | 5,000 | ||||
Debt conversion converted amount | $ 3,000 | ||||
Debt conversion converted instrument, shares issued | 300,000 | ||||
Interest rate description | Note bears interest at a rate of 10% beginning on July 24, 2016 and, in the event of demand for payment, a default interest rate of 15% applies. |
INCOME TAXES (RESTATED) (Detail
INCOME TAXES (RESTATED) (Details) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 |
Income Taxes Restated | ||
Net operating loss carryforwards | $ 3,327,276 | $ 3,026,479 |
Deferred tax asset | 1,031,937 | 968,769 |
Valuation allowance for deferred asset | (1,031,937) | (968,769) |
Net deferred tax asset |
INCOME TAXES (RESTATED) (Deta_2
INCOME TAXES (RESTATED) (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Dec. 22, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Income Taxes Restated Details Narrative Abstract | ||||
Net operating loss carryforwards | $ 3,327,276 | $ 3,026,479 | ||
Net operating loss carryforward expiration date | 2,031 | |||
Change in valuation allowance, amount | $ 63,168 | $ 97,300 | ||
U.S. federal corporate income tax rate description | Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowered the U.S. federal corporate income tax rate (“Federal Tax Rate”) from 35% to 21% effective January 1, 2018. | |||
U.S. federal statutory rate | 21.00% | |||
Description of reduction in deferred tax assets | Remeasurement of the deferred tax assets resulted in a $99,337 reduction in tax assets to $1,031,937 from an estimate of $1,131,274 that the assets would have been using a 35% effective tax rate. | |||
Effective tax rate | 35.00% |
SUBSEQUENT EVENTS (RESTATED) (D
SUBSEQUENT EVENTS (RESTATED) (Details Narrative) - Subsequent Event [Member] | 3 Months Ended |
Dec. 31, 2018USD ($) | |
October 1, 2018 [Member] | Equity Purchase Agreement [Member] | |
Convertible promissory note | $ 63,000 |
Papasavas Law Group, LLC [Member] | December 13, 2018 [Member] | |
Description of payment for legal services fee | One million shares issued upon an agreed upon date and the payment of a retainer in the amount of $10,000 in January 2019, and an additional nine (9) monthly installments of $5,000. |