Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 8-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Thunder Mountain Gold Inc | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000711034 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
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 | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Common Stock, Shares Outstanding | ' | 33,907,549 |
Thunder_Mountain_Gold_Inc_An_E
Thunder Mountain Gold, Inc. (An Exploration Stage Company) Consolidated Balance Sheets March 31, 2014 (unaudited) and December 31, 2013 (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Current assets: | ' | ' | ||
Cash and cash equivalents | $77,032 | $35,882 | ||
Prepaid expenses and other assets | 8,596 | 12,717 | ||
Total current assets | 85,628 | 48,599 | ||
Other assets: | ' | ' | ||
Investment in Owyhee Gold Trust LLC | 479,477 | 479,477 | ||
Total assets | 565,105 | 528,076 | ||
Current liabilities: | ' | ' | ||
Accounts payable and other accrued liabilities | 76,193 | 70,688 | ||
Note payable Related Party | ' | [1] | 25,000 | [1] |
Total liabilities | 76,193 | 95,688 | ||
Commitments | 0 | [2] | 0 | [2] |
Stockholders' equity : | ' | ' | ||
Preferred stock; $0.0001 par value, 5,000,000 shares authorized; no shares issued or outstanding | 0 | 0 | ||
Common stock; $0.001 par value; 200,000,000 shares authorized, 33,907,549 and 31,467,549, respectively shares issued and outstanding | 33,908 | 31,468 | ||
Additional paid-in capital | 3,548,839 | 3,429,279 | ||
Less: 11,700 shares of treasury stock, at cost | -24,200 | -24,200 | ||
Deficit accumulated prior to 1991 | -212,793 | -212,793 | ||
Accumulated deficit during the exploration stage | -2,856,842 | -2,791,366 | ||
Total stockholders' equity | 488,912 | 432,388 | ||
Total liabilities and stockholders' equity | $565,105 | $528,076 | ||
[1] | Note 5 | |||
[2] | Note 3 |
Statement_of_Financial_Positio
Statement of Financial Position - Parenthetical (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement of financial position | ' | ' |
Preferred Stock, Par Value | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Issued | 33,907,549 | 31,467,549 |
Common Stock, Shares Outstanding | 33,907,549 | 31,467,549 |
Thunder_Mountain_Gold_Inc_An_E1
Thunder Mountain Gold, Inc. (An Exploration Stage Company) Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 279 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | ||||
Revenue: | ' | ' | ' | |||
Royalties, net | ' | ' | $328,500 | |||
Owyhee Gold Trust LLC management fee income | ' | 45,104 | 113,353 | |||
Gain on sale of property and mining claims | ' | ' | 2,576,112 | |||
Total revenue | ' | 45,104 | 3,017,965 | |||
Expenses: | ' | ' | ' | |||
Exploration expenses | 4,820 | 31,154 | 2,207,221 | |||
Legal and accounting | 41,241 | 29,353 | 1,261,803 | |||
Management and administrative | 18,914 | 48,603 | 3,425,529 | |||
Directors' fees and professional services | ' | [1] | ' | [1] | 1,012,093 | [1] |
Gain on sale of equipment | ' | ' | -17,815 | |||
Depreciation and depletion | ' | 109 | 145,658 | |||
Total expenses | 64,975 | 109,219 | 8,034,489 | |||
Other income (expense): | ' | ' | ' | |||
Interest and dividend income | ' | ' | 284,752 | |||
Interest expense | -500 | ' | -436,840 | |||
Gain (loss) change in fair value of warrant liabilities | ' | [2] | -257,831 | [2] | 1,803,277 | [2] |
Loss on common stock and warrants | ' | ' | -271,587 | |||
Gain on change in fair value of conversion option liability | ' | ' | 109,399 | |||
Financing expense | ' | ' | -17,945 | |||
Gain on forgiveness of Debt | ' | ' | 1,000,000 | |||
Gain on sale of securities | ' | ' | 166,116 | |||
Impairment of investments | ' | ' | -52,299 | |||
Total other income (expense) | -500 | -257,831 | 2,584,872 | |||
Net income (loss) before income taxes | -65,475 | -321,946 | -2,431,651 | |||
(Provision) for income taxes | ' | ' | -151,496 | |||
Net income (loss) | -65,475 | -321,946 | -2,583,147 | |||
Treasury stock cancelled | ' | ' | -273,695 | |||
Comprehensive income (loss) | ($65,475) | ($321,946) | ($2,856,842) | |||
Net income (loss) per common share-basic and diluted | $0 | ($0.01) | ($0.12) | |||
Weighted average common shares outstanding-basic and diluted | 31,333,231 | 30,167,549 | 23,652,924 | |||
[1] | Note 6 | |||||
[2] | Note 2 |
Thunder_Mountain_Gold_Inc_An_E2
Thunder Mountain Gold, Inc. (An Exploration Stage Company) Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | 279 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2014 | |||
Cash flows from operating activities: | ' | ' | ||
Net income (loss) | ($65,475) | ($2,583,147) | ||
Adjustments to reconcile net income (loss) to net cash used by operating activities: | ' | ' | ||
Depreciation and depletion | ' | 145,658 | ||
Gain on sales of equipment | ' | -17,815 | ||
Stock-based compensation | ' | 904,304 | ||
Adjustment for anti-dilution provisions | ' | 86,084 | ||
Conversion option liability eliminated | ' | -5,575 | ||
Debt forgiveness | ' | -1,000,000 | ||
Amortization of directors' fees prepaid with common stock | ' | 53,400 | ||
Amortization of deferred financing costs | ' | 231,015 | ||
Amortization of notes payable discounts | ' | 120,086 | ||
Compensation expense for stock issued | ' | 76,500 | ||
Gain on sale of mining claims and other assets | ' | -2,736,553 | ||
Impairment loss on securities | ' | 52,335 | ||
Gain on change in fair value of warrant liability | ' | [1] | -1,803,277 | [1] |
Loss on common stock and warrants | ' | 271,587 | ||
Gain on change in fair value of conversion option liability | ' | -108,032 | ||
Financing expense | ' | 17,945 | ||
Change in: | ' | ' | ||
Prepaid expenses and other assets | 4,121 | -8,596 | ||
Accounts payable and other liabilities | 5,504 | 82,625 | ||
Receivables | ' | 124,955 | ||
Net cash used by operating activities | -55,850 | -6,096,501 | ||
Cash flows from investing activities: | ' | ' | ||
Proceeds from sale of property and mining claims | 0 | 5,500,000 | ||
Purchase of investments | ' | -354,530 | ||
Purchase of mining claims and leaseholds | ' | -3,403,365 | ||
Purchase of equipment | ' | -168,577 | ||
Proceeds from disposition of investments | ' | 642,645 | ||
Proceeds from sales of equipment | ' | 59,310 | ||
Net cash provided (used) by investing activities | ' | 2,275,483 | ||
Cash flows from financing activities: | ' | ' | ||
Proceeds from sale of common stock and warrants, net | 122,000 | 2,565,906 | ||
Proceeds from exercise of stock options and warrants | ' | 508,600 | ||
Acquisition of treasury stock | ' | -376,755 | ||
Borrowing on related party note payable | ' | 611,500 | ||
Payments on related party note payable | -25,000 | -597,000 | ||
Borrowing on notes payable | ' | 1,070,000 | ||
Payments on note payable | ' | -50,000 | ||
Net cash provided by financing activities | 97,000 | 3,732,251 | ||
Net increase (decrease) in cash and cash equivalents | 41,150 | -88,767 | ||
Cash and cash equivalents, beginning of period | 35,882 | 165,799 | ||
Cash and cash equivalents, end of period | 77,032 | 77,032 | ||
Supplemental Cash Flow Information | ' | ' | ||
Cash paid for interest | 2,000 | 29,046 | ||
Cash paid for income taxes | ' | 503,514 | ||
Non-cash investing and financing activities: | ' | ' | ||
Stock issued to acquire equipment from related party | ' | 11,850 | ||
Stock issued for mining contract | ' | 50,000 | ||
Stock issued for payment of accounts payable | ' | 29,250 | ||
Stock issued for payments on related party and convertible note payable | ' | 24,500 | ||
Fair value of warrants issued in private placement classified as liabilities | ' | 1,795,587 | ||
Note proceeds allocated to conversion option at inception | ' | 123,031 | ||
Stock issued for deferred compensation | ' | 21,000 | ||
Beneficial conversion feature on convertible note payable | ' | 384,425 | ||
Mineral properties transferred to investment | ' | 479,477 | ||
Equipment exchanged for payment on related party note payable | ' | $10,000 | ||
[1] | Note 2 |
1_Summary_of_Significant_Accou
1. Summary of Significant Accounting Policies and Business Operations | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Notes | ' | |||||
1. Summary of Significant Accounting Policies and Business Operations | ' | |||||
1. Summary of Significant Accounting Policies and Business Operations | ||||||
Business Operations | ||||||
Thunder Mountain Gold, Inc. (“Thunder Mountain” or “the Company”) was originally incorporated under the laws of the State of Idaho on November 9, 1935, under the name of Montgomery Mines, Inc. In April 1978, the Montgomery Mines Corporation was obtained by a group of the Thunder Mountain property holders and changed its name to Thunder Mountain Gold, Inc., with the primary goal to further develop their holdings in the Thunder Mountain Mining District, located in Valley County, Idaho. Thunder Mountain Gold, Inc. takes its name from the Thunder Mountain Mining District, where its principal lode mining claims were located. For several years, the Company’s activities were restricted to maintaining its property position and exploration activities. During 2005, the Company sold its holdings in the Thunder Mountain Mining District. During 2007, the Company acquired the South Mountain Mines property in southwest Idaho and initiated exploration activities on that property, which continue today. | ||||||
Basis of Presentation and Going Concern | ||||||
The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to the Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of our management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the three month period ended March 31, 2014 is not necessarily indicative of the results that may be expected for the full year ending December 31, 2014. All amounts presented are in U.S. dollars. For further information refer to the financial statements and the footnotes thereto in our Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||
The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. The Company is an exploration stage company and has historically incurred losses and does not have sufficient cash at March 31, 2014 to fund normal operations for the next 12 months. The Company has no recurring source of revenue and its ability to continue as a going concern is dependent on the Company’s ability to raise capital to fund its future exploration and working capital requirements. The Company’s plans for the long-term return to and continuation as a going concern include financing the Company’s future operations through sales of its common stock and/or debt and the eventual profitable exploitation of its mining properties. Additionally, the current capital markets and general economic conditions in the United States are significant obstacles to raising the required funds. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company is currently investigating a number of alternatives for raising additional capital with potential investors, lessees and Owyhee Gold Trust LLC partners. | ||||||
The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. If the going concern basis was not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. | ||||||
Exploration Stage Enterprise | ||||||
The Company’s financial statements are prepared using the accrual method of accounting and according to, “Accounting for Development Stage Enterprises,” as it devotes substantially all of its efforts to acquiring and exploring mining interests that will eventually provide sufficient net profits to sustain the Company’s existence. The Company began the exploration stage in 1991. Until such interests are engaged in commercial production, the Company will continue to prepare its financial statements and related disclosures in accordance with entities in the exploration stage. | ||||||
Reclassifications | ||||||
Certain reclassifications have been made to conform prior year’s data to the current presentation. These reclassifications have no effect on previously reported operations, stockholders’ equity or cash flows. | ||||||
Principles of Consolidation | ||||||
The Consolidated Financial Statements include the accounts of the Company; its wholly owned subsidiaries, Thunder Mountain Resources, Inc. and South Mountain Mines, Inc. after elimination of the intercompany accounts and transactions. | ||||||
Accounting Estimates | ||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions include the carrying value of properties and mineral claims, environmental remediation liabilities, deferred tax assets, stock options granted and the fair value of financial and derivative instruments. Management’s estimates and assumptions are based on historical experience and other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. | ||||||
Cash and cash equivalents | ||||||
For the purposes of the balance sheet and statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be a cash equivalent. | ||||||
Fair Value Measures | ||||||
Accounting Standard Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC prioritizes the inputs into three levels that may be used to measure fair value: | ||||||
· Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||||||
· Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||||||
· Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||||||
Our financial instruments currently consist principally of cash and derivative warrant liabilities. The table below sets forth our assets and liabilities measured at fair value whether recurring or non-recurring and basis and the fair value calculation input hierarchy level that we have determined applies to each asset and liability category. | ||||||
Balance | Balance | Input | ||||
31-Mar-14 | 31-Dec-13 | Hierarchy level | ||||
Recurring: | ||||||
Cash and cash equivalents | $ 77,032 | $ 35,882 | Level 1 | |||
Mining Properties and Claims | ||||||
The Company capitalizes costs for acquiring mineral properties, and expenses costs to maintain mineral rights and leases as incurred. Exploration costs are expensed in the period in which they occur. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mineral properties are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. | ||||||
Investments in Joint Ventures | ||||||
In determining the Company’s accounting policy in the disclosure of joint ventures, the company decided as follows; | ||||||
1.) The Company will use the cost method when it does not have joint control or significant influence in a joint venture. Under the cost method, these investments are carried at the lower of cost or fair value. | ||||||
2.) If the Company enters into a joint venture, in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. | ||||||
3.) In a joint venture, where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. In determining whether significant influences exist, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee. If other than temporary impairment in value was determined, it would then be charged to current net income or loss. | ||||||
Reclamation and Remediation | ||||||
The Company’s operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company would record the fair value of an asset retirement obligation as a liability in the period in which the Company incurred a legal obligation for the retirement of tangible long-lived assets. A corresponding asset would also be recorded and depreciated over the life of the asset. | ||||||
After the initial measurement of the asset retirement obligation, the liability is adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. | ||||||
Determination of any amounts recognized upon adoption is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rates. | ||||||
For non-operating properties, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and they are reasonably estimable. Such costs are based on management’s estimate of amounts expected to be incurred when the remediation work is performed. | ||||||
Share-Based Compensation | ||||||
Share-based payments to employees and directors, including grants of employee stock options are measured at fair value and expensed in the statement of operations over the vesting period. | ||||||
Net Income (Loss) Per Share | ||||||
The Company is required to have dual presentation of basic earnings per share (“EPS”) and diluted EPS. Basic EPS is computed as net income divided by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including warrants to purchase the Company’s common stock. | ||||||
As of March 31, 2014 and 2013, the remaining potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are: | ||||||
March 31, | March 31, | |||||
For periods ended | 2014 | 2013 | ||||
Stock options | 2,990,000 | 2,000,000 | ||||
Warrants | 1,885,000 | 7,991,271 | ||||
Total possible dilution | 4,875,000 | 9,991,271 | ||||
2_Stockholders_Equity
2. Stockholders' Equity | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Notes | ' | |||
2. Stockholders' Equity | ' | |||
2. Stockholders’ Equity | ||||
The Company’s common stock is at $0.001 par value with 200,000,000 shares authorized. The Company also has 5,000,000 authorized shares of preferred stock with a par value of $0.0001. | ||||
On October 3, 2013, the Board of Directors approved a Private Placement financing of up to 5,000,000 units of the Company (“Unit”) at a price of $0.05 per Unit for gross proceeds of up to $250,000. Each Unit consists of one share of the Company’s common stock and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional share of common stock of the Company at a price of $0.15 for a period of 18 months. | ||||
Pursuant to a Selling Agreement, the Selling Agent was entitled to compensation in the following form: (a) a cash commission equal to 10% of the price of the Units sold. At March 31, 2014, $1,500 in commissions were paid based on the sale of 300,000 shares; (b) an additional cash commission of 10% of gross proceeds received from the exercise of Warrants issued as part of such Units or any other equity investment made by investors introduced by the Agent within a 24 month period following closing; and (c) non-transferable broker warrants to purchase a number of additional Units equal to 5% of Units sold by the Agent in the initial offering. The Agent Warrants will have the same exercise price and otherwise be on the same terms as the Warrants. Through March 31, 2014, 15,000 agent warrants have been issued. | ||||
Through March 31, 2014, the Company received $167,000 in gross proceeds from the Private Placement, issuing a total 3,340,000 in shares of common stock and 1,670,000 share equivalent warrants. | ||||
On December 1, 2013, the Company converted a note payable to Rolf Hess in the amount of $20,000 for a total of 400,000 shares of common stock and 200,000 warrants, under same terms as private placement. | ||||
The following is a summary of warrants as of March 31, 2014. | ||||
Outstanding Warrants: | Share Equivalent Warrants | Exercise Price | Expiration Date | |
Warrants outstanding December 31, 2013 | 665,000 | 0.15 | 30-Jun-15 | |
Warrants issued | 1,220,000 | 0.15 | 30-Sep-15 | |
Total warrants outstanding at March 31, 2014 | 1,885,000 | $ 0.15 | ||
3_Commitments
3. Commitments | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
3. Commitments | ' |
3. Commitments | |
On March 21, 2011, the Company signed an exploration agreement with Newmont Mining Corporation on the Trout Creek Project that significantly expands the Trout Creek target area. Newmont’s private mineral package added to the Project surrounds the Company’s South Mountain claim group and consists of about 9,565 acres within a thirty-square mile Area of Influence defined in the agreement. Under the terms of the agreement, the Company is responsible for conducting the exploration program and is obligated to expend a minimum of $150,000 over the ensuing two years, with additional expenditures possible in future years. Newmont agreed to extend the date for completion of the work commitment to June 22, 2013. The Company met this requirement, and had total expenditures of $160,314 on this project through March 31, 2014. | |
Additionally, the Company is required to spend $300,000, including $150,000 in drilling expenditures, on the project in third year, or by March 22, 2014. This date has been extended to October 31, 2014 by Newmont. All subsequent dates for work commitments were extended to October 31 as well. | |
4_South_Mountain_Project_LLC
4. South Mountain Project LLC | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
4. South Mountain Project LLC | ' |
4. South Mountain Project LLC | |
On November 8, 2012, the Company and Idaho State Gold Company, LLC (“ISGC”) formed the Owyhee Gold Trust, LLC, (“OGT”) a limited liability company. The Company’s contribution for its membership units was its South Mountain Mine property and related mining claims located in southwestern Idaho in Owyhee County which was valued at $479,477 and the date of contribution. As its initial contribution to OGT, ISGC will fund operations totaling $18 million; or $8 million if the Company exercises its option to participate pro-rata after ISGC expends $8 million. ISGC is also the manager of the joint venture. Upon payment of $1 million, and a work commitment of $2 million in pre-determined qualifying expenditures not later than December 31, 2014, ISGC will receive 2,000 units representing a vested 25% ownership. As of March 31, 2014, the Company has not issued any ownership units. The Company accounts for its investment in the OGT by the cost method. |
5_Convertible_Note_Payable
5. Convertible Note Payable | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
5. Convertible Note Payable | ' |
5. Notes Payable | |
On June 6, 2013, the Company received funds of $20,000 from Jim Collord, a director. In accordance with the terms of the note, the Company pays Mr. Collord 1% per month for interest. See Note 7. | |
On July 31, 2013 the Company received $20,000 from Rolf Hess, a stockholder, under a convertible promissory note. Terms of the note call for interest at 1% per month, with the entire balance of principal and interest due in full on December 1, 2013. The convertible promissory note contains the option for the holder to convert any portion of the principle and interest into Company common stock at 75% of the average closing bid price of the stock for the twenty trading days ending the day prior to the conversion. At inception, management determined the conversion price would have been $0.054. On that date, the market price for the Company’s common stock exceeded the conversion price as calculated. | |
The convertible note contained a beneficial conversion feature of $9,425 which was recognized as a discount on the note on the date of issuance. The discount was amortized over the note term using the straight-line method, which approximates the effective interest method. For the year ended December 31, 2013, the Company recorded $9,425 in interest expense related to the amortization of the discount. This note was converted to common stock and warrants in the private placement on December 1, 2013 (See Note 2). |
6_Stock_Options
6. Stock Options | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
6. Stock Options | ' |
6. Stock Options | |
The Company has established a Stock Option Incentive Plan to authorize the granting of stock options up to 10 percent of the total number of issued and outstanding shares of common stock to employees, directors and consultants. Upon exercise of options, shares are issued from the available authorized shares of the Company. Option awards are generally granted with an exercise price equal to the fair market value of the Company’s stock at the date of grant. | |
During 2013, the Company granted 990,000 non-qualified stock options to certain officers, directors and outside consultants with an exercise price of $0.09. Shareholder approval for the award was granted on April 30, 2013. The options immediately vested. Management valued the options as of the date of grant using a Black-Scholes option pricing model resulting in $89,038 expense being recorded. The average remaining contractual term of the options outstanding and exercisable at March 31, 2014 was 2.75 years. There were no options vested or granted during the three months ended March 31, 2014. |
7_Related_Party_Transactions
7. Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
7. Related Party Transactions | ' |
7. Related Party Transactions | |
In July 2013, a Company vehicle with no book value was transferred to Mr. Collord in satisfaction of $10,000 of the principal, which resulted in a $10,000 gain on the disposal of the asset. During August 2013, Mr. Collord advanced an additional $15,000 to the Company, under a new note was entered into and the total amount of $25,000 is due on February 28, 2014. The note was paid in full on February 4, 2014. By March 31, 2014 the Company had fulfilled its obligation on the note paying Mr. Collord $2,000 in interest, $500 of which was earned during the three months ended March 31, 2014. | |
8_Subsequent_Events
8. Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Notes | ' |
8. Subsequent Events | ' |
8. Subsequent Events | |
None. |
1_Summary_of_Significant_Accou1
1. Summary of Significant Accounting Policies and Business Operations: Exploration Stage Enterprise (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Exploration Stage Enterprise | ' |
Exploration Stage Enterprise | |
The Company’s financial statements are prepared using the accrual method of accounting and according to, “Accounting for Development Stage Enterprises,” as it devotes substantially all of its efforts to acquiring and exploring mining interests that will eventually provide sufficient net profits to sustain the Company’s existence. The Company began the exploration stage in 1991. Until such interests are engaged in commercial production, the Company will continue to prepare its financial statements and related disclosures in accordance with entities in the exploration stage. |
1_Summary_of_Significant_Accou2
1. Summary of Significant Accounting Policies and Business Operations: Reclassifications (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Reclassifications | ' |
Reclassifications | |
Certain reclassifications have been made to conform prior year’s data to the current presentation. These reclassifications have no effect on previously reported operations, stockholders’ equity or cash flows. |
1_Summary_of_Significant_Accou3
1. Summary of Significant Accounting Policies and Business Operations: Principles of Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The Consolidated Financial Statements include the accounts of the Company; its wholly owned subsidiaries, Thunder Mountain Resources, Inc. and South Mountain Mines, Inc. after elimination of the intercompany accounts and transactions. |
1_Summary_of_Significant_Accou4
1. Summary of Significant Accounting Policies and Business Operations: Accounting Estimates (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Accounting Estimates | ' |
Accounting Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions include the carrying value of properties and mineral claims, environmental remediation liabilities, deferred tax assets, stock options granted and the fair value of financial and derivative instruments. Management’s estimates and assumptions are based on historical experience and other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. |
1_Summary_of_Significant_Accou5
1. Summary of Significant Accounting Policies and Business Operations: Cash and Cash Equivalents (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Cash and Cash Equivalents | ' |
Cash and cash equivalents | |
For the purposes of the balance sheet and statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be a cash equivalent. |
1_Summary_of_Significant_Accou6
1. Summary of Significant Accounting Policies and Business Operations: Fair Value Measures (Policies) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Policies | ' | |||||
Fair Value Measures | ' | |||||
Fair Value Measures | ||||||
Accounting Standard Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC prioritizes the inputs into three levels that may be used to measure fair value: | ||||||
· Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||||||
· Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||||||
· Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||||||
Our financial instruments currently consist principally of cash and derivative warrant liabilities. The table below sets forth our assets and liabilities measured at fair value whether recurring or non-recurring and basis and the fair value calculation input hierarchy level that we have determined applies to each asset and liability category. | ||||||
Balance | Balance | Input | ||||
31-Mar-14 | 31-Dec-13 | Hierarchy level | ||||
Recurring: | ||||||
Cash and cash equivalents | $ 77,032 | $ 35,882 | Level 1 | |||
1_Summary_of_Significant_Accou7
1. Summary of Significant Accounting Policies and Business Operations: Capitalization of Internal Costs, Policy (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Capitalization of Internal Costs, Policy | ' |
Mining Properties and Claims | |
The Company capitalizes costs for acquiring mineral properties, and expenses costs to maintain mineral rights and leases as incurred. Exploration costs are expensed in the period in which they occur. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mineral properties are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. |
1_Summary_of_Significant_Accou8
1. Summary of Significant Accounting Policies and Business Operations: Investments in Joint Venture (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Investments in Joint Venture | ' |
Investments in Joint Ventures | |
In determining the Company’s accounting policy in the disclosure of joint ventures, the company decided as follows; | |
1.) The Company will use the cost method when it does not have joint control or significant influence in a joint venture. Under the cost method, these investments are carried at the lower of cost or fair value. | |
2.) If the Company enters into a joint venture, in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. | |
3.) In a joint venture, where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. In determining whether significant influences exist, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee. If other than temporary impairment in value was determined, it would then be charged to current net income or loss. |
1_Summary_of_Significant_Accou9
1. Summary of Significant Accounting Policies and Business Operations: Reclamation and Remediation (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Reclamation and Remediation | ' |
Reclamation and Remediation | |
The Company’s operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company would record the fair value of an asset retirement obligation as a liability in the period in which the Company incurred a legal obligation for the retirement of tangible long-lived assets. A corresponding asset would also be recorded and depreciated over the life of the asset. | |
After the initial measurement of the asset retirement obligation, the liability is adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. | |
Determination of any amounts recognized upon adoption is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rates. | |
For non-operating properties, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and they are reasonably estimable. Such costs are based on management’s estimate of amounts expected to be incurred when the remediation work is performed. |
Recovered_Sheet1
1. Summary of Significant Accounting Policies and Business Operations: Share-based Compensation (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Policies | ' |
Share-based Compensation | ' |
Share-Based Compensation | |
Share-based payments to employees and directors, including grants of employee stock options are measured at fair value and expensed in the statement of operations over the vesting period. |
Recovered_Sheet2
1. Summary of Significant Accounting Policies and Business Operations: Net Income (loss) Per Share (Policies) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Policies | ' | ||
Net Income (loss) Per Share | ' | ||
Net Income (Loss) Per Share | |||
The Company is required to have dual presentation of basic earnings per share (“EPS”) and diluted EPS. Basic EPS is computed as net income divided by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including warrants to purchase the Company’s common stock. | |||
As of March 31, 2014 and 2013, the remaining potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are: | |||
March 31, | March 31, | ||
For periods ended | 2014 | 2013 | |
Stock options | 2,990,000 | 2,000,000 | |
Warrants | 1,885,000 | 7,991,271 | |
Total possible dilution | 4,875,000 | 9,991,271 | |
Recovered_Sheet3
1. Summary of Significant Accounting Policies and Business Operations: Fair Value Measures: Fair Value, Assets Measured on Recurring and Nonrecurring Basis (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Tables/Schedules | ' | |||||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ' | |||||
Balance | Balance | Input | ||||
31-Mar-14 | 31-Dec-13 | Hierarchy level | ||||
Recurring: | ||||||
Cash and cash equivalents | $ 77,032 | $ 35,882 | Level 1 |
Recovered_Sheet4
1. Summary of Significant Accounting Policies and Business Operations: Net Income (loss) Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Tables/Schedules | ' | ||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ||
March 31, | March 31, | ||
For periods ended | 2014 | 2013 | |
Stock options | 2,990,000 | 2,000,000 | |
Warrants | 1,885,000 | 7,991,271 | |
Total possible dilution | 4,875,000 | 9,991,271 |
2_Stockholders_Equity_Summary_
2. Stockholders' Equity: Summary of Warrants (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Tables/Schedules | ' | |||
Summary of Warrants | ' | |||
Outstanding Warrants: | Share Equivalent Warrants | Exercise Price | Expiration Date | |
Warrants outstanding December 31, 2013 | 665,000 | 0.15 | 30-Jun-15 | |
Warrants issued | 1,220,000 | 0.15 | 30-Sep-15 | |
Total warrants outstanding at March 31, 2014 | 1,885,000 | $ 0.15 |
Recovered_Sheet5
1. Summary of Significant Accounting Policies and Business Operations (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Details | ' |
Nature of Operations | 'Business Operations Thunder Mountain Gold, Inc. (“Thunder Mountain” or “the Company”) was originally incorporated under the laws of the State of Idaho on November 9, 1935, under the name of Montgomery Mines, Inc. In April 1978, the Montgomery Mines Corporation was obtained by a group of the Thunder Mountain property holders and changed its name to Thunder Mountain Gold, Inc., with the primary goal to further develop their holdings in the Thunder Mountain Mining District, located in Valley County, Idaho. Thunder Mountain Gold, Inc. takes its name from the Thunder Mountain Mining District, where its principal lode mining claims were located. For several years, the Company’s activities were restricted to maintaining its property position and exploration activities. During 2005, the Company sold its holdings in the Thunder Mountain Mining District. During 2007, the Company acquired the South Mountain Mines property in southwest Idaho and initiated exploration activities on that property, which continue today. |
Basis of Accounting | 'The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to the Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of our management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the three month period ended March 31, 2014 is not necessarily indicative of the results that may be expected for the full year ending December 31, 2014. All amounts presented are in U.S. dollars. For further information refer to the financial statements and the footnotes thereto in our Annual Report on Form 10-K for the year ended December 31, 2013. |
Going Concern Note | 'The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. The Company is an exploration stage company and has historically incurred losses and does not have sufficient cash at March 31, 2014 to fund normal operations for the next 12 months. The Company has no recurring source of revenue and its ability to continue as a going concern is dependent on the Company’s ability to raise capital to fund its future exploration and working capital requirements. The Company’s plans for the long-term return to and continuation as a going concern include financing the Company’s future operations through sales of its common stock and/or debt and the eventual profitable exploitation of its mining properties. Additionally, the current capital markets and general economic conditions in the United States are significant obstacles to raising the required funds. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company is currently investigating a number of alternatives for raising additional capital with potential investors, lessees and Owyhee Gold Trust LLC partners. |
Recovered_Sheet6
1. Summary of Significant Accounting Policies and Business Operations: Fair Value Measures: Fair Value, Assets Measured on Recurring and Nonrecurring Basis (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Details | ' | ' |
Cash | $77,032 | $35,882 |
Recovered_Sheet7
1. Summary of Significant Accounting Policies and Business Operations: Net Income (loss) Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Details | ' | ' |
Stock options | 2,990,000 | 2,000,000 |
Warrants | 1,885,000 | 7,991,271 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,875,000 | 9,991,271 |
2_Stockholders_Equity_Details
2. Stockholders' Equity (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Details | ' |
Private Placement | 'On October 3, 2013, the Board of Directors approved a Private Placement financing of up to 5,000,000 units of the Company (“Unit”) at a price of $0.05 per Unit for gross proceeds of up to $250,000. Each Unit consists of one share of the Company’s common stock and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional share of common stock of the Company at a price of $0.15 for a period of 18 months. |
Private placement agent fees | $1,500 |
Agent warrants issued | 15,000 |
Gross proceeds private placement | $167,000 |
Private placement agent fees | 3,340,000 |
Private placement agent fees | 1,670,000 |
Stock issued for convertible note | 400,000 |
Warrants issued for convertible note | 200,000 |
2_Stockholders_Equity_Summary_1
2. Stockholders' Equity: Summary of Warrants (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Details | ' |
Class of Warrant or Right, Outstanding | 1,885,000 |
Investment Warrants, Exercise Price | $0.15 |
3_Commitments_Details
3. Commitments (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Details | ' |
Exploration agreement description | 'On March 21, 2011, the Company signed an exploration agreement with Newmont Mining Corporation on the Trout Creek Project that significantly expands the Trout Creek target area. Newmont’s private mineral package added to the Project surrounds the Company’s South Mountain claim group and consists of about 9,565 acres within a thirty-square mile Area of Influence defined in the agreement. Under the terms of the agreement, the Company is responsible for conducting the exploration program and is obligated to expend a minimum of $150,000 over the ensuing two years, with additional expenditures possible in future years. |
5_Convertible_Note_Payable_Det
5. Convertible Note Payable (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Jun. 30, 2013 | |
Details | ' | ' |
Debt Instrument, Description | 'On June 6, 2013, the Company received funds of $20,000 from Jim Collord, a director. In accordance with the terms of the note, the Company pays Mr. Collord 1% per month for interest. See Note 7. | ' |
Debt Instrument, Face Amount | ' | $20,000 |
6_Stock_Options_Details
6. Stock Options (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Details | ' | ' |
Non-qualified stock options granted | ' | 990,000 |
Non-qualified stock options exercise price | ' | $0.09 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | ' | $89,038 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '2 years 9 months | ' |
7_Related_Party_Transactions_D
7. Related Party Transactions (Details) (USD $) | 3 Months Ended | 279 Months Ended |
Mar. 31, 2014 | Mar. 31, 2014 | |
Details | ' | ' |
Related Party Transaction, Description of Transaction | 'In July 2013, a Company vehicle with no book value was transferred to Mr. Collord in satisfaction of $10,000 of the principal, which resulted in a $10,000 gain on the disposal of the asset. During August 2013, Mr. Collord advanced an additional $15,000 to the Company, under a new note was entered into and the total amount of $25,000 is due on February 28, 2014. The note was paid in full on February 4, 2014. By March 31, 2014 the Company had fulfilled its obligation on the note paying Mr. Collord $2,000 in interest, $500 of which was earned during the three months ended March 31, 2014. | ' |
Cash paid for interest | $2,000 | $29,046 |