| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include
the accounts of ACRG, its wholly owned subsidiary SWIS, and its wholly owned subsidiary Aurielle Enterprises Inc. (“AE”) and
its wholly owned subsidiaries Tonopah Custom Processing, Inc., (“TCP”) and Tonopah Resources, Inc. (“TR”) All
significant intercompany transactions, accounts and balances have been eliminated in consolidation. Basis of Presentation The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”),
for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).
Accordingly, they do not include all the information and footnotes required by US GAAP for complete financial statements. The unaudited
condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes
thereto included in our Form 10-K for the year ended December 31, 2023, filed July 16, 2024. In the opinion of management, all adjustments
(consisting of normal recurring adjustments unless otherwise indicated) considered necessary for a fair presentation have been included.
Operating results for the three months ended March 31, 2024, are not necessarily indicative of the results that may be expected for the
year as a whole. The accompanying condensed consolidated financial
statements of the Company have been prepared using the accrual method of accounting in accordance with U.S. GAAP and considering the requirements
of the SEC. Cash We maintain our cash in high-quality financial
institutions. The balances, at times, may exceed federally insured limits, however the Company has not experienced any losses with respect
to uninsured balances. Long-Lived Assets and Impairment of Long-Lived
Assets The Company annually evaluates the carrying value
of long-lived assets to be held and used, including but not limited to, mineral properties, mine tailings, mine dumps, capital assets
and intangible assets, or sooner when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered
impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In
that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair
value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived
assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost to dispose. Developed Technology The Company amortizes its developed technology
over its useful life. The useful life of the developed technology is calculated based on the number of years remaining on the patent.
The SWIS developed technology has a remaining useful life of 14 years. Use of Estimates Preparing condensed financial statements in conformity
with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. Revenue Recognition and Deferred Revenue As of March 31, 2024 and December 31, 2023, we
have recorded no revenues from custom permitted processing toll milling. If we achieve revenue generation, the Company plans to report
such revenues consistent with ASC Topic 606 Revenues from Contracts with Customers Financial Instruments The carrying amounts for all financial instruments
approximates fair value. The carrying amounts for cash, accounts payable and accrued liabilities approximated fair value because of the
short maturity of these instruments. The fair value of short-term debt is approximated at their carrying amounts based upon the expected
borrowing rate for debt with similar remaining maturities and comparable risk. Loss per Common Share Basic earnings (loss) per common share is computed
by dividing net loss applicable to common shareholders by the weighted average number of common shares outstanding during the periods
presented. Diluted earnings per common share is determined using the weighted average number of common shares outstanding during the
periods presented, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise
of options, warrants and conversion of convertible debt. In periods where losses are reported, the weighted average number of common
shares outstanding excludes common stock equivalents, because their inclusion would be antidilutive. At March 31, 2024, and December 31, 2023, $348,240
and $208,615 respectively that, if converted, would be 365,652 and 219,046 shares of convertible notes payable that were excluded from
the diluted weighted average common share calculation due to the antidilutive effect such shares would have on net loss per common share. Income Taxes Income taxes are accounted for based upon an asset
and liability approach. Accordingly, deferred tax assets and liabilities arise from the difference between the tax basis of
an asset or liability and its reported amount in the financial statements. Deferred tax amounts are determined using the tax
rates expected to be in effect when the taxes will actually be paid or refunds received, as provided under currently enacted tax law. Valuation
allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense
or benefit is the tax payable or refundable, respectively, for the period plus or minus the change in deferred tax assets and liabilities
during the period. Accounting guidance requires the recognition of a financial statement
benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following
an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial
statements is the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the
relevant tax authority. The Company believes its income tax filing positions and deductions will be sustained upon examination and accordingly,
no reserves, or related accruals for interest and penalties have been recorded at December 31, 2023 and March 31, 2024. Recent Accounting Standards During the three month period ended March 31, 2024, and through July
16, 2024, there were several new accounting pronouncements issued by the Financial Accounting Standards Board. Each of these pronouncements,
as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements
has had or will have a material impact on the Company’s consolidated financial statements. Management’s Evaluation of Subsequent
Events The Company evaluates events that have occurred
after the consolidated balance sheet date of March 31, 2024, through the date which the consolidated financial statements were issued.
Based upon the review, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment
or disclosure in the condensed consolidated financial statements. Mineral Properties Mineral property acquisition costs are recorded
at cost and are deferred until the viability of the property is determined. No properties have produced operating revenues at this time.
Exploration, mineral property evaluation, option payments, related acquisition costs for mineral properties acquired under an option agreement,
general overhead, administrative and holding costs to maintain a property on a care and maintenance basis are expensed in the period they
are incurred. When reserves are determined for a property and a bankable feasibility study is completed, subsequent exploration and development
costs on the property would be capitalized. If a project were to be put into production, capitalized costs would be amortized on the unit
of production basis. Management reviews the net carrying value of each
mineral property as changes may materialize with a property or at a minimum, on an annual basis. Where information and conditions suggest
impairment, estimated future net cash flows from each property are calculated using estimated future prices, proven and probable reserves
and value beyond proven and probable reserves, and operating, capital and reclamation costs on an undiscounted basis. If it is determined
that the future cash flows are less than the carrying value, a write-down to the estimated fair value is made with a charge to loss for
the period. Where estimates of future net cash flows are not available and where other conditions suggest impairment, management assesses
if the carrying value can be recovered. Management’s estimates of gold prices, recoverable
reserves, probable outcomes, operating capital, and reclamation costs are subject to risks and uncertainties that may affect the recoverability
of mineral property costs. The Company does not own any mining claims. It
owns tailings located on the Tonopah property and the rights to some tailings located in Manhattan, Nevada. The Company has not disturbed
or processed any of this material, but recently authorized GPR to examine the economic feasibility of processing the tailings to reclaim
their residual content of valuable metals in exchange for the exclusive right to process the tailings should their economic assessment
prove positive. The terms of such processing to be mutually agreed upon between GPR and the Company in the future based on the results
of the assessment. |
