Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 14, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Applied Minerals, Inc. | |
Entity Central Index Key | 0000008328 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Address, State or Province | NY | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 175,513,549 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 796,793 | $ 2,892,340 |
Accounts receivable | 12,128 | 32,654 |
Deposits and prepaid expenses | 144,733 | 364,491 |
Total Current Assets | 953,654 | 3,289,485 |
Operating lease right-of-use assets | 286,871 | 0 |
Land | 500,000 | 500,000 |
Other Assets | ||
Deposits | 335,067 | 347,493 |
Total Other Assets | 335,067 | 347,493 |
TOTAL ASSETS | 2,075,592 | 4,136,978 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 932,348 | 840,017 |
PIK Note interest accrual | 302,340 | 343,810 |
Current portion of notes payable | 63,595 | 246,496 |
Current portion of operating lease liabilities | 96,861 | 0 |
Deferred revenue | 1,320 | 0 |
Total Current Liabilities | 1,396,464 | 1,430,323 |
Long-Term Liabilities | ||
PIK Notes payable, net of $1,647,592 and $8,556,591 debt discount, respectively | 42,377,938 | 35,036,320 |
PIK Note derivative | 0 | 1,780,072 |
Operating lease liabilities | 192,241 | 0 |
Deferred rent | 0 | 8,949 |
Total Long-Term Liabilities | 42,570,179 | 36,825,341 |
TOTAL LIABILITIES | 43,966,643 | 38,255,664 |
Stockholders' Deficit | ||
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 400,000,000 shares authorized, and 175,513,549 shares issued and outstanding at June 30, 2019 and December 31, 2018. | 175,514 | 175,514 |
Additional paid-in capital | 73,730,188 | 73,525,650 |
Accumulated deficit prior to the exploration stage | (20,009,496) | (20,009,496) |
Accumulated deficit during the exploration stage | (95,787,257) | (87,810,354) |
Total Stockholders' Deficit | (41,891,051) | (34,118,686) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 2,075,592 | $ 4,136,978 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
PIK Notes payable, debt discount | $ 1,647,592 | $ 8,556,591 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares, Issued | 175,513,549 | 175,513,549 |
Common Stock, Shares, Outstanding | 175,513,549 | 175,513,549 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
REVENUES | $ 218,936 | $ 92,438 | $ 339,463 | $ 138,085 |
OPERATING EXPENSES: | ||||
Production costs | 219,453 | 184,875 | 445,158 | 356,461 |
Exploration costs | 43,829 | 55,132 | 77,596 | 111,093 |
General and administrative | 1,118,111 | 875,909 | 1,930,681 | 2,074,955 |
Depreciation expense | 0 | 321,818 | 0 | 644,962 |
Total Operating Expenses | 1,381,393 | 1,437,734 | 2,453,435 | 3,187,471 |
Operating Loss | (1,162,457) | (1,345,296) | (2,113,972) | (3,049,386) |
OTHER (EXPENSE): | ||||
Interest expense, net (including amortization of deferred financing cost and debt discount) | (531,371) | (578,904) | (923,851) | (3,120,955) |
Gain (loss) on revaluation of PIK Note derivative | 0 | 1,601,423 | 0 | (6,578,504) |
Other income, net | 953 | 3,738 | 2,367 | 353,824 |
Total Other (Expense) | (530,418) | 1,026,257 | (921,484) | (9,345,635) |
NET LOSS | $ (1,692,875) | $ (319,039) | $ (3,035,456) | $ (12,395,021) |
Net Loss Per Common Share (Basic and Diluted) | $ (0.01) | $ 0 | $ (0.02) | $ (0.08) |
Weighted Average Common Shares Outstanding (Basic and Diluted) | 175,513,549 | 161,874,813 | 175,513,549 | 153,860,925 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit Prior to Exploration Stage [Member] | Accumulated Deficit During Exploration Stage [Member] |
Balance at Dec. 31, 2017 | $ (33,200,782) | $ 140,764 | $ 71,152,311 | $ (20,009,496) | $ (84,484,361) |
Shares issued for consulting services | 60,000 | 1,500 | 58,500 | ||
Shares and warrants issued in private placement | 1,585,000 | 29,375 | 1,555,625 | ||
Shares issued for warrant exercise | 80,000 | 2,000 | 78,000 | ||
Stock option compensation expense | 904,217 | 904,217 | |||
Net Loss | (12,395,021) | (12,395,021) | |||
Balance at Jun. 30, 2018 | (42,966,586) | 173,639 | 73,748,653 | (20,009,496) | (96,879,382) |
Balance at Mar. 31, 2018 | (44,218,764) | 150,389 | 72,200,686 | (20,009,496) | (96,560,343) |
Shares and warrants issued in private placement | 1,190,000 | 21,750 | 1,168,250 | ||
Shares issued for warrant exercise | 60,000 | 1,500 | 58,500 | ||
Stock option compensation expense | 321,217 | 321,217 | |||
Net Loss | (319,039) | (319,039) | |||
Balance at Jun. 30, 2018 | (42,966,586) | 173,639 | 73,748,653 | (20,009,496) | (96,879,382) |
Balance at Dec. 31, 2018 | (34,118,686) | 175,514 | 73,525,650 | (20,009,496) | (87,810,354) |
Adoption of new accounting standard (Note 3) at Jun. 30, 2019 | (4,941,447) | (4,941,447) | |||
Stock option compensation expense | 204,538 | 204,538 | |||
Net Loss | (3,035,456) | (3,035,456) | |||
Balance at Jun. 30, 2019 | (41,891,051) | 175,514 | 73,730,188 | (20,009,496) | (95,787,257) |
Balance at Mar. 31, 2019 | (40,337,391) | 175,514 | 73,590,973 | (20,009,496) | (94,094,382) |
Adoption of new accounting standard (Note 3) at Jun. 30, 2019 | (4,941,447) | (4,941,447) | |||
Stock option compensation expense | 139,215 | 139,215 | |||
Net Loss | (1,692,875) | (1,692,875) | |||
Balance at Jun. 30, 2019 | $ (41,891,051) | $ 175,514 | $ 73,730,188 | $ (20,009,496) | $ (95,787,257) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (3,035,456) | $ (12,395,021) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation | 0 | 644,962 |
Amortization of discount - PIK Notes | 178,531 | 2,298,435 |
Amortization of deferred financing costs | 45,503 | 45,502 |
Accrued interest on PIK Notes | 695,646 | 770,815 |
Stock issued for consulting services | 0 | 60,000 |
Stock based compensation expense | 204,538 | 904,217 |
(Gain) loss on revaluation of PIK Note derivative | 0 | 6,578,504 |
Non-cash lease expense | 2,231 | 0 |
Change in operating assets and liabilities: | ||
Accounts receivable | 20,526 | 22,773 |
Deposits and prepaids | 232,184 | 102,727 |
Accounts payable and accrued liabilities | 83,971 | (158,600) |
Deferred revenue | 1,320 | 0 |
Net cash used in operating activities | (1,571,006) | (1,125,686) |
Cash Flows From Investing Activities | 0 | 0 |
Cash Flows From Financing Activities: | ||
Payments on notes payable | (182,901) | (145,717) |
Payments on PIK notes | (341,640) | 0 |
Proceeds from sale of common stock | 0 | 1,585,000 |
Proceeds from exercise of options or warrants | 0 | 80,000 |
Net cash (used in) provided by financing activities | (524,541) | 1,519,283 |
Net change in cash and cash equivalents | (2,095,547) | 393,597 |
Cash and cash equivalents at beginning of period | 2,892,340 | 47,652 |
Cash and cash equivalents at end of period | 796,793 | 441,249 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 10,680 | 6,206 |
Cash paid for income taxes | 0 | 0 |
Supplemental disclosure of non-cash financing activity: | ||
Capitalization of right to use assets and liabilities | 289,102 | 0 |
Accrued interest paid through the issuance of PIK Notes | 737,116 | 366,658 |
Accounting Standards Update 2017-11 [Member] | ||
Supplemental disclosure of non-cash financing activity: | ||
Effect of ASU 2017-11, Financial Instruments with Characteristics of Liabilities and Equity | $ 4,950,396 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1– ORGANIZATION AND DESCRIPTION OF BUSINESS Applied Minerals, Inc. (the “Company” or “Applied Minerals” or “we” or “us”) (OTCQB: AMNL) owns the Dragon Mine in central Utah. From the mine we extract, process, or have processed by a third party, halloysite clay and iron oxide for sale to a range of end markets. We market the minerals directly and through distributors and also under a profit-sharing arrangement with the Kaolin business unit of BASF Corp. (“BASF”). We also engage in research and development and frequently work collaboratively with potential customers, consultants, distributors, and BASF to process and enhance our halloysite clay products to improve the performance of existing and new products. Our halloysite clay, which we market under the DRAGONITE™ trade name, is an aluminosilicate mineral with a hollow tubular shape. DRAGONITE can utilize halloysite’s morphology, high surface area, and reactivity to add significant functionality to a number of applications such as, but not limited to, reinforcement additives for polymer composites, flame retardant additives for polymers, catalysts, controlled release carriers for paints and coatings, strength reinforcement additives for cement, concrete, mortars and grouts, advanced ceramics, rheology additives for drilling fluids, environmental remediation media, and carriers of agricultural agents. The Company sells its halloysite products at negotiated prices. Our iron oxide, which we market under the AMIRON™ trade name, is a high purity product. We have sold it on an exclusive basis to one customer at a negotiated price for use in an oilfield application and we are continuing to offer AMIRON to that customer on an exclusive basis. Currently, we are not selling AMIRON™ to customers on a continuing basis for use in any other application. The Company is classified as an “exploration stage” company for purposes of Industry Guide 7 of the U.S. Securities and Exchange Commission (“SEC”) Under Industry Guide 7, companies engaged in significant mining operations are classified into three categories, referred to as “stages” - exploration, development, and production. Exploration stage includes all companies that do not have established reserves in accordance with Industry Guide 7. Such companies are deemed to be “in the search for mineral deposits.” Notwithstanding the nature and extent of development-type or production-type activities that have been undertaken or completed, a company cannot be classified as a development or production stage company unless it has established reserves in accordance with Industry Guide 7. In 2017, we entered into a tolling agreement with BASF under which BASF will process the Company’s halloysite product, utilizing a water-based system. The BASF system is capable of eliminating impurities, such as iron oxide, and chemically treating the surface of halloysite to achieve desired functionality . We have a mineral processing plant with a capacity of up to 45,000 tons of mineralization per annum for certain applications. The plant is currently dedicated to processing its halloysite products. Additionally, the Company has a second processing facility with a capacity of up to 10,000 tons per annum. This smaller plant is currently dedicated to processing the Company’s halloysite. This smaller plant processes halloysite using a dry-based, micronizing system. This dry-based system does not eliminate impurities, such as iron oxide, as effectively as a water-based system but is useful in situations where the removal of impurities is not necessary. For the six months ended June 30, 2019, the largest customer during the period accounted for 85% of total revenue and amounts owed by the largest customer at June 30, 2019 represented 0% of accounts receivable. For the six months ended June 30, 2018, the two largest customers during the period accounted for 63% of total revenue and amounts owed by the two largest customers represented 0% of accounts receivable. Applied Minerals is a publicly traded company incorporated in the state of Delaware. The common stock trades on the OTCQB under the symbol AMNL. Exploration Agreement On December 22, 2017, the Company and Continental Mineral Claims, Inc. (“CMC”) entered into an Exploration Agreement with Option to Purchase (“Agreement”). The Company granted to CMC the exclusive right and option to enter upon and conduct mineral exploration activities (the “Exploration License”) for Metallic Minerals on the Company’s Dragon Mine minesite in Utah (the “Mining Claims”). Metallic Minerals are defined to include minerals with a high specific gravity and metallic luster, such as gold, silver, lead, copper, zinc, molybdenum, titanium, tungsten, uranium, tin, iron, etc., but shall exclude any such Metallic Minerals that are intermingled within any economically-recoverable, non-metallic mineral deposits located at or above an elevation of 5,590 feet above sea level. Non-metallic minerals include clay and iron oxide, the minerals mined by the Company. The Company believes that all economic recoverable non-metallic mineral deposits are well above 5,590 feet above sea level. The Exploration License is for a period of ten In consideration of the Exploration License, CMC has paid the Company $350,000 and paid it $150,000 on the first anniversary of the Effective Date of the Exploration License. CMC will pay the Company $250,000 on each subsequent anniversary of the Effective Date of the Exploration License during the remaining term of the Exploration License unless the Exploration License is terminated earlier by CMC by exercising the option or failing to make the required payment for the Exploration License. CMC may exercise the option at any time during the Exploration License term. Upon exercise of the Option and the completion of the closing, CMC shall acquire 100% of the Metallic Rights within the Mining Claims from the Company, subject to the terms and conditions of the Agreement. The consideration to be paid by CMC to the Company after exercising the option for the acquisition of the Metallic Rights shall be payable as follows: $3,000,000; and, CMC shall grant to the Company a five percent (5%) Net Profits Interest (“NPI”) royalty over the Metallic Minerals produced from the Mining Claims. The NPI royalty shall be initially capped at $20,000,000 (the “NPI Cap”). The NPI Cap shall be subject to reduction in the event the Company elects to take the Share Contribution, as set forth below. Upon exercise of the option, the Company shall retain the all rights and title to (1) the surface interest (with exception of those rights associated with the Metallic Rights), and (2) all non-metallic minerals (expressly including all industrial minerals including clays and iron oxides). It is anticipated that CMC will acquire rights similar to the Metallic Rights with respect to contiguous and nearly properties and such rights will be contributed to a new company formed or designated by CMC to own and operate CMC’s Tintic District project, which would involve the Metallic rights and similar rights regarding adjacent or nearby properties (“PubCo”) that intends to go public. The Company shall have the right, at its sole election, to convert a portion of its NPI royalty interest into $2,000,000 worth of shares in PubCo up to a maximum of Two Percent (2%) net value of PubCo (the “Share Contribution”), through a reduction of the NPI Cap. The Company shall make the determination whether to take the Share Contribution or not, and so notify CMC, within ninety (90) days, of the completion (and delivery to the Company) of a feasibility study by CMC for the Tintic District project. If the Company elects not The Agreement contains protections in favor of the Company against unreasonable interference of its current and future mining operations by CMC. CMC may not do anything that may, at the Company’s determination, adversely impact the Company’s Mining Operations. “Mining Operations” shall mean the activities incident to mineral extraction, permitting, and any operations by CMC or the Company relating to the removal of minerals, respectively, that are or may reasonably be conducted on the Mining Claims, including the exploration for, and development, active mining, removing, producing and selling of any minerals, including the Metallic Minerals. The Agreement states that the parties understand that the Company is willing to enter into the Agreement only if it is assured that CMC will not have any right to unreasonably interfere with the Company’s current mining operations and possible future Mining Operations on the Mining Claims. There are no assurances that CMC will exercise its option to purchase 100% of the Metallic Rights. |
LIQUIDITY AND BASIS OF PRESENTA
LIQUIDITY AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2019 | |
Liquidity And Basis Of Presentation [Abstract] | |
Liquidity And Basis Of Presentation [Text Block] | NOTE 2 - LIQUIDITY AND BASIS OF PRESENTATION The Company has a history of recurring losses from operations and the use of cash in operating activities. For the six months ended June 30, 2019, the Company’s net loss was $3,035,456 and cash used in operating activities was $1,571,006. As of June 30, 2019, the Company had current assets of $953,654 and current liabilities of $1,396,464 of which $302,340 was accrued PIK Note interest expected to be paid in additional PIK Notes. The Company’s current liabilities also include (i) $325,000 of accrued directors fee as determined by the Company’s Board, (ii) $63,595 of a note payable related to the financing of the Company’s D&O and G/L policies, (iii) $119,269 of payables to a compounder for which it has agreed to satisfy in halloysite product and (iv) $133,600 of disputed or erroneously accrued expenses for which the Company believes it will eventually reverse. Management believes that in order for the Company to meet its obligations arising from normal business operations through August 14, 2020 that the Company may be required (i) to raise additional capital either in the form of a private placement of common stock or debt and/or (ii) generate additional sales of its products that will generate sufficient operating profit and cash flows to fund operations. Without additional capital or additional sales of its products, the Company’s ability to continue to operate may be limited. Based on the Company’s current cash usage expectations, management believes it may not have sufficient liquidity to fund its operations through August 14, 2020. Further, management cannot provide any assurance that it is probable that the Company will be successful in accomplishing any of its plans to raise debt or equity financing or generate additional product sales. Collectively these factors raise substantial doubt regarding the Company’s ability to continue as going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded assets amounts and classification of liabilities that might be necessary should the Company not be able to continue as a going concern. |
BASIS OF REPORTING AND SIGNIFIC
BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 3 – BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated financial statements of Applied Minerals, Inc. have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these interim unaudited consolidated financial statements contain all of the adjustments of a normal and recurring nature which are considered necessary for a fair presentation of the financial position of the Company and the results of its operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 2019 are not necessarily indicative of the operating results for the entire year. These financial statements should be read in conjunction with the financial statements and related disclosures for the year ended December 31, 2018, included in the Annual Report of Applied Minerals, Inc. on Form 10-K filed with the SEC on April 16, 2019. The accompanying interim unaudited consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes. As of August 14, 2019, the Company’s significant accounting policies and estimates remain unchanged from those detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Receivables Trade receivables are reported at outstanding principal amounts, net of an allowance for doubtful accounts. Management evaluates the collectability of receivable account balances to determine the allowance, if any. Management considers the other party’s credit risk and financial condition, as well as current and projected economic and market conditions, in determining the amount of the allowance. Receivable balances are written off when management determines that the balance is uncollectable. No allowance was required at June 30, 2019 and December 31, 2018. Property and Equipment Property and equipment are carried at cost net of accumulated depreciation and amortization. D Estimated Useful Life (years) Building and Building Improvements 5 – 40 Mining equipment 2 – 7 Office and shop furniture and equipment 3 – 7 Vehicles 5 Depreciation expense for the three months ended June 30, 2019 and 2018 totaled $0 and $321,818, respectively, and for the six months ended June 30, 2019 and 2018 totaled $0 and $644,962, respectively. Impairment of Long-lived Assets The Company periodically reviews the carrying amounts of long-lived assets to determine whether current events or circumstances warrant adjustment to such carrying amounts. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, the Company compares the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset to its carrying amount. If this comparison indicates that there is an impairment, the amount of the impairment is typically calculated using discounted expected future cash flows where observable fair values are not readily determinable. Considerable management judgment is necessary to estimate the fair value of assets. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value, less cost to sell. The Company has determined that there was no impairment of its long-lived assets as of June 30, 2019. The Company determined there was an impairment of its long-lived assets at December 31, 2018. Stock Options and Warrants The Company follows ASC 718 (Stock Compensation) and 505-50 (Equity-Based Payments to Non-employees), which provide guidance in accounting for share-based awards exchanged for services rendered and requires companies to expense the estimated fair value of these awards over the requisite service period. The Company instituted a formal long-term and short-term incentive plan on November 20, 2012, which was approved by its shareholders. Prior to that date, we did not have a formal equity plan, but all equity grants, including stock options and warrants, were approved by our Board of Directors. We determine the fair value of the stock-based compensation awards granted to non-employees as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete. Beginning in the quarter ended June 30, 2013 the Company began using the simplified method to determine the expected term for any options granted because the Company did not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The Company previously utilized the contractual term as the expected term. Environmental Matters Expenditures for ongoing compliance with environmental regulations that relate to current operations are expensed or capitalized as appropriate. Expenditures resulting from the remediation of existing conditions caused by past operations that do not contribute to future revenue generations are expensed. Liabilities are recognized when environmental assessments indicate that remediation efforts are probable and the costs can be reasonably estimated. Estimates of such liabilities are based upon currently available facts, existing technology and presently enacted laws and regulations taking into consideration the likely effects of inflation and other societal and economic factors, and include estimates of associated legal costs. These amounts also reflect prior experience in remediating contaminated sites, other companies’ clean-up experience and data released by The Environmental Protection Agency or other organizations. Such estimates are by their nature imprecise and can be expected to be revised over time because of changes in government regulations, operations, technology and inflation. Recoveries are evaluated separately from the liability and, when recovery is assured, the Company records and reports an asset separately from the associated liability. Based upon management’s current assessment of its environmental responsibilities, it does not believe that any reclamation or remediation liability exists at June 30, 2019. Recently Adopted Accounting Standards Leases In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, Leases (Topic 842). Lessees are required to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The liability is equal to the present value of lease payments. The asset is based on the liability, subject to certain adjustments, such as for initial direct costs. For income statement purposes, a dual model was retained, requiring leases to be classified as either operating or finance leases. Operating leases result in straight-line expense (similar to operating leases under the prior accounting standard) while finance leases result in a front-loaded expense pattern (similar to capital leases under the prior accounting standard). Lessor accounting is similar to the prior model, but updated to align with certain changes to the lessee model (e.g., certain definitions, such as initial direct costs, have been updated) and the new revenue recognition standard that was adopted in 2018. The Company adopted this new accounting standard on January 1, 2019 on a modified retrospective basis and applied the new standard to all leases through a cumulative-effect adjustment to beginning retained earnings. As a result, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which includes, among other things, the ability to carry forward the existing lease classification. The new standard had a material impact on the unaudited consolidated balance sheet, but did not materially impact the Company’s consolidated operating results and had no impact on the Company’s cash flows. The following is a discussion of the Company’s lease policy under the new lease accounting standard: The Company determines if an arrangement contains a lease at the inception of a contract. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments. As the interest rate implicit in the Company’s leases is not readily determinable, the Company utilizes its incremental borrowing rate, determined by class of underlying asset, to discount the lease payments. The operating lease right-of-use assets also include lease payments made before commencement and exclude lease incentives. Impact of New Lease Standard on Balance Sheet Line Items As a result of applying the new lease standard using a modified retrospective method, the following adjustments were made to accounts on the consolidated balance sheet as of January 1, 2019: Impact of Change in Accounting Policy As reported Adjustments Adjusted January 1, Operating lease right-of-use assets $ - $ 325,255 $ 325,255 Total assets 4,136,978 325,255 4,462,233 Current portion of operating lease liabilities - 92,396 92,396 Total current liabilities 1,430,323 92,396 1,522,719 Long-term operating lease liabilities - 241,808 241,808 Deferred rent 8,949 (8,949 ) - Total long-term liabilities 36,825,341 232,859 37,058,200 Total liabilities 38,255,664 325,255 38,580,919 See Note 4 for additional information ASU 2017-11, Part I accounting for Certain Financial Instruments with Down Round Features In July 2017, the FASB issued ASU 2017-11 to simplify the accounting for equity contracts (e.g., freestanding warrants) or equity-linked embedded features (e.g., conversion options in convertible instruments) with down round features. Under the new guidance, entities are no longer required to consider down round features when determining whether these financial instruments containing a down round feature are indexed to the issuer’s own stock pursuant to ASC 815-40. Being indexed to an entity’s own stock is required for a freestanding financial instrument to be classified in shareholders’ equity and may exempt an embedded feature from bifurcation and derivative accounting. The Company adopted ASU 2017-11 on January 1, 2019 on a modified retrospective basis and applied the new standard to all financial instruments with down round features through a cumulative-effect adjustment to beginning retained earnings. As a result, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. On January 1, 2019, the Company recorded a transition adjustment to reduce retained earnings by $4,950,396. The new standard had a material impact on the unaudited consolidated balance sheet, but did not materially impact the Company’s consolidated operating results and had no impact on the Company’s cash flows. Impact of ASU 2017-11 on Balance Sheet Line Items As a result of applying ASU 2017-11 using a modified retrospective method, the following adjustments were made to accounts on the consolidated balance sheet as of January 1, 2019: Impact of Change in Accounting Policy As reported on Adjustments Adjusted as of PIK Note payable, net $ 35,036,320 $ 6,730,468 $ 41,766,788 PIK Note derivative 1,780,072 (1,780,072 ) - Total Long-Term Liabilities 36,825,341 4,950,396 41,775,737 Total liabilities 38,255,664 4,950,396 43,206,060 Accumulated deficit during the exploration stage (87,810,354 ) (4,950,396 ) (92,760,750 ) Total stockholders’ deficit $ (34,118,686 ) $ (4,950,396 ) $ (39,069,082 ) See Note 6 for additional information ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting Effective January 1, 2019 the Company adopted ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The guidance expands the scope of ASC 718 to include share-based payments granted to nonemployees in exchange for goods or services used or consumed in an entity’s own operations and supersedes the guidance in ASC 505-50. The adoption of ASU 2018-07 had no material impact on the Company’s financial results. Recently Issued Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU eliminates, modifies and adds disclosure requirements for fair value measurements. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the effects of this ASU on its financial statements and related disclosures. In August 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. The Company does not anticipate that the adoption of these SEC amendments will have a material effect on the Company’s financial position, results of operations, cash flows or shareholders’ equity. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | NOTE 4 – LEASES On March 16, 2017, the Company entered into a 5-year operating lease agreement for permanent office space, base rent payment is approximately $9,000 per month, subject to annual adjustments. Supplemental cash flow information related to leases: Three months Six months ended Operating cash flows paid for operating leases $ 27,690 $ 54,573 Non-cash lease expense $ 711 $ 2,231 Supplemental balance sheet information related to leases: As of June 30, 2019 Operating lease Right-of-use assets $ 286,871 Current portion of operating lease liabilities $ 96,861 Long-term operating lease liabilities 192,241 Total operating lease liabilities $ 289,102 Weighted average remaining operating lease term 2.75 years Weighted average discount rate 6 % The following table summarizes the maturity of lease liabilities under operating leases as of June 30, 2019: 2019 (remaining six months) $ 55,380 2020 113,253 2021 116,649 2022 29,376 Total lease payments 314,658 Less: imputed interest (25,556 ) Total lease liabilities $ 289,102 |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 5 - NOTES PAYABLE Notes payable at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 Note payable for equipment, payable $ 5,443 25,936 $ 63,595 $ 246,496 Less: Current Portion 63,595 246,496 Notes Payable, Long-Term Portion $ -0- $ -0- (a) On October 2018 the Company signed two note payable with interest rate of 4.89 10 During the three months ended June 30, 2019 and 2018, the Company's interest payments totaled $1,524 and $705, respectively. During the six months ended June 30, 2019, the Company’s interest payments totaled $10,680 and $6,206, respectively. |
CONVERTIBLE DEBT (PIK NOTES)
CONVERTIBLE DEBT (PIK NOTES) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Debt [Text Block] | NOTE 6 – CONVERTIBLE DEBT (PIK NOTES) The Company raised $23 million of financing through the issuance of two series of Paid-In-Kind (“PIK”)-Election Convertible Notes in 2013 (“Series 2023 Notes”) and 2014 (“Series A Notes”). The original terms of the Series A Notes included among other things: (i) a maturity of November 1, 2018 with an option to extend to November 1, 2019, (ii) a stated interest rate of 10% paid semi-annually and (iii) a conversion price of $0.90, adjusted downward based on an anti-dilution provision. The original terms of the Series 2023 Notes included among other things: (i) a maturity of August 1, 2023, (ii) a stated interest rate of 10% paid semi-annually and (iii) a conversion price of $1.40, adjusted downward based on an anti-dilution provision. On December 14, 2017 and April 4, 2019, amendment agreements entered into between the Company and the holders of the Series A Notes and Series 2023 Notes went into effect. The agreements resulted in changes to certain terms of the Series A and Series 2023 Notes. The key terms of the Series A and Series 2023 Notes, as amended, are highlighted in the table below: Key Terms Series 2023 Notes Series A Notes Inception Date 08/01/2013 11/03/2014 Cash Received $10,500,000 $12,500,000 Principal (Initial Liability) $10,500,000 $19,848,486 Maturity (Term) Matures on August 1, 2023 Matures on May 1, 2023 Exercise Price $ 0.59 $ 0.40 Stated Interest 10 10 Derivative Liability $ 2,055,000 $ 9,212,285 Payments Per the terms of the amendment agreement entered into on April 4, the holders of the Series A and Series 2023 Notes were to receive a pro-rata distribution of an Immediate Payment of $350,000 as well as (i) receive a pro-rata distribution of 5% of the net proceeds of any capital raise and (ii) on the 15 th Per the terms of the amendment agreement entered into on April 4, 2019, the holders of the Series A and Series 2023 Notes were to receive a pro-rata distribution of an Immediate Payment of $350,000 as well as (i) receive a pro-rata distribution of 5% of the net proceeds of any capital raise and (ii) on the 15 th As of June 30, 2019, the liability components of the PIK Notes on the Company’s balance sheet are listed in the following table: Series 2023 Notes Series A Notes Total PIK Note Payable, Gross $ 16,616,414 $ 27,788,303 $ 44,404,717 Less: Discount - (1,647,592 ) (1,647,592 ) Less: Deferred Financing Cost (141,893 ) (237,294 ) (379,187 ) PIK Note Payable, Net $ 16,474,521 $ 25,903,417 $ 42,377,938 PIK Note Derivative Liability $ - $ - $ - As of December 31, 2018, the liability components of the PIK Notes on the Company’s balance sheet are listed in the following table: Series 2023 Notes Series A Notes Total PIK Note Payable, Gross $ 16,394,688 $ 27,622,913 $ 44,017,601 Less: Discount (1,297,416 ) (7,259,175 ) (8,556,591 ) Less: Deferred Financing Cost (158,179 ) (266,511 ) (424,690 ) PIK Note Payable, Net $ 14,939,093 $ 20,097,227 $ 35,036,320 PIK Note Derivative Liability $ 253,215 $ 1,526,857 $ 1,780,072 Series A Notes (Amended) On November 3, 2014 (“Issue Date”), the Company issued, in a private placement pursuant to investment agreements, $19,848,486 principal amount of 10% PIK-Election Convertible Notes due 2018 ("Series A Notes") in exchange for $12,500,000 in cash and the cancellation of previously-issued warrants held by one investor. The original terms of the Series A Notes included among other things: (i) a maturity of November 1, 2018 with an option to extend to November 1, 2019, (ii) a stated interest rate of 10% paid semi-annually and (iii) a conversion price of $0.90, adjusted downward based on an anti-dilution provision. The original terms of both the Series A notes and Series 2023 Notes can be as exhibits to Forms 8-K filed on November 5, 2014. During the six months ended June 30, 2019, the Company amortized $207,748 of debt discount and deferred financing cost relating to the Series A Notes Payable, issued additional PIK Notes of $384,419 in lieu of cash interest payments and payoff $219,029 of PIK Notes. The carrying value of the Series A Notes Payable as of June 30, 2019 was $25,903,417. As of June 30, 2019, the Company was in compliance with the covenants of the Series A Notes. As of June 30, 2019, Samlyn Offshore Master Fund, Ltd. and Samlyn Onshore Fund, LP owned $9,183,720 and $4,901,740, respectively, of principal of the Series A Notes. Samlyn Offshore Master Fund, Ltd. and Samlyn Onshore Fund, LP are managed by Samlyn Capital, LLC. As of June 30, 2019, Michael Barry, a director of the Company, was the General Counsel and Chief Compliance Officer of Samlyn Capital, LLC. As of June 30, 2019, The IBS Turnaround Fund, LP, The IBS Turnaround (QP) (A Limited Partnership) and The IBS Opportunity Fund, Ltd. owned $1,332,507, $2,675,818 and $259,991, respectively, of principal of the Series A Notes. The IBS Turnaround Fund, LP, The IBS Turnaround (QP) (A Limited Partnership) and The IBS Opportunity Fund, Ltd. are managed by IBS Capital, LLC. At June 30, 2019, IBS Capital, LLC owned 13.7% of the shares of the common stock of the Company. As of June 30, 2019, M. Kingdon Offshore Master Fund, LP, a fund managed by Kingdon Capital Management, LLC, owned $4,268,322 of principal of the Series A Notes. As of June 30, 2019, Michael Pohly, a director of the Company, was an employee of Kingdon Capital Management, LLC. Series 2023 Notes (Amended) In August 2013, the Company received $10,500,000 of financing through the private placement of 10% mandatory convertible Notes due 2023 ("Series 2023 Notes"). The principal amount of the Notes is due on maturity. The Company can elect to pay semi-annual interest on the Series 2023 Notes with additional PIK Notes containing the same terms as the Series 2023 Notes, except interest will accrue from issuance of such notes. The Company can also elect to pay interest in cash. In February, 2019, the Company issued $245,920 in additional Series 2023 Notes to the holders to pay the semi-annual interest. During the six months ended June 30, 2019, the Company amortized $16,286 of deferred financing cost relating to the Series 2023 Notes Payable and issued additional PIK Notes of $ 352,697 As of June 30, 2019, the Company was in compliance with the covenants of the Series 2023 Notes. As of June 30, 2019, M. Kingdon Offshore Master Fund, LP, a fund managed by Kingdon Capital Management, LLC, owned $3,980,356 of principal of the Series 2023 Notes. As of June 30, 2019, Michael Pohly, a director of the Company, was an employee of Kingdon Capital, Management, LLC. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 7 – STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 10,000,000 shares of noncumulative, non-voting, nonconvertible preferred stock, $0.001 par value per share. At June 30, 2019 and December 31, 2018, no shares of preferred stock were outstanding. Common Stock The Company is authorized to issue 400,000,000 $0.001 par value per share. At June 30, 2019 and December 31, 2018, 175,513,549 shares were issued and outstanding. 2019 During the six months ended June 30, 2019, there were no activities. 2018 During the six months ended June 30, 2018 the Company issued (i) 1,500,000 shares of common stock at a price of $0.04 per share to a consultant for investor relation services to be performed, (ii) 17,375,000 shares of common stock at a price of $0.04 per share, (iii) 3,000,000 shares of common stock at a price of $0.05 per share, (iv) 1,000,000 shares of common stock at a price of $0.10 per share, (v) 2,000,000 shares of common stock at a price of $0.04 per share upon the exercise of a warrant to purchase shares of common stock, and (vi) 8,000,000 0.15 0.08 |
OPTIONS AND WARRANTS TO PURCHAS
OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 8 – OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK Outstanding Stock Warrants A summary of the status and changes of the warrants issued for the six months ended June 30, 2019: Shares Issuable upon Exercise of Weighted Average Outstanding Warrants Exercise Price Outstanding at January 1, 2019 26,688,373 $ 0.15 Issued - - Exercised - Forfeited - - Outstanding at June 30, 2019 26,688,373 $ 0.15 At June 30, 2019, the intrinsic value of the outstanding warrants was $0. A summary of the status of the warrants outstanding and exercisable at June 30, 2019 is presented below: Warrants Outstanding and Exercisable Shares Issuable Weighted Average upon Exercise of Remaining Weighted Average Exercise Price Outstanding Warrants Contractual Life (years) Exercise Price $ 1.15 461,340 1.83 $ 1.15 $ 0.25 3,283,283 1.99 $ 0.25 $ 0.04 2,068,750 3.19 $ 0.04 $ 0.10 11,000,000 3.46 $ 0.10 $ 0.15 9.875,000 1.98 $ 0.15 26,688,373 2.68 $ 0.15 Outstanding Stock Options On November 20, 2012, the shareholders of the Company approved the adoption of the Applied Minerals, Inc. 2012 Long-Term Incentive Plan (“LTIP”) and the Short-Term Incentive Plan (“STIP”) and the performance criteria used in setting performance goals for awards intended to be performance-based. Under the LTIP, 8,900,000 shares are authorized for issuance. The STIP does not refer to a particular number of shares under the LTIP, but would use the shares authorized in the LTIP for issuance under the STIP. The CEO, the CFO, and named executive officers, and directors, among others are eligible to participate in the LTIP and STIP. Prior to the adoption of the LTIP and STIP, stock options were granted under individual arrangements between the Company and the grantees, and approved by the Board of Directors. In May, 2016, the Company adopted the 2016 Long-Term Incentive Plan (“2016 LTIP”). The number of shares of common stock for issuance or for reference purposes subject to the 2016 LTIP was 2,000,000. On December 7, 2016, the stockholders of the Company approved the 2016 Incentive Plan. The purpose of the 2016 Incentive Plan is to enhance the profitability and value of the Company for the benefit of its stockholders by enabling the Company to offer eligible employees, consultants, and non-employee directors incentive awards in order to attract, retain and reward such individuals and strengthen the mutuality of interests between such individuals and the Company’s stockholders. The aggregate number of shares of Common Stock that may be issued or used for reference purposes under the 2016 Incentive Plan or with respect to which awards may be granted may not exceed 15,000,000 shares, which may be either (i) authorized and unissued Common Stock or (ii) Common Stock held in or acquired for the treasury of the Company. The Compensation Committee of the Company Board of Directors has full authority to administer and interpret the 2016 Incentive Plan, to grant awards under the 2016 Incentive Plan, to determine the persons to whom awards will be granted, to determine the types of awards to be granted, to determine the terms and conditions of each award, to determine the number of shares of Common Stock to be covered by each award and to make all other determinations in connection with the 2016 Incentive Plan and the awards thereunder as the Committee, in its sole discretion, deems necessary or desirable. On December 14, 2017, the Board of Directors approved the 2017 Incentive Plan (“2017 IP”). Forty million ( 40,000,000 The fair value of each of the Company's stock option awards is estimated on the date of grant using the Black-Scholes option-pricing model that uses the assumptions noted in the table below. Expected volatility is based on an average of historical volatility of the Company's common stock. The risk-free interest rate for periods within the contractual life of the stock option award is based on the yield curve of a zero-coupon U.S. Treasury Bond on the date the award is granted with a maturity equal to the expected term of the award. The significant assumptions relating to the valuation of the Company's options issued during the six months ended June 30, 2019 were as follows on a weighted average basis: Dividend Yield 0.0 Expected Life (in years) 2.52 - 7.50 Expected Volatility 69% - 167% Risk Free Interest Rate 1.42% - 3.07% A summary of the status and changes of the options granted under stock option plans and other agreements during the six months ended June 30, 2019: Shares Issued Weighted Upon Exercise of Average Options Exercise Price Outstanding at December 31, 2018 54,866,845 $ 0.29 Granted 6,433,334 $ 0.05 Exercised - - Forfeited (1,773,611 ) 0.06 Outstanding at June 30, 2019 59,526,568 $ 0.28 During the six months ended June 30, 2019, the Company granted 6,433,334 options to purchase the Company’s common stock with a weighted average exercise price of $ 0.05 A summary of the status of the options outstanding at June 30, 2019 is presented below: Options Outstanding Options Exercisable Number Outstanding Weighted Weighted Number Weighted 4,000,000 9.8 $ 0.04 4,000,000 $ 0.04 1,000,000 9.5 0.05 0 $ 0.05 35,808,334 8.1 $ 0.06 28,933,334 $ 0.06 545,289 8.5 $ 0.075 545,289 $ 0.075 377,777 4.1 $ 0.11 377,777 $ 0.11 3,173,611 3.9 $ 0.12 3,173,611 $ 0.12 500,000 2.1 $ 0.16 500,000 $ 0.16 81,395 4.6 $ 0.21 81,395 $ 0.21 100,000 1.2 $ 0.22 100,000 $ 0.22 1,066,155 1.9 $ 0.24 1,066,155 $ 0.24 2,087,500 3.3 $ 0.25 2,087,500 $ 0.25 35,595 3.8 $ 0.27 35,595 $ 0.27 474,815 4.9 $ 0.28 474,815 $ 0.28 234,506 3.6 $ 0.285 234,506 $ 0.285 81,522 1.6 $ 0.30 81,522 $ 0.30 200,000 5.6 $ 0.66 200,000 $ 0.66 150,000 5.6 $ 0.68 150,000 $ 0.68 100,000 0.0 $ 0.70 100,000 $ 0.70 488,356 5.9 $ 0.73 488,356 $ 0.73 3,104,653 2.7 $ 0.83 3,104,653 $ 0.83 975,000 5.0 $ 0.84 975,000 $ 0.84 300,000 4.2 $ 1.10 300,000 $ 1.10 300,000 4.0 $ 1.15 300,000 $ 1.15 65,000 3.9 $ 1.35 65,000 $ 1.35 300,000 2.9 $ 1.55 300,000 $ 1.55 3,077,060 3.4 $ 1.66 3,077,060 $ 1.66 900,000 2.1 $ 1.90 900,000 $ 1.90 59,526,568 6.8 $ 0.27 51,651,568 $ 0.30 Compensation expense of $139,215 and $204,538 was recognized for vested options for the three and six months ended June 30, 2019. The aggregate intrinsic value of the outstanding options at June 30, 2019 was $0. At June 30, 2019, (i) $39,338 of unamortized compensation expense for time-based unvested options will be recognized over the next 2.19 years on a weighted average basis; (ii) $223,105 of unamortized compensation expense for performance-based unvested options will be recognized if the performance targets are achieved. On August 18, 2017, the Company’s management was granted performance-based options to purchase 27.5 million shares of the Company’s common stock at $0.06 per share. The options expire on August 18, 2027. On November 1, 2017, the first fifty percent (50%) of the performance-based options vested as management was able to (i) close the sale of an aggregate of $600,000 of units (consisting of a share of common stock of the Company and a warrant to buy 0.25 of a share of common stock of the Company) at $0.04 per unit and (ii) establish toll processing arrangements with two toll processors of halloysite that, in management’s good faith belief, can process halloysite to the Company’s specifications. An additional twenty-five percent (25%) of the performance-based options vested on January 18, 2018 when management generated $900,000 of additional cash proceeds through (i) the sale of common stock and (ii) the licensing of a right to explore the Dragon Mine property for certain precious metals. The vesting of the remaining 8.3%, 8.3% and 8.4% of the performance-based options occurs when (i) EBITDA is positive over a twelve-month period, (ii) EBITDA is at or greater than $2 million over a twelve-month period and (iii) EBITDA is at or greater than $4 million over a twelve-month period, respectively. At June 30, 2019, management, based on its financial expectations for 2019, did not consider the vesting of the remaining 25% of the option grant to be probable. |
PER SHARE DATA
PER SHARE DATA | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 9 - PER SHARE DATA The computation of basic earnings (loss) per share of common stock is based on the weighted average number of shares outstanding during the year. The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the year plus the common stock equivalents that would arise from the exercise of stock options and warrants outstanding under the treasury method and the average market price per share during the year as well as the conversion of notes. At June 30, 2019, the weighted average shares outstanding excluded options to purchase 59,526,568 shares of common stock of the Company, warrants to purchase 26,688,373 shares of common stock of the Company and 98,237,813, shares of common stock of the Company issuable upon the conversion of notes because their effect would be anti-dilutive. At June 30, 2018, the weighted average shares outstanding excluded options to purchase 61,050,122 shares of common stock of the Company, warrants to purchase 24,813,373 shares of common stock of the Company and 94,413,680, shares of common stock of the Company issuable upon the conversion of notes because their effect would be anti-dilutive. |
BASIS OF REPORTING AND SIGNIF_2
BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Receivables, Policy [Policy Text Block] | Receivables Trade receivables are reported at outstanding principal amounts, net of an allowance for doubtful accounts. Management evaluates the collectability of receivable account balances to determine the allowance, if any. Management considers the other party’s credit risk and financial condition, as well as current and projected economic and market conditions, in determining the amount of the allowance. Receivable balances are written off when management determines that the balance is uncollectable. No allowance was required at June 30, 2019 and December 31, 2018. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are carried at cost net of accumulated depreciation and amortization. D Estimated Useful Life (years) Building and Building Improvements 5 – 40 Mining equipment 2 – 7 Office and shop furniture and equipment 3 – 7 Vehicles 5 Depreciation expense for the three months ended June 30, 2019 and 2018 totaled $0 and $321,818, respectively, and for the six months ended June 30, 2019 and 2018 totaled $0 and $644,962, respectively. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-lived Assets The Company periodically reviews the carrying amounts of long-lived assets to determine whether current events or circumstances warrant adjustment to such carrying amounts. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, the Company compares the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset to its carrying amount. If this comparison indicates that there is an impairment, the amount of the impairment is typically calculated using discounted expected future cash flows where observable fair values are not readily determinable. Considerable management judgment is necessary to estimate the fair value of assets. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value, less cost to sell. The Company has determined that there was no impairment of its long-lived assets as of June 30, 2019. The Company determined there was an impairment of its long-lived assets at December 31, 2018. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock Options and Warrants The Company follows ASC 718 (Stock Compensation) and 505-50 (Equity-Based Payments to Non-employees), which provide guidance in accounting for share-based awards exchanged for services rendered and requires companies to expense the estimated fair value of these awards over the requisite service period. The Company instituted a formal long-term and short-term incentive plan on November 20, 2012, which was approved by its shareholders. Prior to that date, we did not have a formal equity plan, but all equity grants, including stock options and warrants, were approved by our Board of Directors. We determine the fair value of the stock-based compensation awards granted to non-employees as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete. Beginning in the quarter ended June 30, 2013 the Company began using the simplified method to determine the expected term for any options granted because the Company did not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The Company previously utilized the contractual term as the expected term. |
Environmental Costs, Policy [Policy Text Block] | Environmental Matters Expenditures for ongoing compliance with environmental regulations that relate to current operations are expensed or capitalized as appropriate. Expenditures resulting from the remediation of existing conditions caused by past operations that do not contribute to future revenue generations are expensed. Liabilities are recognized when environmental assessments indicate that remediation efforts are probable and the costs can be reasonably estimated. Estimates of such liabilities are based upon currently available facts, existing technology and presently enacted laws and regulations taking into consideration the likely effects of inflation and other societal and economic factors, and include estimates of associated legal costs. These amounts also reflect prior experience in remediating contaminated sites, other companies’ clean-up experience and data released by The Environmental Protection Agency or other organizations. Such estimates are by their nature imprecise and can be expected to be revised over time because of changes in government regulations, operations, technology and inflation. Recoveries are evaluated separately from the liability and, when recovery is assured, the Company records and reports an asset separately from the associated liability. Based upon management’s current assessment of its environmental responsibilities, it does not believe that any reclamation or remediation liability exists at June 30, 2019. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards Leases In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02, Leases (Topic 842). Lessees are required to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The liability is equal to the present value of lease payments. The asset is based on the liability, subject to certain adjustments, such as for initial direct costs. For income statement purposes, a dual model was retained, requiring leases to be classified as either operating or finance leases. Operating leases result in straight-line expense (similar to operating leases under the prior accounting standard) while finance leases result in a front-loaded expense pattern (similar to capital leases under the prior accounting standard). Lessor accounting is similar to the prior model, but updated to align with certain changes to the lessee model (e.g., certain definitions, such as initial direct costs, have been updated) and the new revenue recognition standard that was adopted in 2018. The Company adopted this new accounting standard on January 1, 2019 on a modified retrospective basis and applied the new standard to all leases through a cumulative-effect adjustment to beginning retained earnings. As a result, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which includes, among other things, the ability to carry forward the existing lease classification. The new standard had a material impact on the unaudited consolidated balance sheet, but did not materially impact the Company’s consolidated operating results and had no impact on the Company’s cash flows. The following is a discussion of the Company’s lease policy under the new lease accounting standard: The Company determines if an arrangement contains a lease at the inception of a contract. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments. As the interest rate implicit in the Company’s leases is not readily determinable, the Company utilizes its incremental borrowing rate, determined by class of underlying asset, to discount the lease payments. The operating lease right-of-use assets also include lease payments made before commencement and exclude lease incentives. Impact of New Lease Standard on Balance Sheet Line Items As a result of applying the new lease standard using a modified retrospective method, the following adjustments were made to accounts on the consolidated balance sheet as of January 1, 2019: Impact of Change in Accounting Policy As reported Adjustments Adjusted January 1, Operating lease right-of-use assets $ - $ 325,255 $ 325,255 Total assets 4,136,978 325,255 4,462,233 Current portion of operating lease liabilities - 92,396 92,396 Total current liabilities 1,430,323 92,396 1,522,719 Long-term operating lease liabilities - 241,808 241,808 Deferred rent 8,949 (8,949 ) - Total long-term liabilities 36,825,341 232,859 37,058,200 Total liabilities 38,255,664 325,255 38,580,919 See Note 4 for additional information ASU 2017-11, Part I accounting for Certain Financial Instruments with Down Round Features In July 2017, the FASB issued ASU 2017-11 to simplify the accounting for equity contracts (e.g., freestanding warrants) or equity-linked embedded features (e.g., conversion options in convertible instruments) with down round features. Under the new guidance, entities are no longer required to consider down round features when determining whether these financial instruments containing a down round feature are indexed to the issuer’s own stock pursuant to ASC 815-40. Being indexed to an entity’s own stock is required for a freestanding financial instrument to be classified in shareholders’ equity and may exempt an embedded feature from bifurcation and derivative accounting. The Company adopted ASU 2017-11 on January 1, 2019 on a modified retrospective basis and applied the new standard to all financial instruments with down round features through a cumulative-effect adjustment to beginning retained earnings. As a result, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. On January 1, 2019, the Company recorded a transition adjustment to reduce retained earnings by $4,950,396. The new standard had a material impact on the unaudited consolidated balance sheet, but did not materially impact the Company’s consolidated operating results and had no impact on the Company’s cash flows. Impact of ASU 2017-11 on Balance Sheet Line Items As a result of applying ASU 2017-11 using a modified retrospective method, the following adjustments were made to accounts on the consolidated balance sheet as of January 1, 2019: Impact of Change in Accounting Policy As reported on Adjustments Adjusted as of PIK Note payable, net $ 35,036,320 $ 6,730,468 $ 41,766,788 PIK Note derivative 1,780,072 (1,780,072 ) - Total Long-Term Liabilities 36,825,341 4,950,396 41,775,737 Total liabilities 38,255,664 4,950,396 43,206,060 Accumulated deficit during the exploration stage (87,810,354 ) (4,950,396 ) (92,760,750 ) Total stockholders’ deficit $ (34,118,686 ) $ (4,950,396 ) $ (39,069,082 ) See Note 6 for additional information ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting Effective January 1, 2019 the Company adopted ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The guidance expands the scope of ASC 718 to include share-based payments granted to nonemployees in exchange for goods or services used or consumed in an entity’s own operations and supersedes the guidance in ASC 505-50. The adoption of ASU 2018-07 had no material impact on the Company’s financial results. Recently Issued Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU eliminates, modifies and adds disclosure requirements for fair value measurements. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the effects of this ASU on its financial statements and related disclosures. In August 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. The Company does not anticipate that the adoption of these SEC amendments will have a material effect on the Company’s financial position, results of operations, cash flows or shareholders’ equity. |
BASIS OF REPORTING AND SIGNIF_3
BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Change in Accounting Estimate [Table Text Block] | As a result of applying the new lease standard using a modified retrospective method, the following adjustments were made to accounts on the consolidated balance sheet as of January 1, 2019: Impact of Change in Accounting Policy As reported Adjustments Adjusted January 1, Operating lease right-of-use assets $ - $ 325,255 $ 325,255 Total assets 4,136,978 325,255 4,462,233 Current portion of operating lease liabilities - 92,396 92,396 Total current liabilities 1,430,323 92,396 1,522,719 Long-term operating lease liabilities - 241,808 241,808 Deferred rent 8,949 (8,949 ) - Total long-term liabilities 36,825,341 232,859 37,058,200 Total liabilities 38,255,664 325,255 38,580,919 |
Schedule of Modified Retrospective Method For Lease on Condensed Balance Sheet [Table Text Block] | As a result of applying ASU 2017-11 using a modified retrospective method, the following adjustments were made to accounts on the consolidated balance sheet as of January 1, 2019: Impact of Change in Accounting Policy As reported on Adjustments Adjusted as of PIK Note payable, net $ 35,036,320 $ 6,730,468 $ 41,766,788 PIK Note derivative 1,780,072 (1,780,072 ) - Total Long-Term Liabilities 36,825,341 4,950,396 41,775,737 Total liabilities 38,255,664 4,950,396 43,206,060 Accumulated deficit during the exploration stage (87,810,354 ) (4,950,396 ) (92,760,750 ) Total stockholders’ deficit $ (34,118,686 ) $ (4,950,396 ) $ (39,069,082 ) |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule Of Supplemental Cash Flow and Balance Sheet Information Related To Leases [Table Text Block] | Supplemental cash flow information related to leases: Three months Six months ended Operating cash flows paid for operating leases $ 27,690 $ 54,573 Non-cash lease expense $ 711 $ 2,231 Supplemental balance sheet information related to leases: As of June 30, 2019 Operating lease Right-of-use assets $ 286,871 Current portion of operating lease liabilities $ 96,861 Long-term operating lease liabilities 192,241 Total operating lease liabilities $ 289,102 Weighted average remaining operating lease term 2.75 years Weighted average discount rate 6 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table summarizes the maturity of lease liabilities under operating leases as of June 30, 2019: 2019 (remaining six months) $ 55,380 2020 113,253 2021 116,649 2022 29,376 Total lease payments 314,658 Less: imputed interest (25,556 ) Total lease liabilities $ 289,102 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Notes payable at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 Note payable for equipment, payable $ 5,443 25,936 $ 63,595 $ 246,496 Less: Current Portion 63,595 246,496 Notes Payable, Long-Term Portion $ - $ - (a) On October 2018 the Company signed two note payable with interest rate of 4.89 10 |
CONVERTIBLE DEBT (PIK NOTES) (T
CONVERTIBLE DEBT (PIK NOTES) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Instruments [Abstract] | |
Debt Instrument Redemption [Table Text Block] | The key terms of the Series A and Series 2023 Notes, as amended, are highlighted in the table below: Key Terms Series 2023 Notes Series A Notes Inception Date 08/01/2013 11/03/2014 Cash Received $10,500,000 $12,500,000 Principal (Initial Liability) $10,500,000 $19,848,486 Maturity (Term) Matures on August 1, 2023 Matures on May 1, 2023 Exercise Price $ 0.59 $ 0.40 Stated Interest 10 10 Derivative Liability $ 2,055,000 $ 9,212,285 Payments Per the terms of the amendment agreement entered into on April 4, the holders of the Series A and Series 2023 Notes were to receive a pro-rata distribution of an Immediate Payment of $350,000 as well as (i) receive a pro-rata distribution of 5% of the net proceeds of any capital raise and (ii) on the 15 th Per the terms of the amendment agreement entered into on April 4, 2019, the holders of the Series A and Series 2023 Notes were to receive a pro-rata distribution of an Immediate Payment of $350,000 as well as (i) receive a pro-rata distribution of 5% of the net proceeds of any capital raise and (ii) on the 15 th |
Convertible Debt [Table Text Block] | As of June 30, 2019, the liability components of the PIK Notes on the Company’s balance sheet are listed in the following table: Series 2023 Notes Series A Notes Total PIK Note Payable, Gross $ 16,616,414 $ 27,788,303 $ 44,404,717 Less: Discount - (1,647,592 ) (1,647,592 ) Less: Deferred Financing Cost (141,893 ) (237,294 ) (379,187 ) PIK Note Payable, Net $ 16,474,521 $ 25,903,417 $ 42,377,938 PIK Note Derivative Liability $ - $ - $ - As of December 31, 2018, the liability components of the PIK Notes on the Company’s balance sheet are listed in the following table: Series 2023 Notes Series A Notes Total PIK Note Payable, Gross $ 16,394,688 $ 27,622,913 $ 44,017,601 Less: Discount (1,297,416 ) (7,259,175 ) (8,556,591 ) Less: Deferred Financing Cost (158,179 ) (266,511 ) (424,690 ) PIK Note Payable, Net $ 14,939,093 $ 20,097,227 $ 35,036,320 PIK Note Derivative Liability $ 253,215 $ 1,526,857 $ 1,780,072 |
OPTIONS AND WARRANTS TO PURCH_2
OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule Of Warrants Or Rights [Table Text Block] | A summary of the status and changes of the warrants issued for the six months ended June 30, 2019: Shares Issuable upon Exercise of Weighted Average Outstanding Warrants Exercise Price Outstanding at January 1, 2019 26,688,373 $ 0.15 Issued - - Exercised - Forfeited - - Outstanding at June 30, 2019 26,688,373 $ 0.15 |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | A summary of the status of the warrants outstanding and exercisable at June 30, 2019 is presented below: Warrants Outstanding and Exercisable Shares Issuable Weighted Average upon Exercise of Remaining Weighted Average Exercise Price Outstanding Warrants Contractual Life (years) Exercise Price $ 1.15 461,340 1.83 $ 1.15 $ 0.25 3,283,283 1.99 $ 0.25 $ 0.04 2,068,750 3.19 $ 0.04 $ 0.10 11,000,000 3.46 $ 0.10 $ 0.15 9.875,000 1.98 $ 0.15 26,688,373 2.68 $ 0.15 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The significant assumptions relating to the valuation of the Company's options issued during the six months ended June 30, 2019 were as follows on a weighted average basis: Dividend Yield 0.0 Expected Life (in years) 2.52 - 7.50 Expected Volatility 69% - 167% Risk Free Interest Rate 1.42% - 3.07% |
Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the status and changes of the options granted under stock option plans and other agreements during the six months ended June 30, 2019: Shares Issued Weighted Upon Exercise of Average Options Exercise Price Outstanding at December 31, 2018 54,866,845 $ 0.29 Granted 6,433,334 $ 0.05 Exercised - - Forfeited (1,773,611 ) 0.06 Outstanding at June 30, 2019 59,526,568 $ 0.28 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | A summary of the status of the options outstanding at June 30, 2019 is presented below: Options Outstanding Options Exercisable Number Outstanding Weighted Weighted Number Weighted 4,000,000 9.8 $ 0.04 4,000,000 $ 0.04 1,000,000 9.5 0.05 0 $ 0.05 35,808,334 8.1 $ 0.06 28,933,334 $ 0.06 545,289 8.5 $ 0.075 545,289 $ 0.075 377,777 4.1 $ 0.11 377,777 $ 0.11 3,173,611 3.9 $ 0.12 3,173,611 $ 0.12 500,000 2.1 $ 0.16 500,000 $ 0.16 81,395 4.6 $ 0.21 81,395 $ 0.21 100,000 1.2 $ 0.22 100,000 $ 0.22 1,066,155 1.9 $ 0.24 1,066,155 $ 0.24 2,087,500 3.3 $ 0.25 2,087,500 $ 0.25 35,595 3.8 $ 0.27 35,595 $ 0.27 474,815 4.9 $ 0.28 474,815 $ 0.28 234,506 3.6 $ 0.285 234,506 $ 0.285 81,522 1.6 $ 0.30 81,522 $ 0.30 200,000 5.6 $ 0.66 200,000 $ 0.66 150,000 5.6 $ 0.68 150,000 $ 0.68 100,000 0.0 $ 0.70 100,000 $ 0.70 488,356 5.9 $ 0.73 488,356 $ 0.73 3,104,653 2.7 $ 0.83 3,104,653 $ 0.83 975,000 5.0 $ 0.84 975,000 $ 0.84 300,000 4.2 $ 1.10 300,000 $ 1.10 300,000 4.0 $ 1.15 300,000 $ 1.15 65,000 3.9 $ 1.35 65,000 $ 1.35 300,000 2.9 $ 1.55 300,000 $ 1.55 3,077,060 3.4 $ 1.66 3,077,060 $ 1.66 900,000 2.1 $ 1.90 900,000 $ 1.90 59,526,568 6.8 $ 0.27 51,651,568 $ 0.30 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual) | 1 Months Ended | 6 Months Ended | |
Dec. 22, 2017USD ($) | Jun. 30, 2019T | Jun. 30, 2018 | |
CMC [Member] | |||
Exploration Agreement Payments Upon Expiration Of Due Diligence Period | $ 350,000 | ||
Exploration Agreement Payments On Or Before First Anniversary Of Effective Date Of Agreement | 150,000 | ||
Exploration Agreement Payments On Or Before Each Subsequent Anniversary Of Effective Date During Exploration License Term | $ 250,000 | ||
Exploration Agreement Option To Purchase Percentage Of Metallic Rights | 100.00% | ||
Exploration Agreement Option To Purchase Consideration | $ 3,000,000 | ||
Exploration Agreement Option To Purchase Percentage Of Net Profits Interest Royalty Granted | 5.00% | ||
Exploration Agreement Option To Purchase NPI Royalty Cap | $ 20,000,000 | ||
Exploration Agreement Npi Royalty Interest Converted To Shares Of Properties Value | $ 2,000,000 | ||
Exploration Agreement Npi Royalty Interest Converted To Shares Of Properties Percentage Maximum | 2.00% | ||
Exploration License Agreement Terms | 10 years | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Largest Customer [Member] | |||
Concentration Risk, Percentage | 85.00% | 63.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Largest Customers [Member] | |||
Concentration Risk, Percentage | 0.00% | 0.00% | |
Halloysite Resource [Member] | |||
Mineral Processing Plant Annual Capacity | T | 45,000 | ||
Additional Mineral Processing Plant Annual Capacity | T | 10,000 |
LIQUIDITY AND BASIS OF PRESEN_2
LIQUIDITY AND BASIS OF PRESENTATION (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Net Income (Loss) Attributable to Parent | $ (1,692,875) | $ (319,039) | $ (3,035,456) | $ (12,395,021) | |
Net Cash Provided by (Used in) Operating Activities | (1,571,006) | $ (1,125,686) | |||
Assets, Current | 953,654 | 953,654 | $ 3,289,485 | ||
Liabilities, Current | 1,396,464 | 1,396,464 | 1,430,323 | ||
Accrued Bonuses, Current | 119,269 | 119,269 | |||
Notes Payable, Current, Total | 63,595 | 63,595 | 246,496 | ||
PIK Note interest accrual | 302,340 | 302,340 | $ 343,810 | ||
Accrued Directors Fees | 325,000 | 325,000 | |||
Current Liabilities [Member] | |||||
Disputed Accrued Expenses | 133,600 | 133,600 | |||
Financing Of DO And GL Policies [Member] | |||||
Notes Payable, Current, Total | $ 63,595 | $ 63,595 |
BASIS OF REPORTING AND SIGNIF_4
BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 40 years |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Mining equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 7 years |
Mining equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 2 years |
Office and shop furniture and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 7 years |
Office and shop furniture and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Vehicles [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
BASIS OF REPORTING AND SIGNIF_5
BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating lease right-of-use assets | $ 286,871 | $ 0 | |
Total assets | 2,075,592 | 4,136,978 | |
Current portion of operating lease liabilities | 96,861 | 0 | |
Total current liabilities | 1,396,464 | 1,430,323 | |
Long-term operating lease liabilities | 192,241 | 0 | |
Total long-term liabilities | 289,102 | ||
Total liabilities | $ 43,966,643 | 38,255,664 | |
Previously Reported [Member] | |||
Operating lease right-of-use assets | 0 | ||
Total assets | 4,136,978 | ||
Current portion of operating lease liabilities | 0 | ||
Total current liabilities | 1,430,323 | ||
Long-term operating lease liabilities | 0 | ||
Deferred rent | 8,949 | ||
Total long-term liabilities | 36,825,341 | ||
Total liabilities | $ 38,255,664 | ||
Restatement Adjustment [Member] | |||
Operating lease right-of-use assets | $ 325,255 | ||
Total assets | 325,255 | ||
Current portion of operating lease liabilities | 92,396 | ||
Total current liabilities | 92,396 | ||
Long-term operating lease liabilities | 241,808 | ||
Deferred rent | (8,949) | ||
Total long-term liabilities | 232,859 | ||
Total liabilities | 325,255 | ||
Scenario Currently Reported [Member] | |||
Operating lease right-of-use assets | 325,255 | ||
Total assets | 4,462,233 | ||
Current portion of operating lease liabilities | 92,396 | ||
Total current liabilities | 1,522,719 | ||
Long-term operating lease liabilities | 241,808 | ||
Deferred rent | 0 | ||
Total long-term liabilities | 37,058,200 | ||
Total liabilities | $ 38,580,919 |
BASIS OF REPORTING AND SIGNIF_6
BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
PIK Note payable, net | $ 42,377,938 | $ 35,036,320 | |||||
PIK Note derivative | 0 | 1,780,072 | |||||
Total Long-Term Liabilities | 42,570,179 | 36,825,341 | |||||
Total liabilities | 43,966,643 | 38,255,664 | |||||
Accumulated deficit during the exploration stage | (95,787,257) | (87,810,354) | |||||
Total stockholders' deficit | $ (41,891,051) | $ (40,337,391) | (34,118,686) | $ (42,966,586) | $ (44,218,764) | $ (33,200,782) | |
Successor [Member] | |||||||
PIK Note payable, net | 35,036,320 | ||||||
PIK Note derivative | 1,780,072 | ||||||
Total Long-Term Liabilities | 36,825,341 | ||||||
Total liabilities | 38,255,664 | ||||||
Accumulated deficit during the exploration stage | (87,810,354) | ||||||
Total stockholders' deficit | $ (34,118,686) | ||||||
Scenario, Adjustment [Member] | |||||||
PIK Note payable, net | $ 6,730,468 | ||||||
PIK Note derivative | (1,780,072) | ||||||
Total Long-Term Liabilities | 4,950,396 | ||||||
Total liabilities | 4,950,396 | ||||||
Accumulated deficit during the exploration stage | (4,950,396) | ||||||
Total stockholders' deficit | (4,950,396) | ||||||
Predecessor [Member] | |||||||
PIK Note payable, net | 41,766,788 | ||||||
PIK Note derivative | 0 | ||||||
Total Long-Term Liabilities | 41,775,737 | ||||||
Total liabilities | 43,206,060 | ||||||
Accumulated deficit during the exploration stage | (92,760,750) | ||||||
Total stockholders' deficit | $ (39,069,082) |
BASIS OF REPORTING AND SIGNIF_7
BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | Jan. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Allowance for Doubtful Accounts Receivable | $ 0 | $ 0 | $ 0 | |||
Depreciation | $ 0 | $ 321,818 | 0 | $ 644,962 | ||
Accumulated deficit prior to the exploration stage | 0 | |||||
Accounting Standards Update 2017-11 [Member] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 4,950,396 | $ 4,950,396 | $ 0 |
LEASES (Details)
LEASES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | |||
Operating cash flows paid for operating leases | $ 27,690 | $ 54,573 | |
Non-cash lease expense | $ 711 | $ 2,231 | $ 0 |
LEASES (Details 1)
LEASES (Details 1) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease Right-of-use assets | $ 286,871 | $ 0 |
Current portion of operating lease liabilities | 96,861 | 0 |
Long-term operating lease liabilities | 192,241 | $ 0 |
Total lease liabilities | $ 289,102 | |
Weighted average remaining operating lease term | 2 years 9 months | |
Weighted average discount rate | 6.00% |
LEASES (Details 2)
LEASES (Details 2) | Jun. 30, 2019USD ($) |
2019 (remaining six months) | $ 55,380 |
2020 | 113,253 |
2021 | 116,649 |
2022 | 29,376 |
Total lease payments | 314,658 |
Less: imputed interest | (25,556) |
Total lease liabilities | $ 289,102 |
LEASES (Details Textual)
LEASES (Details Textual) | 1 Months Ended |
Mar. 16, 2017USD ($) | |
Leases [Abstract] | |
Lessee, Operating Lease, Term of Contract | 5 years |
Operating Leases, Rent Expense, Minimum Rentals | $ 9,000 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | |
Note Payable Mining Equipment | [1] | $ 63,595 | $ 246,496 |
Less: Current Portion | 63,595 | 246,496 | |
Notes Payable, Long-Term Portion | $ 0 | $ 0 | |
[1] | On October 2018 the Company signed two note payable with interest rate of 4.89% with an insurance company for liability insurance, payable in 10 monthly installments which started on November 17, 2018 |
NOTES PAYABLE - Summary of Not
NOTES PAYABLE - Summary of Note Payable (Details) (Parenthetical) - Note Payable Mining Equipment [Member] | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Maximum [Member] | |
Note payable, monthly payment | $ 25,936 |
Minimum [Member] | |
Note payable, monthly payment | $ 5,443 |
NOTES PAYABLE (Details Textual)
NOTES PAYABLE (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.89% | ||||
Debt Instrument, Term | 10 months | ||||
Debt Instrument, Periodic Payment, Interest | $ 1,524 | $ 705 | $ 10,680 | $ 6,206 |
CONVERTIBLE DEBT (PIK NOTES) (D
CONVERTIBLE DEBT (PIK NOTES) (Details) - USD ($) | Nov. 03, 2014 | Jun. 30, 2019 | Dec. 31, 2014 | Oct. 31, 2018 |
Stated Interest | 4.89% | |||
Series 2023 Notes [Member] | ||||
Inception Date | Aug. 1, 2013 | |||
Cash Received | $ 10,500,000 | |||
Principal (Initial Liability) | $ 10,500,000 | |||
Maturity (Term) | Aug. 1, 2023 | |||
Exercise Price | $ 0.59 | |||
Stated Interest | 10.00% | |||
Derivative Liability | $ 2,055,000 | |||
Payments | Per the terms of the amendment agreement entered into on April 4, the holders of the Series A and Series 2023 Notes were to receive a pro-rata distribution of an Immediate Payment of $350,000 as well as (i) receive a pro-rata distribution of 5% of the net proceeds of any capital raise and (ii) on the 15th day after the filing of its quarterly report on Form 10-Q or annual report on Form 10-K, receive a pro-rata payment of (a) 3% of gross revenue if cash or cash equivalents on the Company’s balance sheet or otherwise is less than $3 million on the last day of the fiscal quarter or (b) 5% of gross revenue if cash or cash equivalents on the Company’s balance sheet or otherwise is greater than $3 million but less than $5 million on the last day of the fiscal quarter or (c) 12% of gross revenue if cash or cash equivalents on the Company’s balance sheet or otherwise is greater than $5 million on the last day of the fiscal quarter. If the amount payable under (ii)(a), (ii)(b) or (ii)(c) is in excess of the amount of cash at the end of the fiscal quarter, the payment of the excess amount will be deferred and will be payable in connection with the payment for a following fiscal quarter(s) when cash is available. All payment will be applied to the reduction of the principal amount outstanding of the Series A and Series 2023 Notes. | |||
Series A Notes [Member] | ||||
Inception Date | Nov. 3, 2014 | |||
Cash Received | $ 12,500,000 | |||
Principal (Initial Liability) | $ 19,848,486 | |||
Maturity (Term) | May 1, 2023 | Aug. 1, 2023 | ||
Exercise Price | $ 0.40 | |||
Stated Interest | 10.00% | 10.00% | ||
Derivative Liability | $ 9,212,285 | |||
Payments | Per the terms of the amendment agreement entered into on April 4, 2019, the holders of the Series A and Series 2023 Notes were to receive a pro-rata distribution of an Immediate Payment of $350,000 as well as (i) receive a pro-rata distribution of 5% of the net proceeds of any capital raise and (ii) on the 15th day after the filing of its quarterly report on Form 10-Q or annual report on Form 10-K, receive a pro-rata payment of (a) 3% of gross revenue if cash or cash equivalents on the Company’s balance sheet or otherwise is less than $3 million on the last day of the fiscal quarter or (b) 5% of gross revenue if cash or cash equivalents on the Company’s balance sheet or otherwise is greater than $3 million but less than $5 million on the last day of the fiscal quarter or (c) 12% of gross revenue if cash or cash equivalents on the Company’s balance sheet or otherwise is greater than $5 million on the last day of the fiscal quarter. If the amount payable under (ii)(a), (ii)(b) or (ii)(c) is in excess of the amount of cash at the end of the fiscal quarter, the payment of the excess amount will be deferred and will be payable in connection with the payment for a following fiscal quarter(s) when cash is available. All payment will be applied to the reduction of the principal amount outstanding of the Series A and Series 2023 Notes. |
CONVERTIBLE DEBT (PIK NOTES) _2
CONVERTIBLE DEBT (PIK NOTES) (Details 1) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Less: Discount | $ (1,647,592) | $ (8,556,591) |
PIK Note Payable, Net | 42,377,938 | 35,036,320 |
PIK Note Derivative Liability | 0 | 1,780,072 |
Payment in Kind (PIK) Note [Member] | ||
PIK Note Payable, Gross | 44,404,717 | 44,017,601 |
Less: Discount | (1,647,592) | (8,556,591) |
Less: Deferred Financing Cost | (379,187) | (424,690) |
PIK Note Payable, Net | 42,377,938 | 35,036,320 |
PIK Note Derivative Liability | 0 | 1,780,072 |
Payment in Kind (PIK) Note [Member] | Series 2023 Notes [Member] | ||
PIK Note Payable, Gross | 16,616,414 | 16,394,688 |
Less: Discount | 0 | (1,297,416) |
Less: Deferred Financing Cost | (141,893) | (158,179) |
PIK Note Payable, Net | 16,474,521 | 14,939,093 |
PIK Note Derivative Liability | 0 | 253,215 |
Payment in Kind (PIK) Note [Member] | Series A Notes [Member] | ||
PIK Note Payable, Gross | 27,788,303 | 27,622,913 |
Less: Discount | (1,647,592) | (7,259,175) |
Less: Deferred Financing Cost | (237,294) | (266,511) |
PIK Note Payable, Net | 25,903,417 | 20,097,227 |
PIK Note Derivative Liability | $ 0 | $ 1,526,857 |
CONVERTIBLE DEBT (PIK NOTES) _3
CONVERTIBLE DEBT (PIK NOTES) (Details Textual) - USD ($) | Nov. 03, 2014 | Aug. 01, 2013 | Feb. 28, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2014 | Oct. 31, 2018 | Dec. 31, 2013 |
Paid-in-Kind Interest | $ 695,646 | $ 770,815 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.89% | |||||||
Accrued interest paid through the issuance of PIK Notes | 737,116 | 366,658 | ||||||
Payments on PIK notes | $ 341,640 | $ 0 | ||||||
Payment in Kind (PIK) Note [Member] | ||||||||
Proceeds from Convertible Debt | $ 23,000,000 | |||||||
Series A Notes [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | ||||||
Debt Instrument, Convertible, Conversion Price | $ 0.40 | |||||||
Debt Instrument, Face Amount | $ 19,848,486 | |||||||
Proceeds from Convertible Debt | $ 12,500,000 | |||||||
Debt Instrument, Maturity Date | May 1, 2023 | Aug. 1, 2023 | ||||||
Series A Notes [Member] | Samlyn Offshore Master Fund [Member] | ||||||||
Convertible Notes Payable | $ 9,183,720 | |||||||
Series A Notes [Member] | Samlyn Onshore Fund [Member] | ||||||||
Convertible Notes Payable | 4,901,740 | |||||||
Series A Notes [Member] | IBS Turnaround Fund [Member] | ||||||||
Convertible Notes Payable | 1,332,507 | |||||||
Series A Notes [Member] | IBS Opportunity Fund Ltd [Member] | ||||||||
Convertible Notes Payable | $ 259,991 | |||||||
Series A Notes [Member] | IBS Capital LLC [Member] | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 13.70% | |||||||
Series A Notes [Member] | Kingdon Capital Management LLC [Member] | ||||||||
Convertible Notes Payable | $ 4,268,322 | |||||||
Series A Notes [Member] | IBS Turnaround Partnership [Member] | ||||||||
Convertible Notes Payable | 2,675,818 | |||||||
Series A Notes [Member] | Payment in Kind (PIK) Note [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | ||||||
Debt Instrument, Convertible, Conversion Price | $ 0.90 | |||||||
Debt Instrument, Face Amount | $ 19,848,486 | |||||||
Proceeds from Convertible Debt | $ 12,500,000 | |||||||
Amortization of Debt Issuance Costs and Discounts | 207,748 | |||||||
Convertible Notes Payable, Noncurrent | 25,903,417 | |||||||
Accrued interest paid through the issuance of PIK Notes | 384,419 | |||||||
Payments on PIK notes | 219,029 | |||||||
Series 2023 Notes [Member] | ||||||||
Paid-in-Kind Interest | $ 245,920 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||||
Debt Instrument, Convertible, Conversion Price | $ 0.59 | |||||||
Debt Instrument, Face Amount | $ 10,500,000 | |||||||
Proceeds from Convertible Debt | $ 10,500,000 | |||||||
Debt Instrument, Maturity Date | Aug. 1, 2023 | |||||||
Series 2023 Notes [Member] | Kingdon Capital Management LLC [Member] | ||||||||
Convertible Notes Payable | 3,980,356 | |||||||
Series 2023 Notes [Member] | Payment in Kind (PIK) Note [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 10.00% | ||||||
Debt Instrument, Convertible, Conversion Price | $ 1.40 | |||||||
Proceeds from Convertible Debt | $ 10,500,000 | |||||||
Amortization of Debt Issuance Costs and Discounts | 16,286 | |||||||
Convertible Notes Payable, Noncurrent | 16,474,521 | |||||||
Accrued interest paid through the issuance of PIK Notes | 352,697 | |||||||
Payments on PIK notes | $ 130,971 |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - $ / shares | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |
Common Stock, Shares, Issued | 175,513,549 | 175,513,549 | |
Common Stock, Shares, Outstanding | 175,513,549 | 175,513,549 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.15 | ||
Units Issued During Period | 8,000,000 | ||
Units Issued Price Per Unit | $ 0.08 | ||
Common Stock [Member] | |||
Common Stock, Shares Authorized | 400,000,000 | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | ||
Common Stock, Shares, Issued | 175,513,549 | 175,513,549 | |
Common Stock, Shares, Outstanding | 175,513,549 | 175,513,549 | |
Consultant For Investor Relation Services [Member] | |||
Stock Issued During Period, Shares, Issued for Services | 1,500,000 | ||
Shares Issued, Price Per Share | $ 0.04 | ||
Sale Of Stock One [Member] | |||
Shares Issued, Price Per Share | $ 0.04 | ||
Stock Issued During Period, Shares, New Issues | 17,375,000 | ||
Sale Of Stock Two [Member] | |||
Shares Issued, Price Per Share | $ 0.05 | ||
Stock Issued During Period, Shares, New Issues | 3,000,000 | ||
Sale Of Stock Three [Member] | |||
Shares Issued, Price Per Share | $ 0.10 | ||
Stock Issued During Period, Shares, New Issues | 1,000,000 | ||
Sale Of Stock Four [Member] | |||
Shares Issued, Price Per Share | $ 0.04 | ||
Stock Issued During Period, Shares, New Issues | 2,000,000 |
OPTIONS AND WARRANTS TO PURCH_3
OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Details) - Warrant [Member] | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Issuable upon Exercise of Outstanding Warrants, Outstanding at January 1, 2019 | shares | 26,688,373 |
Shares Issuable upon Exercise of Outstanding Warrants, Issued | shares | 0 |
Shares Issuable upon Exercise of Outstanding Warrants, Exercised | shares | 0 |
Shares Issuable upon Exercise of Outstanding Warrants, Forfeited | shares | 0 |
Shares Issuable upon Exercise of Outstanding Warrants, Outstanding at June 30, 2019 | shares | 26,688,373 |
Weighted Average Exercise Price, Outstanding at January 1, 2019 | $ / shares | $ 0.15 |
Weighted Average Exercise Price, Issued | $ / shares | 0 |
Weighted Average Exercise Price, Exercised | $ / shares | |
Weighted Average Exercise Price, Forfeited | $ / shares | 0 |
Weighted Average Exercise Price, Outstanding at June 30, 2019 | $ / shares | $ 0.15 |
OPTIONS AND WARRANTS TO PURCH_4
OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Details 1) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Exercise Price | $ 0.15 | |
Warrant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.15 | $ 0.15 |
Shares Issuable upon Exercise of Outstanding Warrants | 26,688,373 | 26,688,373 |
Weighted Average Remaining Contractual Life (years) | 2 years 8 months 4 days | |
Weighted Average Exercise Price | $ 0.15 | |
Warrant [Member] | Exercise Price 1 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 1.15 | |
Shares Issuable upon Exercise of Outstanding Warrants | 461,340 | |
Weighted Average Remaining Contractual Life (years) | 1 year 9 months 29 days | |
Weighted Average Exercise Price | $ 1.15 | |
Warrant [Member] | Exercise Price 2 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.25 | |
Shares Issuable upon Exercise of Outstanding Warrants | 3,283,283 | |
Weighted Average Remaining Contractual Life (years) | 1 year 11 months 26 days | |
Weighted Average Exercise Price | $ 0.25 | |
Warrant [Member] | Exercise Price 3 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.04 | |
Shares Issuable upon Exercise of Outstanding Warrants | 2,068,750 | |
Weighted Average Remaining Contractual Life (years) | 3 years 2 months 8 days | |
Weighted Average Exercise Price | $ 0.04 | |
Warrant [Member] | Exercise Price 4 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.10 | |
Shares Issuable upon Exercise of Outstanding Warrants | 11,000,000 | |
Weighted Average Remaining Contractual Life (years) | 3 years 5 months 15 days | |
Weighted Average Exercise Price | $ 0.10 | |
Warrant [Member] | Exercise Price 5 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise Price | $ 0.15 | |
Shares Issuable upon Exercise of Outstanding Warrants | 9.875000 | |
Weighted Average Remaining Contractual Life (years) | 1 year 11 months 23 days | |
Weighted Average Exercise Price | $ 0.15 |
OPTIONS AND WARRANTS TO PURCH_5
OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Details 2) - Employee Stock Option [Member] | 6 Months Ended |
Jun. 30, 2019 | |
Dividend Yield | 0.00% |
Maximum [Member] | |
Expected Life (in years) | 7 years 6 months |
Expected Volatility | 167.00% |
Risk Free Interest Rate | 3.07% |
Minimum [Member] | |
Expected Life (in years) | 2 years 6 months 7 days |
Expected Volatility | 69.00% |
Risk Free Interest Rate | 1.42% |
OPTIONS AND WARRANTS TO PURCH_6
OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Details 3) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding at beginning of year (in shares) | shares | 54,866,845 |
Granted (in shares) | shares | 6,433,334 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | (1,773,611) |
Outstanding at end of year (in shares) | shares | 59,526,568 |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 0.29 |
Granted (in dollars per share) | $ / shares | 0.05 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0.06 |
Outstanding at end of year (in dollars per share) | $ / shares | $ 0.28 |
OPTIONS AND WARRANTS TO PURCH_7
OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Details 4) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Options outstanding, number outstanding (in shares) | 59,526,568 | 54,866,845 |
Options outstanding, weighted average remaining contractual life (Year) | 6 years 9 months 18 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.27 | |
Options exercisable, number exercisable (in shares) | 51,651,568 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.30 | |
Exercise Price 1 [Member] | ||
Options outstanding, number outstanding (in shares) | 4,000,000 | |
Options outstanding, weighted average remaining contractual life (Year) | 9 years 9 months 18 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.04 | |
Options exercisable, number exercisable (in shares) | 4,000,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.04 | |
Exercise Price 2 [Member] | ||
Options outstanding, number outstanding (in shares) | 1,000,000 | |
Options outstanding, weighted average remaining contractual life (Year) | 9 years 6 months | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.05 | |
Options exercisable, number exercisable (in shares) | 0 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.05 | |
Exercise Price 3 [Member] | ||
Options outstanding, number outstanding (in shares) | 35,808,334 | |
Options outstanding, weighted average remaining contractual life (Year) | 8 years 1 month 6 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.06 | |
Options exercisable, number exercisable (in shares) | 28,933,334 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.06 | |
Exercise Price 4 [Member] | ||
Options outstanding, number outstanding (in shares) | 545,289 | |
Options outstanding, weighted average remaining contractual life (Year) | 8 years 6 months | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.075 | |
Options exercisable, number exercisable (in shares) | 545,289 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.075 | |
Exercise Price 5 [Member] | ||
Options outstanding, number outstanding (in shares) | 377,777 | |
Options outstanding, weighted average remaining contractual life (Year) | 4 years 1 month 6 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.11 | |
Options exercisable, number exercisable (in shares) | 377,777 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.11 | |
Exercise Price 6 [Member] | ||
Options outstanding, number outstanding (in shares) | 3,173,611 | |
Options outstanding, weighted average remaining contractual life (Year) | 3 years 10 months 24 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.12 | |
Options exercisable, number exercisable (in shares) | 3,173,611 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.12 | |
Exercise Price 7 [Member] | ||
Options outstanding, number outstanding (in shares) | 500,000 | |
Options outstanding, weighted average remaining contractual life (Year) | 2 years 1 month 6 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.16 | |
Options exercisable, number exercisable (in shares) | 500,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.16 | |
Exercise Price 8 [Member] | ||
Options outstanding, number outstanding (in shares) | 81,395 | |
Options outstanding, weighted average remaining contractual life (Year) | 4 years 7 months 6 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.21 | |
Options exercisable, number exercisable (in shares) | 81,395 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.21 | |
Exercise Price 9 [Member] | ||
Options outstanding, number outstanding (in shares) | 100,000 | |
Options outstanding, weighted average remaining contractual life (Year) | 1 year 2 months 12 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.22 | |
Options exercisable, number exercisable (in shares) | 100,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.22 | |
Exercise Price 10 [Member] | ||
Options outstanding, number outstanding (in shares) | 1,066,155 | |
Options outstanding, weighted average remaining contractual life (Year) | 1 year 10 months 24 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.24 | |
Options exercisable, number exercisable (in shares) | 1,066,155 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.24 | |
Exercise Price 11 [Member] | ||
Options outstanding, number outstanding (in shares) | 2,087,500 | |
Options outstanding, weighted average remaining contractual life (Year) | 3 years 3 months 18 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.25 | |
Options exercisable, number exercisable (in shares) | 2,087,500 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.25 | |
Exercise Price 12 [Member] | ||
Options outstanding, number outstanding (in shares) | 35,595 | |
Options outstanding, weighted average remaining contractual life (Year) | 3 years 9 months 18 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.27 | |
Options exercisable, number exercisable (in shares) | 35,595 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.27 | |
Exercise Price 13 [Member] | ||
Options outstanding, number outstanding (in shares) | 474,815 | |
Options outstanding, weighted average remaining contractual life (Year) | 4 years 10 months 24 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.28 | |
Options exercisable, number exercisable (in shares) | 474,815 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.28 | |
Exercise Price 14 [Member] | ||
Options outstanding, number outstanding (in shares) | 234,506 | |
Options outstanding, weighted average remaining contractual life (Year) | 3 years 7 months 6 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.285 | |
Options exercisable, number exercisable (in shares) | 234,506 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.285 | |
Exercise Price 15 [Member] | ||
Options outstanding, number outstanding (in shares) | 81,522 | |
Options outstanding, weighted average remaining contractual life (Year) | 1 year 7 months 6 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.30 | |
Options exercisable, number exercisable (in shares) | 81,522 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.30 | |
Exercise Price 16 [Member] | ||
Options outstanding, number outstanding (in shares) | 200,000 | |
Options outstanding, weighted average remaining contractual life (Year) | 5 years 7 months 6 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.66 | |
Options exercisable, number exercisable (in shares) | 200,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.66 | |
Exercise Price 17 [Member] | ||
Options outstanding, number outstanding (in shares) | 150,000 | |
Options outstanding, weighted average remaining contractual life (Year) | 5 years 7 months 6 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.68 | |
Options exercisable, number exercisable (in shares) | 150,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.68 | |
Exercise Price 18 [Member] | ||
Options outstanding, number outstanding (in shares) | 100,000 | |
Options outstanding, weighted average remaining contractual life (Year) | 0 years | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.70 | |
Options exercisable, number exercisable (in shares) | 100,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.70 | |
Exercise Price 19 [Member] | ||
Options outstanding, number outstanding (in shares) | 488,356 | |
Options outstanding, weighted average remaining contractual life (Year) | 5 years 10 months 24 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.73 | |
Options exercisable, number exercisable (in shares) | 488,356 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.73 | |
Exercise Price 20 [Member] | ||
Options outstanding, number outstanding (in shares) | 3,104,653 | |
Options outstanding, weighted average remaining contractual life (Year) | 2 years 8 months 12 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.83 | |
Options exercisable, number exercisable (in shares) | 3,104,653 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.83 | |
Exercise Price 21 [Member] | ||
Options outstanding, number outstanding (in shares) | 975,000 | |
Options outstanding, weighted average remaining contractual life (Year) | 5 years | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 0.84 | |
Options exercisable, number exercisable (in shares) | 975,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0.84 | |
Exercise Price 22 [Member] | ||
Options outstanding, number outstanding (in shares) | 300,000 | |
Options outstanding, weighted average remaining contractual life (Year) | 4 years 2 months 12 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 1.10 | |
Options exercisable, number exercisable (in shares) | 300,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 1.10 | |
Exercise Price 23 [Member] | ||
Options outstanding, number outstanding (in shares) | 300,000 | |
Options outstanding, weighted average remaining contractual life (Year) | 4 years | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 1.15 | |
Options exercisable, number exercisable (in shares) | 300,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 1.15 | |
Exercise Price 24 [Member] | ||
Options outstanding, number outstanding (in shares) | 65,000 | |
Options outstanding, weighted average remaining contractual life (Year) | 3 years 10 months 24 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 1.35 | |
Options exercisable, number exercisable (in shares) | 65,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 1.35 | |
Exercise Price 25 [Member] | ||
Options outstanding, number outstanding (in shares) | 300,000 | |
Options outstanding, weighted average remaining contractual life (Year) | 2 years 10 months 24 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 1.55 | |
Options exercisable, number exercisable (in shares) | 300,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 1.55 | |
Exercise Price 26 [Member] | ||
Options outstanding, number outstanding (in shares) | 3,077,060 | |
Options outstanding, weighted average remaining contractual life (Year) | 3 years 4 months 24 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 1.66 | |
Options exercisable, number exercisable (in shares) | 3,077,060 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 1.66 | |
Exercise Price 27 [Member] | ||
Options outstanding, number outstanding (in shares) | 900,000 | |
Options outstanding, weighted average remaining contractual life (Year) | 2 years 1 month 6 days | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 1.90 | |
Options exercisable, number exercisable (in shares) | 900,000 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 1.90 |
OPTIONS AND WARRANTS TO PURCH_8
OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Details Textual) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Aug. 18, 2017USD ($)$ / shares$ / itemshares | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)$ / sharesshares | Jan. 18, 2018USD ($) | Dec. 14, 2017shares | Dec. 07, 2016shares | May 31, 2016shares | Nov. 20, 2012shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 6,433,334 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 0.05 | |||||||
Price Per Unit | $ / item | 0.04 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | $ 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||
Performance based Options Vesting Feature Close Sale Of Units Amount | $ 600,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | 0 | 0 | ||||||
LTIP [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 8,900,000 | |||||||
LTIP 2016 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 2,000,000 | |||||||
Incentive Plan 2016 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 15,000,000 | |||||||
2017 IP [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 40,000,000 | |||||||
Performance Based Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 27,500,000 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 0.06 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Aug. 18, 2027 | |||||||
Performance Based Options [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||||
Performance Based Options Vesting Feature Additional Cash Proceeds | $ 900,000 | |||||||
Performance Based Options [Member] | Share-based Compensation Award, Tranche Three [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 8.30% | |||||||
Performance Based Options [Member] | Sharebased Compensation Award Tranche Four [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 8.30% | |||||||
Performance based Options Vesting Feature EBITDA Minimum Value Over 12 Month Period | $ 2,000,000 | |||||||
Performance Based Options [Member] | Sharebased Compensation Award Tranche Five [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 8.40% | |||||||
Performance based Options Vesting Feature EBITDA Minimum Value Over 12 Month Period | $ 4,000,000 | |||||||
Employee Stock Option [Member] | ||||||||
Allocated Share-based Compensation Expense | 139,215 | 204,538 | ||||||
Time Based Unvested Options [Member] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 39,338 | $ 39,338 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 2 months 8 days | |||||||
Performance Based Unvested Options [Member] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 223,105 | $ 223,105 | ||||||
Performance Based Unvested Options [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||||
Warrants In Connection With Units [Member] | ||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | shares | 0.25 |
PER SHARE DATA (Details Textual
PER SHARE DATA (Details Textual) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 59,526,568 | 61,050,122 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 26,688,373 | 24,813,373 |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 98,237,813 | 94,413,680 |