Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 14, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Lithium Corp | |
Entity Central Index Key | 0001415332 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2020 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Entity Common Stock Shares Outstanding | 95,651,644 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash | $ 266,653 | $ 346,260 |
Deposits | 700 | 700 |
Prepaid expenses | 14,504 | 20,504 |
Total Current Assets | 281,857 | 367,464 |
TOTAL ASSETS | 281,857 | 367,464 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 12,701 | 16,909 |
TOTAL CURRENT LIABILITIES | 12,701 | 16,909 |
TOTAL LIABILITIES | 12,701 | 16,909 |
Commitments and contingencies | 0 | 0 |
STOCKHOLDERS' EQUITY | ||
Common stock, 3,000,000,000 shares authorized, par value $0.001; 95,651,644 and 95,651,644 common shares outstanding, respectively | 95,652 | 95,652 |
Additional paid in capital | 4,322,347 | 4,322,347 |
Additional paid in capital - options | 191,513 | 191,513 |
Additional paid in capital - warrants | 369,115 | 369,115 |
Accumulated deficit | (4,709,471) | (4,628,072) |
TOTAL STOCKHOLDERS' EQUITY | 269,156 | 350,555 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 281,857 | $ 367,464 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
STOCKHOLDERS' EQUITY | ||
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares outstanding | 95,651,644 | 95,651,644 |
Statements of Operations (unaud
Statements of Operations (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statements of Operations (unaudited) | ||||
REVENUE | $ 0 | $ 0 | $ 0 | $ 0 |
OPERATING EXPENSES | ||||
Professional fees | 6,901 | 6,839 | 18,551 | 19,989 |
Exploration expenses | 4,139 | 7,078 | 4,139 | 7,078 |
Consulting fees - related party | 18,000 | 30,000 | 40,500 | 60,000 |
Insurance expense | 0 | 1,734 | 0 | 6,935 |
Investor relations | 0 | 19,526 | 0 | 37,389 |
Transfer agent and filing fees | 4,548 | 2,571 | 9,113 | 7,282 |
Travel | 55 | 439 | 3,138 | 886 |
General and administrative expenses | 2,583 | 3,223 | 5,958 | 5,471 |
TOTAL OPERATING EXPENSES | 36,226 | 71,410 | 81,399 | 145,030 |
LOSS FROM OPERATIONS | (36,226) | (71,410) | (81,399) | (145,030) |
OTHER INCOME (EXPENSES) | ||||
Gain (Loss) on sale of marketable securities | 0 | (919) | 0 | (919) |
Gain on sale of mineral property | 0 | 443,308 | 0 | 443,308 |
Loss on investment | 0 | 0 | 0 | (10,000) |
Interest income | 0 | 38 | 0 | 140 |
TOTAL OTHER INCOME (EXPENSE) | 0 | 442,427 | 0 | 432,529 |
INCOME (LOSS) BEFORE INCOME TAXES | (36,226) | 371,017 | (81,399) | 287,499 |
PROVISION FOR INCOME TAXES | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | $ (36,226) | $ 371,017 | $ (81,399) | $ 287,499 |
NET INCOME (LOSS) PER SHARE: BASIC AND DILUTED | $ 0 | $ 0 | $ 0 | $ 0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | 95,651,644 | 95,651,644 | 95,651,644 | 95,651,644 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) | Total | Common Stock | Additional Paid-In Capital | Additional Paid-in Capital - Warrants | Additional Paid-in Capital - Options | Other Comprehensive Loss | Accumulated Deficit |
Balance, shares at Dec. 31, 2018 | 95,651,644 | ||||||
Balance, amount at Dec. 31, 2018 | $ 569,681 | $ 95,652 | $ 4,322,347 | $ 369,115 | $ 191,513 | $ (771) | $ (4,408,175) |
Realized loss on sale of marketable securities | 771 | 0 | 0 | 0 | 0 | 771 | 0 |
Net loss | (219,897) | $ 0 | 0 | 0 | 0 | 0 | (219,897) |
Balance, shares at Dec. 31, 2019 | 95,651,644 | ||||||
Balance, amount at Dec. 31, 2019 | 350,555 | $ 95,652 | 4,322,347 | 369,115 | 191,513 | 0 | (4,628,072) |
Net loss | (81,399) | $ 0 | 0 | 0 | 0 | 0 | (81,399) |
Balance, shares at Jun. 30, 2020 | 95,651,644 | ||||||
Balance, amount at Jun. 30, 2020 | $ 269,156 | $ 95,652 | $ 4,322,347 | $ 369,115 | $ 191,513 | $ 0 | $ (4,709,471) |
Statements of Cash Flows (unaud
Statements of Cash Flows (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net income (loss) for the period | $ (36,226) | $ 371,017 | $ (81,399) | $ 287,499 | $ (219,897) |
Adjustment to reconcile net income to net cash used in operating activities | |||||
Loss on investment in Summa, LLC | 0 | 10,000 | |||
Loss on sale of marketable securities | 0 | 919 | |||
Gain on sale of mineral property | 0 | (443,308) | 0 | (443,308) | |
Changes in assets and liabilities: | |||||
Decrease in prepaid expenses | 6,000 | 52,227 | |||
Increase (decrease) in accounts payable and accrued liabilities | (4,208) | 2,539 | |||
Net Cash Used in Operating Activities | (79,607) | (90,124) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Cash paid for investment in Summa, LLC | 0 | (10,000) | |||
Cash from sale of marketable securities | 0 | 623 | |||
Net Cash Provided by (Used in) Investing Activities | 0 | (9,377) | |||
Decrease in cash | (79,607) | (99,501) | |||
Cash, beginning of period | 346,260 | 555,029 | 555,029 | ||
Cash, end of period | $ 266,653 | $ 455,528 | 266,653 | 455,528 | $ 346,260 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||||
Cash paid for interest | 0 | 0 | |||
Cash paid for income taxes | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies | |
Note 1 - Summary of Significant Accounting Policies | Lithium Corporation (formerly Utalk Communications Inc.) (the “Company”) was incorporated on January 30, 2007 under the laws of Nevada. On September 30, 2009, Utalk Communications Inc. changed its name to Lithium Corporation. Nevada Lithium Corporation was incorporated on March 16, 2009 under the laws of Nevada under the name Lithium Corporation. On September 10, 2009, the Company amended its articles of incorporation to change its name to Nevada Lithium Corporation. By agreement dated October 9, 2009 Nevada Lithium Corporation and Lithium Corporation amalgamated as Lithium Corporation. Lithium Corporation is engaged in the acquisition and development of certain lithium interests in the state of Nevada, and battery or Tech metals prospects in British Columbia and is currently in the exploration stage. Accounting Basis The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a December 31 fiscal year end. Cash and Cash Equivalents Cash includes cash on account, demand deposits, and short-term instruments with maturities of three months or less. Concentrations of Credit Risk The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products, licensing agreements and contracts to perform pilot studies by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. For the comparative periods, revenue has not been adjusted and continues to be reported under ASC 605 — Revenue Recognition. Under ASC 605, revenue is recognized when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) the performance of service has been rendered to a customer or delivery has occurred; (3) the amount of fee to be paid by a customer is fixed and determinable; and (4) the collectability of the fee is reasonably assured. There was no impact on the Company’s financial statements as a result of adopting Topic 606 for the six months ended June 30, 2020 and 2019, or the twelve months ended December 31, 2019. Income per Share Basic income per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have a dilutive effect on earnings per share. The dilutive effect of convertible securities is reflected in diluted earnings per share by application of the “if converted” method. In the periods in which a loss is incurred, the effect of potential issuances of shares under options and warrants would be anti-dilutive, and therefore basic and diluted losses per share are the same. The Company did not have any dilutive securities for the periods ended June 30, 2020 and 2019. Income Taxes The asset and liability approach is used to account for income taxes by recognizing deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Financial Instruments The Company’s financial instruments consist of cash, deposits, prepaid expenses, and accounts payable and accrued liabilities. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. Because of the short maturity and capacity of prompt liquidation of such assets and liabilities, the fair value of these financial instruments approximate their carrying values, unless otherwise noted. Mineral Properties Costs of exploration, carrying and retaining unproven mineral lease properties are expensed as incurred. Mineral property acquisition costs are capitalized including licenses and lease payments. Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects. Impairment losses are recorded on mineral properties used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. Optioned Properties Properties under the Company’s ownership which have been optioned to a third party are deemed the Company’s property until all obligations under an option agreement are met, at which point the ownership of the property transfers to the third party. All non-refundable payments received prior to all obligations under an option agreement being met are considered liabilities until such time all obligations have been met, at which time ownership of the property transfers to the third party and the Company includes option payments into its statement of operations. Recent Accounting Pronouncements In January 2016, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”) 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends the guidance in U.S. generally accepted accounting principles on the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting In February 2016, the FASB issued ASU 2016-02, “Leases” Topic 842, which amends the guidance in former ASC Topic 840, Leases The Company adopted the new lease guidance effective January 1, 2019. The Company only has one lease in effect; its office lease located in Elko, Nevada. The lease rate is 350/month and is on a month to month term. The office lease is insignificant to the financial presentation of the Company, therefore, it is not shown on the Company’s financial statements. The Company has adopted the modified retrospective approach therefore the Company has no plans of restating prior periods and that there is no asset or liability currently. |
Going Concern
Going Concern | 6 Months Ended |
Jun. 30, 2020 | |
Going Concern | |
Note 2 - Going Concern | As reflected in the accompanying financial statements, the Company has a working capital of $269,156 as at June 30, 2020 (December 31, 2019: $350,555) and has used $79,607 (2019: $53,759) of cash in operations for the six months ended June 30, 2020. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value of Financial Instruments | |
Note 3 - Fair Value of Financial Instruments | Under FASB ASC 820-10-5, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. Under GAAP, certain assets and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required for items measured at fair value. The Company has certain financial instruments that must be measured under the new fair value standard. The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows: - Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. - - Level 3 - Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability. The following schedule summarizes the valuation of financial instruments at fair value on a recurring basis in the balance sheets as of June 30, 2020 and December 31, 2019, respectively: Fair Value Measurements at June 30, 2020 Level 1 Level 2 Level 3 Assets Cash $ 266,653 $ - $ - Total Assets 266,653 - - Liabilities Total Liabilities - - - $ 266,653 $ - $ - Fair Value Measurements at December 31, 2019 Level 1 Level 2 Level 3 Assets Cash $ 346,260 $ - $ - Total Assets 346,260 - - Liabilities Total Liabilities - - - $ 346,260 $ - $ - |
Prepaid Expenses
Prepaid Expenses | 6 Months Ended |
Jun. 30, 2020 | |
Prepaid Expenses | |
Note 4 - Prepaid Expenses | Prepaid expenses consisted of the following at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2018 Bonds $ 9,381 $ 9,381 Transfer agent fees and filing fees 5,123 11,123 Total prepaid expenses $ 14,504 $ 20,504 |
Mineral Properties
Mineral Properties | 6 Months Ended |
Jun. 30, 2020 | |
Mineral Properties | |
Note 5 - Mineral Properties | Yeehaw and Melissa Properties On March 17, 2017, the Company entered into an agreement whereby the Company has the option to acquire mineral properties in Revelstoke, British Columbia. To acquire the properties, the Company must issue 1,000,000 common shares on March 1, 2017 (issued) and 400,000 common shares (issued) on the anniversary of the agreement. The properties are subject to a 1% NSR, which may be purchased by the Company for $500,000. During the year-ended December 31, 2019, the Company recorded a $217,668 allowance for the properties and has a net book value of $Nil. Fish Lake Property The Company purchased a 100% interest in the Fish Lake property by making staged payments of $350,000 worth of common stock. Title to the pertinent claims was transferred to the Company through quit claim deed dated June 1, 2011, and this quit claim was recorded at the county level on August 3, 2011 and at the BLM on August 4, 2011. Quarterly stock disbursements were made on the following schedule: 1st Disbursement: Within 10 days of signing agreement (paid) 2nd Disbursement: within 10 days of June 30, 2009 (paid) 3rd Disbursement: within 10 days of December 30, 2009 (paid) 4th Disbursement: within 10 days of March 31, 2010 (paid) 5th Disbursement: within 10 days of June 30, 2010 (paid) 6th Disbursement: within 10 days of September 30, 2010 (paid) 7th Disbursement: within 10 days of December 31, 2010 (paid) 8th Disbursement: within 10 days of March 31, 2011 (paid) During the year-ended December 31, 2019, the Company recorded a $159,859 allowance for the properties and has a net book value of $Nil. On March 10, 2016, the Company entered into an agreement with respect to the Fish Lake Property whereby the purchaser may earn an 80% interest in the property for payments of $300,000, 80,000 shares (post 10:1 rollback and 2:1 split) and work performed on the property over the next three years totaling $1,100,000 and $30,000 reimbursement of costs relating to the property. Should these terms be met, the purchaser has the ability to purchase the remaining 20% of the property for $1,000,000. The Company shall retain a 2.5% NSR on the property should they sell 100% of their interest. As of June 30, 2020, the Company has received $330,000 and 240,000 common shares (valued at $112,267) in relation to the option agreement. The $443,308 had been recorded as a liability against the property until either the purchaser returns the property to the Company or the purchaser has met all the obligations associated with the agreement, at which time the liability will be charged to the statement of operations. During the year-ended December 31, 2019, the property was returned to the Company and $443,308 was taken into income. Staked Properties The Company has staked claims with various registries as summarized below: Name Claims Cost Impairment Net Carry Value San Emidio 20 (1,600acres) $ 11,438 $ (11,438 ) $ 0 BC Sugar 8019.41 (hectares) $ 21,778 (21,778 ) $ 0 The Company performs an impairment test on an annual basis to determine whether a write-down is necessary with respect to the properties. The Company believes no circumstances have occurred and no evidence has been uncovered that warrant a write-down of the mineral properties other than those abandoned by management and thus included in write-down of mineral properties. On May 3, 2016, the Company entered into an agreement with respect to the San Emidio Property whereby the purchaser could have earned an 80% interest in the property for payments of $100,000, 30,000 shares (post 10:1 rollback and 2:1 split) and work performed on the property over the next three years totaling $600,000. Should these terms had been met, the purchaser had the ability to purchase the remaining 20% of the property for $1,000,000 in which case te Company would have retained a 2.5% NSR on the property. During the fiscal year 2019, the Company has received $100,000 and 40,000 common shares (valued at $102,901) in relation to the option agreement. The Company recorded $202,901 as a liability against the property until either the purchaser returns the property to the Company or the purchaser has met all the obligations associated with the agreement, at which time the liability will be charged to the statement of operations. During the year ended December 31, 2018, the Company received notification that the purchaser had returned the property and, as such, $202,901 was taken into income. |
Allowance for Optioned Properti
Allowance for Optioned Properties | 6 Months Ended |
Jun. 30, 2020 | |
Allowance for Optioned Properties | |
Note 6 - Allowance for Optioned Properties | Fish Lake Valley On March 10, 2016, the Company entered into an agreement with respect to the Fish Lake Property whereby the purchaser may earn an 80% interest in the property for payments of $300,000, 80,000 shares (post 10:1 rollback and 2:1 split) and work performed on the property over the next three years totaling $1,100,000 and $30,000 reimbursement of costs relating to the property. Should these terms be met, the purchaser has the ability to purchase the remaining 20% of the property for $1,000,000. The Company shall retain a 2.5% NSR on the property should they sell 100% of their interest. As of June 30, 2020, the Company has received $330,000 and 240,000 common shares (valued at $113,308) in relation to the option agreement. The Company recorded $443,308 as a liability against the property until either the purchaser returns the property to the Company or the purchaser has met all the obligations associated with the agreement, at which time the liability will be charged to the statement of operations. During the year ended December 31, 2019, the Company received notification that the purchaser had returned the property and, as such, $443,308 was taken into income. San Emidio On May 3, 2016, the Company entered into an agreement with respect to the San Emidio Property whereby the purchaser may earn an 80% interest in the property for payments of $100,000, 60,000 shares (post 10:1 rollback and 2:1 split) and work performed on the property over the next three years totaling $600,000. Should these terms be met, the purchaser has the ability to purchase the remaining 20% of the property for $1,000,000. The Company shall retain a 2.5% NSR on the property should they sell 100% of their interest. As of June 30, 2020, the Company has received $100,000 and 40,000 common shares (valued at $102,901) in relation to the option agreement. The $202,901 has been recorded as a liability against the property until either the purchaser returns the property to the Company or the purchaser has met all the obligations associated with the agreement, at which time the liability will be charged to the statement of operations. During the year ended December 31, 2018, the Company received notification that the purchaser had returned the property and, as such, $202,901 was taken into income. |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2020 | |
Capital Stock | |
Note 7 - Capital Stock | The Company is authorized to issue 300,000,000 shares of it $0.001 par value common stock. On September 30, 2009, the Company effected a 60-for-1 forward stock split of its $0.001 par value common stock. All share and per share amounts have been retroactively restated to reflect the splits discussed above. Common Stock During the six months ended June 30, 2020, there was no activity in the Company’s common stock. There were 95,651,644 shares of common stock issued and outstanding as of June 30, 2020 (December 31, 2019: 95,651,644). |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions | |
Note 8 - Related Party Transactions | The Company paid consulting fees totaling $18,000 and $40,500 to related parties for the three and six months ended June 30, 2020 (2019: $30,000 and $60,000). |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events | |
Note 9 - Subsequent Events | The Company has analyzed its operations subsequent to June 30, 2020 through the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies | |
Accounting Basis | The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a December 31 fiscal year end. |
Cash and Cash Equivalents | Cash includes cash on account, demand deposits, and short-term instruments with maturities of three months or less. |
Concentrations of Credit Risk | The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents. |
Use of Estimates | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition | Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products, licensing agreements and contracts to perform pilot studies by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. For the comparative periods, revenue has not been adjusted and continues to be reported under ASC 605 — Revenue Recognition. Under ASC 605, revenue is recognized when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) the performance of service has been rendered to a customer or delivery has occurred; (3) the amount of fee to be paid by a customer is fixed and determinable; and (4) the collectability of the fee is reasonably assured. There was no impact on the Company’s financial statements as a result of adopting Topic 606 for the six months ended June 30, 2020 and 2019, or the twelve months ended December 31, 2019. |
Income per Share | Basic income per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have a dilutive effect on earnings per share. The dilutive effect of convertible securities is reflected in diluted earnings per share by application of the “if converted” method. In the periods in which a loss is incurred, the effect of potential issuances of shares under options and warrants would be anti-dilutive, and therefore basic and diluted losses per share are the same. The Company did not have any dilutive securities for the periods ended June 30, 2020 and 2019. |
Income Taxes | The asset and liability approach is used to account for income taxes by recognizing deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. |
Financial Instruments | The Company’s financial instruments consist of cash, deposits, prepaid expenses, and accounts payable and accrued liabilities. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. Because of the short maturity and capacity of prompt liquidation of such assets and liabilities, the fair value of these financial instruments approximate their carrying values, unless otherwise noted. |
Mineral Properties | Costs of exploration, carrying and retaining unproven mineral lease properties are expensed as incurred. Mineral property acquisition costs are capitalized including licenses and lease payments. Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects. Impairment losses are recorded on mineral properties used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. |
Optioned Properties | Properties under the Company’s ownership which have been optioned to a third party are deemed the Company’s property until all obligations under an option agreement are met, at which point the ownership of the property transfers to the third party. All non-refundable payments received prior to all obligations under an option agreement being met are considered liabilities until such time all obligations have been met, at which time ownership of the property transfers to the third party and the Company includes option payments into its statement of operations. |
Recent Accounting Pronouncements | In January 2016, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”) 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends the guidance in U.S. generally accepted accounting principles on the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting In February 2016, the FASB issued ASU 2016-02, “Leases” Topic 842, which amends the guidance in former ASC Topic 840, Leases The Company adopted the new lease guidance effective January 1, 2019. The Company only has one lease in effect; its office lease located in Elko, Nevada. The lease rate is 350/month and is on a month to month term. The office lease is insignificant to the financial presentation of the Company, therefore, it is not shown on the Company’s financial statements. The Company has adopted the modified retrospective approach therefore the Company has no plans of restating prior periods and that there is no asset or liability currently. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value of Financial Instruments (Tables) | |
Schedule of the valuation of financial instruments measured at fair value on a recurring basis | Fair Value Measurements at June 30, 2020 Level 1 Level 2 Level 3 Assets Cash $ 266,653 $ - $ - Total Assets 266,653 - - Liabilities Total Liabilities - - - $ 266,653 $ - $ - Fair Value Measurements at December 31, 2019 Level 1 Level 2 Level 3 Assets Cash $ 346,260 $ - $ - Total Assets 346,260 - - Liabilities Total Liabilities - - - $ 346,260 $ - $ - |
Prepaid Expenses (Tables)
Prepaid Expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Prepaid Expenses | |
Schedule for prepaid expenses | June 30, 2020 December 31, 2018 Bonds $ 9,381 $ 9,381 Transfer agent fees and filing fees 5,123 11,123 Total prepaid expenses $ 14,504 $ 20,504 |
Mineral Properties (Tables)
Mineral Properties (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Mineral Properties (Tables) | |
Schedule of staked claims | Name Claims Cost Impairment Net Carry Value San Emidio 20 (1,600acres) $ 11,438 $ (11,438 ) $ 0 BC Sugar 8019.41 (hectares) $ 21,778 (21,778 ) $ 0 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Going Concern | |||
Working capital | $ 269,156 | $ 350,555 | |
Net Cash Used in Operating Activities | $ (79,607) | $ (90,124) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Cash | $ 266,653 | $ 346,260 |
Total Assets | 266,653 | 346,260 |
Liabilities | ||
Total | 266,653 | 346,260 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Cash | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities | ||
Total | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Cash | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities | ||
Total | 0 | 0 |
Total Liabilities | $ 0 | $ 0 |
Prepaid Expenses (Details)
Prepaid Expenses (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Prepaid Expenses | ||
Bonds | $ 9,381 | $ 9,381 |
Transfer agent fees and filing fees | 5,123 | 11,123 |
Total prepaid expenses | $ 14,504 | $ 20,504 |
Mineral Properties (Details)
Mineral Properties (Details) | 6 Months Ended |
Jun. 30, 2020USD ($)ainteger | |
San Emidio [Member] | |
Claims | integer | 20 |
Area of staked properties | a | 1,600 |
Cost | $ 11,438 |
Impairment | (11,438) |
Net Carry Value | $ 0 |
Bc Sugar [Member] | |
Area of staked properties | a | 8,019.41 |
Cost | $ 21,778 |
Impairment | (21,778) |
Net Carry Value | $ 0 |
Mineral Properties (Details Nar
Mineral Properties (Details Narrative) - USD ($) | May 03, 2016 | Mar. 10, 2016 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 17, 2017 |
On March 1, 2017 [Member] | Amended [Member] | ||||||
Payment for common shares anniversary | 400,000 | |||||
Fish Lake Property [Member] | ||||||
Acquisition description | the Company entered into an agreement with respect to the Fish Lake Property whereby the purchaser may earn an 80% interest in the property for payments of $300,000, 80,000 shares (post 10:1 rollback and 2:1 split | |||||
Ownership interest | 80.00% | 100.00% | ||||
Allowance properties | $ 159,859 | |||||
Amount paid for acquisition | $ 300,000 | $ 350,000 | ||||
Estimated work to be performed over the next three years | 1,100,000 | |||||
Reimbursement of costs related to mineral property | $ 30,000 | |||||
Percentage of remaining interest in property | 20.00% | |||||
Cost of remaining interest in property | $ 1,000,000 | |||||
Percentage NSR on property retained | 2.50% | |||||
Percentage of property sold | 100.00% | |||||
Amount received | $ 330,000 | |||||
Number of shares received | 240,000 | |||||
Carrying value of shares received | $ 112,267 | |||||
Value of liability recorded | $ 443,308 | |||||
Property returned by purchaser and recorded into income | 443,308 | |||||
Staked Properties [Member] | ||||||
Acquisition description | The Company entered into an agreement with respect to the San Emidio Property whereby the purchaser could have earned an 80% interest in the property for payments of $100,000, 30,000 shares (post 10:1 rollback and 2:1 split | |||||
Ownership interest | 80.00% | |||||
Amount paid for acquisition | $ 100,000 | |||||
Estimated work to be performed over the next three years | $ 600,000 | |||||
Percentage of remaining interest in property | 20.00% | |||||
Cost of remaining interest in property | $ 1,000,000 | |||||
Percentage NSR on property retained | 2.50% | |||||
Amount received | $ 100,000 | |||||
Number of shares received | 40,000 | |||||
Carrying value of shares received | $ 102,901 | |||||
Value of liability recorded | 202,901 | |||||
Property returned by purchaser and recorded into income | $ 202,901 | |||||
Yeehaw And Melissa Properties [Member] | ||||||
Payment to Net Smelter Return properties | $ 500,000 | |||||
Acquisition costs | $ 217,668 | |||||
Yeehaw And Melissa Properties [Member] | On March 17, 2017 [Member] | ||||||
Number of shares issued | 1,000,000 | |||||
Percentage of Net Smelter Return | 1.00% |
Allowance for Optioned Proper_2
Allowance for Optioned Properties (Details Narrative) - USD ($) | May 03, 2016 | Mar. 10, 2016 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fish Lake Valley [Member] | |||||
Ownership interest | 80.00% | ||||
Amount paid for acquisition | $ 300,000 | ||||
Estimated work to be performed over the next three years | 1,100,000 | ||||
Reimbursement of costs related to mineral property | $ 30,000 | ||||
Percentage of remaining interest in property | 20.00% | ||||
Cost of remaining interest in property | $ 1,000,000 | ||||
Percentage NSR on property retained | 2.50% | ||||
Percentage of property sold | 100.00% | ||||
Acquisition description | the Company entered into an agreement with respect to the Fish Lake Property whereby the purchaser may earn an 80% interest in the property for payments of $300,000, 80,000 shares (post 10:1 rollback and 2:1 split) | ||||
Amount received | $ 330,000 | ||||
Number of shares received | 240,000 | ||||
Carrying value of shares received | $ 113,308 | ||||
Value of liability recorded | 443,308 | ||||
Property returned by purchaser and recorded into income | $ 443,308 | ||||
San Emidio [Member] | |||||
Ownership interest | 80.00% | ||||
Amount paid for acquisition | $ 100,000 | ||||
Estimated work to be performed over the next three years | $ 600,000 | ||||
Percentage of remaining interest in property | 20.00% | ||||
Cost of remaining interest in property | $ 1,000,000 | ||||
Percentage NSR on property retained | 2.50% | ||||
Percentage of property sold | 100.00% | ||||
Acquisition description | the Company entered into an agreement with respect to the San Emidio Property whereby the purchaser may earn an 80% interest in the property for payments of $100,000, 60,000 shares (post 10:1 rollback and 2:1 split) | ||||
Amount received | $ 100,000 | ||||
Number of shares received | 40,000 | ||||
Carrying value of shares received | $ 102,901 | ||||
Value of liability recorded | $ 202,901 | ||||
Property returned by purchaser and recorded into income | $ 202,901 |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - $ / shares | 1 Months Ended | ||
Sep. 30, 2009 | Jun. 30, 2020 | Dec. 31, 2019 | |
Capital Stock (Details Narrative) | |||
Common stock shares, authorized | 3,000,000,000 | 3,000,000,000 | |
Common stock shares, issued | 95,651,644 | 95,651,644 | |
Common stock shares, outstanding | 95,651,644 | 95,651,644 | |
Common stock shares, par value | $ 0.001 | $ 0.001 | |
Forward stock split | 60-for-1 |
Related Party Transactions (Det
Related Party Transactions (Detail Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Related Party Transactions | ||||
Consulting fees | $ 18,000 | $ 30,000 | $ 40,500 | $ 60,000 |