Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Apr. 13, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | LITHIUM CORPORATION | ||
Entity Central Index Key | 0001415332 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Entity Common Stock Shares Outstanding | 105,092,441 | ||
Entity Public Float | $ 8,241,797 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-54332 | ||
Entity Incorporation State Country Code | NV | ||
Entity Tax Identification Number | 98-0530295 | ||
Entity Address Address Line 1 | 1031 Railroad St | ||
Entity Address Address Line 2 | Suite 102B | ||
Entity Address City Or Town | Elko | ||
Entity Address State Or Province | NV | ||
Entity Address Postal Zip Code | 89801 | ||
Entity Interactive Data Current | Yes | ||
Auditor Name | M&K CPAS, PLLC | ||
Auditor Location | Houston, IX | ||
City Area Code | 775 | ||
Local Phone Number | 410-5287 | ||
Security 12g Title | Common Stock, $0.001 par value | ||
Icfr Auditor Attestation Flag | false | ||
Auditor Firm Id | 2738 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash | $ 2,243,121 | $ 191,125 |
Marketable securities | 393,481 | 0 |
Deposits | 700 | 700 |
Prepaid expenses | 21,804 | 14,226 |
Total Current Assets | 2,659,106 | 206,051 |
TOTAL ASSETS | 2,659,106 | 206,051 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 18,705 | 9,556 |
Accounts payable and accrued liabilities - related party | 2,251 | 5,260 |
Allowance for optioned properties | 1,580,970 | 0 |
TOTAL CURRENT LIABILITIES | 1,601,926 | 14,816 |
TOTAL LIABILITIES | 1,601,926 | 14,816 |
STOCKHOLDERS' EQUITY | ||
Common stock, 3,000,000,000 shares authorized, par value $0.001; 103,492,441 and 95,651,644 common shares outstanding, respectively | 103,493 | 95,652 |
Additional paid in capital | 6,925,724 | 4,322,347 |
Additional paid in capital - options | 191,513 | 191,513 |
Additional paid in capital - warrants | 369,115 | 369,115 |
Accumulated deficit | (6,532,665) | (4,787,392) |
TOTAL STOCKHOLDERS' EQUITY | 1,057,180 | 191,235 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,659,106 | $ 206,051 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Balance Sheets | ||
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 | 103,492,441 | 95,651,644 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statements of Operations | ||
REVENUE | $ 0 | $ 0 |
OPERATING EXPENSES | ||
Professional fees | 74,521 | 28,174 |
Exploration expenses - related party | 12,234 | 3,656 |
Exploration expenses | 33,756 | 18,028 |
Consulting fees - related party | 120,000 | 76,500 |
Consulting fees | 560,880 | 0 |
Transfer agent and filing fees | 27,893 | 19,908 |
Travel | 12,711 | 9,003 |
General and administrative expenses | 13,789 | 4,051 |
TOTAL OPERATING EXPENSES | 855,784 | 159,320 |
LOSS FROM OPERATIONS | (855,784) | (159,320) |
OTHER INCOME (EXPENSES) | ||
Change in fair value of marketable securities | (987,489) | 0 |
Other income | 98,000 | 0 |
TOTAL OTHER INCOME (EXPENSE) | (889,489) | 0 |
LOSS BEFORE INCOME TAXES | (1,745,273) | (159,320) |
PROVISION FOR INCOME TAXES | 0 | 0 |
NET LOSS | $ (1,745,273) | $ (159,320) |
NET LOSS PER SHARE: BASIC AND DILUTED | $ (0.02) | $ 0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | 99,843,819 | 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 | Accumulated Deficit |
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 | $ (4,628,072) |
Net loss | (159,320) | $ 0 | 0 | 0 | 0 | (159,320) |
Balance, shares at Dec. 31, 2020 | 95,651,644 | |||||
Balance, amount at Dec. 31, 2020 | 191,235 | $ 95,652 | 4,322,347 | 369,115 | 191,513 | (4,787,392) |
Net loss | (1,745,273) | $ 0 | 0 | 0 | 0 | (1,745,273) |
Shares issued for services, shares | 1,375,779 | |||||
Shares issued for services, amount | 557,190 | $ 1,376 | 555,814 | 0 | 0 | 0 |
Shares issued for cash, shares | 6,465,018 | |||||
Shares issued for cash, amount | 2,054,028 | $ 6,465 | 2,047,563 | 0 | 0 | 0 |
Balance, shares at Dec. 31, 2021 | 103,492,441 | |||||
Balance, amount at Dec. 31, 2021 | $ 1,057,180 | $ 103,493 | $ 6,925,724 | $ 369,115 | $ 191,513 | $ (6,532,665) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss for the period | $ (1,745,273) | $ (159,320) |
Adjustment to reconcile net loss to net cash used in operating activities | ||
Shares issued for services | 557,190 | 0 |
Change in fair value of marketable securities | 987,489 | 0 |
Changes in assets and liabilities: | ||
Decrease in prepaid expenses | (7,578) | 6,278 |
Increase (decrease) in accounts payable and accrued liabilities | 6,140 | (2,093) |
Net Cash Used in Operating Activities | (202,032) | (155,135) |
CASH FLOWS FROM INVESTING ACTIVITY: | ||
Cash from properties | 200,000 | 0 |
Net Cash Provided by Investing Activity | 200,000 | 0 |
CASH FLOWS FROM FINANCING ACTIVITY: | ||
Shares issued for cash | 2,054,028 | 0 |
Net Cash Provided by Finanicng Activity | 2,054,028 | 0 |
Increase (Decrease) in cash | 2,051,996 | (155,135) |
Cash, beginning of period | 191,125 | 346,260 |
Cash, end of period | 2,243,121 | 191,125 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest | 0 | 0 |
Cash paid for income taxes | 0 | 0 |
NON-CASH TRANSACTIONS: | ||
Marketable securities received as consideration for mineral property option | $ 1,380,970 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Note 1 - 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. 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 December 31, 2021 and 2020. 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 Pronouncement s 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. |
Going Concern
Going Concern | 12 Months Ended |
Dec. 31, 2021 | |
Going Concern | |
Note 2 - Going Concern | Note 2 – Going Concern As reflected in the accompanying financial statements, the Company has used $202,032 (2020: $155,135) of cash in operations for the year ended December 31, 2021. 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 | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value of Financial Instruments | |
Note 3 - 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 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). - 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 December 31, 2021 and December 31, 2020, respectively: Fair Value Measurements at December 31, 2021 Level 1 Level 2 Level 3 Assets Cash $ 2,243,121 $ - $ - Marketable securities 393,481 Total Assets 2,636,602 - - Liabilities Total Liabilities - - - $ 2,626,602 $ - $ - Fair Value Measurements at December 31, 2020 Level 1 Level 2 Level 3 Assets Cash $ 191,125 $ - $ - Total Assets 191,125 - - Liabilities Total Liabilities - - - $ 191,125 $ - $ - |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2021 | |
Marketable Securities | |
Note 4 - Marketable Securities | Note 4 – Marketable Securities The Company owns marketable securities (common stock) as outlined below: Balance, December 31, 2020 $ - Additions 1,380,970 Fair value adjustment (987,489 ) Balance, December 31, 2021 $ 393,481 The Company classifies it’s marketable securities as available for sale. During the year ended December 31, 2021, the Company received 200,000 common shares with a value of $51,260 related to the option of the San Emidio Property. During the year ended December 31, 2021, the Company received 28,176,951 common shares from a related party with a value of $1,329,710 related to the option of the Fish Lake Property. |
Prepaid Expenses
Prepaid Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expenses | |
Note 5 - Prepaid Expenses | Note 5 - Prepaid Expenses Prepaid expenses consisted of the following at December 31, 2021 and December 31, 2020: December 31, 2021 December 31, 2020 Professional fees $ 4,800 $ - Transfer agent fees 17,004 14,226 Total prepaid expenses $ 21,804 $ 14,226 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2021 | |
Capital Stock | |
Note 6 - Capital Stock | Note 6 - Capital Stock The Company is authorized to issue 3,000,000,000 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 On January 25, 2021, we issued 380,952 common shares for an aggregate purchase price of $150,000 and issued 1,375,779 common shares with a fair value of $557,190 for services. On April 13, 2021, we issued 357,995 common shares for an aggregate purchase price of $150,000. On April 20, 2021, we issued 200,000 common shares for an aggregate purchase price of $72,600. On April 21, 2021, we issued 200,000 common shares for an aggregate purchase price of $68,800. On May 18, 2021, we issued 200,000 common shares for an aggregate purchase price of $63,200. On May 25, 2021, we issued 200,000 common shares for an aggregate purchase price of $64,000. On June 2, 2021, we issued 200,000 common shares for an aggregate purchase price of $61,800. On June 10, 2021, we issued 200,000 common shares for an aggregate purchase price of $56,200. On June 14, 2021, we issued 200,000 common shares for an aggregate purchase price of $56,800. On June 21, 2021, we issued 200,000 common shares for an aggregate purchase price of $56,800. On June 28, 2021, we issued 200,000 common shares for an aggregate purchase price of $57,600. On July 1, 2021, we issued 200,000 common shares for an aggregate purchase price of $61,200. On July 7, 2021, we issued 200,000 common shares for an aggregate purchase price of $61,600. On July 8, 2021, we issued 126,071 common shares for an aggregate purchase price of $50,428. On July 15, 2021, we issued 200,000 common shares for an aggregate purchase price of $67,200. On July 20, 2021, we issued 200,000 common shares for an aggregate purchase price of $61,400. On July 30, 2021, we issued 200,000 common shares for an aggregate purchase price of $60,800. On August 5, 2021, we issued 200,000 common shares for an aggregate purchase price of $60,800. On August 11, 2021, we issued 200,000 common shares for an aggregate purchase price of $60,800. On August 18, 2021, we issued 200,000 common shares for an aggregate purchase price of $61,400. On August 27, 2021, we issued 200,000 common shares for an aggregate purchase price of $62,400. On September 3, 2021, we issued 200,000 common shares for an aggregate purchase price of $62,800. On September 8, 2021, we issued 200,000 common shares for an aggregate purchase price of $62,800. On September 14, 2021, we issued 200,000 common shares for an aggregate purchase price of $61,400. On September 21, 2021, we issued 200,000 common shares for an aggregate purchase price of $59,600. On September 28, 2021, we issued 200,000 common shares for an aggregate purchase price of $59,600. On October 7, 2021, we issued 200,000 common shares for an aggregate purchase price of $57,600. On November 8, 2021, we issued 200,000 common shares for an aggregate purchase price of $57,600. On November 16, 2021, we issued 200,000 common shares for an aggregate purchase price of $58,400. On November 24, 2021, we issued 200,000 common shares for an aggregate purchase price of $58,000. On December 1, 2021, we issued 200,000 common shares for an aggregate purchase price of $50,400. |
Mineral Properties
Mineral Properties | 12 Months Ended |
Dec. 31, 2021 | |
Mineral Properties | |
Note 7 - Mineral Properties | Note 7 – Mineral Properties Fish Lake Valley On April 29, 2021 we signed a Letter Of Intent (LOI) with Morella Corporation (formerly Altura Mining Limited) an Australian Lithium explorer and developer, and related party, whereby Morella can earn a 60% interest in the Fish Lake Valley property by paying the Company $675,000, issuing the equivalent of $500,000 worth of Altura stock, and expending $2,000,000 of exploration work in the next four years. To date Morella Corporation has paid $150,000 and issued 28,176,951 common shares with a fair value of $1,329,710. San Emidio On September 16 th Make cash payments and share issuances to the Optionor in the following manner: · US$50,000 on signing the Agreement and issue 200,000 common shares on the Closing Date (received); and · US$70,000 and US$30,000 in common shares on or before the first anniversary of the Effective Date; and · US$70,000 and US$30,000 in common shares on or before the second anniversary of the Effective Date; and · US$70,000 and US$50,000 in common shares on or before third anniversary of the Effective Date; and · US$70,000 and US$70,000 in common shares on or before the fourth anniversary of the Effective Date; and · US$70,000 and US$90,000 in common shares on or before the fifth anniversary of the Effective Date. Incur a minimum in Expenditures for exploration and development work on the Property of US$1,000,000 as follows: · US$100,000 of Expenditures to be incurred, or caused to be incurred, by the Optionee on the Property on or before the first anniversary of the Effective Date; and · a cumulative total of US$250,000 of Expenditures to be incurred, or caused to be incurred, by the Optionee on the Property on or before the second anniversary of the Effective Date; and · a cumulative total of US$450,000 of Expenditures to be incurred, or caused to be incurred, by the Optionee on the Property on or before the third anniversary of the Effective Date; and · a cumulative total of US$700,000 of Expenditures to be incurred, or caused to be incurred, by the Optionee on the Property on or before the fourth anniversary of the Effective Date; and · a cumulative total of US$1,000,000 of Expenditures to be incurred, or caused to be incurred, by the Optionee on the Property on or before the fifth anniversary of the Effective Date. Once all conditions are met the Optionee will be deemed to have earned an undivided 80% interest in the property, and a Joint Venture will before. Should either party not contribute once the JV commences their interest will be diluted until such point that should they eventually own less than 10% their interest will revert to a 2.5% Net Smelter Revenue. |
Allowance for Optioned Properti
Allowance for Optioned Properties | 12 Months Ended |
Dec. 31, 2021 | |
Allowance for Optioned Properties | |
Note 8 - Allowance for Optioned Properties | Note 8 – Allowance for Optioned Properties Fish Lake Valley On October 21, 2021 we signed an agreement with Morella Corporation, an Australian Lithium explorer and developer, whereby the Morella Corporation can earn a 60% interest in the Fish Lake Valley property by paying the Company $675,000, issuing the equivalent of $500,000 worth of Altura stock, and expending $2,000,000 of exploration work in the next four years. To date Morella Corporation, a related party, has paid $150,000 and issued 28,176,951 common shares with a fair value of $1,329,710. As of September 30, 2021, the Company has received $150,000 in relation to the agreement. The Company recorded $1,479,710 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. The agreement was signed with a purchaser that has a common director as the Company. San Emidio On September 16, 2021, the Company entered into a Letter of Intent with respect to the San Emidio Property whereby the optionor will pay $50,000 on signing (received) and issue 200,000 common shares within 5 days of closing. As of December 31, 2021, the Company has received $50,000 and 200,000 common shares in relation to the letter of intent. The Company recorded $101,260 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Note 9 - Related Party Transactions | Note 9 – Related Party Transactions The Company paid consulting fees totaling $120,000 to related parties for the year ended December 31, 2021, respectively (2020: $76,500). The Company paid exploration fees totaling $10,671 to related parties for the year ended December 31, 2021. The Company paid rent fees totaling $6,600 to related parties for the year ended December 31, 2021. As at December 31, 2021, the Company had $2,251 owing to related parties. During the year ended December 31, 2021, the company received $98,000 in distributions from Summa, LLC, a Limited Liability Corporation with shared management as the Company. The Company holds a 25% investment in Summa LLC. The investment was written off in 2016 as there was significant doubt about the fair value of the investment in the period. During the year ended December 31, 2021, the Company has received $150,000 and 28,176,951 common shares from a related party through common directors with a fair value of $1,329,710 in relation to the agreement signed in relation to the Fish Lake property. See note 4, 7 and 8. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Note 10 - Income Taxes | Note 10 – Income Taxes As of December 31, 2021, the Company had net operating loss carry forwards of approximately $6,532,000 that may be available to reduce future years’ taxable income in varying amounts through 2034. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. The provision for Federal income tax consists of the following for the years ended December 31, 2020 and 2019: 2021 2020 Federal income tax benefit attributable to: Current operations $ 366,510 $ 159,320 Less: valuation allowance (366,520 ) (159,320 ) Net provision for Federal income taxes $ - $ - The cumulative tax effect at the expected rate of 21% (2020: 21%) of significant items comprising our net deferred tax amount is as follows at December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Deferred tax asset attributable to: Net operating loss carryover $ 1,371,764 $ 1,005,254 Less: valuation allowance (1,371,764 ) (1,005,254 ) Net deferred tax asset $ - $ - Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $6,532,000 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Note 11 - Commitments and Contingencies | Note 11 – Commitments and Contingencies On July 1, 2021, the Company signed a rental agreement with a related party for office and storage space. The rental agreement is on a month-to-month basis for a monthly fee of $500 with no escalating payments and, as such, does not fall under ASC 842. From time to time, we may be involved in routine legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business. The ultimate amount of liability, if any, for any claims of any type (either alone or in the aggregate) may materially and adversely affect our financial condition, results of operations and liquidity. In addition, the ultimate outcome of any litigation is uncertain. Any outcome, whether favorable or unfavorable, may materially and adversely affect us due to legal costs and expenses, diversion of management attention and other factors. We expense legal costs in the period incurred. We cannot assure you that additional contingencies of a legal nature or contingencies having legal aspects will not be asserted against us in the future, and these matters could relate to prior, current or future transactions or events. As of December 31, 2021, there were no pending or threatened litigation against the Company. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events | |
Note 12 - Subsequent Events | Note 12 – Subsequent Events The Company has analyzed its operations subsequent to December 31, 2021 through the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose other than those below. Subsequent to December 31, 2021, the Company issued 1,600,000 common shares for proceeds of $329,600. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Accounting Basis | 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 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 | 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 | 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 | 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. |
Income per Share | 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 December 31, 2021 and 2020. |
Income Taxes | 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 | 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 | 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 | 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 | Recent Accounting Pronouncement s 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. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 December 31, 2021 Level 1 Level 2 Level 3 Assets Cash $ 2,243,121 $ - $ - Marketable securities 393,481 Total Assets 2,636,602 - - Liabilities Total Liabilities - - - $ 2,626,602 $ - $ - Fair Value Measurements at December 31, 2020 Level 1 Level 2 Level 3 Assets Cash $ 191,125 $ - $ - Total Assets 191,125 - - Liabilities Total Liabilities - - - $ 191,125 $ - $ - |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Marketable Securities | |
Schedule of Marketable Securities | Balance, December 31, 2020 $ - Additions 1,380,970 Fair value adjustment (987,489 ) Balance, December 31, 2021 $ 393,481 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes (Tables) | |
Schedule provision for Federal income tax | 2021 2020 Federal income tax benefit attributable to: Current operations $ 366,510 $ 159,320 Less: valuation allowance (366,520 ) (159,320 ) Net provision for Federal income taxes $ - $ - |
Schedule of deferred tax assets | December 31, 2021 December 31, 2020 Deferred tax asset attributable to: Net operating loss carryover $ 1,371,764 $ 1,005,254 Less: valuation allowance (1,371,764 ) (1,005,254 ) Net deferred tax asset $ - $ - |
Prepaid Expenses (Tables)
Prepaid Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expenses | |
Schedule for prepaid expenses | December 31, 2021 December 31, 2020 Professional fees $ 4,800 $ - Transfer agent fees 17,004 14,226 Total prepaid expenses $ 21,804 $ 14,226 |
Going Concern (Details Narrativ
Going Concern (Details Narrative1) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Going Concern | ||
Net Cash Used in Operating Activities | $ (202,032) | $ (155,135) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Marketable securities | $ 393,481 | $ 51,260 | $ 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Cash | 2,243,121 | 191,125 | |
Marketable securities | 393,481 | ||
Total Assets | 2,636,602 | 191,125 | |
Total Liabilities | 0 | 0 | |
Total | 2,626,602 | 191,125 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Cash | 0 | 0 | |
Total Assets | 0 | 0 | |
Total Liabilities | 0 | 0 | |
Total | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Cash | 0 | 0 | |
Total Assets | 0 | 0 | |
Total Liabilities | 0 | 0 | |
Total | $ 0 | $ 0 |
Marketable Securities (Details)
Marketable Securities (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Marketable Securities | |
Marketable Securities, Beginning | $ 0 |
Additions | 1,380,970 |
Fair value adjustment | (987,489) |
Marketable Securities, Ending | $ 393,481 |
Marketable Securities (Details
Marketable Securities (Details Narrative) | 12 Months Ended |
Dec. 31, 2021USD ($)shares | |
Common shares received, amount | $ 1,329,710 |
San Emidio [Member] | |
Common shares received, shares | shares | 200,000 |
Common shares received, amount | $ 51,260 |
Fish Lake Property [Member] | |
Common shares received, shares | shares | 28,176,951 |
Common shares received, amount | $ 1,329,710 |
Prepaid Expenses (Details)
Prepaid Expenses (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expenses (Details) | ||
Professional fees | $ 4,800 | $ 0 |
Transfer agent fees | 17,004 | 14,226 |
Total prepaid expenses | $ 21,804 | $ 14,226 |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - USD ($) | 1 Months Ended | ||||||||||||||||||||||||||||||||||
Jan. 25, 2021 | Sep. 30, 2009 | Dec. 31, 2021 | Dec. 01, 2021 | Nov. 24, 2021 | Nov. 16, 2021 | Nov. 08, 2021 | Oct. 07, 2021 | Sep. 30, 2021 | Sep. 28, 2021 | Sep. 21, 2021 | Sep. 14, 2021 | Sep. 08, 2021 | Sep. 03, 2021 | Aug. 27, 2021 | Aug. 18, 2021 | Aug. 11, 2021 | Aug. 05, 2021 | Jul. 30, 2021 | Jul. 20, 2021 | Jul. 15, 2021 | Jul. 08, 2021 | Jul. 07, 2021 | Jul. 01, 2021 | Jun. 28, 2021 | Jun. 21, 2021 | Jun. 14, 2021 | Jun. 10, 2021 | Jun. 02, 2021 | May 25, 2021 | May 18, 2021 | Apr. 21, 2021 | Apr. 20, 2021 | Apr. 13, 2021 | Dec. 31, 2020 | |
Common stock shares, authorized | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | ||||||||||||||||||||||||||||||||
Common stock shares, par value | $ 0.001 | $ 0.001 | |||||||||||||||||||||||||||||||||
Forward stock split | the Company effected a 60-for-1 forward stock split of its $0.001 par value common stock. | ||||||||||||||||||||||||||||||||||
Purchase Agreement [Member] | |||||||||||||||||||||||||||||||||||
Common Stock, Shares Issued | 380,952 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 126,071 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 357,995 | ||||
Purchase price | $ 150,000 | $ 50,400 | $ 58,000 | $ 58,400 | $ 57,600 | $ 57,600 | $ 59,600 | $ 59,600 | $ 61,400 | $ 62,800 | $ 62,800 | $ 62,400 | $ 61,400 | $ 60,800 | $ 60,800 | $ 60,800 | $ 61,400 | $ 67,200 | $ 50,428 | $ 61,600 | $ 61,200 | $ 57,600 | $ 56,800 | $ 56,800 | $ 56,200 | $ 61,800 | $ 64,000 | $ 63,200 | $ 68,800 | $ 72,600 | $ 150,000 | ||||
Common shares issued for purchase agreement | 1,375,779 | ||||||||||||||||||||||||||||||||||
Common shares value | $ 557,190 |
Mineral Properties (Details Nar
Mineral Properties (Details Narrative1) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Oct. 21, 2021 | Sep. 16, 2021 | Apr. 29, 2021 | Dec. 31, 2021 | Sep. 30, 2021 | |
Common shares received, amount | $ 1,329,710 | ||||
Initial amount paid on signing LOI | $ 150,000 | ||||
Common shares issued, shares | 28,176,951 | ||||
Expenditure in exploration | $ 10,671 | ||||
Fish Lake Property [Member] | |||||
Common shares received, amount | 1,329,710 | ||||
San Emidio [Member] | |||||
Common shares received, amount | 51,260 | ||||
Altura [Member] | Fish Lake Property [Member] | |||||
Initial amount paid on signing LOI | $ 50,000 | $ 50,000 | $ 150,000 | ||
Ownership percentage | 60.00% | 60.00% | |||
Amount paid for acquisition | $ 675,000 | $ 675,000 | |||
Common stock issued, amount | 500,000 | 500,000 | 50,000 | ||
Expenditure in exploration | $ 2,000,000 | $ 2,000,000 | |||
Exploration expenditure term | 4 years | ||||
Agreement entering date | Jul. 31, 2021 | ||||
Due deligence date of agreement | Aug. 31, 2021 | ||||
Surge Battery Metals [Member] | San Emidio [Member] | |||||
Initial amount paid on signing LOI | $ 50,000 | $ 50,000 | |||
Common shares issued, shares | 200,000 | 200,000 | |||
Ownership percentage | 80.00% | ||||
Expenditure in exploration | $ 1,000,000 | ||||
Joint venture description | Optionee will be deemed to have earned an undivided 80% interest in the property, and a Joint Venture will before. Should either party not contribute once the JV commences their interest will be diluted until such point that should they eventually own less than 10% their interest will revert to a 2.5% Net Smelter Revenue | ||||
Surge Battery Metals [Member] | San Emidio [Member] | Closing Date [Member] | |||||
Common shares issued, shares | 200,000 | ||||
Amount paid for acquisition | $ 50,000 | ||||
Surge Battery Metals [Member] | San Emidio [Member] | First Anniversary [Member] | |||||
Amount paid for acquisition | 70,000 | ||||
Common stock issued, amount | 30,000 | ||||
Expenditure in exploration | 100,000 | ||||
Surge Battery Metals [Member] | San Emidio [Member] | Second Anniversary [Member] | |||||
Amount paid for acquisition | 70,000 | ||||
Common stock issued, amount | 30,000 | ||||
Expenditure in exploration | 250,000 | ||||
Surge Battery Metals [Member] | San Emidio [Member] | Third Anniversary [Member] | |||||
Amount paid for acquisition | 70,000 | ||||
Common stock issued, amount | 50,000 | ||||
Expenditure in exploration | 450,000 | ||||
Surge Battery Metals [Member] | San Emidio [Member] | Fourth Anniversary [Member] | |||||
Amount paid for acquisition | 70,000 | ||||
Common stock issued, amount | 70,000 | ||||
Expenditure in exploration | 700,000 | ||||
Surge Battery Metals [Member] | San Emidio [Member] | Fifth Anniversary [Member] | |||||
Amount paid for acquisition | 70,000 | ||||
Common stock issued, amount | 90,000 | ||||
Expenditure in exploration | $ 1,000,000 |
Allowance for Optioned Proper_2
Allowance for Optioned Properties (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Oct. 21, 2021 | Sep. 16, 2021 | Apr. 29, 2021 | Dec. 31, 2021 | Sep. 30, 2021 | |
Initial amount received on signing LOI | $ 150,000 | ||||
Expenditure in exploration | $ 10,671 | ||||
Common shares issued, shares | 28,176,951 | ||||
Common shares received, amount | $ 1,329,710 | ||||
Equity Common Stock | |||||
Common shares issued, shares | 200,000 | ||||
Common shares received, amount | $ 1,329,710 | ||||
Fish Lake Property [Member] | |||||
Common shares received, amount | 1,329,710 | ||||
San Emidio [Member] | |||||
Common shares received, amount | 51,260 | ||||
Altura [Member] | Fish Lake Property [Member] | |||||
Initial amount received on signing LOI | $ 50,000 | $ 50,000 | $ 150,000 | ||
Amount paid for acquisition | 675,000 | 675,000 | |||
Expenditure in exploration | 2,000,000 | 2,000,000 | |||
Common stock issued, amount | $ 500,000 | $ 500,000 | 50,000 | ||
Ownership percentage | 60.00% | 60.00% | |||
Liability against the property | $ 50,000 | $ 1,479,710 | |||
Surge Battery Metals [Member] | San Emidio [Member] | |||||
Initial amount received on signing LOI | $ 50,000 | 50,000 | |||
Expenditure in exploration | $ 1,000,000 | ||||
Ownership percentage | 80.00% | ||||
Liability against the property | $ 101,260 | ||||
Common shares issued, shares | 200,000 | 200,000 |
Related Party Transactions (Det
Related Party Transactions (Detail Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consulting fees - related party | $ 120,000 | $ 76,500 |
Owing to related parties | 2,251 | |
Expenditure in exploration | 10,671 | |
Rent fees | 6,600 | |
Other income | 98,000 | $ 0 |
Common shares received, amount | $ 1,329,710 | |
Common shares issued, shares | 28,176,951 | |
Fish Lake Property [Member] | ||
Common shares received, amount | $ 1,329,710 | |
Proceeds from related party | 150,000 | |
Shares [Member] | ||
Common shares received, amount | $ 1,329,710 | |
Common shares issued, shares | 28,176,951 | |
Summa LLC [Member] | ||
Other income | $ 98,000 | |
Company investment percentage | 25 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Federal income tax benefit attributable to: | ||
Current operations | $ 366,510 | $ 159,320 |
Less: valuation allowance | (366,520) | (159,320) |
Net provision for Federal income taxes | $ 0 | $ 0 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax asset attributable to: | ||
Net operating loss carryover | $ 1,371,764 | $ 1,005,254 |
Less: valuation allowance | (1,371,764) | (1,005,254) |
Net deferred tax asset | $ 0 | $ 0 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes (Tables) | ||
Net operating loss carry forwards | $ 6,532,000 | |
Net operating loss carry forwards expiration year, descriptions | through 2034 | |
Cumulative tax effect at the expected rate | 21.00% | 21.00% |
Net operating carry forward loss- federal income tax | $ 6,532,000 |
Commitments and Contingencies (
Commitments and Contingencies (Detail Narrative) | Jul. 01, 2021USD ($) |
Commitments and Contingencies | |
Monthly rent | $ 500 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] | 1 Months Ended |
Jan. 31, 2022USD ($)shares | |
Common stock, shares issued | shares | 1,600,000 |
Proceeds from shares issued | $ | $ 329,600 |