Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 14, 2017 | |
Document and Entity Information: | ||
Entity Registrant Name | Goldrich Mining Compan | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Trading Symbol | grmc | |
Amendment Flag | false | |
Entity Central Index Key | 59,860 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 131,232,809 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
Goldrich Mining Company Consoli
Goldrich Mining Company Consolidated Balance Sheets (Interim period unaudited) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | |
Current assets: | |||
Cash and cash equivalents | $ 6,298 | $ 30,080 | |
Prepaid claim fees | 83,023 | 56,513 | |
Prepaid expenses | 52,432 | 23,943 | |
Other current assets | 27,788 | 10,999 | |
Total current assets | 169,541 | 121,535 | |
Property, plant, equipment, and mining claims: | |||
Equipment, net of accumulated depreciation | 9,309 | 19,597 | |
Mining properties, claims and royalty option | 649,746 | 649,746 | |
Total property, plant, equipment and mining claims | 659,055 | 669,343 | |
Total assets | 828,596 | 790,878 | |
Current liabilities: | |||
Accounts payable and accrued liabilities | 427,300 | 278,239 | |
Related party payables | 404,864 | 277,890 | |
Notes payable in gold | 437,193 | 412,261 | |
Notes payable, net of discount | 297,508 | ||
Note payable, related party | 650,000 | ||
Dividends payable on preferred stock | 30,618 | 30,618 | |
Total current liabilities | 1,949,975 | 1,296,516 | |
Long-term liabilities: | |||
Remediation and asset retirement obligation | 381,186 | 371,540 | |
Total long-term liabilities | 381,186 | 371,540 | |
Total liabilities | 2,331,161 | 1,668,056 | |
Commitments and contingencies | [1] | 0 | 0 |
Stockholders' deficit: | |||
Convertible preferred stock series A; 5% cumulative dividends, no par value, 1,000,000 shares authorized; 150,000 issued and outstanding, $300,000 liquidation preference | 150,000 | 150,000 | |
Convertible preferred stock series B; no par value, 300 shares authorized 200 shares issued and outstanding, $200,000 liquidation preference | 57,758 | 57,758 | |
Convertible preferred stock series C; no par value, 250 shares authorized, issued and outstanding, $250,000 liquidation preference | 52,588 | 52,588 | |
Convertible preferred stock series E; no par value, 300 shares authorized, issued and outstanding, $300,000 liquidation preference | 10,829 | 10,829 | |
Common stock; $.10 par value, 250,000,000 shares authorized; 131,232,809 issued and outstanding | 13,123,281 | 13,123,281 | |
Additional paid-in capital | 13,976,669 | 13,873,669 | |
Accumulated deficit | (28,873,690) | (28,145,303) | |
Total stockholders' deficit | (1,502,565) | (877,178) | |
Total liabilities and stockholders' deficit | $ 828,596 | $ 790,878 | |
[1] | Notes 3, 8 |
Statement of Financial Position
Statement of Financial Position - Parenthetical - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of financial position | ||
Preferred Stock, Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 8,999,450 | 8,999,450 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Convertible preferred stock series A, no par value, 5% cumulative dividends, shares authorized | 1,000,000 | 1,000,000 |
Convertible preferred stock series A, shares issued | 150,000 | 150,000 |
Convertible preferred stock series A, shares outstanding | 150,000 | 150,000 |
Liquidation preference | $ 300,000 | $ 300,000 |
Convertible preferred stock series B, no par value, shares authorized | 300 | 300 |
Convertible preferred stock series B, shares issued | 200 | 200 |
Convertible preferred stock series B, shares outstanding | 200 | 200 |
Liquidation preference, additional series | $ 200,000 | $ 200,000 |
Convertible preferred stock series C no par value, shares authorized | 250 | 250 |
Convertible preferred stock series C, shares issued | 250 | 250 |
Convertible preferred stock series C, shares outstanding | 250 | 250 |
Liquidation preference, series C | $ 250,000 | $ 250,000 |
Convertible preferred stock series D no par value, shares authorized | 150 | 150 |
Convertible preferred stock series D, shares issued | 150 | 150 |
Convertible preferred stock series D, shares outstanding | 150 | 150 |
Liquidation preference, series D | $ 100,000 | $ 100,000 |
Convertible preferred stock series E no par value, shares authorized | 300 | 300 |
Convertible preferred stock series E, shares issued | 300 | 300 |
Convertible preferred stock series E, shares outstanding | 300 | 300 |
Liquidation preference, series E | $ 100,000 | $ 100,000 |
Convertible preferred stock series F no par value, shares authorized | 153 | 50 |
Convertible preferred stock series F, shares issued | 153 | 50 |
Convertible preferred stock series F, shares outstanding | 153 | 50 |
Liquidation preference, series F | $ 153,000 | $ 50,000 |
Common Stock, Par Value | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 |
Common Stock, Shares Issued | 131,232,809 | 131,232,809 |
Common Stock, Shares Outstanding | 131,232,809 | 131,232,809 |
Goldrich Mining Company Consol4
Goldrich Mining Company Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating expenses: | ||||
Exploration | $ 49,341 | $ 8,472 | $ 89,153 | $ 30,335 |
Depreciation and amortization | 2,491 | 6,312 | 10,288 | 23,319 |
Management fees and salaries | 58,469 | 53,094 | 172,281 | 163,063 |
Professional services | 4,475 | 5,633 | 48,529 | 48,887 |
General and administrative | 67,122 | 49,317 | 166,822 | 156,889 |
Office supplies and other | 2,590 | 1,038 | 9,121 | 6,672 |
Directors' fees | 10,500 | 10,200 | 24,900 | 26,600 |
Mineral property maintenance | 21,676 | 20,993 | 64,061 | 62,777 |
Total operating expenses | 216,664 | 155,059 | 585,155 | 518,542 |
Other (income) expense: | ||||
Change in fair value of notes payable in gold | 2,382 | 24,932 | ||
Royalty expense | 8,109 | |||
Interest expense and finance costs | 40,197 | 29,159 | 110,190 | 88,398 |
Total other (income) expense | 42,579 | 29,159 | 143,231 | 88,398 |
Net loss | (259,243) | (184,218) | (728,386) | (606,940) |
Deemed dividends | (102,420) | (52,900) | (155,162) | |
Preferred dividends | (1,917) | (1,917) | (5,688) | (5,708) |
Net loss attributable to common stockholders | $ (261,160) | $ (288,555) | $ (786,974) | $ (767,810) |
Net loss per common share - basic and diluted | $ 0 | $ 0 | $ 0 | $ (0.01) |
Weighted average common shares outstanding-basic and diluted | 131,232,809 | 131,232,809 | 131,232,809 | 131,232,809 |
Goldrich Mining Company Consol5
Goldrich Mining Company Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (728,386) | $ (606,940) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 10,288 | 23,319 |
Change in fair value of notes payable in gold | 24,932 | |
Amortization of discount on note payable and notes payable in gold | 2,492 | 10,895 |
Amortization of deferred financing costs | 13,539 | |
Accretion of asset retirement obligation | 9,646 | 9,275 |
Change in: | ||
Prepaid claim fees | (26,510) | (21,993) |
Prepaid expenses | (28,490) | (14,615) |
Other current assets | (16,787) | |
Accounts payable and accrued liabilities | 149,060 | 162,610 |
Related party payables | 126,973 | 180,295 |
Net cash used - operating activities | (476,782) | (243,615) |
Cash flows from financing activities: | ||
Proceeds from issuance of preferred stock and warrants, net of offering costs | 103,000 | 250,000 |
Proceeds from note payable | 650,000 | |
Payment of note payable | (300,000) | |
Net cash provided - financing activities | 453,000 | 250,000 |
Net increase (decrease) in cash and cash equivalents | (23,782) | 6,385 |
Cash and cash equivalents, beginning of period | 30,080 | 78,609 |
Cash and cash equivalents, end of period | 6,298 | 84,994 |
Non-Cash Investing and Financing Activities: | ||
Beneficial conversion feature on preferred stock | 52,900 | 155,162 |
Warrants issued with preferred stock | $ 50,100 | $ 94,838 |
1. Basis of Presentation
1. Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
1. Basis of Presentation: | 1. BASIS OF PRESENTATION The unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of the Companys management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the nine-month period ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017. For further information refer to the financial statements and footnotes thereto in the Companys Annual Report on Form 10-K for the year ended December 31, 2016. Going Concern The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. The Company has incurred losses since its inception and does not have sufficient cash to fund normal operations and meet debt obligations for the next 12 months without deferring payment on certain current liabilities and/or raising additional funds. The Company currently has no historical recurring source of revenue and in 2016 was allocated its first distribution from the joint venture (Note 3). If these distributions increase in future years and the Company profitably executes its business plan, its ability to continue as a going concern may improve and become less dependent on the Companys ability to raise capital to fund its future exploration and working capital requirements. The Companys plans for the long-term return to and continuation as a going concern include the profitable exploitation of its mining properties and financing the Companys future operations through sales of its common stock and/or issuance of debt. The current capital markets and general economic conditions in the United States are significant obstacles to raising the required funds. These factors raise substantial doubt about the Companys ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
2. Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting for Investments in Joint Ventures For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. Under the cost method, these investments are carried at the lower of cost or fair value. For those joint ventures in which there is joint control between the parties and in which the Company has significant influence, the equity method is utilized whereby the Companys share of the ventures earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. Goldrich has no significant influence over its joint venture described in Note 3 Joint Venture For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of a non-controlling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the ventures management committee. Goldrich currently has no joint venture of this nature. The Company periodically assesses its investments in joint ventures for impairment. If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations. Earnings (Loss) Per Share We are authorized to issue 250,000,000 shares of common stock, $0.10 par value per share. At September 30, 2017, there were 131,232,809 shares of our common stock issued and outstanding. For the nine-month periods ended September 30, 2017 and 2016, the effect of the Companys outstanding preferred shares, options and warrants, totaling 93,963,714 and 73,655,378, respectively, would have been anti-dilutive. Cash and Cash Equivalents For the purposes of the statement of cash flows, we consider all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Reclassifications Certain reclassifications have been made to conform prior period data to the current presentation. These reclassifications have no effect on the results of previously reported operations or stockholders deficit or cash flows. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Significant estimates used in preparing these financial statements include those assumed in estimating the recoverability of the cost of mining claims, accrued remediation costs, asset retirement obligations, stock based compensation, notes payable in gold and deferred tax assets and related valuation allowances. Actual results could differ from those estimates. Equipment and Accumulated Depreciation Property and equipment are stated at cost, which is determined by cash paid or fair value of the shares of the Companys common stock issued. The Companys property and equipment are located on the Companys unpatented state mining claims located in the Chandalar mining district of Alaska. Equipment purchased prior to 2009 is fully depreciated. The Companys equipment is located at the Chandalar property in Alaska, with a small amount of office equipment located at Company offices in Spokane, Washington. Assets are depreciated on a straight-line basis. Improvements which significantly increase an assets value or significantly extend its useful life are capitalized and depreciated over the assets remaining useful life. When equipment is sold at a price either higher or lower than its carrying amount, or undepreciated cost at the date of disposal, the difference between the sale proceeds over the carrying amount is recognized as gain, while a loss is recognized when the carrying amount exceeds the sale proceeds. The gain or loss is recognized in the Consolidated Statements of Operations. Mining Properties, Claims, and Royalty Option The Company capitalizes costs for acquiring mineral properties, claims and royalty option and expenses costs to maintain mineral rights and leases as incurred. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mineral properties are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. Exploration Costs Exploration costs are expensed in the period in which they occur. Revenue Recognition Revenue from the sale of gold is recorded net of smelter or refinery treatment and refining charges. Revenue is recognized when persuasive evidence of an arrangement exists, title and risk passes to the buyer, collection is reasonably assured and the price is reasonably determinable. When alluvial gold is placed with the smelter, revenue is recognized and cash is remitted for any ounces of alluvial gold sold to the smelter, converted to ounces of fine gold at an assumed smelting loss percentage. Pricing of the sale is at the market price of gold on the date of sale. The number of gold ounces sold at deposit is limited to a certain percentage of the ounces of alluvial gold deposited, as agreed in each case with the smelter. Ounces not sold are smelted and retained in the Companys inventory in a secured metals account at the smelter. Subsequent sales of gold from inventory are made at then-current market prices, with smelter treatment and refining charges deducted, and net cash proceeds are remitted to the Company. Stock-Based Compensation The Company periodically issues common shares or options to purchase shares of the Companys common shares to its officers, directors or other parties. These issuances are recorded at fair value. The Company uses a Black Scholes valuation model for determining fair value of options to purchase shares, and compensation expense is recognized ratably over the vesting periods on a straight line basis. Compensation expense for grants that vest immediately are recognized in the period of grant. Remediation The Companys operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company records the fair value of an asset retirement obligation as a liability in the period in which the Company incurs a legal obligation for the retirement of tangible long-lived assets. A corresponding asset is also recorded and depreciated over the life of the long lived asset using a units of production method. After the initial measurement of the asset retirement obligation, the liability will be adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. Determination of any amounts recognized is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rates. For non-operating properties, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and they are reasonably estimable. Such costs are based on managements estimate of amounts expected to be incurred when the remediation work is performed. Fair Value Measurements When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. The Company has one financial liability that is adjusted to fair value on a recurring basis: At September 30, 2017 and December 31, 2016, the Company determined fair value on a recurring basis and non-recurring basis as follows: Balance September 30, 2017 Balance December 31, 2016 Fair Value Hierarchy level Liabilities Recurring: Notes payable in gold (Note 6) $ (437,193) $ (412,261) 2 Derivatives The Company measures derivative contracts as assets or liabilities based on their fair value. Gains or losses resulting from changes in the fair value of derivatives in each period are recorded in current operating results. None of the Companys derivative contracts qualify for hedge accounting. The Company does not hold or issue derivative financial instruments for speculative trading purposes. |
3. Joint Venture
3. Joint Venture | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
3. Joint Venture | 3. JOINT VENTURE On May 7, 2012, the Company entered into a joint venture with NyacAU, LLC (NyacAU), an Alaskan private company, to bring Goldrichs Chandalar placer gold properties into production. In each case as used herein in reference to the JV, production is as defined by the JV agreement. As part of the agreement, Goldrich Placer, LLC (GP), a subsidiary of Goldrich and NyacAU (together the Members) formed a 50:50 joint venture company, Goldrich NyacAU Placer LLC (GNP), to operate the Chandalar placer mines, with NyacAU acting as managing partner. Goldrich has no significant control or influence over the JV, and therefore accounts for its investment using the cost method. Under the terms of the joint venture agreement (the Agreement), NyacAU provided funding to the JV. The loans are to be repaid from future production. According to the Agreement, on at least an annual basis, the JV shall allocate and distribute all revenue (whether in cash or as gold) generated from the JVs placer operation in the following order: 1. Operating Expenses. GNP will first pay all Operating Expenses as defined in the Operating Agreement for placer mining operations at the Claims for the current mining year. Until Commercial Production is achieved, GNP will draw down or use a line of credit from NyacAU (LOC1) to fund payment of the Operating Expenses and repay LOC1 to the extent of the current year's Operating Expenses. 2. Members' Distribution - Ten Percent (10%) Portion. After payment of Operating Expenses, GNP will distribute in kind twenty percent (20%) of the remaining gold produced, equally, ten percent (10%) to NyacAU as a Member of the GNP and ten percent (10%) to Goldrich as a Member of GNP; provided, however, that, for so long as any secondary line of credit from NyacAU to GNP (LOC2) or loan from NyacAU to GNP to purchase the Jumbo Basin royalty (Loan3) are not paid in full, GNP shall retain one hundred percent (100%) of this distribution due to Goldrich and shall apply such funds as payment to reduce the balance of LOC2 and Loan3 until they are paid in full. 3. LOC1 Payments. After payment of Operating Expenses and the Members' distribution, GNP will apply any remaining revenue to reduce the remaining balance of LOC1, if any, until it is paid in full. 4. Reserves. After payment of Operating Expenses, the Members' distribution, and payment of LOC1, the Company may fund Reserves in an amount that is consistent with the annual budget. 5. Member Distributions, LOC2 Payments and Loan3 Recovery. After payment of Operating Expenses, the Members', payment of LOC1 under Section 10.1.3, and funding of any Reserves, from any remaining gold production or revenue, the Company will distribute fifty percent (50%) to NyacAU as a Member of GNP and fifty percent (50%) to Goldrich as a Member of GNP; provided, however, that, for so long as LOC2 or Loan3 are not paid in full, GNP shall retain one hundred percent (100%) of the distribution due to Goldrich and shall apply such funds as payment to reduce the balance of LOC2 and Loan3 until they are paid in full. Substantially all required allocations and distributions shall be made no later than October 31st of each year, with any remaining allocations or distributions being completed no later than December 31st of each year, unless otherwise agreed in writing by the Members. At the conclusion of 2016, Goldrich was allocated a distribution of $67,580 under #2 above. The balance of LOC2 at December 31, 2016 was $nil; therefore, the Company elected to have the distribution applied toward Loan3. Subsequent to September 30, 2017, GNP notified Goldrich that the estimated total distribution for 2017 under #2 above will be $218,270, but the final number will not be known until the 2017 year end. Any amount received will be applied against Loan3 and related accrued interest until the balance, which was approximately $314,000 as of September 30, 2017, is paid. In addition, GNP must meet the Minimum Production Requirements as defined by the operating agreement. The Minimum Production Requirement for each year is determined by the price of gold on December 1 in the preceding year. The Minimum Production Requirement for 2016 was 1,100 ounces of fine gold to each Goldrich and NyacAU. The Minimum Production Requirement for 2017 is 1,200 ounces of fine gold. The Minimum Production Requirements for 2016, 2017 and 2018 must be paid in 2018 and, for each year thereafter, the annual Minimum Production Requirements shall be met if GNP distributes an average of a minimum of fifteen hundred (1,500 ounces) per year to each member of GNP over a rolling three-year period, subject to modification based on the price of gold. If the price of gold falls below $1,500 per ounce, the annual Minimum Production Requirement of 1,500 ounces of gold will be reduced one hundred (100) ounces for each one hundred dollars per ounce decrease in the price, to the minimum price of one thousand dollars ($1,000). If the price of gold falls below one thousand dollars ($1,000) per ounce on December 1 in any year, there will be no minimum production required for the next year and such year will be eliminated from the average minimum calculation. If the Minimum Production Requirements are not met, GNP shall be dissolved unless agreed in writing by the members. On June 23, 2015, the Company raised net proceeds of $1.1 million through the sale of 12% of the cash flows Goldrich receives in the future from its interest in GNP (Distribution Interest), paid in cash under items #2 and #5 above, to Chandalar Gold, LLC (CGL), a non-related entity. Goldrich retained its ownership of its 50% interest in GNP but, after the transaction, subject to the terms of the GNP operating agreement, Goldrich will effectively receive approximately 44% and CGL will receive 6% (12% of Goldrichs 50% of GNP = 6%) of any cash distributions produced by GNP. At September 30, 2017, the Company has an accrued liability of $8,110 for 12% of the $67,580 distribution made in 2016. |
4. Related Party Transactions
4. Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
4. Related Party Transactions | 4. RELATED PARTY TRANSACTIONS Beginning in January 2016, portions of the Companys Chief Executive Officers (CEO) salary were not paid, resulting in accrued balances of $215,000 and $127,500 at September 30, 2017 and December 31, 2016, respectively. Deferred compensation for the three and nine-month periods ended September 30, 2017 and 2016, were $45,000 and $90,000, and $45,000 and $90,000, respectively. An amount of $50,666 and $35,093 has been accrued for fees due to the Companys Chief Financial Officer (CFO) at September 30, 2017 and December 31, 2016, respectively. Fees for the three and nine-month periods ended September 30, 2017 and 2016, were $13,989 and $39,573, and $8,143 and $35,921, respectively. These amounts are included in related party payable. An amount of $139,198 and $115,298 has been accrued for consultants and directors fees at September 30, 2017 and December 31, 2016, respectively and is included in related party payable. Fees for the three and nine-month periods ended September 30, 2017 and 2016, were $10,500 and $25,200, and $10,200 and $25,000, respectively. |
5. Note Payable
5. Note Payable | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
5. Note Payable | 5. NOTES PAYABLE The Company had a three-year unsecured senior note for $300,000 with a private investment firm (the lender). The note bore interest at 15%, payable at the end of each quarter. Interest of $24,333 and $33,750 had been paid and expensed during the nine-month periods ended September 30, 2017 and 2016, respectively. Repayment of all amounts owed under the note was guaranteed by Goldrich Placer LLC, the Companys wholly owned subsidiary, which in turn owns a 50% interest in Goldrich NyacAU Placer LLC. See Note 3 Joint Venture. The note contains standard default provisions, including failure to pay interest and principal when due. The balance of the note, together with extension fees agreed with the note holder to extend the maturity date of the note, were paid in full on July 11, 2017. In 2017, the Company entered into a short-term bridge loan from one of the Companys Directors (a related party), at an interest rate of 15% per annum, with a maturity concurrent with future entry into a new and larger long-term note current under negotiation. At September 30, 2017, the Company had an outstanding related party note payable of $650,000 and had recognized interest expense of $21,463 and $23,611, respectively, for the three and nine month periods then ended. Subsequent to the end of the quarter, the Company received an additional $150,000 at the same terms under this bridge loan. As of the date of this report, the Company was in negotiations to refinance this short-term bridge loan into a larger long-term note with this related party and others. The amount, interest rate and other terms have not yet been set. |
6. Notes Payable in Gold
6. Notes Payable in Gold | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
6. Notes Payable in Gold | 6. NOTES PAYABLE IN GOLD During 2013, the Company issued notes in principal amounts totaling $820,000, less a discount of $205,000, for net proceeds of $615,000. Under the terms of the notes, the Company agreed to deliver gold to the holders at the lesser of $1,350 per ounce of fine gold or a 25% discount to market price as calculated on the contract date and specify delivery of gold in November 2014. The notes payable in gold contracts initially contained standard terms regarding delivery and receipt of gold and payment of delivery costs. On November 30, 2014 and 2015, the Company renegotiated terms with the holders. A default condition arising from the non-delivery of the gold was alleviated by agreements with the other three note holders to extend the delivery dates of gold with the following significant terms: Ten percent (10%) of the required quantity of gold under the contract, prior to amendment one in 2014, which was originally due on the delivery date of November 30, 2014, was delivered on November 30, 2015. In lieu of gold, the Company could elect to satisfy the delivery of the deliverable required quantity by paying, an amount equal to the deliverable required quantity times the greater of the original purchase price or the index price for the day preceding the date of payment. The Company agreed to pay interest on the value of the delayed delivery required quantity at an annual non-compounding percentage rate of 8% payable quarterly with any remaining interest due and payable on the delivery date. If the delivery date index price on November 30, 2016 is less than the original purchase price, an additional adjusted required amount shall be delivered by December 31, 2016. On November 30, 2016, the Company again renegotiated terms with the holders. A default condition arising from the non-delivery of the gold in 2016 was alleviated by agreements with the three note holders to extend the delivery date of gold to November 30, 2017, with the following terms: Ten percent (10%) of the required quantity of gold under the contract, prior to amendment one in 2014 and amendment two in 2015, which was originally due on the delivery date of November 30, 2014, was delivered on November 30, 2016. In lieu of gold, the Company could elect to satisfy the delivery of the deliverable required quantity by paying, an amount equal to the deliverable required quantity times the greater of the original purchase price or the index price for the day preceding the date of payment. The Company agreed to pay interest on the value of the delayed delivery required quantity at an annual non-compounding percentage rate of 9% payable quarterly with any remaining interest due and payable on the delivery date. If the delivery date index price on November 30, 2017 is less than the original purchase price, an additional adjusted required amount shall be delivered by December 31, 2017. As newly amended, the gold to be delivered will not likely be produced from the Companys property. In addition, history has shown that the Company may satisfy the debt through cash payment instead of gold ounces for payment. Due to these provisions, the amended contracts are accounted for as derivatives requiring their value to be adjusted to fair value each period end. For the nine-months ended September 30, 2017, the Company recorded a change in the fair value of $24,932, based on a forward gold contract price of $1,275 per ounce. At September 30, 2017 and December 31, 2016, the Company had outstanding total notes payable in gold of $437,193 and $412,261, respectively, representing 342.788 ounces of fine gold deliverable at November 30, 2017. |
7. Stockholders' Equity
7. Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
7. Stockholders' Equity | 7. STOCKHOLDERS EQUITY Private Placement Offerings - Unit Private Placements Series F Convertible Preferred Stock: On December 30, 2016, February 7, 2017, March 1, 2017 and March 31, 2017, the Company completed an offer and sale of 153 shares of Series F Preferred stock, resulting in net proceeds of $50,000 in 2016 and $103,000 to the Company in the nine months ended September 30, 2017. These shares were issued from the designated 10,000,000 shares of Preferred Stock, par value as the Board may determine. In connection with the issuance of the Series F Preferred Stock, the Company issued a total of 5,100,000, five-year Class S warrants to purchase shares of the Companys common stock. The Class S warrants have an exercise price of $0.03 per share of the Companys common stock and had a relative fair value of $24,138 at December 31, 2016 and $54,138 in the nine months ended September 30, 2017, as determined using a Black Scholes model and allocation between the preferred shares and the warrants. Additionally, a beneficial conversion feature of $78,762 ($52,900 in 2017) was determined to exist, which represented a deemed dividend to the holders of the preferred shares recognizable immediately upon issue due to the ability to convert the shares concurrent with issuance of the preferred shares. The fair value of the warrants and the beneficial conversion feature, which together consumed the value of the net proceeds, were charged to additional paid in capital at the date of issuance, resulting in no credit to Convertible preferred stock series F on the Companys balance sheet. The Company has 153 shares of Series F Convertible Preferred Stock outstanding at September 30, 2017. These shares were issued from the designated 300 shares of Series F Preferred Stock, no par value. Conversion of outstanding shares of Series F Preferred stock would result in dilution of 5,100,000 and nil common shares for the nine-month periods ended September 30, 2017 and 2016, respectively. The fair value of the Series F warrants was estimated on the issue dates using the following weighted average assumptions: Preferred Series F F F Issue Date February 7, 2017 March 1, 2017 March 31, 2017 Risk-free interest rate 1.85% 1.99% 1.93% Expected dividend yield 0 0 0 Expected term (in years) 5 5 5 Expected volatility 153.3% 155.4% 157.4% |
8. Commitments and Contingencie
8. Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
8. Commitments and Contingencies | 8. COMMITMENTS AND CONTINGENCIES The Company has 426.5 acres of patented claims and 22,432 acres of non-patented claims. We are subject to annual claims rental fees in order to maintain our non-patented claims. In addition to the annual claims rental fees due November 30 of each year, we are also required to meet annual labor requirements due November 30 of each year. The Company is able to carry forward costs for annual labor that exceed the required yearly totals for four years. Following are the annual claims and labor requirements for 2017 and 2018. November 30, 2018 November 30, 2017 Claims Rental $ 90,670 $ 90,570 Annual Labor 61,100 61,100 Yearly Totals $ 151,770 $ 151,670 The Company has a carryover to 2017 of approximately $22.1 million to satisfy its annual labor requirements. This carryover expires in the years 2017 through 2022 if unneeded to satisfy requirements in those years. The Company has challenged certain accounting procedures and methods applied by GNPs managing partner (see Note 3 Joint Venture |
9. Subsequent Events
9. Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Notes | |
9. Subsequent Events | 9. SUBSEQUENT EVENTS With the exceptions of the distribution of GNP earnings described in Note 3 and the loan proceeds received described in Note 5, there are no subsequent events. |
2. Summary of Significant Acc15
2. Summary of Significant Accounting Policies: Accounting For Investments in Joint Ventures (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
Accounting For Investments in Joint Ventures | Accounting for Investments in Joint Ventures For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. Under the cost method, these investments are carried at the lower of cost or fair value. For those joint ventures in which there is joint control between the parties and in which the Company has significant influence, the equity method is utilized whereby the Companys share of the ventures earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. Goldrich has no significant influence over its joint venture described in Note 3 Joint Venture For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of a non-controlling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the ventures management committee. Goldrich currently has no joint venture of this nature. The Company periodically assesses its investments in joint ventures for impairment. If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations. |
2. Summary of Significant Acc16
2. Summary of Significant Accounting Policies: Earnings (loss) Per Common Share (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
Earnings (loss) Per Common Share | Earnings (Loss) Per Share We are authorized to issue 250,000,000 shares of common stock, $0.10 par value per share. At September 30, 2017, there were 131,232,809 shares of our common stock issued and outstanding. For the nine-month periods ended September 30, 2017 and 2016, the effect of the Companys outstanding preferred shares, options and warrants, totaling 93,963,714 and 73,655,378, respectively, would have been anti-dilutive. |
2. Summary of Significant Acc17
2. Summary of Significant Accounting Policies: Cash and Cash Equivalents, Policy (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents For the purposes of the statement of cash flows, we consider all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. |
2. Summary of Significant Acc18
2. Summary of Significant Accounting Policies: Reclassifications (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
Reclassifications | Reclassifications Certain reclassifications have been made to conform prior period data to the current presentation. These reclassifications have no effect on the results of previously reported operations or stockholders deficit or cash flows. |
2. Summary of Significant Acc19
2. Summary of Significant Accounting Policies: Use of Estimates, Policy (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Significant estimates used in preparing these financial statements include those assumed in estimating the recoverability of the cost of mining claims, accrued remediation costs, asset retirement obligations, stock based compensation, notes payable in gold and deferred tax assets and related valuation allowances. Actual results could differ from those estimates. |
2. Summary of Significant Acc20
2. Summary of Significant Accounting Policies: Plant, Equipment, and Accumulated Depreciation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
Plant, Equipment, and Accumulated Depreciation | Equipment and Accumulated Depreciation Property and equipment are stated at cost, which is determined by cash paid or fair value of the shares of the Companys common stock issued. The Companys property and equipment are located on the Companys unpatented state mining claims located in the Chandalar mining district of Alaska. Equipment purchased prior to 2009 is fully depreciated. The Companys equipment is located at the Chandalar property in Alaska, with a small amount of office equipment located at Company offices in Spokane, Washington. Assets are depreciated on a straight-line basis. Improvements which significantly increase an assets value or significantly extend its useful life are capitalized and depreciated over the assets remaining useful life. When equipment is sold at a price either higher or lower than its carrying amount, or undepreciated cost at the date of disposal, the difference between the sale proceeds over the carrying amount is recognized as gain, while a loss is recognized when the carrying amount exceeds the sale proceeds. The gain or loss is recognized in the Consolidated Statements of Operations. |
2. Summary of Significant Acc21
2. Summary of Significant Accounting Policies: Mining Properties and Claims (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
Mining Properties and Claims | Mining Properties, Claims, and Royalty Option The Company capitalizes costs for acquiring mineral properties, claims and royalty option and expenses costs to maintain mineral rights and leases as incurred. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method on the basis of periodic estimates of ore reserves. Mineral properties are periodically assessed for impairment of value, and any subsequent losses are charged to operations at the time of impairment. If a property is abandoned or sold, its capitalized costs are charged to operations. |
2. Summary of Significant Acc22
2. Summary of Significant Accounting Policies: Exploration Costs (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
Exploration Costs | Exploration Costs Exploration costs are expensed in the period in which they occur. |
2. Summary of Significant Acc23
2. Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
Revenue Recognition | Revenue Recognition Revenue from the sale of gold is recorded net of smelter or refinery treatment and refining charges. Revenue is recognized when persuasive evidence of an arrangement exists, title and risk passes to the buyer, collection is reasonably assured and the price is reasonably determinable. When alluvial gold is placed with the smelter, revenue is recognized and cash is remitted for any ounces of alluvial gold sold to the smelter, converted to ounces of fine gold at an assumed smelting loss percentage. Pricing of the sale is at the market price of gold on the date of sale. The number of gold ounces sold at deposit is limited to a certain percentage of the ounces of alluvial gold deposited, as agreed in each case with the smelter. Ounces not sold are smelted and retained in the Companys inventory in a secured metals account at the smelter. Subsequent sales of gold from inventory are made at then-current market prices, with smelter treatment and refining charges deducted, and net cash proceeds are remitted to the Company. |
2. Summary of Significant Acc24
2. Summary of Significant Accounting Policies: Stock-based Compensation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
Stock-based Compensation | Stock-Based Compensation The Company periodically issues common shares or options to purchase shares of the Companys common shares to its officers, directors or other parties. These issuances are recorded at fair value. The Company uses a Black Scholes valuation model for determining fair value of options to purchase shares, and compensation expense is recognized ratably over the vesting periods on a straight line basis. Compensation expense for grants that vest immediately are recognized in the period of grant. |
2. Summary of Significant Acc25
2. Summary of Significant Accounting Policies: Remediation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
Remediation | Remediation The Companys operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company records the fair value of an asset retirement obligation as a liability in the period in which the Company incurs a legal obligation for the retirement of tangible long-lived assets. A corresponding asset is also recorded and depreciated over the life of the long lived asset using a units of production method. After the initial measurement of the asset retirement obligation, the liability will be adjusted at the end of each reporting period to reflect changes in the estimated future cash flows underlying the obligation. Determination of any amounts recognized is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates and the credit-adjusted risk-free interest rates. For non-operating properties, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and they are reasonably estimable. Such costs are based on managements estimate of amounts expected to be incurred when the remediation work is performed. |
2. Summary of Significant Acc26
2. Summary of Significant Accounting Policies: Fair Value Measurements (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
Fair Value Measurements | Fair Value Measurements When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. The Company has one financial liability that is adjusted to fair value on a recurring basis: At September 30, 2017 and December 31, 2016, the Company determined fair value on a recurring basis and non-recurring basis as follows: Balance September 30, 2017 Balance December 31, 2016 Fair Value Hierarchy level Liabilities Recurring: Notes payable in gold (Note 6) $ (437,193) $ (412,261) 2 |
2. Summary of Significant Acc27
2. Summary of Significant Accounting Policies: Derivatives (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Policies | |
Derivatives | Derivatives The Company measures derivative contracts as assets or liabilities based on their fair value. Gains or losses resulting from changes in the fair value of derivatives in each period are recorded in current operating results. None of the Companys derivative contracts qualify for hedge accounting. The Company does not hold or issue derivative financial instruments for speculative trading purposes. |
2. Summary of Significant Acc28
2. Summary of Significant Accounting Policies: Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Tables/Schedules | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Balance September 30, 2017 Balance December 31, 2016 Fair Value Hierarchy level Liabilities Recurring: Notes payable in gold (Note 6) $ (437,193) $ (412,261) 2 |
7. Stockholders' Equity_ Fair V
7. Stockholders' Equity: Fair Value of Warrants Series F Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Tables/Schedules | |
Fair Value of Warrants Series F Preferred Stock | Preferred Series F F F Issue Date February 7, 2017 March 1, 2017 March 31, 2017 Risk-free interest rate 1.85% 1.99% 1.93% Expected dividend yield 0 0 0 Expected term (in years) 5 5 5 Expected volatility 153.3% 155.4% 157.4% |
8. Commitments and Contingenc30
8. Commitments and Contingencies: Patented and nonpatented claims, annual costs (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Tables/Schedules | |
Patented and nonpatented claims, annual costs | November 30, 2018 November 30, 2017 Claims Rental $ 90,670 $ 90,570 Annual Labor 61,100 61,100 Yearly Totals $ 151,770 $ 151,670 |
1. Basis of Presentation (Detai
1. Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Details | |
Substantial Doubt about Going Concern | Going Concern The accompanying consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. The Company has incurred losses since its inception and does not have sufficient cash to fund normal operations and meet debt obligations for the next 12 months without deferring payment on certain current liabilities and/or raising additional funds. The Company currently has no historical recurring source of revenue and in 2016 was allocated its first distribution from the joint venture (Note 3). If these distributions increase in future years and the Company profitably executes its business plan, its ability to continue as a going concern may improve and become less dependent on the Companys ability to raise capital to fund its future exploration and working capital requirements. The Companys plans for the long-term return to and continuation as a going concern include the profitable exploitation of its mining properties and financing the Companys future operations through sales of its common stock and/or issuance of debt. The current capital markets and general economic conditions in the United States are significant obstacles to raising the required funds. These factors raise substantial doubt about the Companys ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. |
2. Summary of Significant Acc32
2. Summary of Significant Accounting Policies: Earnings (loss) Per Common Share (Details) - $ / shares | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Details | |||
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 | |
Common Stock, Par Value | $ 0.10 | $ 0.10 | |
Common Stock, Shares Outstanding | 131,232,809 | 131,232,809 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 93,963,714 | 73,655,378 |
2. Summary of Significant Acc33
2. Summary of Significant Accounting Policies: Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Details | ||
Notes payable in gold | $ (437,193) | $ (412,261) |
3. Joint Venture (Details)
3. Joint Venture (Details) | 9 Months Ended |
Sep. 30, 2017 | |
ProceedsFromSaleOfCashFlowPercentageMember | |
Other Significant Noncash Transaction, Description | On June 23, 2015, the Company raised net proceeds of $1.1 million through the sale of 12% of the cash flows Goldrich receives in the future from its interest in GNP (“Distribution Interest”), paid in cash under items #2 and #5 above, to Chandalar Gold, LLC (“CGL”), a non-related entity. Goldrich retained its ownership of its 50% interest in GNP but, after the transaction, subject to the terms of the GNP operating agreement, Goldrich will effectively receive approximately 44% and CGL will receive 6% (12% of Goldrich’s 50% of GNP = 6%) of any cash distributions produced by GNP. At September 30, 2017, the Company has an accrued liability of $8,110 for 12% of the $67,580 distribution made in 2016. |
4. Related Party Transactions (
4. Related Party Transactions (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Consultant and director fees | $ 139,198 | $ 115,298 | |||||
Consultant and director fees current | $ 10,500 | $ 25,200 | 10,200 | $ 25,000 | |||
CEO | |||||||
Related Party Transaction, Amounts of Transaction | $ 215,000 | $ 127,500 | |||||
Deferred Compensation Arrangement with Individual, Compensation Expense | 45,000 | $ 90,000 | 45,000 | 90,000 | |||
CFO | |||||||
Related Party Transaction, Amounts of Transaction | $ 50,666 | $ 35,093 | |||||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 39,573 | $ 8,143 | $ 35,921 |
5. Note Payable (Details)
5. Note Payable (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Details | |||
Unsecured Debt | $ 300,000 | $ 300,000 | |
Interest Paid | 24,333 | $ 33,750 | |
Debt Instrument, Face Amount | 650,000 | 650,000 | |
Interest Expense, Related Party | $ 21,463 | $ 23,611 | |
Subsequent Event, Description | Subsequent to the end of the quarter, the Company received an additional $150,000 at the same terms under this bridge loan. As of the date of this report, the Company was in negotiations to refinance this short-term bridge loan into a larger long-term note with this related party and others. The amount, interest rate and other terms have not yet been set. |
6. Notes Payable in Gold (Detai
6. Notes Payable in Gold (Details) | Nov. 30, 2017 | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Details | |||
Notes payable in gold | $ 437,193 | $ 412,261 | |
Gold Deliverable | 342.788 |
7. Stockholders' Equity (Detail
7. Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 18 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Jun. 30, 2017 | |
Convertible preferred stock series F, shares issued | 153 | 153 | ||||
Beneficial conversion feature on preferred stock | $ 52,900 | $ 155,162 | ||||
Convertible preferred stock series F, shares issued | 153 | 153 | ||||
Series F Convertible Preferred Stock | ||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 103,000 | $ 50,000 | ||||
Class S warrants issued | 5,100,000 | |||||
Class S warrants exercise price | $ 0.03 | |||||
Class S warrants relative fair value | $ 54,138 | $ 24,138 | ||||
Beneficial conversion feature on preferred stock | $ 52,900 | $ 78,762 |
7. Stockholders' Equity_ Fair39
7. Stockholders' Equity: Fair Value of Warrants Series F Preferred Stock (Details) | Mar. 31, 2017 | Mar. 01, 2017 | Feb. 07, 2017 |
Details | |||
Fair Value Assumptions, Risk Free Interest Rate | 1.93% | 1.99% | 1.85% |
Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% |
Fair Value Assumptions, Expected Term | 5 years | 5 years | 5 years |
Fair Value Assumptions, Expected Volatility Rate | 157.40% | 155.40% | 153.30% |
8. Commitments and Contingenc40
8. Commitments and Contingencies: Patented and nonpatented claims, annual costs (Details) - USD ($) | Nov. 30, 2018 | Nov. 30, 2017 |
Details | ||
Claims rental | $ 90,670 | $ 90,570 |
Annual labor requirement | 61,100 | 61,100 |
Non-patented claims expense | $ 151,770 | $ 151,670 |