Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 20, 2021 | Jun. 30, 2020 | |
Registrant CIK | 0000711034 | ||
Fiscal Year End | --12-31 | ||
Registrant Name | Thunder Mountain Gold Inc | ||
SEC Form | 10-K | ||
Period End date | Dec. 31, 2020 | ||
Tax Identification Number (TIN) | 91-1031015 | ||
Number of common stock shares outstanding | 60,145,579 | ||
Public Float | $ 2,597,392 | ||
Filer Category | Non-accelerated Filer | ||
Current with reporting | Yes | ||
Interactive Data Current | Yes | ||
Voluntary filer | No | ||
Well-known Seasoned Issuer | No | ||
Shell Company | false | ||
Small Business | true | ||
Emerging Growth Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-08429 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Address, Address Line One | 11770 W. President Dr., Ste. F | ||
Entity Address, City or Town | Boise | ||
Entity Address, State or Province | ID | ||
Entity Address, Postal Zip Code | 83713 | ||
City Area Code | 208 | ||
Local Phone Number | 658-1037 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
ExchangeOTCQB | |||
Trading Symbol | THMG | ||
Trading Exchange | NONE | ||
Title of 12(g) Security | Common Stock, $0.001 par value | ||
ExchangeTSXV | |||
Trading Symbol | THM | ||
Trading Exchange | NONE | ||
Title of 12(g) Security | Common Stock, $0.001 par value |
Thunder Mountain Gold, Inc. Con
Thunder Mountain Gold, Inc. Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 274,155 | $ 252,415 | |
Prepaid expenses and other assets | 20,128 | 18,824 | |
Total current assets | 294,283 | 271,239 | |
Property and Equipment: | |||
Land | 280,333 | 280,333 | |
Equipment, net | 4,954 | 25,911 | |
Total property and equipment | 285,287 | 306,244 | |
Right to use asset (Note 11) | 1,332 | 16,625 | |
Investment in BeMetals, at fair value (Note 4) | [1] | 3,018,634 | 1,735,830 |
Total assets | 3,599,536 | 2,329,938 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Operating lease liability - long-term (Note 11) | 0 | 1,360 | |
Accrued reclamation costs | 65,000 | 65,000 | |
Total liabilities | 1,588,418 | 1,695,241 | |
Noncontrolling interest in Owyhee Gold Trust (Note 3) | [2] | 173,702 | 173,702 |
Current liabilities: | |||
Accounts payable and other accrued liabilities | 60,410 | 96,973 | |
Accrued related party liability (Note 7) | [3] | 186,685 | 216,685 |
Accrued interest payable to related parties (Note 7) | [4] | 88,531 | 73,343 |
Operating lease liability - current (Note 11) | 1,332 | 15,265 | |
Advance from BeMetals | [2] | 38,384 | 78,539 |
Deferred compensation (Note 7) | [3] | 1,041,500 | 1,041,500 |
Related parties notes payable (Note 7) | [4] | 106,576 | 106,576 |
Total current liabilities | 1,523,418 | 1,628,881 | |
Commitments and Contingencies (Notes 2 and 3) | [5] | 0 | 0 |
Stockholders' equity: | |||
Preferred stock; $0.0001 par value, 5,000,000 shares authorized; no shares issued or outstanding | 0 | 0 | |
Common stock; $0.001 par value; 200,000,000 shares authorized, 60,145,579 shares issued and outstanding | 60,146 | 60,146 | |
Additional paid-in capital | 6,336,316 | 6,176,576 | |
Less: 11,700 shares of treasury stock, at cost | (24,200) | (24,200) | |
Accumulated deficit | (4,534,846) | (5,751,527) | |
Stockholders' Equity Attributable To Parent | 1,837,416 | 460,995 | |
Total stockholders' equity | 2,011,118 | 634,697 | |
Total liabilities and stockholders' equity | $ 3,599,536 | $ 2,329,938 | |
[1] | BS1 | ||
[2] | BS4 | ||
[3] | BS2 | ||
[4] | BS3 | ||
[5] | BS6 |
Thunder Mountain Gold, Inc. C_2
Thunder Mountain Gold, Inc. Consolidated Balance Sheets - Parenthetical - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 177,650 | $ 156,694 |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 60,145,579 | 60,145,579 |
Common Stock, Shares, Outstanding | 60,145,579 | 60,145,579 |
Treasury Stock, Shares | 11,700 | 11,700 |
Thunder Mountain Gold, Inc. C_3
Thunder Mountain Gold, Inc. Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | ||
Gain on mineral interest (Note 3) | $ 250,000 | $ 1,754,398 |
Management service income | 300,000 | 200,000 |
Total revenues | 550,000 | 1,954,398 |
Other income (expense): | ||
Interest expense, related parties | (15,189) | (21,290) |
Loan forgiveness | 48,000 | 0 |
Unrealized gain (loss) on investment | 1,282,804 | (148,045) |
Miscellaneous income (expense) | 2,748 | (2,685) |
Total other income (expense) | 1,318,363 | (172,020) |
Net income | 1,221,681 | 1,087,083 |
Net income - noncontrolling interest in Owyhee Gold Trust | 5,000 | 5,000 |
Net income loss attributable to parent | 1,216,681 | 1,082,083 |
Operating expenses: | ||
Exploration | 11,312 | 26,773 |
Legal and accounting | 56,343 | 135,015 |
Management and administrative | 558,071 | 501,197 |
Depreciation | 20,956 | 32,310 |
Total operating expenses | 646,682 | 695,295 |
Net operating income (loss) | $ 96,682 | $ (1,259,103) |
Net income per common share-basic and diluted | $ 0.02 | $ 0.02 |
Weighted average common shares outstanding-basic | 60,145,579 | 59,042,839 |
Weighted average common shares outstanding-diluted | 61,690,547 | 59,329,735 |
Thunder Mountain Gold, Inc. C_4
Thunder Mountain Gold, Inc. Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Noncontrolling Interest | Total |
Equity Balance at Dec. 31, 2018 | $ 57,646 | $ 5,811,988 | $ (24,200) | $ (6,833,610) | $ 173,702 | $ (814,474) |
Equity Balance at Dec. 31, 2018 | 57,645,579 | |||||
Shares and warrants issued for cash | $ 2,500 | 247,500 | 0 | 0 | 0 | $ 250,000 |
Shares issued for cash | 2,500,000 | 2,500,000 | ||||
Shares and warrants issued for payment of related parties notes payable and accrued interest | $ 0 | 117,088 | 0 | 0 | 0 | $ 117,088 |
Distribution to noncontrolling interest | 0 | 0 | 0 | 0 | (5,000) | (5,000) |
Net income | $ 0 | 0 | 0 | 1,082,083 | 5,000 | 1,087,083 |
Equity Balance at Dec. 31, 2019 | 60,145,579 | |||||
Equity Balance at Dec. 31, 2019 | $ 60,146 | 6,176,576 | (24,200) | (5,751,527) | 173,702 | 634,697 |
Shares and warrants issued for payment of related parties notes payable and accrued interest | 0 | 159,740 | 0 | 0 | 0 | 159,740 |
Distribution to noncontrolling interest | 0 | 0 | 0 | 0 | (5,000) | (5,000) |
Net income | $ 0 | 0 | 0 | 1,216,681 | 5,000 | 1,221,681 |
Equity Balance at Dec. 31, 2020 | 60,145,579 | |||||
Equity Balance at Dec. 31, 2020 | $ 60,146 | $ 6,336,316 | $ (24,200) | $ (4,539,846) | $ 173,702 | $ 2,011,118 |
Thunder Mountain Gold, Inc. C_5
Thunder Mountain Gold, Inc. Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Cash flows from operating activities: | |||
Net cash used by operating activities | $ (271,260) | $ (316,295) | |
Net income | 1,221,681 | 1,087,083 | |
Depreciation | 20,956 | 32,310 | |
Stock based compensation | 159,740 | 117,088 | |
Loan forgiveness | (48,000) | 0 | |
Gain on mineral interest | (250,000) | (1,754,398) | |
Unrealized (gain) loss on investment | (1,282,804) | 148,045 | |
Change in: | |||
Prepaid expenses and other assets | (1,304) | 10,601 | |
Accounts payable and other accrued liabilities | (36,563) | (31,119) | |
Accrued related party liability | (30,000) | (25,000) | |
Accrued interest payable to related parties | 15,189 | 20,556 | |
Advance from BeMetals | (40,155) | 78,539 | |
Cash flows from investing activities: | |||
Net cash provided by investing activities | 250,000 | 350,000 | |
Proceeds from mineral interest (Note 3) | 250,000 | 350,000 | |
Cash flows from financing activities: | |||
Net cash provided by financing activities | 43,000 | 215,000 | |
Proceeds from PPP Loan | 48,000 | 0 | |
Proceeds from sale of common stock and warrants | 0 | 250,000 | |
Borrowings on related parties notes payable | 0 | 40,000 | |
Payments on related parties notes payable | 0 | (70,000) | |
Distribution to noncontrolling interest | (5,000) | (5,000) | |
Net increase in cash and cash equivalents | 21,740 | 248,705 | |
Cash and cash equivalents, beginning of year | 252,415 | 3,710 | |
Cash and cash equivalents, end of year | 274,155 | 252,415 | |
Supplemental disclosure of cash flows information: | |||
Interest paid in cash | 0 | 736 | |
Noncash financing and investing activities: | |||
Investment in equity security received for mineral interest | [1] | 0 | 1,883,875 |
Accounts payable settled with related party notes payable | [1] | 0 | 10,000 |
Operating lease liability arising from obtaining right to use asset (Note 11) | [1] | $ 0 | $ 29,617 |
[1] | CF1 |
1. Summary of Significant Accou
1. Summary of Significant Accounting Policies and Business Operations | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
1. Summary of Significant Accounting Policies and Business Operations | 1. Summary of Significant Accounting Policies and Business Operations Business Operations Thunder Mountain Gold, Inc. (“Thunder Mountain”, “THMG”, or “the Company”) was originally incorporated under the laws of the State of Idaho on November 9, 1935, under the name of Montgomery Mines, Inc. In April 1978, the Montgomery Mines Corporation was obtained by a group of the Thunder Mountain property holders and changed its name to Thunder Mountain Gold, Inc., with the primary goal to further develop their holdings in the Thunder Mountain Mining District, located in Valley County, Idaho. Thunder Mountain Gold, Inc. takes its name from the Thunder Mountain Mining District, where its principal lode mining claims were located. For several years, the Company’s activities were restricted to maintaining its property position and exploration activities. During 2005, the Company sold its holdings in the Thunder Mountain Mining District. During 2007, the Company acquired the South Mountain Mines property in southwest Idaho and initiated exploration activities on that property, which continue today. On February 27, 2019, the Company entered into an Option Agreement, (the “BeMetals Option Agreement”) with BeMetals Corporation. Under the terms of the BeMetals Option Agreement, BMET USA will be entitled to purchase 100% of the issued and outstanding shares of South Mountain Mines, Inc. (“SMMI”) from Thunder Mountain Resources, Inc. (“TMRI”), both wholly owned subsidiaries of the Company. The original term of the agreement was for two years, but was extended on May 18, 2020, by three months from the existing BeMetals Option Agreement date, due to the COVID-19 pandemic, and business conditions surrounding restricted international travel, and corresponding access to capital markets. During this term, BeMetals is required to conduct a preliminary economic assessment ("PEA"), completed by a mutually agreed third-party engineering firm. Over its term, this agreement requires issuance of 10,000,000 million shares of BMET stock to the Company by BeMetals, and cash payments to the Company of $1,350,000: $1,100,000 in cash and $250,000 in exchange for shares of the Company’s common stock. For the year ended December 31, 2020, the Company recognized $300,000 in management services income In the event that BeMetals decides not to proceed with the South Mountain Project, BeMetals will not be obligated to make any additional payments. See Note 3 for further information. Basis of Presentation and 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 historically incurred losses, however, under the BeMetals Option Agreement (Note 3), the Company now has a recurring source of revenue, and its ability to continue as a going concern is no longer dependent on equity capital raises and borrowings. However, if necessary, the Company continues to have the ability to raise additional capital in order to fund its future exploration and working capital requirements. The Company’s plans for the long-term continuation as a going concern include operating on the cash flows and consideration payments provided under the BeMetals Option Agreement. COVID-19 In March 2020, COVID-19 was declared a pandemic by the World Health Organization and the Centers for Disease Control and Prevention. Its rapid spread around the world and throughout the United States prompted many countries, including the United States, to institute restrictions on travel, public gatherings and certain business operations. These restrictions disrupted economic activity in Thunder Mountain Gold’s business related to raising capital. As of December 31, 2020, the disruption did not materially impact the Company’ financial statements. However, if the severity of the economic disruptions increase as the duration of the COVID-19 pandemic continues, the negative financial impact could be significantly greater in future periods. The effects of the continued outbreak of COVID-19 and related government responses could also include extended disruptions to supply chains and capital markets, reduced labor availability and a prolonged reduction in economic activity. These effects could have a variety of adverse impacts to the Company. As of December 31, 2020, there were no material adverse impacts to the Company’ operations due to COVID-19. In addition, the economic disruptions caused by COVID-19 could also adversely impact the impairment risks for certain long-lived assets, and equity method investments. Thunder Mountain Gold evaluated these impairment considerations and determined that no such impairments occurred as of December 31, 2020. The effects of the continued outbreak of COVID-19 and related government responses could have disruptions to the “BeMetals Option Agreement. In the event, if BeMetals decides not to proceed with the South Mountain Project, BeMetals will not be obligated to make any additional payments. The COVID-19 outbreak could have a variety of adverse impacts to the Company, including their ability to continue operations of their exploration under the BeMetals Operation Agreement. As of December 31, 2020, there were no material adverse impacts to the Company’s BeMetal Options Agreement due to COVID-19. Principles of Consolidation The consolidated financial statements include the accounts of the Company; its wholly owned subsidiaries, Thunder Mountain Resources, Inc. (“TMRI”) and South Mountain Mines, Inc. (“SMMI”); and a company in which the Company owns 75% and has majority control, Owyhee Gold Trust, LLC (“OGT”). The Company’s consolidated financial statements reflect the other investor’s 25% non-controlling, capped interest in OGT. Intercompany accounts are eliminated in consolidation. Accounting 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 the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions include the carrying value of properties and mineral interests, environmental remediation liabilities, deferred tax assets, and stock-based compensation. Management’s estimates and assumptions are based on historical experience and other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. Revenue Recognition Management service revenue is recognized when the Company has satisfied its performance obligation required under its management contract. Such obligation is satisfied over time as work is performed and the Company has a contractual right to payment. Income Taxes Revenue from BeMetals Option Agreement is recognized in accordance with the BeMetals contract recorded when received. (See Note 3) The Company recognizes deferred income tax liabilities or assets at the end of each period using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of the deferred tax assets will not be realized. Cash and Cash Equivalents For the purposes of the balance sheet and statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be a cash equivalent. 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. At December 31, 2020, the Company has one financial asset, investment in equity security, that is adjusted to fair value on a recurring basis for which the fair value is determined based on Level 1 inputs as the equity security is traded on a stock exchange. The Company has no financial liabilities that are adjusted to fair value on a recurring basis. Financial Instruments The Company’s financial instruments include cash and cash equivalents, investment in equity security and related party notes payable the carrying value of which approximates fair value based on the nature of those instruments. Investments The Company determines the appropriate classification of investments at the time of acquisition and re-evaluates such determinations at each reporting date. Equity securities determined to be marketable are carried at fair value determined using Level 1 fair value measurement inputs with the change in fair value recognized as unrealized gain (loss) in the Consolidated Statement of Operations each reporting period. Realized gains and losses on the sale of securities are recognized on a specific identification basis. Mineral Interests The Company capitalizes costs for acquiring mineral interests, and expenses costs to maintain mineral rights and leases as incurred. Exploration costs are expensed in the period in which they occur. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method based on periodic estimates of ore reserves. Mineral interests are periodically assessed for impairment of value and any subsequent losses are charged to operations at the time of impairment. If a mineral interest is abandoned or sold, its capitalized costs are charged to operations. Consideration received by the Company pursuant to joint ventures or purchase option agreements is applied against the carrying value of the related mineral interest. When and if payments received exceed the carrying value, the excess amount is recognized as a gain in the Consolidated Statement of Operations in the period the consideration is received. Leases The Company accounts for its leases under ASC 842, Leases Investments in Joint Ventures For companies and joint ventures where the Company holds more than 50% of the voting interests, but less than 100%, and has significant influence, the company or joint venture is consolidated, and other investor interests are presented as noncontrolling. See Note 3 regarding the Company’s investment in Owyhee Gold Trust. Joint Ventures in which the Company has the ability to exercise significant influence, but does not control, are accounted for under the equity method of accounting. Reclamation and Remediation The Company’s operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company would record the fair value of an asset retirement obligation as a liability in the period in which the Company incurred a legal obligation for the retirement of tangible long-lived assets. A corresponding asset would also be recorded and depreciated over the life of the asset. 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 management’s estimate of amounts expected to be incurred when the remediation work is performed. At December 31, 2019 and 2020, the Company had accrued $65,000 on it’s Consolidated Balance Sheets relating to estimated mine closure and reclamation costs on its South Mountain Mines property. Share-Based Compensation Share-based payments to employees and directors, including grants of employee stock options, are measured at fair value and expensed in the Consolidated Statement of Operations over the vesting period. Recent Accounting Pronouncements Accounting Standards Updates Adopted In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The update removes, modifies and makes additions to the disclosure requirements on fair value measurements. The update is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company evaluated the new standard in the first quarter of 2020 and determined that ASU 2018-13 did not have an impact on the Company’s consolidated financial statement disclosures. Accounting Standards Updates to Become Effective in Future Periods In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update contains a number of provisions intended to simplify the accounting for income taxes. The update is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Management is evaluating the impact of this update on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, Clarifying the Interactions Between Topic 321, Topic 323 and Topic 815. ASU 2020-01 which makes improvements related to accounting for certain equity securities when the equity method of accounting is applied or discontinued, and scope considerations related to forward contracts and purchased options on certain securities. ASU 2020-01 is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. Net Income (Loss) Per Share The Company is required to have dual presentation of basic earnings per share (“EPS”) and diluted EPS. The Company calculates basic earnings (loss) per share by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding. We do not include the impact of any potentially dilutive common stock equivalents in our basic earnings (loss) per share calculations. Diluted earnings per share reflect potentially dilutive common stock equivalents, including options and warrants that could share in our earnings through the conversion of common shares, except where their inclusion would be anti-dilutive. For the year ended December 31, 2020 outstanding common stock equivalents consisting of 5,705,000 outstanding stock options were included in calculating diluted weighted average shares outstanding. For the year ended December 31, 2019, stock options of 960,000 are included in and 4,075,000 are excluded from the calculation of diluted income per share. Options are excluded because their exercise prices were greater than the average trading price of the Company’s common stock for the year. Diluted common shares outstanding were calculated using the treasury stock method and are as follows: December 31, 2020 2019 Weighted average number of common shares calculated using basic net income per common share 60,145,579 59,042,839 Effect of common stock equivalents: Stock options 1,544,968 286,896 Weighted average number of common shares calculated using diluted net income per common share 61,690,547 59,329,735 |
2. Mineral Interest Commitments
2. Mineral Interest Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
2. Mineral Interest Commitments | 2. Mineral Interest Commitments The Company has two lease arrangements with landowners that own land parcels adjacent to the Company’s South Mountain patented and unpatented mining claims. The leases were originally for a seven-year period, with annual payments of $20 per acre. The leases were renewed for an additional 10 years at $30 per acre paid annually; committed payments are listed in the table below. The leases have no work requirements. Annual Payment Acree Lease (June) $ 3,390 Lowry Lease (October) 11,280 Total $ 14,670 The Company has 78 unpatented claims (1,600 acres) in the Trout Creek area and 21 unpatented claims in the South Mountain area. The claim fees are paid on these unpatented claims annually as follows: Target Area 2020 Trout Creek -State of Nevada $ 12,090 Trout Creek -Lander County, Nevada 940 South Mountain-State of Idaho 3,255 Total $ 16,285 |
3. South Mountain Project
3. South Mountain Project | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
3. South Mountain Project | 3. South Mountain Project BeMetals Option Agreement: On February 27, 2019, the Company entered into an Option Agreement, (the “BeMetals Option Agreement”) with BeMetals Corp., a British Columbia corporation (“BeMetals”), and BeMetals USA Corp., a Delaware corporation (“BMET USA”), a wholly owned subsidiary of BeMetals. Under the terms of the BeMetals Option Agreement, BMET USA will be entitled to purchase 100% of the issued and outstanding shares of SMMI from TMRI, both wholly owned subsidiaries of the Company. SMMI is the Company’s subsidiary that holds the Company’s investment in the South Mountain project mineral interest. The original term of the agreement is for two years with BeMetals completing a preliminary economic assessment ("PEA") completed by a mutually agreed third-party engineering firm. On May 18, 2020, by three months from the existing BeMetals Option Agreement date, due to the COVID-19 pandemic, and business conditions surrounding restricted international travel, and corresponding access to capital markets. Pursuant to the BeMetals Option Agreement, BMET USA will be entitled to purchase 100% of the outstanding shares of SMMI from TMRI if the following obligations are satisfied: · · · · · · Concurrent with the BeMetals Option Agreement, BMET USA and SMMI entered into a management contract whereby BeMetals will pay $25,000 monthly to SMMI for management services to enable BMET to perform exploration and development work with respect to the South Mountain Project. Per the agreement the Company received management service income of $75,000 per quarter for a total of $300,000 for the year ended December 31, 2020. BeMetals provides funding to SMMI for ongoing project expenses, including office lease payments. Under the terms of the Option Agreement, SMMI’s management provides BeMetals a request for funds monthly to cover the upcoming month’s expenses. At December 31, 2020 and December 31, 2019, advances received from BeMetals that have not yet been spent totaled $38,384 and $73,343, respectively. SMMI Joint Venture – OGT, LLC The Company’s wholly owned subsidiary SMMI is the sole manager of the South Mountain Project in its entirety through a separate Mining Lease with Option to Purchase (“Lease Option”) with the Company’s majority-owned subsidiary OGT. The Lease Option includes a capped $5 million less net returns royalties paid through the date of exercise. The Lease Option expires in November 2026. If SMMI exercises the option, the option payment of $5 million less advance royalties will be distributed 100% by OGT to OGT’s minority member. Under the Lease Option, SMMI pays an advance $5,000 net returns royalty to OGT annually on November 4 which is distributed to OGT’s minority member. Years Ended December 31, 2020 2019 Balance at beginning of year $ 173,702 $ 173,702 Distribution to non-controlling interest (5,000) (5,000) Net income attributable to noncontrolling interest 5,000 5,000 Balance at end of year $ 173,702 $ 173,702 |
4. Investment in Equity Securit
4. Investment in Equity Security | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
4. Investment in Equity Security | 4. Investment in Equity Security In 2019 in connection with the BeMetals Option Agreement (see Note 3), the Company received 10,000,000 shares of BeMetals Corp. common stock that had a fair value of $1,883,875. At December 31, 2020, the fair value of the shares is $3,018,634. For the years ended December 31, 2020 and 2019, the Company recognized an unrealized gain in the change in fair value of the investment of $1,282,804, and an unrealized loss of (148,045), respectively. |
5. Property and Equipment
5. Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
5. Property and Equipment | 5. Property and Equipment The Company’s property and equipment are as follows: December 31, 2020 2019 Vehicles $ 22,441 22,441 Buildings 65,071 65,071 Construction Equipment 36,447 36,447 Mining Equipment 58,646 58,646 182,605 182,605 Accumulated Depreciation (177,650) (156,694) 4,954 25,911 Land 280,333 280,333 Total Property and Equipment $ 285,287 306,244 |
6. PPP Loan
6. PPP Loan | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
6. PPP Loan | 6. PPP Loan On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (the “CARES Act”) Act was signed into United States law. In April 2020, the Company received a loan of $48,000 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I, Section 1102 and 1106 of the CARES Act. The loan, which was in the form of a promissory note, as amended, dated April 21, 2020 issued by the Company (the “Note”); the Note matures on April 13, 2022 and bears interest at a rate of 1% per annum, payable monthly commencing on August 13, 2021. The Note may be prepaid by the Company at any time prior to maturity with no prepayment penalties. Under the terms of the PPP, certain amounts of the loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. Qualifying expenses include payroll costs, costs used to continue group health care benefits, mortgage payments, rent, and utilities. The Company elected to take 24 weeks to spend these funds instead of eight weeks. The Company used the entire loan amount for qualifying expenses, but there is no guarantee that the loan will be forgiven. On October 21, 2020 the Company completed Paycheck Protection Program (PPP) loan forgiveness application with Washington Trust Bank. On November 7, 2020, the Company received a notice that the PPP loan was forgiven. Accordingly, the Company recorded PPP loan forgiveness in other income in the Consolidated Statement of Operations for the year ended December 31, 2020. |
7. Related Parties
7. Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
7. Related Parties | 7. Related Parties Notes Payable At December 31, 2020, the Company had notes payable balances of $66,768 and $39,808 with Eric Jones and James Collord, respectfully. Eric Jones is the Company’s President and Chief Executive Officer and James Collord, the Company’s Vice President and Chief Operating Officer, respectively. These notes, as amended, bear interest at 1.0% to 2.0% per month and were due December 31, 2020. Interest accrued for Eric Jones and James Collord notes for the year ended December 31, 2020 was $47,697 and $40,834, respectfully. On February 14, 2019 and May 9, 2019, Mr. Jones loaned $10,000 (in exchange for an accounts payable balance due to him) and $30,000 in cash, respectively, at an interest rate of 1.5% per month and initially payable in full on June 30, 2019. These notes were extended to December 31, 2019. During the year ended December 31, 2019, Mr. Jones and Mr. Collord were each paid $30,000 reducing their notes payable balances. The notes payable balances to Mr. Jones and Mr. Collord were $66,768 and $39,808, respectively, for the year ended December 31, 2019. The accrued interest balances to Mr. Jones and Mr. Collord were $37,286 and $36,057, respectively, for the year ended December 31, 2019. On December 31, 2020, all note balances due to Mr. Jones and Mr. Collord were amended changing the payment due date to December 31, 2021. On January 18, 2019, the Company executed a promissory note payable with Paul Beckman, a director of the Company. The amount of the note was $10,000 at an interest rate of 1.5% per month. The amount was paid in full on June 17, 2019 with interest expense of $736. Deferred Compensation Three of the Company’s officers began deferring compensation for services on April 1, 2015. On July 31, 2018, the Company stopped expensing and deferring compensation for the three Company officers in the interest of marketing the SMMI project. As part of the BeMetals agreement (Note 3), the Company resumed compensation for these officers on May 15, 2019. The officers deferred compensation balances at December 31, 2020 and 2019 represent the balances deferred prior to the BeMetals agreement and are as follows: Eric Jones, President and Chief Executive Officer - $420,000; Jim Collord, Vice President and Chief Operating Officer - $420,000; and Larry Thackery, Chief Financial Officer - $201,500. Accrued Related Party Liability The Company engaged Baird Hanson LLP (“Baird”), a company owned by one of the Company’s directors, to provide legal services in 2018. During the year ended December 31, 2018, the Company incurred $65,530 in legal expense with Mr. Baird. There was no expense for the year ended in 2020, and 2019. At December 31, 2020 and 2019, the balance due to Baird for prior years’ legal services was $186,685 and $216,685, respectfully. During the year ended December 31, 2020, the company paid Baird $30,000 on the accrued liability. Advance from Related Party Management has advanced funds, and foregone accrued wages to the Company for operating expenses. The balance of these advances and wages at December 31, 2020 and December 31, 2019 was $42,377 and $34,761, respectively. This balance is included in accounts payable and other accrued liabilities on the Consolidated Balance Sheets. |
8. Stockholders' Equity
8. Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
8. Stockholders' Equity | 8. Stockholders’ Equity The Company’s common stock has a par value of $0.001 with 200,000,000 shares authorized. The Company also has 5,000,000 authorized shares of preferred stock with a par value of $0.0001. During the year ended December 31, 2019, as per the agreement, BeMetals purchased 2,500,000 shares of the Company’s common stock for $250,000 in cash. See Note 3. |
9. Stock Options
9. Stock Options | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
9. Stock Options | 9. Stock Options The Company has a Stock Incentive Plan (the “SIP”) that provides for the grant of stock options, incentive stock options, stock appreciation rights, restricted stock awards, and incentive awards to eligible individuals including directors, executive officers and advisors that have furnished bona fide services to the Company not related to the sale of securities in a capital-raising transaction. The SIP has a fixed maximum percentage of 10% of the Company’s outstanding shares. The SIP also has terms and limitations, including that the exercise price for stock options and stock appreciation rights granted under the SIP must equal the stock’s fair value, based on the closing price per share of common stock, at the time the stock option or stock appreciation right is granted. On March 27, 2020, the Company granted 1,630,000 stock options to officers and The options are exercisable on or before March 27, 2025 and have an exercise price of $0.099. On March 25, 2019, the Company granted 1,325,000 stock options to officers and The options are exercisable on or before March 25, 2024 and have an exercise price of $0.09. The fair value of each option award was estimated on the date of the grant using the assumptions noted in the following table: March 27, 2020 March 25, 2019 Stock price $0.099 $0.09 Exercise price $0.099 $0.09 Expected volatility 218.6% 209.5% Expected dividends - - Expected terms (in years) 5.0 5.0 Risk-free rate 0.39% 2.21% The following is a summary of the Company’s options issued and outstanding under the SIP: Shares Weighted Average Exercise Price Outstanding and exercisable at December 31, 2018 3,710,000 0.09 Granted 0.09 Outstanding and exercisable at December 31, 2019 5,035,000 $0.09 Granted 1,630,000 $0.099 Expired (960,000) (0.06) Outstanding and exercisable at December 31, 2020 5,705,000 $0.0997 The average remaining contractual term of the options outstanding and exercisable at December 31, 2020 was 2.28 years. As of December 31, 2020, options outstanding and exercisable had an aggregate intrinsic value of approximately $361,180 based on the Company’s stock price of $0.16 at December 31, 2020. |
10. Income Taxes
10. Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
10. Income Taxes | 10. Income Taxes The Company did not recognize a tax provision during 2020 and 2019 . At December 31, 2020 and 2019, net deferred tax assets were calculated based on expected blended future tax rates of 26.7% including both federal and Idaho state components. Significant components of net deferred tax assets at December 31, 2020 and 2019 are as follows: 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 1,547,400 $ 1,448,900 Share-based compensation 133,400 90,800 Deferred compensation 278,000 278,000 Investments - 39,500 Mineral properties 179,300 212,400 2,138,100 2,069,600 Deferred tax liabilities: Investment in OGT (147,100) (146,800) Investments (302,900) - Net deferred tax assets 1,688,100 1,922,800 Less valuation allowance (1,688,100) (1,922,800) Net deferred tax asset $ - $ - The Company fully reserved the deferred tax asset as of December 31, 2020 and 2019, as management of the Company cannot determine that is more likely than not that the Company will realize the benefit of the deferred tax assets. At December 31, 2020, the Company had approximately $5.8 million of federal and state net operating loss carryforwards. $5.3 million of net operating loss will expire between 2029 and 2037. $0.5 million of the losses were incurred after 2017 and can be carried forward indefinitely, although usage of these net operating losses is limited to 80% of taxable income in the future tax year. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, allows NOLs generated in years 2018-2020 to be carried back 5 years. The Company has elected not to carry any net operating losses back. The income tax benefit shown in the financial statements for the years ended December 31, 2020 and 2019 differs from the federal statutory rate as follows: 2020 2019 (Provision) benefit at statutory rates $ (256,600) (21.0)% $ (228,300) 21.0% State taxes (69,600) (5.7) (61,800) (5.7) Permanent differences (12,600) 1.0 600 0.1 Change in prior year tax estimates 104,100 8.2 (3,600) (0.4) Change in valuation allowance 234,700 (19.2) 293,100 27.0 Total $ - - % $ - - % The Company has analyzed its filing positions in all jurisdictions where it is required to file income tax returns and found no positions that would require a liability for uncertain income tax benefits to be recognized. The Company is subject to possible tax examinations for the years 2017 through 2020. Prior year tax attributes could be adjusted by taxing authorities. If applicable, the Company will deduct interest and penalties as interest expense on the financial statements. |
11. Leases
11. Leases | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
11. Leases | 11. Leases The Company accounts for its leases under ASC 842, Leases In February 2019, the Company entered into an operating lease for its office and as a result a liability and right-of-use asset of $29,617 was recognized on the lease inception date. To calculate the liability and right of use asset, the Company utilized an 8.0% incremental borrowing rate to discount the future rent payments of approximately $1,300 per month over the lease term of 2.0 years. The lease contains no renewal option. As of December 31, 2020, total future payments required through the remaining lease term of .09 years is $1,332 and is recognized as a current liability on the Company’s Consolidated Balance Sheet. For the years ended December 31, 2020 and December 31, 2019 rent expense recognized was $16,426 and $15,750, respectfully, and was all reimbursed by BeMetals. |
12. Subsequent Events
12. Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Notes | |
12. Subsequent Events | 12. Subsequent Events On March 5, 2021, the company received Tranche 5 cash payment of $250,000 in accordance with the BeMetals Option Agreement. |
1. Summary of Significant Acc_2
1. Summary of Significant Accounting Policies and Business Operations: COVID 19 Contingency Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
COVID 19 Contingency Policy | COVID-19 In March 2020, COVID-19 was declared a pandemic by the World Health Organization and the Centers for Disease Control and Prevention. Its rapid spread around the world and throughout the United States prompted many countries, including the United States, to institute restrictions on travel, public gatherings and certain business operations. These restrictions disrupted economic activity in Thunder Mountain Gold’s business related to raising capital. As of December 31, 2020, the disruption did not materially impact the Company’ financial statements. However, if the severity of the economic disruptions increase as the duration of the COVID-19 pandemic continues, the negative financial impact could be significantly greater in future periods. The effects of the continued outbreak of COVID-19 and related government responses could also include extended disruptions to supply chains and capital markets, reduced labor availability and a prolonged reduction in economic activity. These effects could have a variety of adverse impacts to the Company. As of December 31, 2020, there were no material adverse impacts to the Company’ operations due to COVID-19. In addition, the economic disruptions caused by COVID-19 could also adversely impact the impairment risks for certain long-lived assets, and equity method investments. Thunder Mountain Gold evaluated these impairment considerations and determined that no such impairments occurred as of December 31, 2020. The effects of the continued outbreak of COVID-19 and related government responses could have disruptions to the “BeMetals Option Agreement. In the event, if BeMetals decides not to proceed with the South Mountain Project, BeMetals will not be obligated to make any additional payments. The COVID-19 outbreak could have a variety of adverse impacts to the Company, including their ability to continue operations of their exploration under the BeMetals Operation Agreement. As of December 31, 2020, there were no material adverse impacts to the Company’s BeMetal Options Agreement due to COVID-19. |
1. Summary of Significant Acc_3
1. Summary of Significant Accounting Policies and Business Operations: Principles of Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company; its wholly owned subsidiaries, Thunder Mountain Resources, Inc. (“TMRI”) and South Mountain Mines, Inc. (“SMMI”); and a company in which the Company owns 75% and has majority control, Owyhee Gold Trust, LLC (“OGT”). The Company’s consolidated financial statements reflect the other investor’s 25% non-controlling, capped interest in OGT. Intercompany accounts are eliminated in consolidation. |
1. Summary of Significant Acc_4
1. Summary of Significant Accounting Policies and Business Operations: Accounting Estimates (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Accounting Estimates | Accounting 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 the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions include the carrying value of properties and mineral interests, environmental remediation liabilities, deferred tax assets, and stock-based compensation. Management’s estimates and assumptions are based on historical experience and other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. |
1. Summary of Significant Acc_5
1. Summary of Significant Accounting Policies and Business Operations: Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Revenue Recognition | Revenue Recognition Management service revenue is recognized when the Company has satisfied its performance obligation required under its management contract. Such obligation is satisfied over time as work is performed and the Company has a contractual right to payment. |
1. Summary of Significant Acc_6
1. Summary of Significant Accounting Policies and Business Operations: Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Income Taxes | Income Taxes Revenue from BeMetals Option Agreement is recognized in accordance with the BeMetals contract recorded when received. (See Note 3) The Company recognizes deferred income tax liabilities or assets at the end of each period using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of the deferred tax assets will not be realized. |
1. Summary of Significant Acc_7
1. Summary of Significant Accounting Policies and Business Operations: Fair Value Measures (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Fair Value Measures | Cash and Cash Equivalents For the purposes of the balance sheet and statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be a cash equivalent. |
Fair Value Measures | 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. At December 31, 2020, the Company has one financial asset, investment in equity security, that is adjusted to fair value on a recurring basis for which the fair value is determined based on Level 1 inputs as the equity security is traded on a stock exchange. The Company has no financial liabilities that are adjusted to fair value on a recurring basis. |
1. Summary of Significant Acc_8
1. Summary of Significant Accounting Policies and Business Operations: Financial Instruments (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Financial Instruments | Financial Instruments The Company’s financial instruments include cash and cash equivalents, investment in equity security and related party notes payable the carrying value of which approximates fair value based on the nature of those instruments. |
1. Summary of Significant Acc_9
1. Summary of Significant Accounting Policies and Business Operations: Investments (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Investments | Investments The Company determines the appropriate classification of investments at the time of acquisition and re-evaluates such determinations at each reporting date. Equity securities determined to be marketable are carried at fair value determined using Level 1 fair value measurement inputs with the change in fair value recognized as unrealized gain (loss) in the Consolidated Statement of Operations each reporting period. Realized gains and losses on the sale of securities are recognized on a specific identification basis. |
1. Summary of Significant Ac_10
1. Summary of Significant Accounting Policies and Business Operations: Mineral Interests (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Mineral Interests | Mineral Interests The Company capitalizes costs for acquiring mineral interests, and expenses costs to maintain mineral rights and leases as incurred. Exploration costs are expensed in the period in which they occur. Should a property reach the production stage, these capitalized costs would be amortized using the units-of-production method based on periodic estimates of ore reserves. Mineral interests are periodically assessed for impairment of value and any subsequent losses are charged to operations at the time of impairment. If a mineral interest is abandoned or sold, its capitalized costs are charged to operations. Consideration received by the Company pursuant to joint ventures or purchase option agreements is applied against the carrying value of the related mineral interest. When and if payments received exceed the carrying value, the excess amount is recognized as a gain in the Consolidated Statement of Operations in the period the consideration is received. |
1. Summary of Significant Ac_11
1. Summary of Significant Accounting Policies and Business Operations: Investments in Joint Venture (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Investments in Joint Venture | Investments in Joint Ventures For companies and joint ventures where the Company holds more than 50% of the voting interests, but less than 100%, and has significant influence, the company or joint venture is consolidated, and other investor interests are presented as noncontrolling. See Note 3 regarding the Company’s investment in Owyhee Gold Trust. Joint Ventures in which the Company has the ability to exercise significant influence, but does not control, are accounted for under the equity method of accounting. |
1. Summary of Significant Ac_12
1. Summary of Significant Accounting Policies and Business Operations: Reclamation and Remediation (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Reclamation and Remediation | Reclamation and Remediation The Company’s operations have been, and are subject to, standards for mine reclamation that have been established by various governmental agencies. The Company would record the fair value of an asset retirement obligation as a liability in the period in which the Company incurred a legal obligation for the retirement of tangible long-lived assets. A corresponding asset would also be recorded and depreciated over the life of the asset. 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 management’s estimate of amounts expected to be incurred when the remediation work is performed. At December 31, 2019 and 2020, the Company had accrued $65,000 on it’s Consolidated Balance Sheets relating to estimated mine closure and reclamation costs on its South Mountain Mines property. |
1. Summary of Significant Ac_13
1. Summary of Significant Accounting Policies and Business Operations: Share-based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Share-based Compensation | Share-Based Compensation Share-based payments to employees and directors, including grants of employee stock options, are measured at fair value and expensed in the Consolidated Statement of Operations over the vesting period. |
1. Summary of Significant Ac_14
1. Summary of Significant Accounting Policies and Business Operations: Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Updates Adopted In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The update removes, modifies and makes additions to the disclosure requirements on fair value measurements. The update is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company evaluated the new standard in the first quarter of 2020 and determined that ASU 2018-13 did not have an impact on the Company’s consolidated financial statement disclosures. Accounting Standards Updates to Become Effective in Future Periods In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update contains a number of provisions intended to simplify the accounting for income taxes. The update is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Management is evaluating the impact of this update on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, Clarifying the Interactions Between Topic 321, Topic 323 and Topic 815. ASU 2020-01 which makes improvements related to accounting for certain equity securities when the equity method of accounting is applied or discontinued, and scope considerations related to forward contracts and purchased options on certain securities. ASU 2020-01 is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. |
1. Summary of Significant Ac_15
1. Summary of Significant Accounting Policies and Business Operations: Net Income (loss) Per Share (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Policies | |
Net Income (loss) Per Share | Net Income (Loss) Per Share The Company is required to have dual presentation of basic earnings per share (“EPS”) and diluted EPS. The Company calculates basic earnings (loss) per share by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding. We do not include the impact of any potentially dilutive common stock equivalents in our basic earnings (loss) per share calculations. Diluted earnings per share reflect potentially dilutive common stock equivalents, including options and warrants that could share in our earnings through the conversion of common shares, except where their inclusion would be anti-dilutive. For the year ended December 31, 2020 outstanding common stock equivalents consisting of 5,705,000 outstanding stock options were included in calculating diluted weighted average shares outstanding. For the year ended December 31, 2019, stock options of 960,000 are included in and 4,075,000 are excluded from the calculation of diluted income per share. Options are excluded because their exercise prices were greater than the average trading price of the Company’s common stock for the year. Diluted common shares outstanding were calculated using the treasury stock method and are as follows: December 31, 2020 2019 Weighted average number of common shares calculated using basic net income per common share 60,145,579 59,042,839 Effect of common stock equivalents: Stock options 1,544,968 286,896 Weighted average number of common shares calculated using diluted net income per common share 61,690,547 59,329,735 |
1. Summary of Significant Ac_16
1. Summary of Significant Accounting Policies and Business Operations: Net Income (loss) Per Share: Diluted common shares outstanding (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Diluted common shares outstanding | December 31, 2020 2019 Weighted average number of common shares calculated using basic net income per common share 60,145,579 59,042,839 Effect of common stock equivalents: Stock options 1,544,968 286,896 Weighted average number of common shares calculated using diluted net income per common share 61,690,547 59,329,735 |
2. Mineral Interest Commitmen_2
2. Mineral Interest Commitments: Other Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Other Commitments | Annual Payment Acree Lease (June) $ 3,390 Lowry Lease (October) 11,280 Total $ 14,670 |
2. Mineral Interest Commitmen_3
2. Mineral Interest Commitments: Schedule of unpatented claims lease payments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of unpatented claims lease payments | Target Area 2020 Trout Creek -State of Nevada $ 12,090 Trout Creek -Lander County, Nevada 940 South Mountain-State of Idaho 3,255 Total $ 16,285 |
3. South Mountain Project_ Chan
3. South Mountain Project: Changes in non-controlling interest equity balance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Changes in non-controlling interest equity balance | Years Ended December 31, 2020 2019 Balance at beginning of year $ 173,702 $ 173,702 Distribution to non-controlling interest (5,000) (5,000) Net income attributable to noncontrolling interest 5,000 5,000 Balance at end of year $ 173,702 $ 173,702 |
5. Property and Equipment_ Prop
5. Property and Equipment: Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Property, Plant and Equipment | December 31, 2020 2019 Vehicles $ 22,441 22,441 Buildings 65,071 65,071 Construction Equipment 36,447 36,447 Mining Equipment 58,646 58,646 182,605 182,605 Accumulated Depreciation (177,650) (156,694) 4,954 25,911 Land 280,333 280,333 Total Property and Equipment $ 285,287 306,244 |
9. Stock Options_ Schedule of S
9. Stock Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | March 27, 2020 March 25, 2019 Stock price $0.099 $0.09 Exercise price $0.099 $0.09 Expected volatility 218.6% 209.5% Expected dividends - - Expected terms (in years) 5.0 5.0 Risk-free rate 0.39% 2.21% |
9. Stock Options_ Schedule of_2
9. Stock Options: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | Shares Weighted Average Exercise Price Outstanding and exercisable at December 31, 2018 3,710,000 0.09 Granted 0.09 Outstanding and exercisable at December 31, 2019 5,035,000 $0.09 Granted 1,630,000 $0.099 Expired (960,000) (0.06) Outstanding and exercisable at December 31, 2020 5,705,000 $0.0997 |
10. Income Taxes_ Schedule of D
10. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 1,547,400 $ 1,448,900 Share-based compensation 133,400 90,800 Deferred compensation 278,000 278,000 Investments - 39,500 Mineral properties 179,300 212,400 2,138,100 2,069,600 Deferred tax liabilities: Investment in OGT (147,100) (146,800) Investments (302,900) - Net deferred tax assets 1,688,100 1,922,800 Less valuation allowance (1,688,100) (1,922,800) Net deferred tax asset $ - $ - |
10. Income Taxes_ Schedule of E
10. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | 2020 2019 (Provision) benefit at statutory rates $ (256,600) (21.0)% $ (228,300) 21.0% State taxes (69,600) (5.7) (61,800) (5.7) Permanent differences (12,600) 1.0 600 0.1 Change in prior year tax estimates 104,100 8.2 (3,600) (0.4) Change in valuation allowance 234,700 (19.2) 293,100 27.0 Total $ - - % $ - - % |
1. Summary of Significant Ac_17
1. Summary of Significant Accounting Policies and Business Operations (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Details | |
Nature of Operations | Thunder Mountain Gold, Inc. (“Thunder Mountain”, “THMG”, or “the Company”) was originally incorporated under the laws of the State of Idaho on November 9, 1935, under the name of Montgomery Mines, Inc. In April 1978, the Montgomery Mines Corporation was obtained by a group of the Thunder Mountain property holders and changed its name to Thunder Mountain Gold, Inc., with the primary goal to further develop their holdings in the Thunder Mountain Mining District, located in Valley County, Idaho. Thunder Mountain Gold, Inc. takes its name from the Thunder Mountain Mining District, where its principal lode mining claims were located. For several years, the Company’s activities were restricted to maintaining its property position and exploration activities. During 2005, the Company sold its holdings in the Thunder Mountain Mining District. During 2007, the Company acquired the South Mountain Mines property in southwest Idaho and initiated exploration activities on that property, which continue today. |
Entity Incorporation, Date of Incorporation | Nov. 9, 1935 |
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 historically incurred losses, however, under the BeMetals Option Agreement (Note 3), the Company now has a recurring source of revenue, and its ability to continue as a going concern is no longer dependent on equity capital raises and borrowings. However, if necessary, the Company continues to have the ability to raise additional capital in order to fund its future exploration and working capital requirements. The Company’s plans for the long-term continuation as a going concern include operating on the cash flows and consideration payments provided under the BeMetals Option Agreement. |
1. Summary of Significant Ac_18
1. Summary of Significant Accounting Policies and Business Operations: Net Income (loss) Per Share: Diluted common shares outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Details | ||
Weighted average number of common shares calculated using basic net income per common share | 60,145,579 | 59,042,839 |
Stock options | 1,544,968 | 286,896 |
Weighted average number of common shares calculated using diluted net income per common share | 61,690,547 | 59,329,735 |
2. Mineral Interest Commitmen_4
2. Mineral Interest Commitments: Other Commitments (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Details | |
Acree Lease | $ 3,390 |
Lowry Lease | 11,280 |
Payments to Acquire Mineral Rights | $ 14,670 |
2. Mineral Interest Commitmen_5
2. Mineral Interest Commitments: Schedule of unpatented claims lease payments (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Details | |
Trout Creek - State of Nevada | $ 12,090 |
Trout Creek - Lander County | 940 |
South Mountain - State of Idaho | 3,255 |
Claim fees | $ 16,285 |
3. South Mountain Project (Deta
3. South Mountain Project (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Advances received from affiliate, unspent | $ 38,384 | $ 73,343 |
3. South Mountain Project_ Ch_2
3. South Mountain Project: Changes in non-controlling interest equity balance (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Details | ||
Beginning balance | $ 173,702 | $ 173,702 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (5,000) | (5,000) |
Net income - noncontrolling interest in Owyhee Gold Trust | 5,000 | 5,000 |
Nonredeemable Noncontrolling Interest | $ 173,702 | $ 173,702 |
4. Investment in Equity Secur_2
4. Investment in Equity Security (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Details | ||
Fair Value Shares Received In Option Agreement | $ 3,018,634 | |
Unrealized Gain on Securities | $ 1,282,804 | |
Unrealized Gain (Loss) on Securities | $ 148,045 |
5. Property and Equipment_ Pr_2
5. Property and Equipment: Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Vehicles | $ 22,441 | $ 22,441 |
Buildings | 65,071 | 65,071 |
Construction Equipment | 36,447 | 36,447 |
Mining Equipment | 58,646 | 58,646 |
Property, Plant and Equipment, Gross | 182,605 | 182,605 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (177,650) | (156,694) |
Land | 280,333 | 280,333 |
Property, Plant and Equipment, Other, Gross | $ 285,287 | $ 306,244 |
6. PPP Loan (Details)
6. PPP Loan (Details) | Dec. 31, 2020USD ($) |
Details | |
Notes Payable to Bank, Noncurrent | $ 48,000 |
7. Related Parties (Details)
7. Related Parties (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related parties notes payable (Note 7) | [1] | $ 106,576 | $ 106,576 | $ 106,576 | |
Accrued interest payable to related parties (Note 7) | [1] | 88,531 | 88,531 | 73,343 | |
Interest paid in cash | 0 | 736 | |||
Deferred compensation (Note 7) | [2] | 1,041,500 | 1,041,500 | 1,041,500 | |
Legal and accounting | 56,343 | 135,015 | |||
Accounts payable and other accrued liabilities | 60,410 | 60,410 | 96,973 | ||
Jones | |||||
Related parties notes payable (Note 7) | [1] | 66,768 | 66,768 | 66,768 | |
Accrued interest payable to related parties (Note 7) | [1] | 47,697 | 47,697 | 37,286 | |
Deferred compensation (Note 7) | [2] | 420,000 | 420,000 | 420,000 | |
Collord | |||||
Related parties notes payable (Note 7) | [1] | 39,808 | 39,808 | 39,808 | |
Accrued interest payable to related parties (Note 7) | [1] | 40,834 | 40,834 | 36,057 | |
Deferred compensation (Note 7) | [2] | 420,000 | 420,000 | 420,000 | |
Beckman | |||||
Related parties notes payable (Note 7) | [1] | 0 | 0 | 10,000 | |
Interest paid in cash | [1] | 736 | |||
Thackery | |||||
Deferred compensation (Note 7) | [2] | 201,500 | 201,500 | 201,500 | |
Baird | |||||
Legal and accounting | 186,685 | 216,685 | $ 65,530 | ||
Payments for Other Fees | 30,000 | ||||
Management | |||||
Accounts payable and other accrued liabilities | $ 42,377 | $ 42,377 | $ 34,761 | ||
[1] | BS3 | ||||
[2] | BS2 |
8. Stockholders' Equity (Detail
8. Stockholders' Equity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Details | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Shares issued for cash | 2,500,000 | |
Shares and warrants issued for cash | $ 250,000 |
9. Stock Options (Details)
9. Stock Options (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 27, 2020 | Mar. 25, 2019 | |
Details | ||||
Stock options granted to directors | 1,630,000 | 1,325,000 | ||
Stock options granted to directors, fair value | $ 159,740 | $ 117,088 | ||
Exercise price per share | $ 0.099 | $ 0.09 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 3 months 10 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 361,180 |
9. Stock Options_ Schedule of_3
9. Stock Options: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Details | ||
Stock price per share | $ 0.099 | $ 0.09 |
Exercise price per share | $ 0.099 | $ 0.09 |
Expected volatility | 218.60% | 209.50% |
Expected terms | 5.0 | 5.0 |
Risk-free rate | 0.39% | 2.21% |
9. Stock Options_ Schedule of_4
9. Stock Options: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Details | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 5,705,000 | 5,035,000 | 3,710,000 |
Weighted Average Exercise Price, Outstanding | $ 0.0997 | $ 0.09 | $ 0.09 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 1,630,000 | 1,325,000 | |
Weighted Average Exercise Price, Granted | $ 0.099 | $ 0.09 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | (960,000) | ||
Weighted Average Exercise Price, Expired | $ (0.06) |
10. Income Taxes_ Schedule of_2
10. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred tax assets: | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 1,547,400 | $ 1,448,900 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Amount | 133,400 | 90,800 |
Effective Income Tax Rate Reconciliation, Deduction, Amount | 278,000 | 278,000 |
Investments | 0 | 39,500 |
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount | 179,300 | 212,400 |
Deferred tax liabilities: | ||
Income tax reconciliation for investment | (147,100) | (146,800) |
Income tax reconciliation for investment other | (302,900) | 0 |
Deferred Tax Assets, Net | 1,688,100 | 1,922,800 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | (1,688,100) | (1,922,800) |
Deferred Tax Assets, Net of Valuation Allowance | $ 0 | $ 0 |
10. Income Taxes_ Schedule of_3
10. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Details | ||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ (256,600) | $ (228,300) |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 0.00% | |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | (69,600) | $ (61,800) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | (5.70%) | |
Income Tax Reconciliation Permanent Differences | (12,600) | $ 600 |
Income Tax Reconciliation Permanent Differences | 0.10% | |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | 104,100 | $ (3,600) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (0.40%) | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 234,700 | $ 293,100 |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | 27.00% | |
Income Tax Expense (Benefit) | $ 0 | $ 0 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 0.00% |
11. Leases (Details)
11. Leases (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Details | ||
Right of Use Lease Asset at Inception | $ 29,617 | |
Capital Leases, Future Minimum Payments Due | $ 16,426 | $ 15,750 |
12. Subsequent Events (Details)
12. Subsequent Events (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Details | |
Subsequent Event, Description | On March 5, 2021, the company received Tranche 5 cash payment of $250,000 in accordance with the BeMetals Option Agreement. |