Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 07, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Standard Metals Processing, Inc. | |
Entity Central Index Key | 0000773717 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity shell Company | false | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Document Fiscal Year Focus | 2019 | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | No | |
Entity Common Stock, Shares Outstanding | 128,997,423 | |
Entity File Number | 000-14319 | |
Entity Interactive Data Current | No | |
Entity Incorporation State Country Code | NV |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 1,792 | $ 1,001 |
Total current assets | 1,792 | 1,001 |
Mining and mineral rights | 3,883,524 | 3,883,524 |
Total Assets | 3,885,316 | 3,884,525 |
Current liabilities: | ||
Senior secured promissory note payable, related party | 2,229,187 | 2,229,187 |
Promissory notes payable - related party | 477,500 | 477,500 |
Convertible notes payable, including $37,000 from related parties | 176,500 | 168,000 |
Accrual for settlement of lawsuits | 3,033,827 | 2,976,623 |
Accounts payable | 2,221,814 | 2,230,314 |
Accrued interest - Related party $1,154,940 and $1,096,235 at March 31, 2019 and December 31, 2018 | 1,450,298 | 1,338,251 |
Total current liabilities | 9,589,126 | 9,419,875 |
Preferred stock, 50,000,000 shares authorized: | ||
Series A, $.001 par value, 10,000,000 and 10,000,000 shares issued and outstanding at March 31, 2019 and December 31, 2018 | 10,000,000 | 10,000,000 |
Commitments and Contingencies (Note 6) | ||
Shareholders' deficit: | ||
Common stock, $0.001 par value, 500,000,000 shares authorized: 129,497,423 issued and 124,497,423 outstanding at March 31, 2019 and December 31, 2018 | 124,497 | 124,497 |
Additional paid-in capital | 87,525,115 | 87,525,115 |
Accumulated deficit | (103,353,422) | (103,184,962) |
Total shareholders' deficit | (15,703,810) | (15,535,350) |
Total Liabilities and Shareholders’ deficit | $ 3,885,316 | $ 3,884,525 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Convertible notes payable, related parties | $ 37,000 | $ 37,000 |
Due to related parties | $ 1,154,940 | $ 1,096,235 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, issued | 129,497,423 | 129,497,423 |
Common stock, outstanding | 124,497,423 | 124,497,423 |
Preferred Stock | ||
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Series A Preferred Stock | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, issued | 10,000,000 | 10,000,000 |
Preferred stock, outstanding | 10,000,000 | 10,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | ||
Operating expenses: | ||
General and administrative | 1,643 | 50,237 |
Total operating expenses | 1,643 | 50,237 |
Loss from operations | (1,643) | (50,237) |
Other income (expense): | ||
Other income | 2,433 | 1,825 |
Interest expense, including related party of $58,705 | (169,250) | (497,745) |
Amortization of debt discount | (55,583) | |
Total other income (expense) | (166,817) | (551,503) |
Loss before income tax provision | (168,460) | (601,740) |
Income tax provision | ||
Net loss | $ (168,460) | $ (601,740) |
Basic net loss per common share | $ 0 | $ 0 |
Basic weighted average common shares outstanding | 124,497,423 | 121,327,499 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Interest expense, related party | $ 58,705 | $ 58,705 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (168,460) | $ (601,740) |
Adjustments to reconcile net loss to cash flows used in operating activities: | ||
Amortization of debt issuance costs | 55,583 | |
Changes in operating assets and liabilities | ||
Prepaid expenses | 3,039 | |
Accounts payable | 33,907 | |
Accrued expenses | 112,047 | 59,804 |
Accrual for settlement of lawsuits | 57,204 | 389,623 |
Net cash used in operating activities | 791 | (59,784) |
Cash flows from financing activities: | ||
Proceeds from convertible debentures | 63,000 | |
Net cash provided by financing activities | 63,000 | |
(Decrease) Increase in cash | 791 | 3,216 |
Cash, beginning of period | 1,001 | 2,185 |
Cash, end of period | 1,792 | 5,401 |
Supplemental cash flow disclosures | ||
Cash paid for interest cost | 14,101 | |
Income taxes paid | ||
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Settlement of liabilities through direct payment by related party | 18,500 | |
Debt discount on through direct payment convertible notes payable | 38,000 | |
Conversions of convertible debt and accrued interest into common stock | $ 148,181 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Changes in Shareholders' Deficit - USD ($) | Common stock | APIC | Accumulated deficit | Total |
Balance at Dec. 31, 2017 | $ 119,502 | $ 87,201,267 | $ (103,174,808) | $ (15,854,039) |
Balance, shares at Dec. 31, 2017 | 119,501,581 | |||
Shares issued in connection with notes payable conversion | $ 4,745 | 261,098 | 265,843 | |
Shares issued in connection with notes payable conversion, shares | 4,745,842 | |||
Shares issued upon exercise of warrants | $ 250 | 24,750 | 25,000 | |
Shares issued upon exercise of warrants, shares | 250,000 | |||
Beneficial conversion feature of convertible debt | 38,000 | 38,000 | ||
Net loss | (10,154) | (10,154) | ||
Balance at Dec. 31, 2018 | $ 124,497 | 87,525,115 | (103,184,962) | (15,535,350) |
Balance, Shares at Dec. 31, 2018 | 124,497,423 | |||
Net loss | (168,460) | (168,460) | ||
Balance at Mar. 31, 2019 | $ 124,497 | $ 87,525,115 | $ (103,353,422) | $ (15,703,810) |
Balance, Shares at Mar. 31, 2019 | 124,497,423 |
Nature of Business
Nature of Business | 3 Months Ended |
Mar. 31, 2019 | |
Nature Of Business [Abstract] | |
NATURE OF BUSINESS | NOTE 1 – NATURE OF BUSINESS Standard Metals Processing, Inc. ("we," "us," "our," "Standard Metals" or the "Company") is an exploration stage company, incorporated in Nevada having offices in Gadsden, Alabama and through its subsidiary, a property in Tonopah, Nevada. The business plan is to purchase and install the equipment necessary to complete a facility on the Tonopah property to serve as a permitted custom processing toll milling facility (which includes an analytical lab, pyrometallurgical plant, and hydrometallurgical recovery plant). The Company plans to perform permitted custom processing toll milling which is a process whereby mined material is crushed and ground into fine particles to ease the extraction of any precious minerals contained therein, such as minerals in the gold, silver and platinum metal groups. Custom milling and refining can include many different processes that are designed specifically for each ore load and to maximize the extraction of precious metals from carbon or concentrates. These toll-processing services also distill, dry, mix, or mill chemicals and bulk materials on a contractual basis and provide a chemical production outsourcing option for industrial companies, which lack the expertise, capacity, or regulatory permits for in-house production. We are required to obtain several permits before we can begin construction of a small-scale mineral processing facility to conduct permitted processing toll milling activities and construction of the required additional buildings and well relocation necessary for us to commence operations. Going Concern The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, assuming we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the three months ended March 31, 2019, the Company had a net loss of $168,460. At March 31, 2019, the Company had an accumulated deficit of $103,353,422 and a working capital deficit of $9,587,334 . The Company's ability to continue as a going concern is dependent on their ability to raise the required additional capital or debt financing to meet short and long-term operating requirements. During the three months ended March 31, 2019, a related party advanced $18,500 on the Company's behalf to pay $8 ,500 to certain accounts payable and a $10,000 convertible note directly. As the related party intends to apply its advance toward a convertible note, it has been classified as such at March 31, 2019. Management believes that private placements of equity capital and/or additional debt financing will be needed to fund our long-term operating requirements. The Company may also encounter business endeavors that require significant cash commitments or unanticipated problems or expenses that could result in a requirement for additional cash. If the Company raises additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our current shareholders could be reduced, and such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, the Company may not be able to take advantage of prospective business endeavors or opportunities, which could significantly and materially restrict our operations. We are continuing to pursue external financing alternatives to improve our working capital position. If the Company is unable to obtain the necessary capital, the Company may have to cease operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of Standard Metals Processing, Inc., and its wholly owned subsidiary Tonopah Milling and Metals Group, Inc. and its wholly owned subsidiaries Tonopah Custom Processing, Inc., ("TCP") and Tonopah Resources, Inc. ("TR") All significant intercompany transactions, accounts and balances have been eliminated in consolidation. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"), for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2018 filed March 5, 2020. In the opinion of management, all adjustments (consisting of normal recurring adjustments unless otherwise indicated) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year as a whole. Mineral Properties Mineral property acquisition costs are recorded at cost and are deferred until the viability of the property is determined. No properties have produced operating revenues at this time. Exploration, mineral property evaluation, option payments, related acquisition costs for mineral properties acquired under an option agreement, general overhead, administrative and holding costs to maintain a property on a care and maintenance basis are expensed in the period they are incurred. When reserves are determined for a property and a bankable feasibility study is completed, subsequent exploration and development costs on the property would be capitalized. If a project were to be put into production, capitalized costs would be depleted on the unit of production basis. Management reviews the net carrying value of each mineral property as changes may materialize with a property or at a minimum, on an annual basis. Where information and conditions suggest impairment, estimated future net cash flows from each property are calculated using estimated future prices, proven and probable reserves and value beyond proven and probable reserves, and operating, capital and reclamation costs on an undiscounted basis. If it is determined that the future cash flows are less than the carrying value, a write-down to the estimated fair value is made with a charge to loss for the period. Where estimates of future net cash flows are not available and where other conditions suggest impairment, management assesses if the carrying value can be recovered. Management's estimates of gold prices, recoverable reserves, probable outcomes, operating capital and reclamation costs are subject to risks and uncertainties that may affect the recoverability of mineral property costs. The Company does not own any mining claims. It owns tailings located on the Tonopah property and some tailings located in Manhattan, Nevada. The Company has not disturbed or processed any of this material and does not intend to do so in the foreseeable future. Impairment of Long-Lived Assets and Long-Lived Assets The Company will periodically evaluate the carrying value of long-lived assets to be held and used, including but not limited to, mineral properties, mine tailings, mine dumps, capital assets and intangible assets, when events and circumstances warrant such a review and at least annually. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost to dispose. Use of Estimates Preparing 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition and Deferred Revenue As of March 31, 2019, the Company has not recognized any revenues from custom permitted processing toll milling. Income Taxes Income taxes are accounted for based upon an asset and liability approach. Accordingly, deferred tax assets and liabilities arise from the difference between the tax basis of an asset or liability and its reported amount in the financial statements. Deferred tax amounts are determined using the tax rates expected to be in effect when the taxes will actually be paid or refunds received, as provided under currently enacted tax law. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense or benefit is the tax payable or refundable, respectively, for the period plus or minus the change in deferred tax assets and liabilities during the period. Accounting guidance requires the recognition of a financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company believes its income tax filing positions and deductions will be sustained upon examination and accordingly, no reserves, or related accruals for interest and penalties have been recorded at March 31, 2019 and December 31, 2018. The Company recognizes interest and penalties on unrecognized tax benefits as well as interest received from favorable tax settlements within income tax expense. On December 22, 2017, the President of the United States signed and enacted into law H.R. 1 (the "Tax Reform Law"). The Tax Reform Law, effective for tax years beginning on or after January 1, 2018, except for certain provisions, resulted in significant changes to existing United States tax law, including various provisions that are expected to impact the Company. The Tax Reform Law reduces the federal corporate tax rate from 34% to 21% effective January 1, 2018. Management believes the provisions of the Tax Reform Law will have a favorable impact on the Company's consolidated financial statements should it attain a level of profitable operations. Recent Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers," which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for annual reporting periods for public business entities beginning after December 15, 2017, including interim periods within that reporting period. The new standard permits the use of either the retrospective or cumulative effect transition method. The Company adopted ASU 2014-09 January 1, 2018, and as there have been no revenues to date, the adoption did not have a material impact on the Company's financial position or results of operations, and no transition method was necessary upon adoption. In February 2016, the FASB issued ASU No. 2016-02, Leases During the period ended March 31, 2019 and through the date of this filing, there were several new accounting pronouncements issued by the Financial Accounting Standards Board. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company's consolidated financial statements. |
Mining and Mineral Rights
Mining and Mineral Rights | 3 Months Ended |
Mar. 31, 2019 | |
Extractive Industries [Abstract] | |
MINING AND MINERAL RIGHTS | NOTE 3 – MINING AND MINERAL RIGHTS The Company is preparing the Tonopah property site for the construction of a permitted custom processing toll milling facility including grading the land, installing fencing and working with contractors for our planned 21,875 square foot building and servicing and drilling various wells for our future operations. The Company has continued to assess the realizability of its mining and mineral rights. Based on an assessment the Company conducted in January 2020. The Company decided its land, mineral rights and water rights are inseparable and depend on each other in value creation. Accordingly, during the three months ended March 31, 2019, the Company combined the carrying value of the assets to present them more clearly as to their intended use together: FORMERLY - Property, Plant and Equipment: Shea Mining & Milling asset purchase $ 2,108,300 Equipment, net of $21,000 accumulated depreciation. 0 Construction in progress 1,775,224 $ 3,883,524 NOW - Mining Assets and Mineral Rights $ 3,883,524 |
Convertible Notes Payable
Convertible Notes Payable | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 4 – CONVERTIBLE NOTES PAYABLE In January 2018, the Company issued three convertible promissory notes in the principal amounts of $8,000, $40,000 and $15,000. The notes are due one year from date of issuance and accrue interest at 6%. The notes are convertible into common shares of the Company at a conversion price of $0.05, with no adjustments to the conversion price. The conversion feature meets the definition of conventional convertible debt and therefore qualifies for the scope exception in Accounting Standards Codification ("ASC") 815-10-15-74(a) and would not be bifurcated and accounted for separately as a derivative liability. The Company analyzed the conversion feature under ASC 470-20, " Debt with conversion and other options On January 29, 2018, five of the outstanding convertible promissory notes payable issued in the year ending December 31, 2017 and two of the January 2018 convertible promissory notes payable, totaling principal of $144,796 and accrued interest of $3,385, were converted into 2,693,978 shares of restricted common stock, at conversion prices ranging from $0.025 to $0.075. Upon conversion the related unamortized debt discount of $46,250 (including the $38,000 mentioned previously) was immediately expensed. During May 2018 and June 2018, two of the convertible promissory notes outstanding as of the year ending December 31, 2017, and two notes that were issued in May 2018 totaling principal of $105,000 together with accrued interest of $2,387, were converted into an aggregate of 2,051,864 shares of restricted common stock, at conversion prices ranging from $0.05 to $0.09. Upon conversion the related unamortized debt discount of $16,277 was expensed during the year ended December 31, 2018. On June 14, 2018, the Company settled an outstanding account payable through the issuance and subsequent conversion of a convertible promissory note in the principal amount of $10,000. The note, which was issued December 29, 2017, was due December 29, 2018 and accrued interest at 6%. The note was convertible into common shares of the Company at a conversion price of $0.025. The note was issued as a settlement in exchange for a $91,463 account payable, that the noteholder purchased from a vendor on December 29, 2017. Upon conversion of the note into 411,046 shares of restricted common stock of the Company, the noteholder signed a debt settlement and release agreement for the outstanding account payable, resulting in a gain on settlement to be recognized in the six months ending June 30, 2018, of $81,463. During the three months ended March 31, 2019 a related party advanced $18,500 which it used to pay directly on the Company's behalf, $8,500 to reduce certain accounts payable and $10,000 to reduce one of the outstanding convertible promissory notes. The advance was made by Granite Peak Resources, LLC, a related party and was included in the convertible promissory issued by the Company on December 17, 2019. The $18,500 advance has been classified accordingly at March 31, 2019. See Note 9. After the foregoing note conversions and advance received, there was $176,500 of principal and $74,749 of accrued interest outstanding on convertible debentures, and a related unamortized discount of $0 at March 31, 2019. With exception of the $18,500 of principal advanced this quarter, the pre-existing convertible notes are in default . |
Shareholders' Deficit
Shareholders' Deficit | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' DEFICIT | NOTE 5 – SHAREHOLDERS' DEFICIT Common Stock Common Stock issued on conversion of notes payable On July 22, 2016 three convertible promissory notes payable totaling $160,000 and accrued interest of $4,919 were converted into 4,879,067 shares of restricted common stock. On December 28, 2016 a convertible promissory note payable totaling $65,000 and accrued interest of $353 were converted into 3,262,838 shares of restricted common stock. Option Grants Option Grants The Company uses the Black-Scholes pricing model as a method for determining the estimated fair value for stock awards. Compensation expense for stock awards is recognized on a straight-line basis over the vesting period of service awards and for performance-based awards, the Company recognizes the expense when the performance condition is probable of being met. The Company reviews its current assumptions on a periodic basis and adjusts them as necessary to ensure an accurate valuation. The risk-free interest rate is based on the Federal Reserve Board's constant maturities of the U.S. Treasury bond obligations with terms comparable to the expected life of the options at their issuance date. The Company uses historical data to estimate expected forfeitures, expected dividend yield, expected volatility of the Company's stock and the expected life of the options. In June 2018, 250,000 options granted in 2015 and originally exercisable at $0.75 per share were exercised at a price of $0.10 per share in exchange for $25,000 in cash. The Company recorded no compensation expense for the three months ended March 31, 2019 and 2018. As of March 31, 2019, there was $0 in unrecognized compensation expense. The Company did not grant any options during the three months ended March 31, 2019, and no options expired, or were cancelled. There are no unvested options as of March 31, 2019. The following tables summarize information about stock options outstanding and exercisable: Options Outstanding and Exercisable at March 31, 2019 Range of Exercise Prices Number Weighted Weighted Aggregate $0.40 to $0.60 5,276,223 1.6 years $ 0.46 $ — $0.61 to $1.00 9,800,000 1.4 years $ 0.67 $ — $1.01 to $1.50 14,500,000 1.5 years $ 1.25 $ — $1.51 to $2.25 3,000,000 2.0 years $ 1.63 $ — $0.40 to $2.25 32,576,223 1.6 years $ 0.98 $ — (1) The aggregate intrinsic value in the table represents the difference between the closing stock price on March 31, 2019 and December 31, 2018, and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their options on March 31, 2019 and December 31, 2018. Common Stock Purchase Warrants For warrants granted to non-employees in exchange for services, the Company recorded the fair value of the equity instrument using the Black-Scholes pricing model unless the value of the services is more reliably measurable. The Company did not grant any warrants during the three months ended March 31, 2019, and no warrants were exercised, expired, or were cancelled. At March 31, 2019 there were 6,125,640 warrants outstanding, with exercise prices ranging from $0.20 to $1.23, a weighted exercise price of $0.77 and a weighted remaining contractual life of 2 years. The aggregate intrinsic value of the 4,865,640 outstanding and exercisable warrants at March 31, 2019 and December 31, 2018 was $0. The intrinsic value is the difference between the closing stock price on March 31, 2019 and December 31, 2018 and the exercise price, multiplied by the number of in-the-money warrants had all warrant holders exercised their warrants on March 31, 2019 or December 31, 2018. The following table summarizes information about the Company's stock purchase warrants outstanding at March 31, 2019 and December 31, 2018. Number Weighted Range Weighted Outstanding at December 31, 2017 6,125,640 $ 0.77 $ 0.20 – 1.23 2.2 years Granted — Cancelled or expired (1,260,000 ) $ 0.50 $ 0.30 – 0.70 Exercised — Outstanding and exercisable at December 31, 2018 4,865,640 0.84 0.20 --1.23 1.3 years Granted Cancelled or expired Outstanding and exercisable at March 31, 2019 4,865,640 $ 0.84 $ 0.20 - 1.23 1.0 years (1) The aggregate intrinsic value of the 4,865,640 outstanding and exercisable warrants at March 31, 2019 and December 31, 2018 was $0. The intrinsic value is the difference between the closing stock price on March 31, 2019 and December 31, 2018 and the exercise price, multiplied by the number of in-the-money warrants had all warrant holders exercised their warrants on March 31, 2019 and December 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6 – COMMITMENTS AND CONTINGENCIES Legal Matters Stephen E. Flechner v. Standard Metals Processing, Inc. On April 29, 2014, Stephen E. Flechner filed suit in the United States District Court for the District of Colorado against Standard Metals Processing, Inc. alleging that Standard Metals had refused to allow him to exercise stock options granted to him pursuant to a Stock Option Agreement, dated April 1, 2010, and a second Stock Option Agreement, dated January 21, 2011. On June 12, 2014, Standard Metals filed an Answer and a Motion to Dismiss or, Alternatively, to Stay or Transfer the action to the United States District Court for the Northern District of Alabama, Middle Division. On January 16, 2015, Standard Metals filed a Motion for Summary Judgment. On January 23, 2015, the Court issued an Order granting in part and denying in part Standard Metals’ Motion to Dismiss or, Alternatively, to Stay or Transfer the action to the United States District Court for the Northern District of Alabama, Middle Division. The Court in its Order stayed further proceedings in Colorado pending the issuance of orders by the Alabama court. Thereafter, on January 26, 2015, the Court issued an Order vacating the February 20, 2015 Trial Preparation Conference and the March 9, 2015 Bench Trial. On March 23, 2015, the Court issued an Order denying Standard Metals’ Motion for Summary Judgment. On March 30, 2015, Flechner filed a Motion to Lift the Stay. On March 31, 2015, the Court issued an Order granting Flechner’s Motion to Lift the Stay. On April 6, 2015, the Court issued an Order scheduling a Bench Trial for July 29, 2015. On April 9, 2015, Flechner filed a Motion for Reconsideration of the Court’s March 23, 2015 Order Denying Flechner’s Motion to Enforce the Confidential Settlement Agreement to Settle Certain Issues. On May 1, 2015, the Court issued an Order Granting Flechner’s Motion to Enforce the Confidential Settlement Agreement to Settle Certain Issues. On August 12, 2015 the United Stated District Court for the District of Colorado issued a judgment in favor of Stephen E. Flechner for $2,157,000. An amended final judgment was ordered in adjudication of the Complaint by the U.S. District Court for the District of Colorado (the “Court”) on August 28, 2015 in favor of Flechner in the amount of $2,157,000, plus interest through the date of judgment of $235,246, plus interest of $472.76/day from August 28, 2015 until paid in full. The Company, in good faith anticipation of a settlement did not appeal the judgment and therefore, the Company’s notice of appeal was dismissed on November 17, 2015. This judgment is now non-appealable. The Company has recognized the daily interest due from the date of the August 28, 2015 judgment through March 31, 2019, totaling $641,581, resulting in a total amount of $3,033,827 being included in the Accrual for settlement of lawsuits relating to this matter in the accompanying March 31, 2019 condensed consolidated balance sheet. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 7 – RELATED PARTY TRANSACTIONS During March 2019, the Company was informed that a change of control of the Company had occurred. Granite Peak Resources, LLC ("GPR") through its members (including Pure Path Capital Management LLC) acquired 69,464,434 shares of common stock (including 4,500,000 warrants to purchase common stock). The members transferred their shares of common stock of the Company in exchange for a pro-rata ownership interest in GPR. GPR also acquired the senior secured creditor position previously held by Pure Path Capital Group LLC, which includes a $2,500,000 first deed of trust on the Tonopah property and an outstanding promissory note with a principal balance of $2,229,187 and accrued interest of $1,096,235 as of March 31, 2019. The members of Granite Peak Resources LLC are listed in the Schedule 13D filed by GPR on March 29, 2019. GPR has not communicated to the Company any plans to change any of the current officers or directors or governing documents and has expressed the purpose of its acquisition is to assist the Company execute on its business plan and resolve its current obligations and other claims. As of the date of this filing, GPR is the beneficial owner of 52.3% of the Company's common stock and the Company's largest secured creditor. The background regarding Pure Path's Senior Secured Note is described below. During the Company's acquisition of the Shea assets in 2011, Pure Path purchased the Loan Modification Agreement and the NJB Forbearance Agreement directly from NJB Mining, Inc. In connection with the assignment of a forbearance agreement the Company and Pure Path executed an Agreement in Principle setting forth terms of the forbearance agreement (collectively the "Pure Path Agreements"). Pursuant to the Pure Path Agreements, Pure Path was to receive participation payments to be received on a quarterly basis for seven years after the final closing at a rate of 5% of adjusted gross revenue as such terms are defined in the Pure Path Agreements, past and future consulting fees for approximately $1,150,000, collection remedies and legal proceedings against the Company including foreclosure on the Deed of Trust, registration rights, rights of first refusal, tag along rights, preemptive rights, exclusive worldwide rights pertaining to financing and joint ventures, and other negative covenants regarding approval of corporate actions. Pursuant to the Settlement and Release Agreement executed October 10, 2013 with the Company, Pure Path relinquished the foregoing rights and obligations owed to it and agreed to forbear collection remedies and legal proceedings against the Company including foreclosure on the Deed of Trust, and, in connection with the settlement and release of various debts of approximately $1,500,000 and the consulting fees owed by the Company, the Company issued 27,000,000 restricted shares and a Promissory Note (the "Pure Path Note") for an amount of up to $2,500,000 with a beginning principal balance of $1,933,345 bearing interest of 8% per year for the current balance of the amounts owed under the Pure Path Agreements. The outstanding principal balance on the Pure Path Note was $2,229,187 as of both March 31, 2019 and December 31, 2018, with related accrued interest of $1,001,743 and $955,701, respectively. On February 11, 2015, the Company issued an unsecured promissory note (the "Note") to Tina Gregerson Family Properties, LLC, an entity controlled by a former director of the Company. The Note for up to $750,000 was provided in tranches. Maturity of each tranche is one year from the date of receipt. Interest accrues at 8% per annum on each tranche. Under the terms of the Note, the Company received $477,500. At March 31, 2019 and December 31, 2018, there is $153,198 and $140,535 interest accrued. The Note is in default. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 8 – EARNINGS (LOSS) PER SHARE Basic net loss per common share is computed by dividing net loss applicable to common shareholders by the weighted average number of common shares outstanding during the periods presented. Diluted net loss per common share is determined using the weighted average number of common shares outstanding during the periods presented, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise of options, warrants and conversion of convertible debt. In periods where losses are reported, the weighted average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive. At March 31, 2019 and December 31, 2018, the weighted average shares from stock options of 32,576,223, warrants of 6,125,640 and Convertible Promissory note shares of 328,500 were excluded from the diluted weighted average common share calculation due to the antidilutive effect such shares would have on net loss per common share. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 9 – SUBSEQUENT EVENTS On December 17, 2019 the Company issued a promissory note to Granite Peak Resources (“GPR”) for $192,080 representing the disbursements made on the Company’s behalf during 2019. The note is payable one year from its issuance and accrues interest at 6% per annum. In December 2019, 4,500,000 options granted in 2013 and originally exercisable at $0.44 per share were exercised by GPR at a price of $0.0426 per share (the current fair market value per share based on the average of the median price and VWAP for the preceding 90 days) in exchange for the $192,080 note. The Company entered into a Forbearance Agreement with GPR effective December 20, 2019. GPR has agreed to forbear any foreclosure proceedings for six months in exchange for the Company pledging the stock of the its subsidiaries as additional collateral under its outstanding obligations. During the three months ended March 31, 2019, GPR advanced $18,500 on the Company’s behalf to pay directly certain accounts payable and a $10,000 outstanding convertible promissory note. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Standard Metals Processing, Inc., and its wholly owned subsidiary Tonopah Milling and Metals Group, Inc. and its wholly owned subsidiaries Tonopah Custom Processing, Inc., ("TCP") and Tonopah Resources, Inc. ("TR") All significant intercompany transactions, accounts and balances have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"), for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2018 filed March 5, 2020. In the opinion of management, all adjustments (consisting of normal recurring adjustments unless otherwise indicated) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year as a whole. |
Mineral Properties | Mineral Properties Mineral property acquisition costs are recorded at cost and are deferred until the viability of the property is determined. No properties have produced operating revenues at this time. Exploration, mineral property evaluation, option payments, related acquisition costs for mineral properties acquired under an option agreement, general overhead, administrative and holding costs to maintain a property on a care and maintenance basis are expensed in the period they are incurred. When reserves are determined for a property and a bankable feasibility study is completed, subsequent exploration and development costs on the property would be capitalized. If a project were to be put into production, capitalized costs would be depleted on the unit of production basis. Management reviews the net carrying value of each mineral property as changes may materialize with a property or at a minimum, on an annual basis. Where information and conditions suggest impairment, estimated future net cash flows from each property are calculated using estimated future prices, proven and probable reserves and value beyond proven and probable reserves, and operating, capital and reclamation costs on an undiscounted basis. If it is determined that the future cash flows are less than the carrying value, a write-down to the estimated fair value is made with a charge to loss for the period. Where estimates of future net cash flows are not available and where other conditions suggest impairment, management assesses if the carrying value can be recovered. Management's estimates of gold prices, recoverable reserves, probable outcomes, operating capital and reclamation costs are subject to risks and uncertainties that may affect the recoverability of mineral property costs. The Company does not own any mining claims. It owns tailings located on the Tonopah property and some tailings located in Manhattan, Nevada. The Company has not disturbed or processed any of this material and does not intend to do so in the foreseeable future. |
Impairment of Long-Lived Assets and Long-Lived Assets | Impairment of Long-Lived Assets and Long-Lived Assets The Company will periodically evaluate the carrying value of long-lived assets to be held and used, including but not limited to, mineral properties, mine tailings, mine dumps, capital assets and intangible assets, when events and circumstances warrant such a review and at least annually. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost to dispose. |
Use of Estimates | Use of Estimates Preparing 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue As of March 31, 2019, the Company has not recognized any revenues from custom permitted processing toll milling. |
Income Taxes | Income Taxes Income taxes are accounted for based upon an asset and liability approach. Accordingly, deferred tax assets and liabilities arise from the difference between the tax basis of an asset or liability and its reported amount in the financial statements. Deferred tax amounts are determined using the tax rates expected to be in effect when the taxes will actually be paid or refunds received, as provided under currently enacted tax law. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense or benefit is the tax payable or refundable, respectively, for the period plus or minus the change in deferred tax assets and liabilities during the period. Accounting guidance requires the recognition of a financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company believes its income tax filing positions and deductions will be sustained upon examination and accordingly, no reserves, or related accruals for interest and penalties have been recorded at March 31, 2019 and December 31, 2018. The Company recognizes interest and penalties on unrecognized tax benefits as well as interest received from favorable tax settlements within income tax expense. On December 22, 2017, the President of the United States signed and enacted into law H.R. 1 (the "Tax Reform Law"). The Tax Reform Law, effective for tax years beginning on or after January 1, 2018, except for certain provisions, resulted in significant changes to existing United States tax law, including various provisions that are expected to impact the Company. The Tax Reform Law reduces the federal corporate tax rate from 34% to 21% effective January 1, 2018. Management believes the provisions of the Tax Reform Law will have a favorable impact on the Company's consolidated financial statements should it attain a level of profitable operations. |
Recent Accounting Standards | Recent Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers," which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for annual reporting periods for public business entities beginning after December 15, 2017, including interim periods within that reporting period. The new standard permits the use of either the retrospective or cumulative effect transition method. The Company adopted ASU 2014-09 January 1, 2018, and as there have been no revenues to date, the adoption did not have a material impact on the Company's financial position or results of operations, and no transition method was necessary upon adoption. In February 2016, the FASB issued ASU No. 2016-02, Leases During the period ended March 31, 2019 and through the date of this filing, there were several new accounting pronouncements issued by the Financial Accounting Standards Board. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company's consolidated financial statements. |
Mining and Mineral Rights (Tabl
Mining and Mineral Rights (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Extractive Industries [Abstract] | |
Schedule of mining and mineral rights | FORMERLY - Property, Plant and Equipment: Shea Mining & Milling asset purchase $ 2,108,300 Equipment, net of $21,000 accumulated depreciation. 0 Construction in progress 1,775,224 $ 3,883,524 NOW - Mining Assets and Mineral Rights $ 3,883,524 |
Shareholders' Deficit (Tables)
Shareholders' Deficit (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stock options by exercise price range | Options Outstanding and Exercisable at March 31, 2019 Range of Exercise Prices Number Weighted Weighted Aggregate $0.40 to $0.60 5,276,223 1.6 years $ 0.46 $ — $0.61 to $1.00 9,800,000 1.4 years $ 0.67 $ — $1.01 to $1.50 14,500,000 1.5 years $ 1.25 $ — $1.51 to $2.25 3,000,000 2.0 years $ 1.63 $ — $0.40 to $2.25 32,576,223 1.6 years $ 0.98 $ — (1) The aggregate intrinsic value in the table represents the difference between the closing stock price on March 31, 2019 and December 31, 2018, and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their options on March 31, 2019 and December 31, 2018. |
Schedule of stock warrants outstanding | Number Weighted Range Weighted Outstanding at December 31, 2017 6,125,640 $ 0.77 $ 0.20 – 1.23 2.2 years Granted — Cancelled or expired (1,260,000 ) $ 0.50 $ 0.30 – 0.70 Exercised — Outstanding and exercisable at December 31, 2018 4,865,640 0.84 0.20 --1.23 1.3 years Granted Cancelled or expired Outstanding and exercisable at March 31, 2019 4,865,640 $ 0.84 $ 0.20 - 1.23 1.0 years |
Nature of Business (Details)
Nature of Business (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Nature of Business (Textual) | |||
Net loss | $ (168,460) | $ (601,740) | |
Accumulated deficit | (103,353,422) | $ (103,184,962) | |
Accounts payable | 2,221,814 | 2,230,314 | |
Convertible notes payable | 176,500 | $ 168,000 | |
Convertible Promissory Notes Payable [Member] | |||
Nature of Business (Textual) | |||
Net loss | 168,460 | ||
Accumulated deficit | (103,353,422) | ||
Working capital deficit | 9,587,334 | ||
Related party advance | 18,500 | ||
Accounts payable | 8,500 | ||
Convertible notes payable | $ 10,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 3 Months Ended |
Dec. 22, 2017 | Mar. 31, 2019 | |
Summary of Significant Accounting Policies (Textual) | ||
Summary of significant accounting policies, description | In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The standard requires all leases that have a term of over 12 months to be recognized on the balance sheet with the liability for lease payments and the corresponding right-of-use asset initially measured at the present value of amounts expected to be paid over the term. | |
Minimum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Federal corporate tax rate | 21.00% | |
Maximum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Federal corporate tax rate | 34.00% |
Mining and Mineral Rights (Deta
Mining and Mineral Rights (Details) | Mar. 31, 2019USD ($) |
Property, Plant and Equipment: | |
Shea Mining & Milling asset purchase | $ 2,108,300 |
Equipment, net of $21,000 accumulated depreciation. | 0 |
Construction in progress | 1,775,224 |
Property, Plant and Equipment, Gross | 3,883,524 |
Mining Assets and Mineral Rights | $ 3,883,524 |
Mining and Mineral Rights (De_2
Mining and Mineral Rights (Details Textual) | Mar. 31, 2019USD ($)ft² |
Mining And Mineral Rights (Textual) | |
Accumulated depreciation | $ | $ 21,000 |
Area of building | ft² | 21,875 |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details) - USD ($) | May 31, 2018 | Jan. 29, 2018 | Jan. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Principal amount | $ 176,500 | |||||
Unamortized debt discount | 0 | $ 16,277 | ||||
Accrued interest | 74,749 | |||||
Amortization expense | $ 55,583 | |||||
Beneficial conversion feature | $ 38,000 | |||||
Convertible notes payable, description | On June 14, 2018, the Company settled an outstanding account payable through the issuance and subsequent conversion of a convertible promissory note in the principal amount of $10,000. The note, which was issued December 29, 2017, was due December 29, 2018 and accrued interest at 6%. The note was convertible into common shares of the Company at a conversion price of $0.025. The note was issued as a settlement in exchange for a $91,463 account payable, that the noteholder purchased from a vendor on December 29, 2017. Upon conversion of the note into 411,046 shares of restricted common stock of the Company, the noteholder signed a debt settlement and release agreement for the outstanding account payable, resulting in a gain on settlement to be recognized in the six months ending June 30, 2018, of $81,463. | |||||
Related party advance | $ 18,500 | |||||
Accounts payable | 8,500 | |||||
Outstanding convertible promissory notes payable | 10,000 | |||||
Other Advances | $ 18,500 | |||||
Principle advance, description | With exception of the $18,500 of principal advanced this quarter, the pre-existing convertible notes are in default . | |||||
6% Two Convertible Promissory Note [Member] | ||||||
Principal amount | $ 144,796 | $ 8,000 | ||||
Interest rate | 6.00% | |||||
Debt term | 1 year | |||||
Stock conversion price (in dollars per share) | $ 0.05 | |||||
Unamortized debt discount | 46,250 | |||||
Unamortized debt discount previously | 38,000 | |||||
Accrued interest | $ 3,385 | |||||
6% Two Convertible Promissory Note [Member] | Restricted Stock [Member] | ||||||
Number of shares issued upon debt conversion (in shares) | 2,693,978 | |||||
6% Two Convertible Promissory Note [Member] | Restricted Stock [Member] | Minimum [Member] | ||||||
Stock conversion price (in dollars per share) | $ 0.025 | |||||
6% Two Convertible Promissory Note [Member] | Restricted Stock [Member] | Maximum [Member] | ||||||
Stock conversion price (in dollars per share) | $ 0.075 | |||||
6% Three Convertible Promissory Note [Member] | ||||||
Principal amount | $ 15,000 | |||||
Interest rate | 6.00% | |||||
Debt term | 1 year | |||||
Stock conversion price (in dollars per share) | $ 0.05 | |||||
6% Two Convertible Promissory Note [Member] | ||||||
Principal amount | $ 40,000 | |||||
Interest rate | 6.00% | |||||
Debt term | 1 year | |||||
Stock conversion price (in dollars per share) | $ 0.05 | |||||
6% Convertible Promissory Note [Member] | ||||||
Amortization expense | $ 38,000 | |||||
Beneficial conversion feature | $ 38,000 | |||||
Two Convertible Promissory Note May 2018 [Member] | ||||||
Principal amount | $ 105,000 | |||||
Accrued interest | $ 2,387 | |||||
Two Convertible Promissory Note May 2018 [Member] | Restricted Stock [Member] | ||||||
Number of shares issued upon debt conversion (in shares) | 2,051,864 | |||||
Two Convertible Promissory Note May 2018 [Member] | Restricted Stock [Member] | Minimum [Member] | ||||||
Stock conversion price (in dollars per share) | $ 0.05 | |||||
Two Convertible Promissory Note May 2018 [Member] | Restricted Stock [Member] | Maximum [Member] | ||||||
Stock conversion price (in dollars per share) | $ 0.09 |
Shareholders' Deficit (Details)
Shareholders' Deficit (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($)$ / sharesshares | ||
$0.40 to $0.60 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price lower range limit, per share | $ 0.40 | |
Exercise price upper range limit, per share | $ 0.60 | |
Number Outstanding, shares | shares | 5,276,223 | |
Weighted Remaining Contractual Life | 1 year 7 months 6 days | |
Weighted Average Exercise Price, per share | $ 0.46 | |
Aggregate Intrinsic Value | $ | [1] | |
$0.61 to $1.00 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price lower range limit, per share | $ 0.61 | |
Exercise price upper range limit, per share | $ 1 | |
Number Outstanding, shares | shares | 9,800,000 | |
Weighted Remaining Contractual Life | 1 year 4 months 24 days | |
Weighted Average Exercise Price, per share | $ 0.67 | |
Aggregate Intrinsic Value | $ | [1] | |
$1.01 to $1.50 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price lower range limit, per share | $ 1.01 | |
Exercise price upper range limit, per share | $ 1.50 | |
Number Outstanding, shares | shares | 14,500,000 | |
Weighted Remaining Contractual Life | 1 year 6 months | |
Weighted Average Exercise Price, per share | $ 1.25 | |
Aggregate Intrinsic Value | $ | [1] | |
$1.51 to $2.25 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price lower range limit, per share | $ 1.51 | |
Exercise price upper range limit, per share | $ 2.25 | |
Number Outstanding, shares | shares | 3,000,000 | |
Weighted Remaining Contractual Life | 2 years | |
Weighted Average Exercise Price, per share | $ 1.63 | |
Aggregate Intrinsic Value | $ | [1] | |
$0.40 to $2.25 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Exercise price lower range limit, per share | $ 0.40 | |
Exercise price upper range limit, per share | $ 2.25 | |
Number Outstanding, shares | shares | 32,576,223 | |
Weighted Remaining Contractual Life | 1 year 7 months 6 days | |
Weighted Average Exercise Price, per share | $ 0.98 | |
Aggregate Intrinsic Value | $ | [1] | |
[1] | The aggregate intrinsic value in the table represents the difference between the closing stock price on March 31, 2019 and December 31, 2018, and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their options on March 31, 2019 and December 31, 2018. |
Shareholders' Deficit (Details
Shareholders' Deficit (Details 1) - Warrant [Member] - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Beginning Balance | 4,865,640 | 6,125,640 | |
Granted | |||
Cancelled or expired | (1,260,000) | ||
Exercised | |||
Ending Balance | 6,125,640 | 4,865,640 | |
Warrants exercisable | 4,865,640 | ||
Beginning Balance | $ 0.84 | $ 0.77 | |
Cancelled or expired | 0.50 | ||
Ending Balance | $ 0.84 | $ 0.84 | |
Outstanding | [1] | 1 year 3 months 19 days | 2 years 2 months 12 days |
Warrants exercisable | [1] | 1 year | 1 year 3 months 19 days |
Minimum [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Beginning Balance | 0.20 | 0.20 | |
Cancelled or expired | 0.30 | ||
Ending Balance | 0.20 | ||
Warrants exercisable | 0.20 | ||
Maximum [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Beginning Balance | 1.23 | 1.23 | |
Cancelled or expired | 0.70 | ||
Ending Balance | 1.23 | ||
Warrants exercisable | 1.23 | ||
[1] | The aggregate intrinsic value of the 4,865,640 outstanding and exercisable warrants at March 31, 2019 and December 31, 2018 was $0. The intrinsic value is the difference between the closing stock price on March 31, 2019 and December 31, 2018 and the exercise price, multiplied by the number of in-the-money warrants had all warrant holders exercised their warrants on March 31, 2019 and December 31, 2018. |
Shareholders' Deficit (Detail_2
Shareholders' Deficit (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 28, 2016 | Jul. 22, 2016 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||
Accrued interest | $ 74,749 | ||||||
Convertible promissory notes payable | 10,000 | ||||||
Cash | $ 1,792 | $ 1,001 | $ 5,401 | $ 2,185 | |||
Warrant, description | The aggregate intrinsic value of the 4,865,640 outstanding and exercisable warrants at March 31, 2019 and December 31, 2018 was $0. | ||||||
Aggregate intrinsic of warrant outstanding | 4,865,640 | ||||||
Exercisable warrants | $ 0 | $ 0 | |||||
Warrant [Member] | |||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||
Weighted remaining contractual life | 2 years | ||||||
Weighted Average Exercise Price, per share | $ 0.77 | ||||||
Exercise price lower range limit, per share | 0.20 | ||||||
Exercise price upper range limit, per share | $ 1.23 | ||||||
Warrants outstanding | 6,125,640 | 4,865,640 | 6,125,640 | ||||
Options Held [Member] | |||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||
Options granted | 250,000 | ||||||
Exercisable per share | $ 0.75 | ||||||
Exercised price per share | $ 0.10 | ||||||
Cash | $ 25,000 | ||||||
Unrecognized compensation expense | $ 0 | ||||||
Three Convertible Notes Payable [Member] | Restricted Stock [Member] | |||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||
Restricted Common Stock Amount | $ 4,879,067 | ||||||
Accrued interest | 4,919 | ||||||
Convertible promissory notes payable | $ 160,000 | ||||||
Convertible Notes Payable [Member] | Restricted Stock [Member] | |||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||||
Restricted Common Stock Amount | $ 3,262,838 | ||||||
Accrued interest | 353 | ||||||
Convertible promissory notes payable | $ 65,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Aug. 12, 2015 | Aug. 28, 2015 | Mar. 31, 2019 |
Commitments and Contingencies (Textual) | |||
Interest expense | $ 641,581 | ||
Accrual settlement | $ 3,033,827 | ||
Stephen E. Flechner v. Standard Metals Processing, Inc. [Member] | |||
Commitments and Contingencies (Textual) | |||
Damages paid | $ 2,157,000 | $ 2,157,000 | |
Interest damages paid | $ 235,246 | ||
Interest damages paid, per day | 472.76 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Feb. 11, 2015 | Mar. 31, 2019 | Dec. 31, 2018 |
Related Party Transactions (Textual) | |||
Outstanding principal balance | $ 2,229,187 | $ 2,229,187 | |
Accrued interest | $ 74,749 | ||
Related party transactions, description | The Company issued an unsecured promissory note (the “Note”) to Tina Gregerson Family Properties, LLC, an entity controlled by a former director of the Company. The Note for up to $750,000 was provided in tranches. Maturity of each tranche is one year from the date of receipt. Interest accrues at 8% per annum on each tranche. Under the terms of the Note, the Company received $477,500. At March 31, 2019 and December 31, 2018, there is $153,198 and $140,535 interest accrued. The Note is in default. | Pursuant to the Settlement and Release Agreement executed October 10, 2013 with the Company, Pure Path relinquished the foregoing rights and obligations owed to it and agreed to forbear collection remedies and legal proceedings against the Company including foreclosure on the Deed of Trust, and, in connection with the settlement and release of various debts of approximately $1,500,000 and the consulting fees owed by the Company, the Company issued 27,000,000 restricted shares and a Promissory Note (the “Pure Path Note”) for an amount of up to $2,500,000 with a beginning principal balance of $1,933,345 bearing interest of 8% per year for the current balance of the amounts owed under the Pure Path Agreements. The outstanding principal balance on the Pure Path Note was $2,229,187 as of both March 31, 2019 and December 31, 2018, with related accrued interest of $1,001,743 and $955,701, respectively. | |
CommonStockMember | Granite Peak Resources [Member] | |||
Related Party Transactions (Textual) | |||
Percentage of benificial owners | 52.30% | ||
Pure Path Capital Management LLC [Member] | CommonStockMember | |||
Related Party Transactions (Textual) | |||
Shares of common stock acquired | 69,464,434 | ||
Warrants to purchase common stock | $ 4,500,000 | ||
Outstanding promissory note | 2,500,000 | ||
Outstanding principal balance | 2,229,187 | ||
Accrued interest | $ 1,096,235 | ||
Interest rate | 5.00% | ||
Consulting fees | $ 1,150,000 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Convertible Promissory Note [Member] | ||
Antidilutive securities excluded from computation of EPS | 328,500 | 328,500 |
Stock Option [Member] | ||
Antidilutive securities excluded from computation of EPS | 32,576,223 | 32,576,223 |
Warrant [Member] | ||
Antidilutive securities excluded from computation of EPS | 6,125,640 | 6,125,640 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | |||
Dec. 31, 2019 | Dec. 17, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Subsequent Events (Textual) | ||||
Accounts payable | $ 2,221,814 | $ 2,230,314 | ||
Convertible notes payable | 176,500 | $ 168,000 | ||
Granite Peak Resources [Member] | ||||
Subsequent Events (Textual) | ||||
Accounts payable | 18,500 | |||
Convertible notes payable | $ 10,000 | |||
Forecast [Member] | Granite Peak Resources [Member] | ||||
Subsequent Events (Textual) | ||||
Interest rate | 6.00% | |||
Subsequent Event, description | 4,500,000 options granted in 2013 and originally exercisable at $0.44 per share were exercised by GPR at a price of $0.0426 per share (the current fair market value per share based on the average of the median price and VWAP for the preceding 90 days) in exchange for the $192,080 note. | The Company issued a promissory note to Granite Peak Resources (“GPR”) for $192,080 representing the disbursements made on the Company’s behalf during 2019. The note is payable one year from its issuance and accrues interest at 6% per annum. |