Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 19, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'LKA GOLD Inc /DE/ | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000831355 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 14,867,469 |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash | $26,257 | $87,329 |
Restricted Cash | 24,300 | ' |
Accounts receivable | 211,775 | 151,524 |
Prepaid expenses | ' | 1,688 |
Total Current Assets | 262,332 | 240,541 |
FIXED ASSETS | ' | ' |
Land, equipment and mining claims | 807,085 | 807,085 |
Accumulated depreciation | -283,881 | -256,957 |
Total Fixed Assets, Net of Accumulated Depreciation | 523,204 | 550,128 |
OTHER NON-CURRENT ASSETS | ' | ' |
Reclamation bonds | 93,285 | 123,597 |
TOTAL ASSETS | 878,821 | 914,266 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 251,049 | 223,596 |
Accounts payable - related party | 89,180 | 64,545 |
Note payable | 10,000 | 10,000 |
Accrued wages and advances payable to officer | 163,813 | 145,572 |
Total Current Liabilities | 514,042 | 443,713 |
NON-CURRENT LIABILITIES | ' | ' |
Asset retirement obligation | 126,254 | 123,086 |
Total Liabilities | 640,296 | 566,799 |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock; $0.001 par value, 50,000,000 shares authorized, no shares issued or outstanding | 3 | ' |
Common stock, $0.001 par value, 50,000,000 shares authorized, 14,867,468 and 14,816,913 shares issued and 8,123,678 and 8,128,678 shares outstanding, respectively | 14,867 | 14,817 |
Additional paid-in capital | 16,382,975 | 13,559,201 |
Treasury stock; 43,624 and 43,624 shares at cost, respectively | -86,692 | -86,692 |
Accumulated deficit | -16,072,628 | -13,139,859 |
Total Stockholders' Equity | 238,525 | 347,467 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $878,821 | $914,266 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement of Financial Position | ' | ' |
Common Stock, par or stated value | $0.00 | $0.00 |
Common Stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, shares issued | 14,867,468 | 14,816,913 |
Common Stock, shares outstanding | 8,123,678 | 8,128,678 |
Preferred Stock, par or stated value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Treasury Stock, shares outstanding | 43,624 | 43,624 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
REVENUES | ' | ' | ' | ' |
Sales - precious metals | $287,410 | $714,990 | $790,037 | $1,567,261 |
EXPLORATION COSTS | -206,506 | -335,692 | -656,032 | -909,488 |
GROSS MARGIN (LOSS) | 80,904 | 379,298 | 134,005 | 657,773 |
OPERATING EXPENSES | ' | ' | ' | ' |
Professional fees | 28,286 | 201,990 | 100,766 | 382,082 |
General and administrative | 34,536 | 42,637 | 115,498 | 128,253 |
Officer salaries | 39,000 | 37,500 | 114,000 | 112,500 |
Total Operating Expenses | 101,822 | 282,127 | 330,264 | 622,835 |
OPERATING INCOME (LOSS) | -20,918 | 97,171 | -196,259 | 34,938 |
OTHER INCOME (EXPENSE) | ' | ' | ' | ' |
Stock based expense for shares not subject to reverse split | ' | ' | -2,756,000 | ' |
Gain on extinguishment of reclamation bond | 23,311 | ' | 23,311 | ' |
Interest expense | -1,871 | -20,767 | -3,823 | -135,935 |
Interest income | ' | ' | 2 | 8 |
Total Other Income (Expense) | 21,440 | -20,767 | -2,736,510 | -135,927 |
NET INCOME (LOSS) | 522 | 76,404 | -2,932,769 | -100,989 |
Dividends on, and related to beneficial conversion feature of, convertible preferred stock | -18,557 | ' | -18,557 | ' |
NET INCOME (LOSS) ATTRIBUTED TO COMMON STOCKHOLDERS | ($18,035) | $76,404 | ($2,951,326) | ($100,989) |
BASIC NET INCOME (LOSS) PER COMMON SHARE | $0 | $0 | ($0.20) | ($0.01) |
BASIC WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | 14,827,783 | 9,519,465 | 14,811,913 | 8,207,612 |
DILUTED NET INCOME (LOSS) PER COMMON SHARE | $0 | $0 | ($0.20) | ($0.01) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net loss | ($2,932,769) | ($100,989) |
Items to reconcile net loss to net cash provided (used) by operating activities: | ' | ' |
Accretion of asset retirement obligation | 3,168 | 2,945 |
Depreciation and amortization | 26,924 | 28,023 |
Common stock and warrants issued for services | 23,924 | 245,188 |
Stock based expense for shares not subject to reverse split | 2,756,000 | ' |
Changes in operating assets and liabilities | ' | ' |
Increase in accounts receivable | -60,251 | -382,561 |
Decrease in prepaid and other assets | 1,688 | ' |
Decrease in reclamation bonds | 30,312 | ' |
Increase in accounts payable and accounts payable - related party | 51,891 | 1,328 |
Increase in accrued expenses | 18,241 | 107,253 |
Net Cash Used by Operating Activities | -80,872 | -98,813 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Convertible preferred stock issued for cash | 55,000 | ' |
Cash paid for preferred stock offering costs | -5,500 | ' |
Cash paid for preferred stock dividends | -5,400 | ' |
Net increase in restricted cash | -24,300 | ' |
Net Cash Provided by Financing Activities | 19,800 | ' |
DECREASE IN CASH | -61,072 | -98,813 |
CASH AT BEGINNING OF PERIOD | 87,329 | 143,331 |
CASH AT END OF PERIOD | 26,257 | 44,518 |
CASH PAID FOR: | ' | ' |
Interest | 900 | 8,800 |
Income taxes | ' | ' |
Note_1_Organization_and_Signif
Note 1 - Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 1 - Organization and Significant Accounting Policies | ' |
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |
LKA Gold Incorporated (“LKA” or the “Company”) is currently engaged in efforts to expand mine production and continues to seek additional investment opportunities. | |
The accompanying unaudited condensed consolidated financial statements have been prepared by LKA pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim condensed consolidated financial statements include normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim condensed consolidated financial statements be read in conjunction with LKA’s most recent audited financial statements. Operating results for the Nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | |
Reclassifications | |
Certain prior year amounts have been reclassified to conform to the current year presentation. |
Note_2_Related_Party_Transacti
Note 2 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 2 - Related Party Transactions | ' |
NOTE 2 - RELATED PARTY TRANSACTIONS | |
Related Party Debt – Office Space | |
LKA pays a company owned by an officer and shareholder $1,500 per month for office rent and expenses. The affiliated Company, (Abraham & Co., Inc. a FINRA member and registered investment advisor) also executes LKA’s securities transactions and manages its investment portfolio. LKA owed Abraham & Co. $47,000 and $43,500 as of September 30, 2013 and December 31, 2012, respectively. | |
Related Party Debt – Accounts and Wages Payable | |
At September 30, 2013 and December 31, 2012, LKA owes $42,180 and $21,045, respectively, for purchases made on the personal credit card of LKA’s president, Kye Abraham. Additionally, LKA owed Kye Abraham $162,313 and $145,572 in unpaid salary at September 30, 2013 and December 31, 2012, respectively, |
Note_3_Significant_Events
Note 3 - Significant Events | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 3 - Significant Events | ' |
NOTE 3 - SIGNIFICANT EVENTS | |
Precious Metals Sales | |
During February 2013, LKA delivered a total of approximately 225.6 dry short tons of precious metals ore for processing at a value of $289,026. | |
During May 2013, LKA delivered a total of approximately 105.4 dry short tons of precious metals ore for processing at a value of $116,649. | |
During May 2013, LKA delivered a total of approximately 99.4 dry short tons of precious metals ore for | |
processing at a value of $96,952. | |
During August 2013, LKA delivered a total of approximately 111.6 dry short tons of precious metals ore for processing at a value of $151,270. | |
During September 2013, LKA delivered a total of approximately 131.9 dry short tons of precious metals ore for processing at a value of $136,140. At September 30, 2013 and December 31, 2012, LKA had metal sales receivables of $211,775 and $151,524, respectively. | |
Incentive Compensation | |
During April 2013, the board of directors approved an Incentive Compensation arrangement with Kye Abraham, President and Chairman of the Board of LKA. Mr. Abraham was conditionally issued a total of 2,000,000 shares of LKA common stock. The stock will be considered earned on the completion of two events, each worth 1,000,000 shares, if and when a financing, or series of financings, of one million is completed for LKA and if and when a final resolution is reached with the EPA and/or BLM of other governmental agency that extinguishes the potential environmental liability at the Ute Ulay mine or reduces LKA’s liability to a “de minimis” level. LKA has determined it is not probable that both of these conditions will be met. Therefore, we have not recognized any expense related to these grants. |
Note_4_Common_Stock_and_Common
Note 4 - Common Stock and Common Stock Warrants | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Notes | ' | |||
Note 4 - Common Stock and Common Stock Warrants | ' | |||
NOTE 4 - COMMON STOCK AND COMMON STOCK WARRANTS | ||||
Common Stock | ||||
During the nine months ended September 30, 2013, LKA determined that 5,000 shares, which had previously been reflected as due and issued for commissions earned on stock sales occurring in 2009, had been returned to the Company and retired at par value. | ||||
On March 15, 2013, LKA affected a 1-for-2 reverse-split of its common stock. As a result, LKA recognized an additional $2,756,000 in non-cash stock based expense related to the exclusion of 5,200,000 pre-split (2,600,000 post-split) issued but not yet outstanding common shares related to October 2012 debt conversions. The expense was calculated based on the market price of $1.06 per share on the 2,600,000 post-split shares as of March 15, 2013. During July 2013, 200,000 of the 5,200,000 shares were issued and 5,000,000 shares remain. | ||||
During September 2013, holders of 3,000 shares of convertible preferred stock elected to convert their shares into 55,556 shares of common stock. | ||||
Common Stock Warrants | ||||
During December 2010, LKA granted fully vested warrants to purchase 42,000 share of its common stock for 36 months at $1.86 per share as debt offering costs related to the issuance of convertible notes payable (see Note 10). The warrants were valued at $28,137 using the Black-Scholes option fair value pricing model using the following assumptions: | ||||
Stock price on grant date | $1.70 | |||
Exercise price | $1.86 | |||
Expected time to exercise | 3.0 years | |||
Risk free interest rate | 0.80% | |||
Volatility | 192.45% | |||
Expected forfeiture rate | 0.00% | |||
During April 2011, LKA entered into an interim consulting agreement with Francois Viens to act as a special advisor to the LKA board of directors, with the election of being appointed to a position on the LKA board in the future. As part of the consulting agreement, Mr. Viens is to be paid consulting fees for any work done on projects pre-approved by the LKA board of directors. An initial incentive compensation for his services, LKA agreed to issue Mr. Viens warrants to purchase up to 250,000 shares of LKA stock in three tranches on a three-year vesting schedule as follows: | ||||
Warrant I for 100,000 shares exercisable at $1.60 per share, to be issued as of May 1, 2011 | ||||
Warrant II for 75,000 shares exercisable at $2.40 per share, to be issued one year later, or May 1, 2012 | ||||
Warrant III for 75,000 shares exercisable at $3.60 per share, to be issued one year later, or May 1, 2013 | ||||
Each warrant has a term of two and one-half years. In the event the shares underlying the warrants, and the closing price of the common stock of the Company has been $6.00 per share or higher for 10 trading days within a 30 day trading period subject to minimum trading volumes, LKA shall be able to redeem the Warrants at $0.001 per warrant. | ||||
The Warrant I - III tranches were valued at $91,905, $64,955 and $60,586 using the Black-Scholes option fair value pricing model using the following assumptions: | ||||
Stock price on grant date | $1.18 | |||
Exercise price | $1.60 – 3.60 | |||
Expected time to exercise | 2.5 years | |||
Risk free interest rate | 0.69% | |||
Volatility | 164.93% | |||
Expected forfeiture rate | 0.00% | |||
During the nine months ended September 30, 2013, LKA expensed $10,098 related to Warrant III. During the nine months ended September 30, 2012, LKA expensed $21,652 and $22,720 for Warrants II and III, respectively, related to the Viens warrants. The value of Warrants II and III are being recognized ratably over the vesting term of one and two years, respectively. | ||||
During February 2012, LKA entered into an agreement with Rauno Perttu to act as Chief Geologist and special advisor to the LKA board of directors, with the election of being appointed to a position on the LKA board in the future. As part of the agreement, Mr. Perttu is to be paid consulting fees for any work done on projects pre-approved by the LKA board of directors. An initial incentive compensation for his services, LKA agreed to issue Mr. Perttu warrants to purchase up to 250,000 shares of LKA stock in three tranches on a three-year vesting schedule as follows: | ||||
Warrant I for 100,000 shares exercisable at $0.80 per share, to be issued as of March 1, 2012. | ||||
Warrant II for 75,000 shares exercisable at $1.20 per share, to be issued one year later, or March 1, 2013. | ||||
Warrant III for 75,000 shares exercisable at $1.60 per share, to be issued one year later, or March 1, 2014. | ||||
Each warrant has a term of two and one-half years. In the event the shares underlying the warrants, and the closing price of the common stock of the Company has been $6.00 per share or higher for 10 trading days within a 30 day trading period subject to minimum trading volumes, LKA shall be able to redeem the Warrants at $0.001 per warrant. | ||||
The Warrant I - III tranches were valued at $44,792, $29,769 and $26,947 using the Black-Scholes option fair value pricing model using the following assumptions: | ||||
Stock price on grant date | $0.70 | |||
Exercise price | $0.80– 1.60 | |||
Expected time to exercise | 2.5 years | |||
Risk free interest rate | 0.35% | |||
Volatility | 121.02% | |||
Expected forfeiture rate | 0.00% | |||
During the nine months ended September 30, 2013, LKA expensed $3,721 and $10,105 related to Warrants II and III, respectively. During the period ended September 30, 2012, LKA expensed $44,791 related to Warrant I, $11,163 and $5,053 for Warrants II and III, respectively, related to the Perttu warrants. The value of Warrants II and III are being recognized ratably over the vesting term of one and two years, respectively. | ||||
The following table summarizes the outstanding warrants and associated activity for the nine months ended September 30, 2013 and the year ended December 31, 2012: | ||||
Number of Warrants Outstanding | Weighted Average Price | Weighted Average Remaining Contractual Life | ||
Balance, December 31, 2011 | 292,000 | 2.36 | 2.62 | |
Granted | 250,000 | 1.16 | 2.58 | |
Exercised | - | - | - | |
Expired | - | - | - | |
Balance, December 31, 2012 | 542,000 | 1.8 | 2.06 | |
Granted | - | - | - | |
Exercised | - | - | - | |
Expired | - | - | - | |
Balance, September 30, 2013 | 542,000 | 1.8 | 1.56 | |
Note_5_Convertible_Preferred_S
Note 5 - Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 5 - Convertible Preferred Stock | ' |
NOTE 5 - CONVERTIBLE PREFERRED STOCK | |
During August 2013, LKA issued a total of 5,500 shares of 9% non-voting convertible preferred stock (“Preferred Stock”) for cash of $55,000. The Preferred Stock entitles the holder to cash dividends based on 9% of the unconverted balance, payable on a calendar quarter. At September 30, 2013 2,500 shares of the Preferred Stock were outstanding. | |
During August 2013, LKA paid a related party a 10% commission based on the gross proceeds from the sales of Preferred Stock totaling $5,500. These Preferred Stock offering costs were recorded as reductions in the carrying value of the related Preferred Stock against additional paid-in capital. | |
As a requirement of the Preferred Stock subscription agreement, LKA is required to hold in escrow a “Dividend Reserve”, equal to 9% annual for the first two years. If the related Preferred Stock is converted within two years of the issuance date, the balance of any related unpaid Dividend Reserve is due and payable to the holders of the converted Preferred Stock. Additionally, fifty percent (50%) of the subscription proceeds, net of the 18% Dividend Reserve Account and net of 10% sales commissions, is designated “Market Development Funds” and held in escrow to be used for development of the public trading market of LKA’s common stock. | |
LKA’s Preferred Stock is convertible into shares of common stock at a rate based on the average closing price of LKA common shares for the 10 trading days prior to the receipt of the notice of conversion less a 15% discount. In no event shall the conversion price including the discount be less than $0.40 per share. LKA analyzed the conversion option for liability classification under ASC 815-15 and determined that equity classification was appropriate. At the time of each of the issuances of Preferred Stock, the value of the common stock into which the Preferred Stock was convertible had a fair value greater than the proceeds for such issuances. Accordingly, LKA recorded a deemed dividend totaling $24,155, which equals the amount by which the estimated fair value of the common stock issuable upon conversion of the issued Preferred Stock exceeded the proceeds from such issuances. The deemed dividend was recorded as a reduction of the value of the Preferred Stock and a corresponding increase in additional paid-in capital. | |
During September 2013, holders of 3,000 shares of convertible preferred stock elected to convert their shares into 55,556 shares of common stock. As a result, $5,400 of the Dividend Reserve was paid upon conversion. The balance in Dividend Reserve and Market Development Funds restricted cash was $24,300 as of September 30, 2013. Accrued and unpaid dividends at September 30, 2013 were $197. | |
Note_6_Going_Concern
Note 6 - Going Concern | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 6 - Going Concern | ' |
NOTE 6 - GOING CONCERN | |
LKA's consolidated financial statements are prepared using Generally Accepted Accounting Principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, LKA has recently accumulated significant losses and has negative working capital. All of these items raise substantial doubt about its ability to continue as a going concern. Management's plans with respect to alleviating the adverse financial conditions that caused management to express substantial doubt about the LKA's ability to continue as a going concern are as follows: | |
LKA is currently engaged in an intensive exploration program at the Golden Wonder mine with the objective of returning the mine to a producing status. The exploration program, which began in November, 2008, has involved extensive sampling/assaying for the purpose of identifying possible new production zones within the mine. During this evaluation period, sampling and analysis of exposed veins yielded encouraging results and some precious metals revenues. While encouraging, no conclusion can be drawn at this time about the commercial viability of the mine and LKA continues to pursue potential third party joint venture or lease agreements for the property. | |
In order to support continued operation of the mine, LKA entered into several debt restructuring transactions during the year ended December 31, 2012, and plans on raising additional funding during 2013 to support the continued exploration of the Golden Wonder mine. If LKA is not successful in the resumption of commercial production or mine exploration operations which produce positive cash flows, LKA may be forced to continue to raise additional equity or debt financing to fund its ongoing obligations or risk ceasing doing business. | |
There can be no assurance that LKA will be able to achieve its business plans, raise any more required capital or secure the financing necessary to achieve its current operating plan. The ability of LKA to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually attain profitable operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Note_7_Subsequent_Events
Note 7 - Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 7 - Subsequent Events | ' |
NOTE 7 - SUBSEQUENT EVENTS | |
During October 2013, LKA issued 700 shares of 9% non-voting convertible Preferred Stock for cash of $7,000. The Preferred Stock entitles the holder to cash dividends based on 9% of the unconverted balance, payable on a calendar quarter. The Preferred Stock is convertible into shares of common stock at a rate based on the average closing price of LKA common shares for the 10 trading days prior to the receipt of the notice of conversion less a 15% discount. In no event shall the conversion price including the discount be less than $0.40 per share. | |
During November 2013, LKA issued 3,500 shares of 9% non-voting convertible Preferred Stock for cash of $35,000. The Preferred Stock entitles the holder to cash dividends based on 9% of the unconverted balance, payable on a calendar quarter. The Preferred Stock is convertible into shares of common stock at a rate based on the average closing price of LKA common shares for the 10 trading days prior to the receipt of the notice of conversion less a 15% discount. In no event shall the conversion price including the discount be less than $0.40 per share.[M1] |
Note_1_Organization_and_Signif1
Note 1 - Organization and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | ' |
Reclassifications | ' |
Reclassifications | |
Certain prior year amounts have been reclassified to conform to the current year presentation. |
Note_4_Common_Stock_and_Common1
Note 4 - Common Stock and Common Stock Warrants: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables) | 9 Months Ended | |
Sep. 30, 2013 | ||
Tables/Schedules | ' | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | |
Stock price on grant date | $1.70 | |
Exercise price | $1.86 | |
Expected time to exercise | 3.0 years | |
Risk free interest rate | 0.80% | |
Volatility | 192.45% | |
Expected forfeiture rate | 0.00% |
Note_4_Common_Stock_and_Common2
Note 4 - Common Stock and Common Stock Warrants: Schedule Of Share Based Payment Award Stock Options Valuation Assumptions TableTextBlock 2 (Tables) | 9 Months Ended | |
Sep. 30, 2013 | ||
Tables/Schedules | ' | |
Schedule Of Share Based Payment Award Stock Options Valuation Assumptions TableTextBlock 2 | ' | |
Stock price on grant date | $1.18 | |
Exercise price | $1.60 – 3.60 | |
Expected time to exercise | 2.5 years | |
Risk free interest rate | 0.69% | |
Volatility | 164.93% | |
Expected forfeiture rate | 0.00% |
Note_4_Common_Stock_and_Common3
Note 4 - Common Stock and Common Stock Warrants: Schedule Of Share Based Payment Award Stock Options Valuation Assumptions TableTextBlock 3 (Tables) | 9 Months Ended | |
Sep. 30, 2013 | ||
Tables/Schedules | ' | |
Schedule Of Share Based Payment Award Stock Options Valuation Assumptions TableTextBlock 3 | ' | |
Stock price on grant date | $0.70 | |
Exercise price | $0.80– 1.60 | |
Expected time to exercise | 2.5 years | |
Risk free interest rate | 0.35% | |
Volatility | 121.02% | |
Expected forfeiture rate | 0.00% |
Note_4_Common_Stock_and_Common4
Note 4 - Common Stock and Common Stock Warrants: Schedule of Stockholders Equity (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Tables/Schedules | ' | |||
Schedule of Stockholders Equity | ' | |||
Number of Warrants Outstanding | Weighted Average Price | Weighted Average Remaining Contractual Life | ||
Balance, December 31, 2011 | 292,000 | 2.36 | 2.62 | |
Granted | 250,000 | 1.16 | 2.58 | |
Exercised | - | - | - | |
Expired | - | - | - | |
Balance, December 31, 2012 | 542,000 | 1.8 | 2.06 | |
Granted | - | - | - | |
Exercised | - | - | - | |
Expired | - | - | - | |
Balance, September 30, 2013 | 542,000 | 1.8 | 1.56 |
Note_2_Related_Party_Transacti1
Note 2 - Related Party Transactions (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Accounts payable | $251,049 | $223,596 |
Accrued wages and advances payable to officer | 163,813 | 145,572 |
Abraham Co Inc | ' | ' |
Operating Leases, Rent Expense, Minimum Rentals | 1,500 | ' |
Operating Leases, Rent Expense, Net | 47,000 | 43,500 |
President | ' | ' |
Accrued wages and advances payable to officer | 162,313 | 145,572 |
President | Personal Credit Card Purchases | ' | ' |
Accounts payable | $42,180 | $21,045 |
Note_3_Significant_Events_Deta
Note 3 - Significant Events (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||
Sep. 30, 2013 | Aug. 31, 2013 | Jun. 30, 2013 | 31-May-13 | Feb. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
President | Metal Sales | Metal Sales | ||||||||||
Precious metal sales, dry short tons | '131.9 | '111.6 | '99.4 | '105.4 | '225.6 | ' | ' | ' | ' | ' | ' | ' |
Sales - precious metals | $136,140 | $151,270 | $96,952 | $116,649 | $289,026 | $287,410 | $714,990 | $790,037 | $1,567,261 | ' | ' | ' |
Accounts Receivable, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $211,775 | $151,524 |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The stock will be considered earned on the completion of two events, each worth 1,000,000 shares, if and when a financing, or series of financings, of one million is completed for LKA and if and when a final resolution is reached with the EPA and/or BLM of other governmental agency that extinguishes the potential environmental liability at the Ute Ulay mine or reduces LKA’s liability to a “de minimis” level. | ' | ' |
Note_4_Common_Stock_and_Common5
Note 4 - Common Stock and Common Stock Warrants (Details) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | Mar. 15, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Mar. 15, 2013 | |
Dec 2010 42,000 Warrants | Dec 2010 42,000 Warrants | Viens Warrant Tranches 1-3 | Viens Warrant 1 | Viens Warrant 2 | Viens Warrant 2 | Viens Warrant 3 | Viens Warrant 3 | Perttu Warrant Tranches 1-3 | Perttu Warrant 1 | Perttu Warrant 1 | Perttu Warrant 2 | Perttu Warrant 2 | Perttu Warrant 3 | Perttu Warrant 3 | Reverse Stock Split | Reverse Stock Split | ||||
Stock Repurchased and Retired During Period, Shares | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | $21,652 | $10,098 | $22,720 | ' | ' | $44,791 | $3,721 | $11,163 | $10,105 | $5,053 | $2,756,000 | ' |
Common Stock, shares outstanding | 8,123,678 | 2,600,000 | 8,128,678 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,200,000 |
Share Price | ' | ' | ' | ' | $1.70 | $1.18 | ' | ' | ' | ' | ' | $0.70 | ' | ' | ' | ' | ' | ' | ' | $1.06 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 55,556 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Outstanding | ' | ' | ' | 42,000 | ' | 250,000 | 100,000 | 75,000 | ' | 75,000 | ' | 250,000 | 100,000 | ' | 75,000 | ' | 75,000 | ' | ' | ' |
Warrant Exercise Price | ' | ' | ' | $1.86 | ' | ' | $1.60 | $2.40 | ' | $3.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants, Fair Value | ' | ' | ' | ' | $28,137 | ' | $91,905 | $64,955 | ' | $60,586 | ' | ' | $44,792 | ' | $29,769 | ' | $26,947 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used | ' | ' | ' | ' | 'Black-Scholes option fair value pricing model | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant Callable Provisions | ' | ' | ' | ' | ' | 'Each warrant has a term of two and one-half years. In the event the shares underlying the warrants, and the closing price of the common stock of the Company has been $6.00 per share or higher for 10 trading days within a 30 day trading period subject to minimum trading volumes, LKA shall be able to redeem the Warrants at $0.001 per warrant. | ' | ' | ' | ' | ' | 'Each warrant has a term of two and one-half years. In the event the shares underlying the warrants, and the closing price of the common stock of the Company has been $6.00 per share or higher for 10 trading days within a 30 day trading period subject to minimum trading volumes, LKA shall be able to redeem the Warrants at $0.001 per warrant. | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.80 | ' | $1.20 | ' | $1.60 | ' | ' | ' |
Note_4_Common_Stock_and_Common6
Note 4 - Common Stock and Common Stock Warrants: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) (Dec 2010 42,000 Warrants, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Dec 2010 42,000 Warrants | ' |
Share Price | $1.70 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $1.86 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '3 years |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.80% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 192.45% |
Expected forfeiture rate | 0.00% |
Note_4_Common_Stock_and_Common7
Note 4 - Common Stock and Common Stock Warrants: Schedule Of Share Based Payment Award Stock Options Valuation Assumptions TableTextBlock 2 (Details) (Viens Warrant Tranches 1-3, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Viens Warrant Tranches 1-3 | ' |
Share Price | $1.18 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $1.60 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $3.60 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '2 years 6 months |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.69% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 164.93% |
Expected forfeiture rate | 0.00% |
Note_4_Common_Stock_and_Common8
Note 4 - Common Stock and Common Stock Warrants: Schedule Of Share Based Payment Award Stock Options Valuation Assumptions TableTextBlock 3 (Details) (Perttu Warrant Tranches 1-3, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Perttu Warrant Tranches 1-3 | ' |
Share Price | $0.70 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $0.80 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '2 years 6 months |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.35% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 121.02% |
Expected forfeiture rate | 0.00% |
Note_4_Common_Stock_and_Common9
Note 4 - Common Stock and Common Stock Warrants: Schedule of Stockholders Equity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | |
Details | ' | ' | ' |
Warrants, Outstanding | 542,000 | 542,000 | 292,000 |
Warrants, Weighted Average Exercise Price | $1.80 | $1.80 | $2.36 |
Warrants, Outstanding, Weighted Average Remaining Contractual Life | 2.06 | 1.56 | 2.62 |
Warrants, Issued | 250,000 | ' | ' |
Warrants, Granted, Weighted Average Exercise Price | $1.16 | ' | ' |
Warrants, Granted, Weighted Average Remaining Contractual Life | 2.58 | ' | ' |
Note_5_Convertible_Preferred_S1
Note 5 - Convertible Preferred Stock (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Stock Issued During Period, Shares, Issued for Cash | 5,500 | ' |
Stock Issued During Period, Value, Issued for Cash | $55,000 | ' |
Preferred Stock, shares outstanding | 0 | 0 |
Cash paid for preferred stock offering costs | 5,500 | ' |
Preferred Stock subscription agreement | 'As a requirement of the Preferred Stock subscription agreement, LKA is required to hold in escrow a “Dividend Reserve”, equal to 9% annual for the first two years. If the related Preferred Stock is converted within two years of the issuance date, the balance of any related unpaid Dividend Reserve is due and payable to the holders of the converted Preferred Stock. Additionally, fifty percent (50%) of the subscription proceeds, net of the 18% Dividend Reserve Account and net of 10% sales commissions, is designated “Market Development Funds” and held in escrow to be used for development of the public trading market of LKA’s common stock. | ' |
Dividends, Preferred Stock | 24,155 | ' |
Dividends and Interest Paid | 5,400 | ' |
Restricted Cash | 24,300 | ' |
Dividends Payable, Current | $197 | ' |
Convertible Preferred Stock | ' | ' |
Preferred Stock, shares outstanding | 2,500 | ' |
Note_7_Subsequent_Events_Detai
Note 7 - Subsequent Events (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Stock Issued During Period, Shares, Issued for Cash | 5,500 |
Stock Issued During Period, Value, Issued for Cash | $55,000 |
Preferred Stock subscription agreement | 'As a requirement of the Preferred Stock subscription agreement, LKA is required to hold in escrow a “Dividend Reserve”, equal to 9% annual for the first two years. If the related Preferred Stock is converted within two years of the issuance date, the balance of any related unpaid Dividend Reserve is due and payable to the holders of the converted Preferred Stock. Additionally, fifty percent (50%) of the subscription proceeds, net of the 18% Dividend Reserve Account and net of 10% sales commissions, is designated “Market Development Funds” and held in escrow to be used for development of the public trading market of LKA’s common stock. |
Subsequent Event | ' |
Stock Issued During Period, Shares, Issued for Cash | 700 |
Stock Issued During Period, Value, Issued for Cash | 7,000 |
Preferred Stock subscription agreement | 'The Preferred Stock entitles the holder to cash dividends based on 9% of the unconverted balance, payable on a calendar quarter. The Preferred Stock is convertible into shares of common stock at a rate based on the average closing price of LKA common shares for the 10 trading days prior to the receipt of the notice of conversion less a 15% discount. In no event shall the conversion price including the discount be less than $0.40 per share. |
Subsequent Event 2 | ' |
Stock Issued During Period, Shares, Issued for Cash | 3,500 |
Stock Issued During Period, Value, Issued for Cash | $35,000 |
Preferred Stock subscription agreement | 'The Preferred Stock entitles the holder to cash dividends based on 9% of the unconverted balance, payable on a calendar quarter. The Preferred Stock is convertible into shares of common stock at a rate based on the average closing price of LKA common shares for the 10 trading days prior to the receipt of the notice of conversion less a 15% discount. In no event shall the conversion price including the discount be less than $0.40 per share.[M1] |