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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Lode Star Mining Inc (PK) | USOTC:LSMG | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.008 | 0.0077 | 0.0203 | 0.00 | 14:30:24 |
UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 10-Q
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x
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QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2015
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OR
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Commission file number 000-53676
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Large Accelerated Filer
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o
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Accelerated Filer
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o
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Non-accelerated Filer
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o
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Smaller Reporting Company
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x
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Page
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PART I - FINANCIAL INFORMATION
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Item 1. Financial Statements
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3 |
Balance Sheets as of September 30, 2015 (unaudited) and December 31, 2014
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4 |
Statements of Operations for the Three Months and Nine Months ended September 30, 2015 and 2014 (unaudited)
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5 |
Statements of Cash Flows for the Nine Months ended September 30, 2015 and 2014 (unaudited)
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6 |
Notes to Financial Statements (unaudited)
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7 |
Item 2. Management’s Discussion and Analysis Of Financial Condition and Results of Operations
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12 |
Item 3. Quantitative and Qualitative Disclosures About Market Risk
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18 |
Item 4. Controls and Procedures
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19 |
PART II - OTHER INFORMATION
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Item 1A. Risk Factors
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19 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
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19 |
Item 6. Exhibits
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20 |
SIGNATURES
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21 |
SEPTEMBER 30
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DECEMBER 31
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|||||||
2015
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2014
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|||||||
(Unaudited)
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||||||||
ASSETS
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||||||||
Current
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||||||||
Cash
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$
|
11,000
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$
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5,372
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||||
Prepaid fees
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2,285
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-
|
||||||
13,285
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5,372
|
|||||||
Mineral Property Interest
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230,180
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230,180
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||||||
$
|
243,465
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$
|
235,552
|
|||||
LIABILITIES
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||||||||
Current
|
||||||||
Accounts payable and accrued liabilities
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$
|
546
|
$
|
38,397
|
||||
Loans payable
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388,965
|
275,178
|
||||||
389,511
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313,575
|
|||||||
Contractual Obligations, Commitments And Subsequent Events (Note 7)
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||||||||
STOCKHOLDERS’ DEFICIENCY
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||||||||
Capital Stock
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||||||||
Authorized:
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||||||||
100,000,000 voting common shares with a par value of $0.00001 per share
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||||||||
Issued:
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||||||||
47,658,000 common shares at September 30, 2015 and 46,509,000 common shares at December 31, 2014
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477
|
465
|
||||||
Additional Paid-In Capital
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975,416
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922,215
|
||||||
Accumulated Deficit
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(1,121,939
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)
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(1,000,703
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)
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||||
(146,046
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)
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(78,023
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)
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|||||
$
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243,465
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$
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235,552
|
|||||
Approved on behalf of the Board of Directors
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||
/s/ Mark Walmesley
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/s/ Thomas Temkin
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Director
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Director
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THREE MONTHS ENDED
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NINE MONTHS ENDED
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|||||||||||||||
SEPTEMBER 30
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SEPTEMBER 30
|
|||||||||||||||
2015
|
2014
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2015
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2014
|
|||||||||||||
Revenue
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$
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-
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$
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-
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$
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-
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$
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-
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||||||||
Expenses
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||||||||||||||||
Consulting services
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6,102
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9,789
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19,356
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61,590
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||||||||||||
Corporate support services
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1,140
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-
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3,691
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-
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||||||||||||
Interest, bank and finance charges
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5,544
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3,252
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14,613
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7,970
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||||||||||||
Office, foreign exchange and sundry
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(2,306
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)
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(2,763
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)
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3,756
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(2,723
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)
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|||||||||
Professional fees
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10,592
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16,769
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50,301
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38,800
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||||||||||||
Transfer and filing fees
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2,470
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3,064
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29,519
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10,280
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||||||||||||
23,542
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30,111
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121,236
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115,917
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|||||||||||||
Loss from operations
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(23,542
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)
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(30,111
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)
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(121,236
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)
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(115,917
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)
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||||||||
Other income
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-
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19,599
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-
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19,599
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||||||||||||
Net Loss For The Period
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$
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(23,542
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)
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$
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(10,512
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)
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$
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(121,236
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)
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$
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(96,318
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)
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||||
Basic And Diluted Loss Per Common Share
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$
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(0.00
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)
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$
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(0.00
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)
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$
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(0.00
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)
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$
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(0.01
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)
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||||
Weighted Average Number Of Common Shares Outstanding
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47,658,000
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11,509,000
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47,253,956
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11,509,000
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||||||||||||
NINE MONTHS ENDED
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||||||||
SEPTEMBER 30
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||||||||
2015
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2014
|
|||||||
Cash Provided By (Used In):
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||||||||
Operating Activities
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||||||||
Net loss for the period
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$
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(121,236
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)
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$
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(96,318
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)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
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||||||||
(Decrease) increase in accrued interest payable
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(12,648
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)
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6,171
|
|||||
Net changes in non-cash operating working capital items:
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||||||||
Increase in prepaid fees and advances
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(2,285
|
)
|
(8,300
|
)
|
||||
(Decrease) increase in accounts payable and accrued liabilities
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(37,851
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)
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29,990
|
|||||
(174,020
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)
|
(68,457
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)
|
|||||
Financing Activities
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||||||||
Loan advances
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179,648
|
84,628
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||||||
Net Increase In Cash
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5,628
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16,171
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||||||
Cash, Beginning Of Period
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5,372
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21
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||||||
Cash, End Of Period
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$
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11,000
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$
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16,192
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||||
Supplemental Disclosure Of Cash Flow Information
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||||||||
Cash paid during the period for:
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||||||||
Interest
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$
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-
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$
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-
|
||||
Income taxes
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$
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-
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$
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-
|
||||
Shares issued for debt settlement
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$
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53,213
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$
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21,750
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1.
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BASIS OF PRESENTATION AND NATURE OF OPERATIONS
Organization
Lode-Star Mining Inc. (formerly International Gold Corp.) (“the Company”) was incorporated in the State of Nevada, U.S.A., on December 9, 2004. The Company’s principal executive offices are located in Vancouver, British Columbia, Canada. The Company was originally formed for the purpose of acquiring exploration stage natural resource properties. The Company acquired a mineral property interest from Lode Star Gold Inc., a private Nevada corporation (“LSG”) on December 11, 2014 (See Note 3) in consideration for the issuance of 35,000,000 common shares of the Company. As a result of this transaction, control of the Company was acquired by LSG.
On May 12, 2015, International Gold Corp. completed a merger with its wholly owned subsidiary, Lode-Star Mining Inc., and formally assumed the subsidiary’s name by filing Articles of Merger with the Nevada Secretary of State (the “Name Change”). The subsidiary was incorporated entirely for the purpose of effecting the Name Change and the merger did not affect the Company’s corporate structure in any other way.
Going Concern
The accompanying financial statements have been prepared assuming the Company will continue as a going concern.
The future of the Company is dependent upon its ability to establish a business and to obtain new financing to execute a business plan. As shown in the accompanying financial statements, the Company has incurred accumulated losses of $1,121,939 for the period from December 9, 2004 (inception) to September 30, 2015, and has had no revenue. There is no assurance that management’s plans to seek additional capital through private placements of its common stock will be realized, and these factors cast substantial doubt upon the use of the going concern assumption. These financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.
Basis of Presentation
The unaudited financial information furnished herein reflects all adjustments which, in the opinion of management, are necessary to fairly state the Company’s financial position and the results of its operations for the periods presented. These third quarter financial statements should be read in conjunction with the Company’s financial statements and notes thereto included in the Company’s report on Form 10-K for the year ended December 31, 2014. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited financial statements for the preceding fiscal year, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. Accordingly, footnote disclosure, which would substantially duplicate the disclosure contained in the Company’s financial statements for the fiscal year ended December 31, 2014, has been omitted. The results of operations for the nine month period ended September 30, 2015 are not necessarily indicative of results for the entire year ending December 31, 2015.
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2.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment. All dollar amounts are in U.S. dollars unless otherwise noted.
The financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below:
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2.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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a)
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Basis of Accounting
The Company’s financial statements have been prepared using the accrual method of accounting. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have been reflected herein.
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b)
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Cash and Cash Equivalents
Cash consists of cash on deposit with high quality major financial institutions. For purposes of the balance sheets and statements of cash flows, the Company considers all highly liquid debt instruments purchased with maturity of 90 days or less to be cash equivalents. At September 30, 2015 and December 31, 2014, the Company had no cash equivalents.
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c)
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Foreign Currency Accounting
The Company’s functional currency is the U.S. dollar. Head office financing and investing activities are generally in Canadian dollars. Transactions in Canadian currency are translated into U.S. dollars as follows:
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|
i)
|
monetary items at the exchange rate prevailing at the balance sheet date;
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|
ii)
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non-monetary items at the historical exchange rate; and
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|
iii)
|
revenue and expense items at the rate in effect of the date of transactions.
|
Gains and losses arising on the settlement of foreign currency denominated transactions or balances are recorded in the statements of operations. | ||
d)
|
Fair Value of Financial Instruments
|
|
ASC Topic 820-10 establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
These tiers include:
|
|
§
|
Level 1 – defined as observable inputs such as quoted prices in active markets;
|
|
§
|
Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
|
|
§
|
Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
|
The Company’s financial instruments consist of cash, accounts payable and accrued liabilities, and loans payable. The Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. Pursuant to ASC 820 and 825, the fair value of cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. Accounts payable and accrued liabilities and loans payable are measured using “Level 2” inputs as there are no quoted prices in active markets for identical instruments. The carrying values of cash, accounts payable and accrued liabilities, and loans payable approximate their fair values due to the immediate or short term maturity of these financial instruments. |
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
e)
|
Use of Estimates and Assumptions
The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. By their nature, these estimates are subject to measurement uncertainty and the effect on the financial statements of changes in such estimates in future periods could be significant. Significant areas requiring management’s estimates and assumptions are determining the fair value of transactions involving related parties and common stock. Actual results may differ from the estimates.
|
f)
|
Basic and Diluted Earnings (Loss) Per Share
The Company reports basic earnings or loss per share in accordance with ASC Topic 260, “Earnings Per Share”. Basic earnings or loss per share is calculated based on the weighted average number of common stock outstanding during the period. In periods with net income, the diluted per share amounts would include the dilutive effect of any common stock equivalents such as outstanding warrants or stock options. In periods with net losses, basic and diluted loss per share are the same, as including the effect of any common stock equivalents would be anti-dilutive. The Company has no stock option plan, warrants or other dilutive securities.
|
g)
|
Income Taxes
The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, Income Taxes. This standard requires the use of an asset and liability approach for financial accounting and reporting on income taxes. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized.
|
h)
|
Recent Accounting Pronouncements
The Company has implemented all applicable new accounting pronouncements that are in effect. Those pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
|
3.
|
MINERAL PROPERTY INTEREST
On December 5, 2014, the Company entered into a subscription agreement (the “Subscription Agreements”) with Lode Star Gold Inc. (“LSG”), a private Nevada corporation controlled by the spouse of the Company’s current President, pursuant to which the Company agreed to issue 35,000,000 shares of its common stock, valued at $230,180, to LSG in exchange for a 20% undivided interest in and to the mineral claims owned by LSG. The mineral claims, known as the “Goldfield Bonanza Project” (the “Property”), are located in the State of Nevada.
The execution of the Subscription Agreement was one of the closing conditions of an Option Agreement dated October 4, 2014, pursuant to which the Company acquired the sole and exclusive option to earn up to an 80% undivided interest in and to the Property. In order to earn the additional 60% interest in the Property, the Company is required to fund all expenditures on the Property and pay LSG an aggregate of $5 million in cash in the form of a net smelter royalty, each beginning on the Closing Date, which was December 11, 2014. Until such time as the Company has earned the additional 60% interest, the net smelter royalty will be split 79.2% to LSG, 19.8% to the Company and 1% to the former Property owner.
If the Company fails to make any cash payments to LSG within one year of the Closing Date, it is required to pay LSG an additional $100,000, and in any subsequent years in which the Company fails to complete the payment of the entire $5 million described above, it must make quarterly cash payments to LSG of $25,000 until such time as the Company has earned the additional 60% interest in the Property. Effective December 10, 2015, at the request of the Company’s management, LSG granted the Company a six month deferment of the payment to June 11, 2016, while permitting for operations on the Property is being completed.
|
3.
|
MINERAL PROPERTY INTEREST (Continued)
In addition, the Option Agreement provides that the Company will act as the operator on the Property and that a management committee will be formed, comprised of representatives from the Company and LSG, with voting based on each party’s proportionate interest, to supervise exploration of the Property and approve work programs and budgets. To September 30, 2015, no work programs had been approved.
|
4.
|
CAPITAL STOCK
During the nine months ended September, 2015, the Company had no cash subscriptions for shares of its common stock.
On January 9, 2015, agreements were reached in connection with the loans of $24,696 (CAD $28,650) and $1,767 (CAD $2,050) whereby the loan amounts were to be converted to Company shares at a price of CAD $0.05, to result in the issuance of 573,000 and 41,000 common shares respectively. Those shares were issued on April 6, 2015.
On March 19, 2015, an agreement was reached to modify the terms of a loan such that $26,750 of accrued interest together with a premium was to be converted to Company shares at a price of $0.05 per share, to result in the issuance of 535,000 common shares. Those shares were issued on April 6, 2015.
During the year ended December 31, 2014, the Company received no cash subscriptions for shares of its common stock, however, on December 11, 2014, the Company issued 35,000,000 shares, valued at $230,180, in exchange for a mineral property interest as described in Note 3.
The Company has no stock option plan, warrants or other dilutive securities.
|
5.
|
LOANS PAYABLE
At September 30, 2015, the Company had the following loans payable:
|
|
i)
|
$1,000 (December 31, 2014 - $5,000): unsecured; interest at 15% per annum; originally due on April 20, 2012.
|
|
·
|
On March 19, 2015, $4,000 was paid by the Company in partial settlement of the December 31, 2014 principal balance.
|
|
ii)
|
$75,000 (December 31, 2014 - $75,000): unsecured; interest at 10% per annum from January 10, 2015.
|
|
·
|
One-half of the outstanding principal, or $37,500, and any accrued interest shall become due and payable on written demand in full (not received to date) on the earlier of June 9, 2015 or the date on which the Company completes one or more debt or equity financings that generate aggregate gross proceeds of at least $250,000;
|
|
·
|
The balance of the outstanding principal, or $37,500, and any accrued interest shall become due and payable on written demand in full on January 9, 2016; and
|
|
·
|
The Company shall have the right to repay all or any part of the Principal and any accrued interest to the Lender at any time and from time to time, without any premium.
|
|
iii)
|
$39,835 (December 31, 2015 - $34,160): unsecured; interest at 5% per annum; with no specific terms of repayment.
|
|
iv)
|
$240,000 (December 31, 2014 - $100,000): unsecured; interest at 5% per annum from January 1, 2015; with no specific terms of repayment.
|
|
v)
|
$11,801 (December 31, 2014 - $Nil): unsecured; interest at 5% per annum; with no specific terms of repayment.
|
|
vi)
|
$3,733 (December 31, 2014 - $4,310): unsecured; non-interest bearing; with no specific terms of repayment.
|
|
vii)
|
$Nil (December 31, 2014 - $24,696): unsecured; non-interest bearing; with no specific terms of repayment (converted on January 9, 2015 to shares that were issued on April 6, 2015).
|
|
viii)
|
$Nil (December 31, 2014 - $1,767): unsecured; non-interest bearing; with no specific terms of repayment (converted on January 9, 2015 to shares that were issued on April 6, 2015).
|
5.
|
LOANS PAYABLE (Continued)
As of September 30, 2015, interest totaling $17,596 (December 31, 2014 - $30,244) was accrued on the above loan amounts.
|
6.
|
RELATED PARTY TRANSACTIONS AND AMOUNTS DUE
Transactions with related parties were in the normal course of operations and have been valued in these financial statements at the exchange amount, which is the amount of consideration agreed to and established by the related parties.
|
a)
|
Related Party Amounts Due
At September 30, 2015, $Nil (December 31, 2014 - $15,300) included in accounts payable was due to a company controlled by a former director and president of the Company.
At September 30, 2015, the following loan amounts and accrued interest were due to related parties:
|
|
i)
|
$41,995 (December 31, 2014 - $35,043) including $2,160 (December 31, 2014 - $883) in accrued interest, to the current president of the Company.
|
|
ii)
|
$258,761 (December 31, 2014 - $100,000) including $6,960 (December 31, 2014 - $Nil) in accrued interest, to the majority shareholder of the Company for two loans.
|
|
iii)
|
$3,733 (December 31, 2014 - $4,310) to the controlling shareholder of the majority shareholder of the Company.
|
b)
|
Consulting Services
During the nine months ended September 30, 2015, the Company incurred $Nil (2014 - $51,801) in consulting fees to a former director and president of the Company. See Note 7.
|
7.
|
CONTRACTUAL OBLIGATIONS, COMMITMENTS AND SUBSEQUENT EVENTS
See Note 3 for details about the Company’s obligations and commitments regarding its Mineral Property Interest.
On February 21, 2012, the Company entered into a consulting agreement whereby the former sole director and officer of the Company was to provide services as the Company’s CEO, COO, CFO and Corporate Secretary. The consulting agreement, which would otherwise have extended to June 2016, was terminated with immediate effect in accordance with a settlement agreement dated December 5, 2014.
|
|
·
|
Under the terms of that settlement agreement, the Company agreed to pay an aggregate of $34,000 CAD.
|
|
·
|
Of that amount, $Nil was outstanding and included in accounts payable at September 30, 2015 (December 31, 2014: $17,500 CAD ($15,300 USD)).
|
|
Given that permitting for operations on the Property is still to be completed, at the request of the Company’s management, LSG granted, by a letter of agreement dated November 10, 2015, a six month deferment to June 11, 2016 of the $100,000 payment otherwise due within one year of the Closing Date (i.e. on December 11, 2015) if the Company fails to make any cash payments to LSG.
|
|
Management has evaluated subsequent events and the impact on the reported results and disclosures and has concluded that no other significant events require disclosure as of the date these financial statements were issued.
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
§
|
Consider, develop and submit work programs to the management committee for consideration and approval, and to implement work programs when approved;
|
|
§
|
Carry out operations in a prudent and workmanlike manner and in accordance with all applicable laws and regulations, and all agreements, permits and licenses relating to the Property and LSG;
|
|
§
|
Pay and discharge all wages and accounts for material and services and all other costs and expenses that may be incurred by us in connection with our operations on the property;
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
|
§
|
Maintain and keep in force and, upon request by LSG provide reasonable documentary verification of, levels of insurance as are reasonable in respect of our activities in connection with the Property;
|
|
§
|
Maintain true and correct books, accounts and records of expenditures; and
|
|
§
|
Deliver to the management committee quarterly and annual progress reports.
|
|
·
|
Adoption of an omnibus equity incentive plan for directors, officers, and consultants;
|
|
·
|
Adoption of Amended and Restated Articles of Incorporation filed with the Secretary of State of Nevada to effect the following:
|
|
§
|
authorize our board of directors to change our corporate name to a name selected by our directors;
|
|
§
|
establish corporate codes and committees of the board of directors;
|
|
§
|
increase the number of shares of capital stock we are authorized to issue; and
|
|
§
|
authorize the issuance of preferred stock with preferences, limitations, and relative rights designated by our board of directors.
|
|
·
|
Rubicon Environmental Consulting to act as the lead consultant
|
|
·
|
Hydrogeologica Inc. to consult on water and geology
|
|
·
|
Tierra Group International to consult on mine planning and engineering
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
Rubicon
|
$40,000
|
Hydrogeologica
|
$135,000
|
Tierra
|
$75,000
|
State / NDEP
|
|
Total
|
$250,000
|
Office/Shop Building (existing)
|
$0
|
Trailer Accommodations
|
$60,000
|
Contingency
|
$40,000
|
Total
|
$100,000
|
Pneumatic Jacklegs (6)
|
$24,000
|
Pneumatic Slusher/with bucket (used) (4)
|
$80,000
|
Pneumatic Tugger (used) (2)
|
$10,000
|
1-Yard Scoop (used)
|
$208,000
|
Stopers/Buzzies (4)
|
$8,000
|
Schwing Pump
|
$10,000
|
Compressor
|
$60,000
|
Hoist Rehab & Retrofitting
|
$100,000
|
Total
|
$500,000
|
Labor - 3.75 man crew x 10 hrs/day x 1 month
|
$31,428
|
Equipment Maintenance
|
$38,212
|
Ground Support
|
$20,000
|
Consumables – small hand tools
|
$1,000
|
Utilities
|
$19,600
|
Total
|
$110,240
|
Total
|
$50,000
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
Labor – 3.75 man crew x 10 hrs/day x 5 months
|
$145,620
|
Timber
|
$13,200
|
Equipment Maintenance
|
$28,320
|
Ground Support
|
$13,400
|
Explosives
|
$10,665
|
Backfill Material
|
$46,454
|
Consumables - small hand tools
|
$5,000
|
Utilities
|
$4,835
|
Total
|
$267,494
|
Personnel
|
$320,000
|
Regulatory
|
$120,000
|
General
|
$280,000
|
Total
|
$720,000
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
Three Months Ended
September 30
|
Change
|
|||||||||||||||
2015
|
2014
|
Amount
|
Percentage
|
|||||||||||||
Revenue
|
$ | - | $ | - | $ | - | - | |||||||||
Operating Expenses
|
$ | 23,542 | $ | 30,111 | $ | (6,569 | ) | (22 | %) | |||||||
Loss from Operations
|
$ | (23,542 | ) | $ | (30,111 | ) | $ | 6,569 | (22 | %) | ||||||
Other Income
|
$ | - | $ | 19,599 | $ | (19,599 | ) | (100 | %) | |||||||
Net Loss For The Period
|
$ | (23,542 | ) | $ | (10,512 | ) | $ | (13,030 | ) | 124 | % |
Nine Months Ended
September 30
|
Change
|
|||||||||||||||
2015
|
2014
|
Amount
|
Percentage
|
|||||||||||||
Revenue
|
$ | - | $ | - | $ | - | - | |||||||||
Operating Expenses
|
$ | 121,236 | $ | 115,917 | $ | 5,319 | 5 | % | ||||||||
Loss from Operations
|
$ | (121,236 | ) | $ | (115,917 | ) | $ | (5,319 | ) | 5 | % | |||||
Other Income
|
$ | - | $ | 19,519 | $ | (19,519 | ) | (100 | %) | |||||||
Net Loss For The Period
|
$ | (121,236 | ) | $ | (96,398 | ) | $ | (24,838 | ) | 26 | % |
Three Months Ended September 30
|
Change
|
|||||||||||||||
2015
|
2014
|
Amount
|
Percentage
|
|||||||||||||
Consulting services
|
$ | 6,102 | $ | 9,789 | $ | (3,687 | ) | (38 | %) | |||||||
Interest, bank and finance charges
|
$ | 5,544 | $ | 3,252 | $ | 2,292 | 70 | % | ||||||||
Professional fees
|
$ | 10,592 | $ | 16,769 | $ | (6,177 | ) | (37 | %) |
|
§
|
Consulting services were lower in the third quarter of 2015 compared to the same quarter in 2014 due the final payment of approximately $9,000 for the services of our former director and Secretary being paid in July, 2014, with approximately $6,000 in business development consulting in the 2015 quarter and $Nil in 2014.
|
|
§
|
Interest, bank and finance charges were higher in 2015 primarily due to an increase in interest bearing loans compared to 2014, with a resultant increase in interest expense for the 2015 quarter.
|
|
§
|
Professional fees decreased in the 2015 quarter compared to 2014 primarily due to timing of billings for audit and review services. Professional fees year to date in 2015 were higher than in 2014 by approximately $12,000, primarily due to additional legal fees of approximately $8,000 and US tax work of approximately $3,000 in 2015, with no equivalent in 2014.
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
September 30
|
December 31
|
Change
|
||||||||||||||
2015
|
2014
|
Amount
|
Percentage
|
|||||||||||||
Cash
|
$ | 11,000 | $ | 5,372 | $ | 5,628 | 105 | % | ||||||||
Prepaid fees
|
$ | 2,285 | $ | - | $ | 2,285 | - | |||||||||
Accounts payable and accrued liabilities
|
$ | 546 | $ | 38,397 | $ | (37,851 | ) | (99 | %) | |||||||
Loans payable
|
$ | 388,965 | $ | 275,178 | $ | 113,787 | 41 | % | ||||||||
Additional Paid-In Capital
|
$ | 975,416 | $ | 922,215 | $ | 53,201 | 6 | % |
|
§
|
The increase in Cash of approximately $6,000 is explained below in the section on Cash Flows.
|
|
§
|
Prepaid fees and advances increased due to payment in 2015 of a legal retainer for US tax services.
|
|
§
|
Accounts payable and accrued liabilities decreased mainly due to payments during the nine month period for December 31, 2014 payables for non-recurring legal services (approximately $6,000), year-end audit and accounting services (approximately $12,000), and a final amount due regarding settlement of the consulting agreement for the services of our former Secretary and director (approximately $15,000).
|
|
§
|
Loans payable increased due to the receipt in 2015 of loans of approximately $157,000, together with an increase in accrued interest of approximately $14,000, offset by a settlement of loan principal and interest totaling approximately $53,000 for shares, together with a loan principal payback of $4,000.
|
|
§
|
Additional paid-in capital increased as a result of the settlement of loan principal and interest totaling approximately $53,000 for 1,149,000 shares having a par value of approximately $12.
|
September 30
|
December 31
|
Increase/(Decrease)
|
||||||||||||||
2015
|
2014
|
Amount
|
Percentage
|
|||||||||||||
Current Assets
|
$ | 13,285 | $ | 5,372 | $ | 7,913 | 147 | % | ||||||||
Current Liabilities
|
389,511 | 313,575 | 75,936 | 24 | % | |||||||||||
Working Capital (Deficiency)
|
$ | (376,226 | ) | $ | (308,203 | ) | $ | (68,023 | ) | 22 | % |
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
|
Nine Months Ended September 30
|
Change
|
|||||||||||||||
2015
|
2014
|
Amount
|
Percentage
|
|||||||||||||
Cash Flows (Used In) Provided By:
|
||||||||||||||||
Operating Activities
|
$ | (174,020 | ) | $ | (68,457 | ) | $ | (105,563 | ) | 154 | % | |||||
Financing Activities
|
179,648 | 84,628 | 95,020 | 112 | % | |||||||||||
Net increase in cash
|
$ | 5,628 | $ | 16,171 | $ | (10,453 | ) | (65 | %) |
|
§
|
Operating expenses being higher by approximately $5,000 in the current nine month period than in the equivalent period in the prior year, together with $Nil Other income in 2015, compared to approximately $20,000 in the prior year period, for a net year over year period difference of approximately $25,000 increased cash usage;
|
|
§
|
A decrease in accrued interest payable in 2015 of approximately $13,000, compared to an increase in 2014 of approximately $6,000, for a net year over year period difference of approximately $19,000 increased cash usage;
|
|
§
|
An increase in prepaid fees and advances of approximately $2,000 in 2015, compared to an increase of approximately $8,000 in 2014, for a net year over year period difference of approximately $6,000 decreased cash usage; and
|
|
§
|
A decrease in accounts payable of approximately $38,000 in 2015, compared to an increase of approximately $30,000 in 2014, resulting in a year over year difference in the period of approximately $68,000 increased cash usage.
|
|
§
|
net loan advances in the first nine months of 2015 of approximately $126,000, plus shares issued to settle debt of approximately $53,000, compared to loan advances in the same period in 2014 of approximately $85,000; resulting in a year over year net increase of approximately 95,000
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
|
ITEM 4.
|
CONTROLS AND PROCEDURES.
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
|
ITEM 6.
|
EXHIBITS.
|
Incorporated By Reference
|
|||||
Exhibit No.
|
Document Description
|
Form
|
Date
|
Number
|
Filed herewith
|
X
|
|||||
X
|
|||||
20.1
|
Schedule 14C
|
PRE 14C
|
11/13/2015
|
20.1
|
|
101.INS
|
XBRL Instance Document
|
X
|
|||
101.SCH
|
XBRL Taxonomy Extension Schema
|
X
|
|||
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
X
|
|||
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
X
|
|||
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
X
|
|||
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
X
|
LODE-STAR MINING INC.
|
|||
BY:
|
“Mark Walmesley”
|
||
Mark Walmesley
|
|||
President, Principal Executive Officer, Treasurer, Principal Financial Officer, and Principal Accounting Officer
|
|||
Signature
|
Title
|
Date
|
/s/ Mark Walmesley
|
Director, President, Chief Executive Officer and Chief Financial Officer
|
November 13, 2015
|
Mark Walmesley
|
||
/s/ Thomas Temkin
|
Director and Chief Operating Officer
|
November 13 2015
|
Thomas Temkin
|
Incorporated By Reference
|
|||||
Exhibit No.
|
Document Description
|
Form
|
Date
|
Number
|
Filed herewith
|
X
|
|||||
X
|
|||||
20.1
|
Schedule 14C
|
PRE 14C
|
11/13/2015
|
20.1
|
|
101.INS
|
XBRL Instance Document
|
X
|
|||
101.SCH
|
XBRL Taxonomy Extension Schema
|
X
|
|||
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
X
|
|||
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
X
|
|||
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
X
|
|||
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
X
|
1.
|
I have reviewed this report on Form 10-Q for the period ended September 30, 2015 of Lode-Star Mining Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant is made known to me by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and,
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and,
|
5.
|
I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: November 13, 2015
|
/s/ Mark Walmesley
|
|
Mark Walmesley
|
||
President, Principal Executive Officer, Treasurer, Principal Financial Officer, and Principal Accounting Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Mark Walmesley
|
||
Mark Walmesley
President, Principal Executive Officer, Treasurer, Principal Financial Officer, and Principal Accounting Officer
|
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