Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. American Magna Corp (1401670) 10-Q published on Dec 12, 2014 at 6:19 pm
Reporting Period: Oct 30, 2014
In August 2014, FASB issued ASU No. 2014-15 - Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern - which requires management to explicitly assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. In connection with each annual and interim period, management will assess if there is substantial doubt about an entity's ability to continue as a going concern within one year after the issuance date of an entity’s financial statements. The new standard defines substantial doubt and provides examples of indicators thereof. The definition of substantial doubt incorporates a likelihood threshold of "probable" similar to the current use of that term in U.S. GAAP for loss contingencies. The new standard will be effective for all entities in the first annual period ending after December 15, 2016 (December 31, 2016 for calendar year-end entities). Earlier application is permitted. The Company is currently assessing this standard for its impact on future reporting periods.
(iii) The advance royalty will not recommence at any future date once a minimum of three consecutive years of production has been achieved or there has been 25 years without production.
(A) the Agreement is terminated, then the Escrow Agent shall return the Shares to the Company for cancellation, or
For the six-months ended October 31, 2014, the Company paid its principal executive officer $750 per month to serve as its principal executive officer and on its Board of Directors. The total amount paid for the six months ended October 31, 2014 was $4,500 (2013- $0). For the six-months ended October 31, 2014, the Company paid one of its directors $500 per month to serve on its Board of Directors. The total amount paid for the six months ended October 31, 2014 was $3,000 (2013- $3,000).
For the six months ended October 31, 2014 we had a net loss of $56,137 compared to a net loss of $59,287 for the six months ended October 31, 2013. The decrease in the net loss was largely due to a decrease in general and administrative partially offset by higher mineral property exploration expenditures and mineral property acquisition payments. General and administrative expenses decreased to $24,958 for the six months ended October 31, 2014 from $41,112 for the six months ended October 31, 2013. The decrease in the current period was due to legal, accounting, and consulting expenses relating to the Company’s new property option agreement, name change and share issuances being incurred in the six months ended October 31, 2013 while much lower amounts were incurred in the current Six months ended October 31, 2014. Mineral property exploration expenses increased to $21,179 for the six months ended October 31, 2014 from $10,463 for the six months ended October 31, 2013. In the current period the Company recognized a total of $11,746 in claim fees on its Bell Flat Property and $9,433 on mineral property exploration fees. In the prior period the Company paid $3,340 in claim fess on its Bell Flat Property, $5,234 in claims fees that were payable to MinQuest as a result of the Company terminating the Crescent Fault Property Option Agreement as well as $1,889 on mineral property exploration expenditures.
We had cash of $11,811 and working capital of $11,280 as of October 31, 2014. Net cash used in operating activities during the six months ended October 31, 2014 was $58,009 compared to $18,170 during the six months ended October 31, 2013. The primary reason for the increase was due to changes in accounts payable and accrued liabilities. During the six months ended October 31, 2014 there was cash used of $3,166 due to a decrease of accounts payable and accrued liabilities compared to cash from an increase of accounts payable and accrued liabilities of $37,728 during the six months ended October 31, 2013. There were no investing activities in either of the six month periods ended October 31, 2014 or 2013. In the six month period ending October 31, 2014 there were no financing activities, while in the previous six month periods ending October 31, 2013, $149,500 was received from the issuance of common stock.