NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FEBRUARY 28, 2019
NOTE 1 – NATURE OF OPERATIONS
Century Cobalt Corp. (formerly First American Silver Corp.) was incorporated in the state of Nevada on April 29, 2008.
The Company’s principal office is located at 10100 Santa Monica Boulevard, Suite 300, Century City, California 90067. The Company’s principal business activity is the identification and exploration of mineral properties for the purposes of
discovering economical cobalt assets.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
Exploration Stage Company
On June 10, 2014, the Financial Accounting Standards Board ("FASB") issued update ASU 2014-10, Development Stage Entities
(Topic 915). Amongst other things, the amendments in this update removed the definition of development stage entity from Topic 915, thereby removing the distinction between development stage entities and other reporting entities from US GAAP.
In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information on the statements of income, cash flows and shareholders’ equity, (2) label the financial statements as those of a
development stage entity; (3) disclose a description of the development stage activities in which the entity is engaged and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had
been in the development stage. The amendments are effective for annual reporting periods beginning after December 31, 2014 and interim reporting periods beginning after December 15, 2015, however entities are permitted to early adopt for any
annual or interim reporting period for which the financial statements have yet to be issued. The Company has elected to early adopt these amendments and accordingly have not labeled the financial statements as those of a development stage entity
and have not presented inception-to-date information on the respective financial statements.
Basis of Presentation
The Company’s unaudited condensed consolidated financial statements have been prepared on an accrual basis of accounting,
in conformity with accounting principles generally accepted in the United States of America (US GAAP) for interim financial information applicable for a going concern, which assumes that the Company will realize its assets and discharge its
liabilities in the ordinary course of the business, and in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended. Certain information and disclosures
included in the financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations.
In the opinion of management, the condensed consolidated financial statements contain all material adjustments,
consisting only of normal recurring adjustments necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented.
The results for the three ended
February
28, 2019
are not necessarily indicative of the results of operations for the full year. These unaudited financial statements and related footnotes should be read in conjunction with the amended consolidated financial statements and
footnotes thereto included in the Company’s Annual Report on Form 10-K/A for the year ended November 30, 2018 filed with the Securities and Exchange Commission on May
30
, 2019.
These consolidated financial statements comprise the accounts of the Company and its wholly owned subsidiary Emperium 1
Holdings Corp. Emperium 1 Holdings Corp. was incorporated as a wholly owned subsidiary on October 8, 2018 by the Company through the issuance of 100 common shares at $0.01 per share for proceeds of $1. As Emperium 1 Holdings Corp. is a holding
company and, as such, has no accounts or activity. The Company owns 100% of the issued and outstanding shares of Emperium 1 Holdings Corp.
Accounting Basis
The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of
America (“GAAP” accounting). The Company has adopted a November 30 fiscal year end.
Risks and Uncertainties
The Company's operations are subject to significant risk and uncertainties including financial, operational,
technological, and regulatory risks including the potential risk of business failure. See Note 3 regarding going concern matters.
Cash and Cash Equivalents
The Company considers all highly liquid investments with maturities of three months or less to be cash equivalents. At
February 28, 2019
and
November 30, 2018
, respectively, the Company had $4,
064
and $1,172 of unrestricted cash to be used for future business operations.
The Company's bank accounts are deposited in insured institutions. The funds are insured up to $250,000. At times, the
Company's bank deposits may exceed the insured amount. Management believes it has little risk related to the excess deposits.
CENTURY COBALT CORP.
(FORMERLY FIRST AMERICAN SILVER CORP.)
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28,
2019
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fair Value of Financial Instruments
The Company's financial instruments consist of cash, prepaid expenses, accounts payable, accrued expenses, notes payable,
and note payable-related party. The carrying amount of these financial instruments approximates fair value due to either length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial
statements.
Concentrations of Credit Risk
The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured
limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.
Stock-Based Compensation
The Company accounts for employee stock-based compensation in accordance with the guidance of ASC Topic 718,
Compensation – Stock Compensation
which requires all share-based payments to employees, including grants of employee stock options, to be
recognized in the financial statements based on their fair values. There has been no stock-based compensation issued to employees.
The Company follows ASC Topic 505-50, formerly EITF 96-18, “
Accounting for Equity Instruments that are Issued to Other than Employees for Acquiring, or in Conjunction with Selling Goods and Services,
” for stock options and warrants issued to consultants and
other non-employees. In accordance with ASC Topic 505-50, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the services provided or the estimated fair
market value of the option or warrant, whichever can be more clearly determined. The fair value of the equity instrument is charged directly to compensation expense and additional paid-in capital over the period during which services are
rendered.
Total stock-based compensation for a restricted stock grant and granting a stock option was $4,456 and $-0- for the three months ended
February 28, 2019
and 2018, respectively.
Income Taxes
Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income
tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the
amount of deferred tax assets that, based on available evidence, are not expected to be realized. It is the Company’s policy to classify interest and penalties on income taxes as interest expense or penalties expense. As of March 31, 2019, there
have been no interest or penalties incurred on income taxes.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Revenue Recognition
The Company is in the exploration stage and has yet to realize revenues from operations. Once the Company has commenced
operations, it will recognize revenues when delivery of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved by its customers, the fee is fixed or determinable based on
the completion of stated terms and conditions, and collection of any related receivable is probable.
CENTURY COBALT CORP.
(FORMERLY FIRST AMERICAN SILVER CORP.)
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 2019
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basic Income (Loss) Per Share
Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the
weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the
year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity.
Recent Accounting Pronouncements
The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the
Company’s results of operations, financial position or cash flows.
Mineral Properties
Costs of exploration are expensed as incurred. Mineral property acquisition costs are capitalized including licenses and
lease payments. Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company's title. Such properties may be subject to prior agreements or transfers and
title may be affected by undetected defects.
Mineral properties are analyzed for impairment on an annual basis, or more often if warranted by circumstances.
Impairment losses are recorded on mineral properties used in operations when indicators of impairment are present.
Capitalization
Only assets with a cost of $5,000 and a useful life of over 2 years are capitalized. All other costs are expensed in the
period incurred.
Reclassifications
Certain prior year amounts have been reclassified for comparative purposes to conform to the current-year financial
statement presentation. These reclassifications had no effect on previously reported results of operations. In addition, certain prior year amounts from the restated amounts have been reclassified for consistency with the current period
presentation.
NOTE 3 – GOING CONCERN
The accompanying financial statements have been prepared assuming that Century Cobalt Corp., Inc. will continue as a
going concern. The Company has a working capital deficit, has not yet received revenue from sales of products or services, and has incurred losses from operations. These factors raise substantial doubt about the Company’s ability to continue as
a going concern. Without realization of additional debt or capital, it would be unlikely for the Company to continue as a going concern. The financial statements do not include any adjustments that might result from this uncertainty.
The Company’s activities to date have been supported by debt and equity financing. It has sustained losses in all previous reporting
periods with an inception to date loss of approximately $2,660,000 as of
February 28, 2019
. Management continues to seek funding from its shareholders and other
qualified investors.
CENTURY COBALT CORP.
(FORMERLY FIRST AMERICAN SILVER CORP.)
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 2019
NOTE 4 – PREPAID EXPENSES
Prepaid expenses include stock-based compensation paid to a consultant for future services and the OTCBB for prepaid
listing fees.
Prepaid expenses are as follows:
Description
|
|
February 28, 2019
|
|
|
November 30, 2018
|
|
|
|
|
|
|
|
|
Consulting
|
|
$
|
17,151
|
|
|
$
|
8,620
|
|
Listing Fees
|
|
|
5,417
|
|
|
|
2,167
|
|
Total
|
|
$
|
22,568
|
|
|
$
|
10,787
|
|
NOTE 5 – RESOURCE PROPERTY
On August 7, 2018, we entered into an assignment agreement with Oriental Rainbow Group Ltd., in regards to the
acquisition of certain mineral claims in Lemhi County, Idaho known as the “Idaho Cobalt Belt”.
Oriental Rainbow and Plateau Ventures LLC had entered into a purchase agreement dated September 4, 2017, wherein Oriental
Rainbow had acquired from Plateau a 100% interest in the property, subject to certain subsequent payments and conditions. The claims comprising the property (649 claims) initially totaled approximately 12,980 acres, subject to an option under
the purchase agreement for the acquisition of additional claims by issuing a further 500,000 common shares valued at $20,000 to Plateau Ventures LLC. Such option had been exercised with additional claims acquired, resulting in a total of 695
claims comprising approximately 13,900 acres.
Oriental Rainbow has assigned its interest in the property to us in consideration for 2,500,000 restricted shares
(issued) of common stock valued at $100,000 (the “Consideration Shares”). The Company has assumed all of Oriental Rainbow’s obligations under the purchase agreement, which material obligations include: the issuance of up to 500,000 restricted
shares of common stock, valued at $20,000, to Plateau upon listing on a recognized stock exchange (issued) and paying Plateau $1,000,000 in four equal staged payments upon completion of a positive feasibility study on the property. The vendor
retains a 1% royalty on revenue derived from the sale of cobalt concentrate and other ore extracts from the property. The Company has the option to purchase this 1% royalty at any time for $1,000,000 in cash or common shares.
NOTE 6 – FORGIVENESS OF DEBT
During the year ended November 30, 2018, a creditor of the Company waived a stale balance owing by the Company in the
amount of $100,000.
CENTURY COBALT CORP.
(FORMERLY FIRST AMERICAN SILVER CORP.)
NOTES TO FINANCIAL STATEMENTS
FEBRUARY
28, 2019
NOTE 7 – NOTES PAYABLE
Notes payable consisted of the following at
February
28, 2019
:
Date of Note
|
|
Note
Amount
|
|
|
Interest
Rate
|
|
|
Maturity Date
|
|
Collateral
|
|
Interest
Accrued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 1, 2016 (1)
|
|
$
|
-
|
|
|
|
8
|
%
|
|
May 1, 2017 (Default)
|
|
None
|
|
$
|
-
|
|
October 20, 2016
|
|
$
|
5,000
|
|
|
|
8
|
%
|
|
October 20, 2017 (Default)
|
|
None
|
|
$
|
943
|
|
January 9, 2017
|
|
$
|
9,000
|
|
|
|
8
|
%
|
|
January 9, 2018 (Default)
|
|
None
|
|
$
|
1,539
|
|
April 24, 2017
|
|
$
|
10,000
|
|
|
|
8
|
%
|
|
April 24, 2018 (Default)
|
|
None
|
|
$
|
1,479
|
|
June 19, 2017
|
|
$
|
7,000
|
|
|
|
8
|
%
|
|
June 19, 2018 (Default)
|
|
None
|
|
$
|
950
|
|
September 18, 2017
|
|
$
|
6,000
|
|
|
|
8
|
%
|
|
September 18, 2018 (Default)
|
|
None
|
|
$
|
694
|
|
January 5, 2018
|
|
$
|
10,000
|
|
|
|
8
|
%
|
|
January 5, 2019 (Default)
|
|
None
|
|
$
|
918
|
|
April 17, 2018
|
|
$
|
30,000
|
|
|
|
8
|
%
|
|
April 17, 2019
|
|
None
|
|
$
|
2,084
|
|
July 27, 2018
|
|
$
|
31,700
|
|
|
|
12
|
%
|
|
July 27, 2019
|
|
None
|
|
$
|
2,251
|
|
August 15, 2018
|
|
$
|
108,000
|
|
|
|
12
|
%
|
|
August 15, 2019
|
|
None
|
|
$
|
6,995
|
|
September 7, 2018
|
|
$
|
15,000
|
|
|
|
12
|
%
|
|
July 31, 2020
|
|
None
|
|
$
|
858
|
|
September 12, 2018
|
|
$
|
20,500
|
|
|
|
12
|
%
|
|
August 15, 2020
|
|
None
|
|
$
|
1,139
|
|
September 27, 2018
|
|
$
|
10,000
|
|
|
|
12
|
%
|
|
July 31, 2020
|
|
None
|
|
$
|
506
|
|
October 10, 2018
|
|
$
|
42,000
|
|
|
|
12
|
%
|
|
July 31, 2020
|
|
None
|
|
$
|
1,947
|
|
November 20, 2018
|
|
$
|
7,905
|
|
|
|
12
|
%
|
|
July 31, 2020
|
|
None
|
|
$
|
260
|
|
November 20, 2018
|
|
$
|
7,970
|
|
|
|
12
|
%
|
|
July 31, 2020
|
|
None
|
|
$
|
262
|
|
December 18, 2018
|
|
$
|
25,000
|
|
|
|
12
|
%
|
|
February 18, 2020
|
|
None
|
|
$
|
592
|
|
January 14, 2019
|
|
$
|
42,000
|
|
|
|
12
|
%
|
|
August 15, 2020
|
|
None
|
|
$
|
483
|
|
February 18, 2019
|
|
$
|
20,000
|
|
|
|
12
|
%
|
|
February 18, 2020
|
|
None
|
|
$
|
67
|
|
Total
|
|
$
|
407,075
|
|
|
|
|
|
|
|
|
|
|
$
|
23,967
|
|
(1)
|
On January 8, 2019, the Company agreed to convert principle and interest of $341,650 into 3,105,909
unregistered shares of the Company’s common stock to fully satisfy the obligation. The common stock was valued at $0.11 per share. In-addition, the Company recognized $14,250 income from debt forgiveness for the portion of the
Promissory note accrued interest not converted to the Company’s common stock. T
he Company calculated the fair value of the beneficial conversion feature on the
debt modification as the difference between the conversion price and the fair market value of the Company’s common stock into on the date of modification. The fair value of the conversion provision in connection with the note on the
date of modification was $-0-.
|
Notes payable transactions during the three months ended
February 28, 2019
consisted of the following:
Balance, November 30, 2018
|
|
$
|
612,941
|
|
Borrowings
|
|
|
87,000
|
|
Less repayments
|
|
|
292,866
|
|
Balance,
February 28, 2019
|
|
$
|
407,075
|
|
Repayment schedule of notes payable is as follows:
Year Due
|
|
Principal
|
|
|
Interest
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
$
|
225,500
|
|
|
$
|
16,808
|
|
|
$
|
242,308
|
|
2020
|
|
|
181,575
|
|
|
|
7,159
|
|
|
|
188,734
|
|
Total
|
|
$
|
407,075
|
|
|
$
|
23,967
|
|
|
$
|
431,042
|
|
CENTURY COBALT CORP.
(FORMERLY FIRST AMERICAN SILVER CORP.)
NOTES TO FINANCIAL STATEMENTS
FEBRUARY
28, 2019
NOTE 8 – RELATED PARTY TRANSACTIONS
Notes payable owing to related parties is $257,500 (2018: $488,366) and accrued interest owing to related parties is $16,373 (
November 30, 2018
: $71,231).
As at
February 28, 2019
, accounts
payable owing to stockholders and officers of the Company were $50,314 (
November 30, 2018
: $27,870).
As at
February 28, 2019
, the Company
owed $60,823 to its President and Director
s
(
November 30, 2018
: $60,823) and $
8,100
to a Former President and Director (
November 30, 2018
: $34,817).
Beginning on June 1, 2018, the Company’s President is compensated with $8,500 a month which aggregated $25,500 and $-0- for
the three months ended
February 28, 2019
and 2018, respectively.
NOTE 9 – CAPITAL STOCK
The Company has 20,000,000 preferred shares authorized at a par value of $0.001 per share. As of February 28, 2019, no
rights have been assigned to the preferred shares and the rights will be established upon issuance.
As at
February 28, 2019
, the Company
has 3,500,000,000 common shares authorized at a par value of $0.001 per share.
On August 7, 2018, the Company issued 2,500,000 common shares at $0.04 per share, valued at $100,000, as per a property
acquisition agreement.
On September 10, 2018, the Company issued 500,000 at $0.04 per share, valued at $20,000, common shares as per a property
acquisition agreement.
On September 13, 2018, the Company issued 250,000 at $0.04 per share, valued at $10,000, common shares pursuant to a
consulting agreement.
On September 18, 2018, the Company issued 5,000,000 common shares, at $0.04 per share, valued at $200,000, to the
Company’s president pursuant to a consulting agreement.
On September 18, 2018, the Company exercised an option to acquire additional mineral properties through the issuance of
500,000 common shares at $0.04 per share for a total value of $20,000.
On October 19, 2018, the Company issued 2,500,000 common shares at $0.108 per share, valued at $270,000, to the Company’s
president pursuant to a consulting agreement.
On January 8, 2019, the Company agreed to convert principle and interest of $341,650 from a Related Party Promissory Note
Payable into 3,105,909 unregistered shares of the Company’s common stock to fully satisfy the obligation. The common stock was valued at $0.11 per share.
As of February 28, 2019, the Company had 77,248,120 (November 30, 2018: 74,142,211) common shares issued and outstanding.
CENTURY COBALT CORP.
(FORMERLY FIRST AMERICAN SILVER CORP.)
NOTES TO FINANCIAL STATEMENTS
FEBRUARY
28, 2019
NOTE 10 – MATERIAL CONTRACT
On January 9, 2019, the Company entered an
agreement with a consultant to head the Company’s Advisory Board to provide essential prospective on technology and public policy developments that are shaping the cobalt markets. In addition, the consultant will provide press releases,
additional messaging and focus on exploring potential relationships with major cobalt users. The agreement terminates on December 31, 2019. After December 31, 2019, the agreement automatically renews unless the Company or consultant provide
30 days written notice. The consultant is compensated with a $5,000 retainer which commences the first of the month following the completion of the Company’s next capital raise. In addition, the Company granted the consultant a three-year
option to purchase 250,000 shares of the Company’s unregistered common stock at $0.10 per share. The option vested as to 100,000 shares on the grant date, vests 100,000 shares on August 9, 2019 and 50,000 on January 9, 2020. The fair value of
the option was $23,891. The Company
uses a Black-Scholes-Merton option pricing model to estimate the fair value option with the following assumptions:
Risk-free interest rate
|
|
|
2.54
|
%
|
Expected life (in years)
|
|
|
3
|
|
Expected volatility
|
|
|
310.6
|
%
|
Grant date fair value
|
|
$
|
.097
|
|
NOTE 10 – SUBSEQUENT EVENTS
On March 6, 2019, the Company received a loan of $10,000 bearing interest at 12% and due on August 15, 2020.
On March 11, 2019, the Company signed a twelve-month lease agreement for a four-bedroom living unit. The lease starts
on April 1, 2019 and ends on March 31, 2020. The monthly rental is $1,200 and an aggregate of $14,400 over the term of the lease.
On April 1, 2019, the Company signed a six-month Option Agreement for sole and exclusive right and option to explore and
evaluate the battery material (manganese + nickel + copper + cobalt) potential for property in the Chamberlain area of South Dakota, USA. The optionor provides the property free and clear of all liens, charges, encumbrances, claims, rights, or
interest of any person subject to incurring or funding expenditures up to an aggregate of $10,000 within six months of signing this agreement. On April 1, 2019, the Company will issue to the optionor 163,132 unregistered shares of the Company
stock worth $20,000 or $0.1226 per shares (based on the 30-day average closing price as of April 1, 2019). As of May 31, 2019, the subject shares have not been issued to the optionor. At the end of the six-month period, the Company has the right
to extend the option period for 3 months by issuing the optionor an additional $20,000 of unregistered shares of the Company’s common based on the 30 days average closing price on the date of the extension. At any time during the option periods,
both parties agree to work towards signing a binding Exploration and Development Agreement in the event the initial exploration results on the subject properly prove encouraging. The Company may terminate the agreement with 30 days written
notice to the optionor.
On April 2, 2019, the Company signed a twelve-month lease agreement for office space. The lease starts on 1 July, 2019 and ends on 30 June, 2020. The monthly rental is $730.15 and an aggregate of $8,761.80 over the
term of the lease.
On May 3, 2019, the Company received a loan of $25,000 bearing interest at 12% and due on July 31, 2020.
CENTURY COBALT CORP.
(FORMERLY FIRST AMERICAN SILVER CORP.)
NOTES TO FINANCIAL STATEMENTS
FEBRUARY
28, 2019
NOTE 11 – RESTATEMENT
The August 31, 2018 financial statements are being restated to restate the value of consideration paid on the acquisition
of a mineral property, allocate the expenses to the proper period according to services performed, correcting mineral properties, accounts payable, common stock, additional paid in capital and operating expenses.
The following table summarizes changes made to the August 31, 2018 balance sheet.
|
|
August 31, 2018
|
|
|
|
As Reported
|
|
|
Adjustment
|
|
|
As Restated
|
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
Current Assets
|
|
$
|
236,693
|
|
|
$
|
(221,457
|
)
|
|
$
|
15,236
|
|
Resource Property
|
|
|
378,000
|
|
|
|
(130,000
|
)
|
|
|
248,000
|
|
Total assets
|
|
$
|
614,693
|
|
|
$
|
(351,457
|
)
|
|
$
|
263,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
53,688
|
|
|
$
|
10,910
|
|
|
$
|
54,598
|
|
Accounts payable – related parties
|
|
|
32,635
|
|
|
|
12,740
|
|
|
|
45,375
|
|
Due to related party
|
|
|
97,513
|
|
|
|
(10,907
|
)
|
|
|
86,606
|
|
Accrued interest
|
|
|
-
|
|
|
|
886
|
|
|
|
886
|
|
Accrued interest – related party
|
|
|
60,282
|
|
|
|
2,993
|
|
|
|
63,275
|
|
Notes payable
|
|
|
-
|
|
|
|
41,700
|
|
|
|
41,700
|
|
Notes payable – related party
|
|
|
479,566
|
|
|
|
(11,700
|
)
|
|
|
467,866
|
|
Total liabilities
|
|
|
723,684
|
|
|
|
46,622
|
|
|
|
770,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
65,392
|
|
|
|
-
|
|
|
|
65,392
|
|
Additional paid-in capital
|
|
|
1,429,375
|
|
|
|
(125,000
|
)
|
|
|
1,304,375
|
|
Common stock payable
|
|
|
310,120
|
|
|
|
(5,000
|
)
|
|
|
305,120
|
|
Accumulated deficit
|
|
|
(1,913,878
|
)
|
|
|
(268,079
|
)
|
|
|
(2,181,957
|
)
|
Total Stockholders’ Equity
|
|
|
(108,991
|
)
|
|
|
(398,079
|
)
|
|
|
(507,070
|
)
|
Total liabilities and stockholders’ equity
|
|
$
|
614,693
|
|
|
$
|
(351,457
|
)
|
|
$
|
263,236
|
|
The following table summarizes changes made to the nine months ended August 31, 2018 Statement of Operations.
|
For the nine months ended August 31, 2018
|
|
|
As Reported
|
|
Adjustment
|
|
As Restated
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
$
|
191,745
|
|
|
$
|
264,200
|
|
|
$
|
455,945
|
|
Interest expense
|
|
|
21,265
|
|
|
|
3,879
|
|
|
|
25,144
|
|
Forgiveness of debt
|
|
|
(100,000
|
)
|
|
|
-
|
|
|
|
(100,000
|
)
|
Net Loss
|
|
$
|
(113,010
|
)
|
|
$
|
268,079
|
|
|
$
|
381,089
|
|
CENTURY COBALT CORP.
(FORMERLY FIRST AMERICAN SILVER CORP.)
NOTES TO FINANCIAL STATEMENTS
FEBRUARY
28, 2019
NOTE 11 – RESTATEMENT (continued)
The May 31, 2018 financial statements are being restated to restate the value of consideration paid on the acquisition of
a mineral property, allocate the expenses to the proper period according to services performed, correcting mineral properties, accounts payable, common stock, additional paid in capital and operating expenses.
The following table summarizes changes made to the May 31, 2018 balance sheet.
|
|
May 31, 2018
|
|
|
|
As Reported
|
|
|
Adjustment
|
|
|
As Restated
|
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
Current Assets
|
|
$
|
5,924
|
|
|
$
|
(938
|
)
|
|
$
|
4,986
|
|
Deposit
|
|
|
591
|
|
|
|
-
|
|
|
|
591
|
|
Total assets
|
|
$
|
6,515
|
|
|
$
|
-
|
|
|
$
|
5,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
69,894
|
|
|
$
|
(46,844
|
)
|
|
$
|
23,050
|
|
Accounts payable – related parties
|
|
|
7,085
|
|
|
|
7,425
|
|
|
|
14,510
|
|
Due to related party
|
|
|
38,170
|
|
|
|
11,256
|
|
|
|
49,426
|
|
Accrued interest
|
|
|
-
|
|
|
|
320
|
|
|
|
320
|
|
Accrued interest – related party
|
|
|
52,497
|
|
|
|
(610
|
)
|
|
|
51,887
|
|
Notes payable
|
|
|
-
|
|
|
|
10,000
|
|
|
|
10,000
|
|
Notes payable – related party
|
|
|
339,866
|
|
|
|
20,000
|
|
|
|
359,866
|
|
Total liabilities
|
|
|
507,512
|
|
|
|
1,547
|
|
|
|
509,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
62,892
|
|
|
|
-
|
|
|
|
62,892
|
|
Additional paid-in capital
|
|
|
1,206,875
|
|
|
|
-
|
|
|
|
1,206,875
|
|
Common stock payable
|
|
|
15,120
|
|
|
|
-
|
|
|
|
15,120
|
|
Accumulated deficit
|
|
|
(1,785,884
|
)
|
|
|
(2,485
|
)
|
|
|
(1,788,369
|
)
|
Total Stockholders’ Equity
|
|
|
(500,997
|
)
|
|
|
(2,485
|
)
|
|
|
(503,482
|
)
|
Total liabilities and stockholders’ equity
|
|
$
|
6,515
|
|
|
$
|
-
|
|
|
$
|
5,577
|
|
The following table summarizes changes made to the six months ended May 31, 2018 Statement of Operations.
|
For the six months ended May 31, 2018
|
|
|
As Reported
|
|
Adjustment
|
|
As Restated
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
$
|
71,536
|
|
|
$
|
2,775
|
|
|
$
|
74,311
|
|
Interest expense
|
|
|
13,480
|
|
|
|
(290
|
)
|
|
|
13,190
|
|
Forgiveness of debt
|
|
|
(100,000
|
)
|
|
|
-
|
|
|
|
(100,000
|
)
|
Net Income (Loss)
|
|
$
|
14,984
|
|
|
$
|
2,485
|
|
|
$
|
12,499
|
|