AIM EXPLORATION INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
9 months
ended
May 31, 2016
|
9 months
ended
May 31, 2015
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
Net Loss
|
$
(919,327
)
|
$
(495,903
)
|
|
Accretion related to convertible note
|
452,826
|
34,089
|
|
Finance costs and derivative expense
|
218,744
|
67,135
|
|
Accrued interest on convertible note
|
-
|
10,306
|
|
Change in fair value of derivative liability
|
(187,908
)
|
(31,921
)
|
|
Shares issued for services
|
31,500
|
193,000
|
|
Adjustments to reconcile Net Loss to netCash used in operating activities:
|
|
|
|
Loans Receivable
|
-
|
(45,800
)
|
|
Deposits
|
17,064
|
14,171
|
|
Provisions
|
-
|
(55,000
)
|
|
Accounts Payable
|
80,993
|
19,393
|
|
|
|
|
|
NET CASH USED IN OPERATING ACTIVITIES
|
(306,108
)
|
(290,530
)
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
Convertible debt – related party
|
-
|
100,000
|
|
Convertible debt
|
215,000
|
45,000
|
|
Loans from related party
|
89,795
|
150,332
|
|
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
304,795
|
295,332
|
|
|
|
|
|
NET (DECREASE) INCREASE IN CASH
|
(1,313
)
|
4,802
|
|
|
|
|
|
CASH, BEGINNING OF PERIOD
|
2,349
|
1,862
|
|
|
|
|
|
CASH, END OF PERIOD
|
$
1,036
|
$
6,664
|
NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION
Aim Exploration, Inc. (“Company”) is an exploration stage company as defined by FASB ASC 915. The Company was organized to engage in mineral exploration and has incurred losses totaling $2,675,326 since inception. The Company was incorporated on February 18, 2010 in the State of Nevada and established a fiscal year end at August 31.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The condensed consolidated financial statements present the condensed consolidated balance sheets, condensed consolidated statements of operations and condensed consolidated cash flows of the Company. These financial statements are presented in United States dollars and have been prepared in accordance with accounting principles generally accepted in the United States.
Principles of Consolidation
The condensed consolidated statements incorporate the financial statements of the Company and its wholly-owned subsidiary, Aim Exploration SA, of Peru. All significant intercompany accounts and transactions have been eliminated in consolidation.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. There were no cash equivalents at May 31, 2016 and 2015.
Advertising
Advertising costs are expensed as incurred. As of May 31, 2016, no advertising costs have been incurred.
Property
The Company does not own or rent any property. The Company’s office space is being provided by the president at no charge to the Company.
Use of Estimates and Assumptions
Preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Income Taxes
The Company follows the liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances. Deferred tax assets and liabilities are measured using enacted or substantially
enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Income Taxes (Continued)
likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.
Fair Value of Financial Instruments
The Company has adopted Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures ("ASC 820-10"). ASC 820-10 defines fair value, establishes a framework for measuring fair value and enhances fair value measurement disclosure The adoption of ASC 820-10 requires that the Company disclose assets and liabilities that are recognized
and measured at fair value on a non-recurring basis, presented in a three-tier fair value hierarchy, as follows:
- Level 1. Observable inputs such as quoted prices in active markets;
- Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
- Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
The following presents the gross value of assets that were measured and recognized at fair value:
- Level 1: none
- Level 2: none
- Level 3: none
The Company adopted ASC 825-10, Financial Instruments, which permits entities to choose to measure many financial instruments and certain other items at fair value. The adoption of this standard did not have an impact on the Company's financial position, results of operations or cash flows. The carrying value of cash and cash equivalents, accounts payable
and accrued expenses, as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments.
Derivative Liability
The conversion features embedded in the outstanding convertible notes payable are separately accounted for as a derivative liability in accordance with ASC 815-15, Embedded Derivative. This is because the number of shares that may be acquired upon conversion is indeterminable as the conversion rates are expressed as a percentage discount to the current
fair market value of common stock at the time of conversion. Derivative liabilities are valued when the host instruments (convertible notes) are initially issued and are also revalued at each reporting date, with the change in the respective fair values being recorded as a gain or loss to the derivative liability.
Net Loss per Share
Basic loss per share includes no dilution and is computed by dividing loss available to common stockholders by the weighted average number of common shares outstanding for the period. Dilutive loss per share reflects the potential dilution of securities that could share in the losses of the Company. Because the Company does not have any potentially dilutive securities,
the accompanying presentation is only of basic loss per share.
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Impairment of Long-Lived Assets
In accordance with ASC 360, Property Plant and Equipment, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset;
significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is
assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.
Mineral Property Costs
Mineral property exploration costs are expensed as incurred until such time as economic reserves are quantified. To date, the Company has not established any proven or probable reserves on its mineral properties. The Company has capitalized $326,969 of mineral property acquisition costs reflecting its investment in its properties.
Stock-based Compensation
The Company adopted FASB guidance on stock based compensation upon inception at February 18, 2010. ASC 718-10-30-2 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. The Company has not had any stock and stock options issued for services and
compensation for the period from inception (February 18, 2010) through May 31, 2016.
Recent Accounting Pronouncements
In April 2014, the FASB issued ASU 2014-08,
Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity
. The amendments
in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement
users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The Company does not expect the adoption to have a significant impact on its consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09,
Revenue from Contracts with Customers.
This new standard will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue
for the transfer of goods or services equal to the amount it expects to receive for those goods and services. The ASU requires additional disclosure about the
nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and estimates, and changes in those estimates. The ASU will be effective for the Company beginning
January
1, 2017
, and allows for both retrospective and modified- retrospective methods of adoption. The Company is in the process of determining the method of adoption it will elect and is currently assessing the impact of this ASU on its consolidated financial statements and footnote disclosures.
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Recent Accounting Pronouncements (Continued)
In August 2014, the FASB issued ASU 2014-15,
Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern
. The amendment in the ASU provides guidance on determining when and how to disclose going-concern uncertainties
in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after
December
15, 2016
. Earlier adoption is permitted. The Company does not expect the adoption to have a significant impact on its consolidated financial statements.
In November 2014, the FASB issued ASU No. 2014-16 (ASU 2014-16),
Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity
. The amendments in this ASU do not change
the current criteria in U.S. GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. The ASU applies to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share and is effective
for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2014-16 is not expected to have a material effect on the Company’s consolidated financial statements. Early adoption is permitted.
In February, 2015, the FASB issued ASU No. 2015-02,
Consolidation (Topic 810): Amendments to the Consolidation Analysis.
ASU 2015-02 provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate
whether they should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). ASU 2015-02 is effective for periods beginning after
December 15, 2015
. The adoption of ASU 2015-02 is not expected to have a material effect on the Company’s financial statements.
Early adoption is permitted.
In August, 2015, the FASB issued ASU No. 2015-14,
Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.
The amendment in this ASU defers the effective date of ASU No. 2014-09 for all entities for one year. Public
business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning
December 15, 2017, including
interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after
December 31, 2016
, including interim reporting periods with that reporting
period.
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Recent Accounting Pronouncements (Continued)
In September, 2015, the FASB issued ASU No. 2015-16,
Business Combinations (Topic 805).
Topic 805 requires that an acquirer retrospectively adjust provisional amounts recognized in a business combination, during the
measurement period. To simplify the accounting for adjustments made to provisional amounts, the amendments in the Update require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of
the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date.
The
adoption of ASU 2015-016 is not expected to have a material effect on the Company’s financial statements.
Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.
NOTE 3 – GOING CONCERN
The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Currently, the Company has a working capital deficit of $
2,119,054
, an accumulated
deficit of $
2,675,326
and net loss from operations since inception of $
2,675,326
. The Company does not have a source of revenue sufficient to cover its operation costs giving substantial doubt for it to continue as a going concern. The Company will be dependent upon the raising of additional capital through placement of our common stock in order to implement its business plan, or merging with an operating company. There can be no assurance
that the Company will be successful in either situation in order to continue as a going concern.
The Company is funding its initial operations by way of issuing common shares.
The officers and directors have committed to advancing certain operating costs of the Company, including Legal, Audit, Transfer Agency and Edgarizing costs.
NOTE 4 – MINERAL PROPERTY
Peruvian Mining Claims:
On June 23, 2014, Aim Exploration, Inc. entered into a Mining Concession Asset Acquisition Agreement (the “Agreement”) with Percana Mining Corp. (“Percana”). Pursuant to the Agreement, the Company acquired three separate mining concessions. Two of the concession titles are unencumbered and comprise 40% of the mining concessions.
These two concessions are known as El Tunel Del Tiempo 1 code 11060780 and El Tunel Del Tiempo 2 code 11060781, and the registered ownership of these two concessions have been transferred to the Company. The third concession property known as Agujeros Negros MA-AG comprising the remaining 60% has not yet been transferred to the Company, however the
Company has entered into a Contract of Mining Assignment and Option to Purchase
the concession for a five year term. This contract provides AIM with full rights and authorities over the concession. .
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
NOTE 4 – MINERAL PROPERTY (Continued)
Peruvian Mining Claims (Continued):
In consideration for the above concessions, the Company has issued 15,750,000 restricted common shares (Note 6) to Percana in two separate blocks; the first block consists of 6,300,000 common shares which are to be held in escrow until either the Company raises $1,000,000 or when Percana waives this requirement. The second block consists of 9,450,000 shares
which are to be held in escrow until such time as the Company is satisfied at its discretion that any arbitration issues have been resolved with the third concession, at which time the shares may be released out of escrow at the option of Percana. These Mining Concessions were acquired based on the assumption the properties are rich in high grade Anthracite Coal, currently there are 20 small tunnels on the property already producing anthracite coal which was being mined by illegal miners. Testing of the coal
samples was performed indicating the presence of high-grade anthracite coal. Prior to acquisition AIM reviewed a non-compliant technical report prepared by Engineers/Geologists together with hiring a US based firm Gustavson Associates to visit the property and review the reports. The firm provided AIM with a report, which included recommendation for further exploration.
NOTE 5 – CONVERTIBLE NOTE
During the nine months ended May 31, 2016, the Company issued convertible notes with a principal balance of $215,000, with maturity dates ranging from February 29, 2016 to January 12, 2017, and an interest rate per annum ranging from 10% to 22%. The principal is convertible into common shares of the Company at a conversion rate equal to 50% - 60% of the lowest trading
price of the Company’s common stock for the fifteen prior trading days, as defined in the agreements.
During the nine months ended May 31, 2016, 355,039 common shares were issued in relation to conversion options exercised during the period. Of these common shares, $117,449 related to principal of the convertible notes, $7,895 to accrued interest, and $11,100 to fees.
During the year ended August 31, 2015, the Company issued convertible notes with a principal balance of $306,875, with maturity dates ranging from November 6, 2015 to July 22, 2016, and an interest rate per annum ranging from 8% to 12%. The principal is convertible into common shares of the Company at a conversion rate equal to 55% - 60% of the lowest trading price of
the Company’s common stock for the fifteen prior trading days, as defined in the agreements.
The Company is accounting for the conversion feature as a separate derivative liability under ASC 815. As such, the Company will carry the conversion feature liability at fair value on the balance sheet. The Company determined the fair value of the conversion feature as at the dates of issue and also as of the period ended May 31, 2016. To determine the put and call values,
the Company used the Black-Scholes option valuation model using the following inputs:
|
|
May 31, 2016
|
August 31, 2015
|
|
Fair value of common stock
|
$0.08
|
$0.21 - $0.42
|
|
Exercise price
|
$0.04
|
$0.1350 - $0.2585
|
|
Contractual term
|
0.10 year – 0.62 year
|
9 months – 1 year
|
|
Volatility
|
682.3%
|
119.50% - 143.10%
|
|
Risk-free interest rate
|
0.68%
|
0.12% - 0.41%
|
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
NOTE 5 – CONVERTIBLE NOTE (CONTINUED)
Volatility was determined using a peer group of public companies, and the Company used US treasuries with a similar contractual term to determine the risk-free interest rate.
On May 11, 2015, the Company exercised its option to redeem convertible notes with a principal balance of $47,250 within 180 days of their issuance, by opting to prepay the note at 150% of the principal amount plus accrued interest in the amount of $1,853. The Company recorded a loss on the repurchase of the convertible note in the amount of $20,664, which was credited
to the additional paid in capital account.
During the nine months ended May 31, 2016, the Company recognized change in fair value of the derivative liability of $187,908 related to the change in fair value of the conversion feature. The change in fair value of the conversion feature was recorded through operating results.
When recording the conversion feature liability during the period, the Company recognized a 100% debt discount on the convertible notes payable of $215,000 and finance costs expense of $172,601 from amortization of debt discounts and excess of derivative liability over the face value of the note. The debt discount is being accreted to finance costs using the straight-line
method over the contractual term of the debt. During the period ended May 31, 2016, the Company also recognized in the normal course accretion expense of $452,826.
NOTE 6 – CAPITAL STOCK
On April 25, 2016, the Company consolidated its share capital on a 250:1 basis. All common shares and per share amounts have been restated to reflect this share consolidation.
The Company has authorized 250,000,000 shares of common stock with a par value of $0.001 per share and 1,000,000 shares of preferred stock with a par value of $0.001 per share.
At May 31, 2016, 16,399,876 shares of common stock were issued and outstanding, and 100,000 shares of preferred stock were issued and outstanding.
In July 2014, the Company issued 63,000 common shares in connection with the acquisition of certain mining property to Percana. As a result of the share consolidation on April 25, 2016, the Company issued an additional 15,687,000 common shares to Percana on April 25, 2016, to bring their holdings up to their original position of 15,750,000 common shares. (Note 4)
During the year ended August 31, 2015, the Company issued 20,000 shares to 1 shareholder in connection with an asset acquisition agreement at fair value of $5,000. The Company also issued 1,400 common shares to 1 shareholder in connection with a six-month investor relations campaign at fair value of $175,000.
During the period ended May 31, 2016, the Company issued 355,039 common shares pursuant to the exercise of the option attached to outstanding convertible notes. (Note 5)
During the period ended August 31, 2015, the Company issued 100,000 preferred shares to 1 shareholder at fair value of $18,000, a related party of the Company, in connection with services rendered.
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
NOTE 7 – LOANS PAYABLE - RELATED PARTIES
During the period ended
May 31, 2016 and 2015
, advances from a director of the Company were $550 and $Nil, respectively. The amounts are unsecured, non-interest bearing and are due on demand.
During the period ended
May 31, 2016 and 2015
, advances from related parties were $49,240 and $166,128, respectively, and amounts advanced to one related party were $121,995 and $25,500, respectively. The amounts are unsecured, non-interest bearing and are due on demand.
During the period ended
May 31, 2016 and 2015
, management fees totaling $162,000 and $Nil, respectively, were accrued as payable to two directors of the Company
NOTE 8 – RESTATEMENTS
During the period ended May 31, 2016, accounting errors were discovered that required a restatement of amounts previously reported, related to loan payable that was issued against a finder's fee incurred. The loan payable was amended, and the terms revised to a convertible note payable. The loan payable and its subsequent amendment to a convertible note payable were not
reported during the year ended August 31, 2015. This error resulted in changes to the convertible note, derivative liability, accretion expense, finder's fee expense, interest expense, finance costs, and the change in fair value of derivative liability. As a result of correcting these errors, our net loss increased by $157,923 for the year ended August 31, 2015, and $18,484 for the three months ended November 30, 2015.
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
NOTE 8 – RESTATEMENTS – CONTINUED
BALANCE SHEET
|
|
|
ASSETS
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Cash
|
$
2,349
|
|
|
$
2,349
|
|
Loans receivable
|
45,800
|
|
|
45,800
|
|
Deposits
|
39,303
|
|
|
39,303
|
|
Total Current Assets
|
87,452
|
|
|
87,452
|
|
Mineral property investment
|
326,969
|
|
|
326,969
|
|
TOTAL ASSETS
|
$
414,421
|
|
|
$
414,421
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
$
214,513
|
|
|
$
214,513
|
|
Loans payable – related party
|
478,453
|
|
|
478,453
|
|
Convertible note – related party
|
103,762
|
|
|
103,762
|
|
Convertible note, net of unamortized discount
|
70,936
|
13,328 + 2,443
|
b
|
86,707
|
|
Derivative liability
|
429,535
|
146,204 – 4,052
|
a, c
|
571,687
|
|
TOTAL LIABILITIES
|
1,297,199
|
157,923
|
|
1,455,122
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
Capital StockAuthorized
250,000,000 shares of common stock, $0.001 par value
Issued and outstanding 126,126,678 shares (89,100,000 shares outstanding as at August 31, 2015)
1,000,000 shares of preferred stock, $0.001 par value
Issued and outstanding 100,000 shares (1,000,000 as at August 31, 2015)
|
89,200
|
|
|
89,200
|
|
Additional paid in capital
|
626,098
|
|
|
626,098
|
|
Accumulated deficit
|
(1,598,076
)
|
(157,923
)
|
|
(1,755,999
)
|
|
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)
|
(882,778
)
|
(157,923
)
|
|
(1,040,701
)
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
|
$
414,421
|
|
|
$
414,421
|
Notes:
a.
Record issuance of convertible note
b.
Record accretion and accrue interest
c.
Mark-to market convertible note
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
NOTE 8 – RESTATEMENTS – CONTINUED
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE
|
|
|
|
|
|
Total Revenue
|
$
0
|
|
|
$
0
|
|
Gross Profit
|
0
|
|
|
0
|
|
MINERAL PROPERTY OPERATIONS
|
|
|
|
|
|
Acquisition expenses
|
(37,556
)
|
|
|
(37,556
)
|
|
Exploration expenses
|
15,713
|
|
|
15,713
|
|
Total Mineral Property Operations
|
(21,843
)
|
|
|
(21,843
)
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
Accretion
|
72,001
|
13,328
|
b
|
85,329
|
|
Consulting fees
|
128,451
|
|
|
128,451
|
|
Filling fees
|
15,923
|
|
|
15,923
|
|
Finder’s fees
|
34,925
|
78,678
|
a
|
113,603
|
|
Management fees
|
241,500
|
|
|
241,500
|
|
Office & general
|
70,806
|
|
|
70,806
|
|
Professional fees
|
306,925
|
|
|
306,925
|
|
Public relations
|
180,452
|
|
|
180,452
|
|
Total Expenses
|
1,050,983
|
92,006
|
|
1,050,983
|
|
|
|
|
|
|
|
Net Loss
|
(1,029,140
)
|
|
|
(1,029,140
)
|
|
|
|
|
|
|
|
Interest expense
|
(46,669
)
|
(2,443
)
|
b
|
(49,112
)
|
|
Finance costs
|
(238,472
)
|
(67,526
)
|
a
|
(305,998
)
|
|
Change in fair value of derivative liability
|
12,301
|
4,052
|
c
|
16,353
|
|
Write-down of accounts payable
|
11,285
|
|
|
11,285
|
|
|
|
|
|
|
|
Total Other Expense
|
(261,555
)
|
(65,917
)
|
|
(327,472
)
|
|
|
|
|
|
|
|
Net Loss
|
$
(1,290,695
)
|
$
(157,923
)
|
|
$
(1,448,618
)
|
|
|
|
|
|
|
|
BASIC AND DILUTED LOSS PER COMMON SHARE
|
$
0.01
|
|
|
$
0.01
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
|
88,446,164
|
|
|
88,446,164
|
|
BASIC AND DILUTED LOSS PER PREFERRED SHARE
|
$
0.00
|
|
|
$
0.00
|
|
WEIGHTED AVERAGE NUMBER OF PREFERRED SHARES OUTSTANDING
|
99,452
|
|
|
99,452
|
Notes:
a.
Record issuance of convertible note
b.
Record accretion and accrue interest
c.
Mark-to market convertible note
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
NOTE 8 – RESTATEMENTS – CONTINUED
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Paid-in Capital
$
|
Share Subscriptions Receivable
$
|
Accumulated Deficit
Originally Stated
$
|
|
Notes
|
|
|
Balance at inception – February 18, 2010
Founders shares, issued for cash
|
-10,000,000
|
-10,000
|
--
|
--
|
--
|
-(10,000)
|
--
|
|
|
--
|
|
Net Loss to August 31, 2010
|
-
|
-
|
-
|
-
|
-
|
-
|
(29,400
)
|
|
|
(29,400
)
|
|
Balance, August 31, 2010
|
10,000,000
|
10,000
|
-
|
-
|
-
|
(10,000
)
|
(29,400
)
|
|
|
(29,400
)
|
|
Subscription Received
Common stock issued for cash
Net loss for the year ended August 31, 2011
|
-40,000,000-
|
-40,000-
|
---
|
---
|
---
|
10,000--
|
--(18,939)
|
|
|
10,00040,000
(18,939)
|
|
Balance, August 31, 2011
|
50,000,000
|
50,000
|
-
|
|
-
|
-
|
(48,339
)
|
|
|
1,661
|
|
Net loss to August 31, 2012
|
–
|
–
|
–
|
–
|
-
|
-
|
(28,109
)
|
|
|
(28,109
)
|
|
Balance, August 31, 2012
|
50,000,000
|
50,000
|
-
|
-
|
-
|
-
|
(76,448
)
|
|
|
(26,448
)
|
|
Sale of common stock 18,000,000 common shares at $0.001 par value
|
18,000,000
|
18,000
|
-
|
-
|
-
|
-
|
-
|
|
|
18,000
|
|
Imputed Interest
|
-
|
-
|
-
|
-
|
2,035
|
-
|
-
|
|
|
2,035
|
|
Net loss for the year ended August 31, 2013
|
-
|
-
|
-
|
-
|
-
|
-
|
(47,901
)
|
|
|
(47,901
)
|
|
Balance, August 31, 2013
|
68,000,000
|
68,000
|
-
|
-
|
2,035
|
-
|
(124,349
)
|
|
|
(54,314
)
|
|
15,750,000 common shares at $0.001 par value
|
15,750,000
|
15,750
|
-
|
-
|
311,219
|
-
|
-
|
|
|
326,969
|
|
Net loss for the year ended August 31, 2014
|
-
|
-
|
-
|
-
|
-
|
-
|
(183,032
)
|
|
|
(183,032
)
|
|
Balance, August 31, 2014
|
83,750,000
|
83,750
|
-
|
-
|
313,254
|
-
|
(307,381
)
|
|
|
89,623
|
|
Shares issued for services
|
350,000
|
350
|
1,000,000
|
100
|
192,550
|
-
|
-
|
|
|
193,000
|
|
Shares issued in deposit
|
5,000,000
|
5,000
|
-
|
-
|
-
|
-
|
-
|
|
|
5,000
|
|
Convertible debt discount
|
-
|
-
|
-
|
-
|
99,630
|
-
|
-
|
|
|
99,630
|
|
Gain on repurchase of convertible note
|
-
|
-
|
-
|
-
|
20,664
|
-
|
-
|
|
|
20,664
|
|
Net loss for the year ended August 31, 2015
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,290,695
)
|
(157,923
)
|
a
|
(1,448,618
)
|
|
Balance, August 31, 2015
|
89,100,000
|
89,100
|
1,000,000
|
100
|
626,098
|
-
|
(1,598,076
)
|
(157,923
)
|
|
(1,755,999
)
|
Notes:
a.
Record issuance of convertible note
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
NOTE 8 – RESTATEMENTS – CONTINUED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
Net Loss
|
$
(1,290,695
)
|
$
(157,923
)
|
a, b, c
|
$
(1,290,695
)
|
|
Accretion related to convertible note
|
72,001
|
13,328
|
b
|
72,001
|
|
Debt discount related to convertible note
|
(35,478
)
|
|
|
(35,478
)
|
|
Finance costs
|
238,472
|
67,526
|
a
|
238,472
|
|
Accrued interest on convertible note
|
11,544
|
2,443
|
b
|
11,544
|
|
Loss on derivative liability
|
(12,301
)
|
(4,052
)
|
c
|
(12,301
)
|
|
Loss on repurchase of convertible note
|
20,664
|
|
|
20,664
|
|
Shares issued for services
|
193,000
|
|
|
193,000
|
|
Write-down of accounts payable
|
(11,285
)
|
|
|
(11,285
)
|
|
Adjustments to reconcile Net Income (Loss) to netCash used in operating activities:
|
|
|
|
|
|
Loans Receivable
|
(45,800
)
|
|
|
(45,800
)
|
|
Deposits
|
(8,798
)
|
|
|
(8,798
)
|
|
Provisions
|
(55,000
)
|
|
|
(55,000
)
|
|
Accounts Payable
|
189,566
|
|
|
189,566
|
|
|
|
|
|
|
|
NET CASH USED INOPERATING ACTIVITIES
|
(734,110
)
|
(78,678
)
|
|
(734,110
)
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
Convertible debt – related party
|
170,000
|
|
|
170,000
|
|
Convertible debt
|
306,875
|
78,678
|
a
|
306,875
|
|
Payments on convertible notes
|
(47,250
)
|
|
|
(47,250
)
|
|
Loans from related party
|
304,972
|
|
|
304,972
|
|
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
734,597
|
78,678
|
|
734,597
|
|
|
|
|
|
|
|
NET INCREASE IN CASH
|
487
|
|
|
487
|
|
|
|
|
|
|
|
CASH, BEGINNING OF PERIOD
|
1,862
|
|
|
1,862
|
|
|
|
|
|
|
|
CASH, END OF PERIOD
|
$
2,349
|
|
|
$
2,349
|