NOTES
TO CONDENSED INTERIM FINANCIAL STATEMENTS
MARCH
31, 2019
(Stated
in U.S. Dollars)
(Unaudited)
Organization
The
Company was incorporated in the State of Nevada, U.S.A. on April 21, 2006.
Exploration
Stage Activities
The
Company has been in the exploration stage since its formation and is primarily engaged in the acquisition and exploration of mining
claims. Upon location of a commercial minable reserve, the Company expects to actively prepare the site for its extraction and
enter a development stage. During the year ended June 30, 2014, the Company entered into an agreement with Kee Nez Resources and
acquired a resource property in Nevada (Note 4). Currently, the Company is actively looking for other mineral properties for its
planned business operation.
|
2.
|
BASIS OF PRESENTATION AND GOING CONCERN
|
BASIS
OF PRESENTATION
The
accompanying condensed interim financial statements have been prepared in accordance with Generally Accepted Accounting Principles
(“GAAP”) in the United States of America (“U.S.”) as promulgated by the Financial Accounting Standards
Board (“FASB”) Accounting Standards Codification (“ASC”) and with the rules and regulations of the U.S
Securities and Exchange Commission (“SEC”) for interim financial information. The condensed interim financial statements
reflect all normal recurring adjustments, which, in the portion of management, are considered necessary for a fair presentation
of the results for the periods shown. The results of operations for the periods presented are not necessarily indicative of the
results expected for any future period. The information included in these condensed interim financial statements should be read
in conjunction with Management’s Discussion and Analysis and the audited financial statements and accompanying notes filed
in Form 10-K for the year ended June 30, 2018 filed on September 28, 2018 with the U.S. Securities and Exchange Commission.
GOING
CONCERN
The
general business strategy of the Company is to acquire and explore mineral properties. The continued operations of the Company
and the recoverability of mineral property costs is dependent upon the existence of economically recoverable mineral reserves,
the ability of the Company to obtain necessary financing to complete the development of its properties, and upon future profitable
production. The Company has not generated any revenues or completed development of any properties to date. Further, the Company
has a working capital deficit of $587,048 (June 30, 2018 - $560,460), has incurred losses of $694,108 since
inception, and further significant losses are expected to be incurred in the exploration and development of its mineral properties.
The Company will require additional funds to meet its obligations and maintain its operations. There can be no guarantee that
the Company will be successful in raising the necessary financing. Management’s plans in this regard are to raise equity
financing as required.
These
conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements
do not include any adjustments that might result from this uncertainty.
GOLDEN
STAR RESOURCE CORP.
NOTES
TO CONDENSED INTERIM FINANCIAL STATEMENTS
MARCH
31, 2019
(Stated
in U.S. Dollars)
(Unaudited)
|
3.
|
RECENT ADOPTED AND FUTURE ACCOUNTING STANDARD
|
RECENT
ADOPTED ACCOUNTING STANDARD
The
following accounting standards were adopted by the Company effective July 1, 2018:
ASU
2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement
of Financial Assets and Financial Liabilities, that clarifies the guidance in ASU No. 2016-01, Financial Instruments—Overall
(Subtopic 825-10). The new guidance provides amendments clarify the guidance in No. 2016-01, Financial Instruments—Overall
(Subtopic 825-10). ASU 2018-03 is effective for fiscal years beginning after December 15, 2017, and interim periods within those
fiscal years beginning after June 15, 2018. Public business entities with fiscal years beginning between December 15, 2017, and
June 15, 2018, are not required to adopt ASU 2018-03 until the interim period beginning after June 15, 2018, and public business
entities with fiscal years beginning between June 15, 2018, and December 15, 2018, are not required to adopt these amendments
before adopting the amendments in ASU 2016-01.
ASU
2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended
to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 is effective
for public business entities for fiscal years beginning after 15 December 2017, and interim periods within those years. For all
other entities, it is effective for fiscal years beginning after 15 December 2018, and interim periods within fiscal years beginning
after 15 December 2019. Early adoption is permitted. Entities will have to apply the guidance retrospectively, but if it is impracticable
to do so for an issue, the amendments related to that issue would be applied prospectively.
ASU
2016-18, Restricted Cash. Entities will be required to show the changes in the total of cash, cash equivalents, restricted cash
and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between
cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows.
ASU
2014-09, Revenue from Contracts with Customers, as a new Topic, ASC 606. The new revenue recognition standard provides a five-step
analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize
revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which
the entity expects to be entitled in exchange for those goods or services. Companies may apply the new guidance using either the
full retrospective transition method, which requires restating each prior period presented, or the modified retrospective transition
method, under which the new guidance is applied to the current period presented in the financial statements and a cumulative-effect
adjustment is recorded as of the date of adoption.
The
adoption of the standards above has no impact on the Company’s financial statements.
GOLDEN
STAR RESOURCE CORP.
NOTES
TO CONDENSED INTERIM FINANCIAL STATEMENTS
MARCH
31, 2019
(Stated
in U.S. Dollars)
(Unaudited)
|
3.
|
RECENT ADOPTED AND FUTURE ACCOUNTING STANDARD (Continued)
|
RECENT
ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED
In
March 2016, the FASB issued ASU 2016-02, Leases, which supersedes ASC Topic 840, Leases, and sets forth the principles for the
recognition, measurement, presentation, and disclosure of leases for both lessees and lessors. ASU 2016-02 requires lessees to
classify leases as either finance or operating leases and to record on the balance sheet a right-of-use asset and a lease liability,
equal to the present value of the remaining lease payments, for all leases with a term greater than 12 months regardless of the
lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest
rate method or a straight-line basis over the term of the lease. ASU 2016-02 will be effective beginning January 1, 2019, with
early adoption permitted. Entities are required to use a modified retrospective transition method for existing leases.
In
February 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-02, “Income Statement-Reporting Comprehensive
Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which amends its
guidance to allow a reclassification from Accumulated Other Comprehensive Income to Retained Earnings for the stranded income
tax effects resulting from The Tax Cuts and Jobs Act of 2017 (the Tax Act). The amendments are effective for the Company beginning
in the first quarter of fiscal year 2020, with early adoption permitted.
In
August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting
for Hedging Activities,” which amends the hedge accounting recognition and presentation requirements to better align an
entity’s risk management activities with its financial reporting. This standard also simplifies the application of hedge
accounting in certain situations. The new guidance is effective for the Company beginning in the first quarter of fiscal year
2020, with early adoption permitted.
In
January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill
Impairment,” which eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment
charge. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2021, with early adoption
permitted.
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 flow.
|
4.
|
MINERAL CLAIM INTEREST
|
On
August 15, 2013, the Company entered into a Quitclaim Deed (the “Deed”) with Kee Nez Resources, LLC (“Grantor”),
a Utah limited liability company. Pursuant to the Deed, the Grantor, in consideration of $10 and other valuable consideration,
remise, release, and forever quitclaim unto the Company all of Grantor’s right, title, and interest in and to the GSR group
of unpatented lode mining claims situated in Churchill Country, Nevada. As a result, the Company has obtained title to the GSR
claims in August 2013.
The
Company did not incur further expenditures on the property during the period ending March 31, 2019 (June 30, 2018: $nil) due to
lack of cash.
GOLDEN
STAR RESOURCE CORP.
NOTES
TO CONDENSED INTERIM FINANCIAL STATEMENTS
MARCH
31, 2019
(Stated
in U.S. Dollars)
(Unaudited)
|
|
a)
|
On
April 24, 2006, the Company issued 6,000,000 common shares at $0.00001 per share to two founding shareholders.
|
|
|
|
|
|
|
b)
|
On
March 28, 2007, the Company closed its public offering and issued additional 1,070,000 common shares at $0.10.
|
|
|
|
|
|
|
c)
|
The
Company has not issued any shares during the period ended December 31, 2018 and it has no stock option plan, warrants or other
dilutive securities.
|
|
6.
|
DUE TO RELATED PARTIES
|
As
of March 31, 2019 due to related parties balance of $209,567 (June 30, 2018: $182,628) represents the combination of the following:
|
|
a)
|
$54,959
(June 30, 2018: $54,959) owed to a company controlled by a former director and principal shareholder of the Company, for the
amount of office, transfer agent and travel expenses paid by the related party on behalf of the Company. The amount is unsecured,
non-interest bearing and due on demand;
|
|
|
|
|
|
|
b)
|
$28,000
(June 30, 2018: $28,000) owed to a director of the Company, for the amount of office, travel and telephone expenses paid by
the related party on behalf of the Company. The amount is unsecured, non-interest bearing and due on demand.
|
|
|
|
|
|
|
c)
|
$126,608
(June 30, 2018: $99,669) was payable to a principal shareholder’s company, for the operating expenses paid by the related
party on behalf of the Company. The loan amount is unsecured, non-interest bearing and due on demand.
|
Loan
payable consists of the following:
$201,558
(June 30, 2018: $201,558) was payable to non-related parties. The loan amount is unsecured, non-interest bearing and due on demand.
As
of March 31, 2019 accounts payable balance of $181,380 (June 30, 2018: $178,445) represents payable related to company operation
and administration.
GOLDEN
STAR RESOURCE CORPORATION