NOTES
TO CONDENSED INTERIM FINANCIAL STATEMENTS
SEPTEMBER
30, 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. Currently, the Company is actively looking for mineral properties for its planned business operation.
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 $607,143 (June 30, 2019 - $593,352), has incurred losses of $714,203 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 condensed interim financial
statements do not include any adjustments that might result from this uncertainty.
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, 2019 filed on September 27, 2019 with the U.S. Securities and Exchange Commission.
GOLDEN
STAR RESOURCE CORP.
NOTES
TO CONDENSED INTERIM FINANCIAL STATEMENTS
SEPTEMBER
30, 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, 2019:
In
May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting.
This update provided clarity and reduced both diversity in practice and cost and complexity when applying the guidance in Topic
718, Compensation – Stock Compensation, to a change to the terms or conditions of a share-based payment award.
In
August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash
Payments. The new guidance reduced diversity in practice in how certain transactions are classified in the statement of cash flows.
In
January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial
Assets and Financial Liabilities. The amendments to the guidance enhance the reporting model for financial instruments, which
includes amendments to address aspects of recognition, measurement, presentation, and disclosure.
In
January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The amendments
clarified the definition of a business. The amendments affect all companies that must determine whether they have acquired or
sold a business.
The
adoption of the standards above has no impact on the Company’s financial statements.
RECENT
ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED
In
July 2017, the FASB issued ASU 2017-11“Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480);
Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features; (Part II)
Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain
Mandatorily Redeemable Noncontrolling Interests with a Scope Exception” (“ASU 2017-11”). ASU 2017-11 allows
companies to exclude a down round feature when determining whether a financial instrument (or embedded conversion feature) is
considered indexed to the entity’s own stock. As a result, financial instruments (or embedded conversion features) with
down round features may no longer be required to be accounted for as derivative liabilities. A company will recognize the value
of a down round feature only when it is triggered, and the strike price has been adjusted downward. For equity-classified freestanding
financial instruments, an entity will treat the value of the effect of the down round as a dividend and a reduction of income
available to Common Stockholders in computing basic earnings per share. For convertible instruments with embedded conversion features
containing down round provisions, entities will recognize the value of the down round as a beneficial conversion discount to be
amortized to earnings. ASU 2017-11 is effective for fiscal years beginning after December 15, 2018, and interim periods within
those fiscal years. Early adoption is permitted.
GOLDEN
STAR RESOURCE CORP.
NOTES
TO CONDENSED INTERIM FINANCIAL STATEMENTS
SEPTEMBER
30, 2019
(Stated
in U.S. Dollars)
(Unaudited)
|
3.
|
RECENT
ADOPTED AND FUTURE ACCOUNTING STANDARD (Continued)
|
In
August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure
Requirements for Fair Value Measurement. For all entities, amendments are effective for fiscal years, and interim periods within
those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and
weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description
of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the
initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective
date. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of
ASU No. 2018-13 and delay adoption of the additional disclosures until their effective date.
In
June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment
Accounting. These amendments expand the scope of Topic 718, Compensation—Stock Compensation (which currently only includes
share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently,
the accounting for share-based payments to nonemployees and employees will be substantially aligned. The ASU supersedes Subtopic
505-50, Equity—Equity-Based Payments to Non-Employees. This standard is effective for fiscal years beginning after December
15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than a company’s
adoption date of Topic 606, Revenue from Contracts with Customers.
In
February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 (Topic 842) “Leases.”
Topic 842 supersedes the lease requirements in Accounting Standards Codification (ASC) Topic 840, “Leases.” Under
Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provide enhanced
disclosures. Leases will continue to be classified as either finance or operating.
In
July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases. For entities that early adopted Topic
842, the amendments are effective upon issuance of ASU 2018-10, and the transition requirements are the same as those in Topic
842. For entities that have not adopted Topic 842, the effective date and transition requirements will be the same as the effective
for use for fiscal years beginning after December 15, 2018.
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 statements.
|
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 ended September 30, 2019 (June 30, 2019: $nil) due
to lack of cash. The value of mineral property was written off in prior years.
GOLDEN
STAR RESOURCE CORP.
NOTES
TO CONDENSED INTERIM FINANCIAL STATEMENTS
SEPTEMBER
30, 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 September 30, 2019 and June 30, 2019 and it has no stock option
plan, warrants or other dilutive securities.
|
|
6.
|
DUE
TO RELATED PARTIES
|
As
of September 30, 2019, due to related parties balance of $226,386 (June 30, 2019: $211,541) represents the combination of the
following:
|
|
a)
|
$54,959
(June 30, 2019: $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, 2019: $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)
|
$143,427
(June 30, 2019: $128,582) 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 was payable to non-related parties. The loan amount is unsecured, non-interest bearing and due on demand.
GOLDEN
STAR RESOURCE CORPORATION
