10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter ended September 30, 2016

Commission File Number: 333-154912

U.S. Rare Earth Minerals, Inc.

(Exact name of registrant as specified in its charter)

Nevada	26-2797630
(State or jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
23 South 6th, Panaca, NV	89042
(Address of principal executive offices)	(Zip code)

(800) 920-7507

(Registrant’s telephone number, including area code)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files); Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☐	Accelerated Filer	☐
Non-Accelerated Filer	☐	Smaller Reporting Company	☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 31,166,438 shares of common stock outstanding as of December 8, 2016.

TABLE OF CONTENTS

		Page
	PART I - FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)	1
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	7
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	10
ITEM 4A	(T). CONTROLS AND PROCEDURES	10
	PART II - OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	11
ITEM 1A.	RISK FACTORS	11
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	11
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	11
ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS	11
ITEM 5.	OTHER INFORMATION	11
ITEM 6.	EXHIBITS	11
SIGNATURES		12

PART I – FINANCIAL INFORMATION

ITEM 1. INTERIM FINANCIAL STATEMENTS

U.S. RARE EARTH MINERALS, INC.

BALANCE SHEETS

(UNAUDITED)

	September 30, 2016			December 31, 2015
ASSETS
CURRENT ASSETS:
Cash	$	18,773		$	3,481
Accounts Receivable		30,240			-
Inventory		3,642			-
Total current assets	$	52,655		$	3,481
Property and Equipment, Net of Accumulated Depreciation of $261,899 and $238,738, respectively		29,174			52,335
Total assets	$	81,829			$ 55,816 55
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	60,706		$	91,056
Accounts payable – related party		140,171			24,003
10% Series A Senior (non-subordinated) debentures		5,000			5,000
Loans payable		25,000			25,000
Notes payable, related party		80,000			80,000
Accrued interest		31,826			25,976
Total current liabilities		342,703			251,035
Total liabilities		342,703			251,035
STOCKHOLDERS’ DEFICIT:
Common stock: $0.001 par value; 300,000,000 authorized, 31,166,438 and 12,316,438 shares issued and outstanding as of  September 30, 2016 and December 31, 2015		31,166			12,316
Preferred stock: $0.001 par value; 50,000,000  authorized, 440,500 shares issued and outstanding as of September 30, 2016 and December 31, 2015		441			441
Additional paid in capital		13,725,598			12,978,068
Accumulated deficit		(14,018,079	)		(13,186,044	)
Total stockholders’ deficit		(260,874	)		(195,219	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	81,829		$	55,816

See accompanying notes to the unaudited financial statements.

1

U.S. RARE EARTH MINERALS, INC

STATEMENTS OF OPERATIONS

(UNAUDITED)

	For Three Months Ended						For Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2016			2015			2016			2015
REVENUES	$	101,140		$	110,780		$	188,295		$	232,6700
Cost of goods sold		38,200			67,792			73,835			107,731
Gross Profit		62,940			42,988			114,460			124,939
OPERATING EXPENSES:
General, selling and administrative expenses		274,980			71,142			922,968			2,104,362
Total operating expenses		274,980			71,142			922,968			2,104,362
Operating Income (Loss)		(212,040	)		(28,154	)		(808,508	)		(1,979,423	)
Other income (expense):
Other income		-			-			-			75
Loss on Settlement of Accounts Payable		-			-			(17,677	)		-
Interest expense		(1,950	)		(1,959	)		(5,850	)		(5,827	)
Total other expense		(1,950	)		(1,959	)		(23,527	)		(5,752	)
Net Income (Loss)	$	(213,990	)	$	(30,113	)	$	(832,035	)	$	(1,985,175	)
Net Income (Loss) per common share-basic and diluted	$	(0.01	)	$	(0.00	)	$	(0.03	)	$	(0.21	)
Weighted average of common shares outstanding		29,209,916			12,316,438			25,347,551			9,329,259

See accompanying notes to the unaudited financial statements.

2

U.S. RARE EARTH MINERALS, INC

STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the Nine Months Ended
	September 30,			September 30,
	2016			2015
Cash Flows From Operating Activities:
Net Loss	$	(832,035	)	$	(1,985,175	)
Adjustments to reconcile net loss to net cash provided by operations:
Depreciation		23,161			43,643
Stock for services		674,700			1,890,000
Loss on Settlement of Accounts Payable		17,677			-
Changes in assets and liabilities:
Increase in accounts receivable		(30,240	)		(21,742	)
Decrease in accounts payable and accrued expenses		109,821			87,926
Increase in accrued interest		5,850			(4,173	)
Increase inventory		(3,642	)		-
Net cash used in operating		(34,708	)		10,479
Cash Flows From Financing Activities:
Repayment of loans payable					(5,000	)
Proceeds from issuance of loans payable		-			7,175
Repayment of loans payable- related party		-			(7,175	)
Shares issued for cash		50,000			-
Net cash provided by financing activities		50,000			(5,000	)
Net increase (decrease) in cash		15,292			5,479
Cash, beginning of period		3,481			6,168
Cash, end of period	$	18,773		$	11,647
Cash paid for:
Interest	$	-		$	10,000
Supplemental schedule of  non-cash activities:
Settlement of Accounts Payable – related party	$	24,003			(236,362	)

See accompanying notes to the unaudited financial statements

3

US. RARE EARTH MINERALS, INC.

NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)

Note 1. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying financial statements have been prepared on substantially the same basis as the audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2015. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission (SEC) rules and regulations regarding interim financial statements. All amounts included herein related to the financial statements as of September 30, 2016 and the nine months ended September 30, 2016 and 2015 are unaudited and should be read in conjunction with the audited financial statements and the notes there to included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

In the opinion of management, the accompanying financial statements include all necessary adjustments for the fair presentation of the Company’s financial position, results of operations and cash flows. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the full fiscal year ending December 31, 2016.

U.S. Rare Earth Minerals, Inc. was incorporated in the state of Nevada on September 9, 2008.

As used in these Notes to the Financial Statements, the terms the “Company”, “we”, “us”, “our” and similar terms refer to U. S. Rare Earth Minerals, Inc.

Going Concern

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. To date, the Company has generated minimal revenue and has a working capital deficiency of $290,048 as of September 30, 2016. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty. We will need to raise funds or implement our business plan to continue operations. 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital sufficient to meet its minimal operating expenses by seeking equity and/or debt financing. However management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

The ability of the Company to continue as a going concern is dependent upon among other things; its ability to successfully accomplish the plans described in the preceding paragraph and eventually begin operations in accordance with its business plan. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

4

Recent Accounting Pronouncements

From time to time new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations and cash flows when implemented.

Note 2. Capital Stock

The Company is authorized to issue 50,000,000 shares of its $0.001 par value preferred stock and 300,000,000 shares of its $0.001 par value common shares.

On January 20, 2016, the Company granted 6,000,000 shares to three board members – 2,000,000 shares each - for past and future services to be provided. These shares are granted as fully vested, but are restricted from sale or transfer for three years. The fair value of these shares is $0.041 per share based on the stock price; thus $246,000 was recognized as stock based compensation.

On January 20, 2016, the Company granted 3,000,000 shares to two consultants – 1,500,000 shares each - for past and future services to be provided. These shares are granted as fully vested. The fair value of these shares is $0.041 per share based on the stock price; thus $123,000 was recognized as stock based compensation.

On February 29, 2016, 1,500,000 shares of common stock were issued to another Director for services to be rendered to the Company during the next three years. These 1,500,000 shares are to be issued as fully vested but with an additional legend restricting the sale or transfer of said shares for three years from date of issue. The fair value of these shares is $0.02 per share based on the stock price; thus $30,000 was recognized as stock based compensation.

In March 2016, the Company sold 1,125,000 and 125,000 shares to two individual investors for $22,500 and $2,500 respectfully.

On April 14, 2016, the Company issued 1,250,000 shares to an investor for $0.02 per share for a total consideration of $25,000.

On April 21, 2016, the Company issued 800,000 shares of common stock to a vendor for settlement of a payable owed to him in the amount of $24,003. The fair value of these shares is $0.05 per share, based on the stock price. As a result, the Company recognized a loss on settlement of accounts payable in the amount of $17,677. On May 16, 2016, he was elected a Director of the company.

On May 12, 2016, 1,500,000 shares were issued to a Board member and 200,000 shares and 350,000 shares respectfully to two consultants for past and future services to be provided. These shares are granted as fully paid, but are restricted from sale or transfer for three years. The fair value of these shares is $0.054 per share based on the stock price; thus $110,700 was recognized as stock based compensation.

On August 29, 2016, 3,000,000 shares of common stock were issued to a related party. 6,000,000 shares were granted, but only 3,000,000 shares were issued as of September 30, 2016. The shares were valued at 165,000 and recognized as stock based compensation. These shares were refused by the related party and were cancelled by the company in the subsequent period.

There were 31,166,438 shares of common stock outstanding as of September 30, 2016.

5

NOTE 3. Notes and Debentures Payable

As of September 30, 2016, the Company had one debenture of $5,000 outstanding.

In 2009 the Company received multiple set of funds and the terms of each note payable are set forth: $5,000 note payable due upon demand and then in 2013 an $80,000 note bearing 6% per annum, simple interest, payable on or before August 23, 2013. The Company and note holders are in discussions with respect to the payoff of the notes. Said notes are in default.

At September 30, 2016, the Company has recorded accrued interest of $14,373 related to the notes and debentures payable which is included in the $31,826 accrued interest balance on the balance sheet.

Note 4. Loans Payable

We have two short-term loans totaling $25,000 at September 30, 2016. These loans were due in 2012 and as of September 30, 2016, are in default. These notes are accruing interest at a rate of 10% per annum. At September 30, 2016, the Company has recorded accrued interest of $17,453 related to the loans payable which is included in the $31,826 accrued interest balance on the balance sheet.

Note 5. Related Party Transactions

In 2009 the Company received funds from a related party of $80,000 note bearing 6% per annum, simple interest, payable on or before August 23, 2013. The Company and note holder are in discussions with respect to the payoff of the note. Said note is in default.

On January 20, 2016, the Company granted 6,000,000 shares to three board members, 2,000,000 shares each, for past and future services to be provided. These shares are granted as fully vested, but are restricted from sale or transfer for three years. The fair value of these shares is $0.041 per share based on the stock price; thus $246,000 was recognized as stock based compensation.

On January 20, 2016, the Company granted 1,500,000 shares to one consultant for past and future services to be provided. These shares are granted as fully vested. The fair value of these shares is $0.041 per share based on the stock price; thus $61,500, was recognized as stock based compensation.

On February 29, 2016, 1,500,000 shares of common stock were issued to another Director for services to be rendered to the Company during the next three years. These 1,500,000 shares are to be issued as fully vested but with an additional legend restricting the sale or transfer of said shares for three years from date of issue. The fair value of these shares is $0.02 per share based on the stock price; thus $30,000 was recognized as stock based compensation.

On April 21, 2016, the Company issued 800,000 shares of common stock to a vendor for settlement of a payable in the amount of $24,003. The fair market value of these shares is $.05 per share based on the stock price, creating an inadvertent overpayment of $17,677. This vendor was elected a Director of the company on May 16, 2016.

On May 12, 2016, 1,500,000 shares were issued to a Director for services to be rendered to the Company during the next three years. These shares are to be issued as fully paid but with an additional legend restricting the sale or transfer of said shares for three years from date of issue. The fair value of these shares is $0.054 per share based on the stock price; thus $81,000 was recognized as stock based compensation.

On August 29, 2016, 3,000,000 shares of common stock were issued to a related party. 6,000,000 shares were granted, but only 3,000,000 shares were issued as of September 30, 2016. The shares were valued at $165,000 and recognized as stock based compensation. These shares were refused by the related party and were cancelled by the company in the subsequent period.

Note 6. Revision of Previously Issued Financial Statements

During the nine months ended September 30, 2016, the Company identified errors in its financial statements for the three and nine months ended September 30, 2015 financial statements. The $236,362 write off of the related party payable balance of $236,362 in September 30, 2015 was accounted for as a gain on accounts payable and was corrected to post to additional paid-in capital.

The Company assessed the effect of the below errors in the aggregate on prior periods’ financial statements in accordance with the SEC’s Staff Accounting Bulletins No. 99 and 108 and, based on an analysis of quantitative and qualitative factors, determined that the errors were not material to any of the Company’s prior interim and annual financial statements.

The Company determined that the correction of the cumulative amounts of the errors would be material to its financial statements for the three and nine months ended September 30, 2016. Therefore, the Company revised its previously-issued financial statements for the three and nine months ended September 30, 2015.

All financial information contained in the accompanying notes to these financial statements has been revised to reflect the correction of these errors.

For the nine months ended September 30, 2015 revised income statement, the gain of $236,362 as reported on the September 30, 2015 income statement was changed to zero causing the net loss to change from $1,748,813 as reported on the September 30, 2015 income statement to $832,035 in the revised September 30, 2015 financial statement. For the three months ended September 30, 2015 revised income statement, the gain of $236,362 as reported on the September 30, 2015 income statement was changed to zero causing the net gain of $206,249 as reported on the September 30, 2015 income statement to change to a net loss of $30,113 in the revised September 30, 2015 financial statement. For the nine months ended September 30, 2015 revised cash flow, the net loss of $1,748,813 as reported on September 30, 2015 cash flow was revised to $1,985,175 and the gain of $236,362 was revised to zero.

Note 7. Subsequent Events

6,000,000 shares were granted, only 3,000,000 shares were issued as of September 30, 2016, to a related party. In November 2016, these shares were refused by the related party and were cancelled by the company in the subsequent period.

6

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION

The following discussion should be read in conjunction with our unaudited financial statements and the notes thereto.

Forward-Looking Statements

This quarterly report contains forward-looking statements and information relating to us that are based on the beliefs of our management as well as assumptions made by, and information currently available to, our management. When used in this report, the words "believe," "anticipate," "expect," "estimate," “intend”, “plan” and similar expressions, as they relate to us or our management, are intended to identify forward-looking statements. These statements reflect management's current view of us concerning future events and are subject to certain risks, uncertainties and assumptions, including among many others: a general economic downturn; a downturn in the securities markets; federal or state laws or regulations having an adverse effect on proposed transactions that we desire to effect; Securities and Exchange Commission regulations which affect trading in the securities of "penny stocks," and other risks and uncertainties. Should any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this report as anticipated, estimated or expected. All forward-looking statements attributable to us are expressly qualified in their entirety by the foregoing cautionary statement.

Overview

U.S. Rare Earth Minerals, Inc. (the “Company”), primary focus is on sales and distribution of certain products derived from the Company’s mining activities relating to natural mineral deposits commonly known as Calcium Montmorillonite. These activities will be carried out through a web-based and distributor-based sales program directed at agricultural, animal and human uses of the products. To that end, the company has added one international distributor and two domestic distributors.

To the extent that the company requires additional capital for operations that it cannot derive from profits from sales, the Company plans to sell additional shares of unregistered preferred stock to raise money for additional operating capital. There is no guarantee the Company will be successful in selling additional shares to raise funds for additional operating capital, or if successful, it will raise the desired amount or be on terms and conditions which are beneficial to the Company.

Plan of Operation

The Company markets and sells the product extracted in the mining process under the name “EXCELERITE®”. The Company believes that EXCELERITE® has broad applications for plants, animals and humans. Specifically, the Company believes that by adding EXCELERITE® back into the soil, household and commercial farmers are replacing what has been lost by the use of man-made fertilizers over hundreds of years. Farmers using EXCELERITE® are seeing higher yields and larger and more nutritious crops. In addition, studies suggest that animals whose feed is supplemented with EXCELERITE® grow healthier and produce more. The naturally chelated nutrients and minerals in EXCELERITE® may enhance the production of enzymes. Without enzymes living things cannot build protein and other vital processes. “Micro-Excelerite ™”, a supplement form of EXCELERITE® is believed to rejuvenate the health of the human body in many ways. In addition to its natural supply of 78 essential nutrients and minerals, its ionic charge removes toxins as it works through the digestive tract.

The Company is marketing its products through various channels including but not limited to direct distribution, sales through third-party distributors and sales through the Company’s website. The Company has also undertaken to develop a network of distributors, both in the United States and internationally. The Company’s directors have been marketing the product to agricultural customers throughout the United States and internationally as well. King Faisal University in Rijahd, Saudi Arabia has just informed us they have arranged for the University’s Agricultural and Veterinary Training Station to test EXCELERITE® on fish, poultry, cucumber and goats. They will also test EXCELERITE® on diseased Date Palm and Palm Oil trees based on the reported rejuvenation of the Palms treated with EXCELERITE® in Colombia.

7

The Company has been engaged in various testing programs with several major agriculture firms for the past two years. Two of these firms are listed NYSE companies and do business worldwide. Results of these test on strawberries, carrots, peaches, soy beans, sweet potatoes and grapes have been very positive. EXCELERITE® has also been tested and proved to eliminate the odor from pig and cow manure which should lead to large orders from cattle and pig farmers worldwide. The product is also being tested by poultry farmers.

Management believes that by partnering with these certain firms, long-term business relationships will develop, deriving substantial future product sales. The Company is bound by certain “Non-Disclosure Agreements” and therefore cannot divulge the names of partnering companies. Announcements of the Company’s test results and identity of its partners will be forthcoming when certain test results are completed and the parties agree on the content of the disclosure.

RESULTS OF OPERATIONS

The following table shows the financial data of the statements of operations of the Company for the three and nine months ended September 30, 2016 and 2015.

THREE MONTHS ENDED SEPTEMBER 30, 2016 COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 2015.

	Three Months Ended
	Sept 30,			Sept 30,						%
	2016			2015			$ Change			Change
Revenues	$	101,140		$	110,780		$	(9,640	)		(9	)%
Cost of sales		38,200			67,792			(29,592	)		(44	)%
Gross profit		62,940			42,988			19,952			46	%
Operating expenses		274,980			71,142			203,838			287	%
Operating income (loss)	$	(213,990	)	$	(30,113	)	$	(183,877	)		(611	)%

The variance in the operating loss was primarily due to shares issued for settlement of accounts payable in 2015 for an increase of operating expenses of $203,838 when comparing the three month period ended September 30, 2016 to the same period last year.

NINE MONTHS ENDED SEPTEMBER 30, 2016 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 2015.

	Nine Months Ended
	Sept 30,			Sept 30,						%
	2016			2015			$ Change			Change
Revenues	$	188,295		$	232,670		$	(44,375	)		(19	)%
Cost of sales		73,835			107,731			(33,896	)		(31	)%
Gross profit		114,460			124,939			(10,479	)		(8	)%
Operating expenses		922,968			2,104,362			(1,181,394	)		(56	)%
Operating income (loss)	$	(832,035	)	$	(1,985,175	)	$	1,153,140			(58	)%

The variance in the operating loss was primarily due to shares issued for services in 2015 for a decrease of operating expenses of $(1,181,394) when comparing the nine month period ended September 30, 2016 to the same period last year.

8

LIQUIDITY AND CAPITAL RESOURCES

	As of
	Sept 30,		Dec 31,				%
	2016		2015		$  Change		Change
Cash	$	18,773	$	3,481	$	15,292		439	%
Accounts payable and accrued expenses		200,877		115,059		85,818		75	%
Total current liabilities		342,703		251,035		91,668		37	%

The variance in accounts payable and accrued expenses is primarily due to the decrease in operating expense payables.

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. To date, the Company has added Directors. We are proceeding to the production of the EXCELERITE^® retail products, including a new website with e-commerce capability. We will need to raise funds to implement our business plan and continue operations.

We believe that the level of financial resources is a significant factor for our future development, and accordingly we may choose at any time to raise capital through private debt or equity financing to strengthen its financial position, facilitate growth and provide us with additional flexibility to take advantage of business opportunities. While we are presently considering a limited private offering of our securities, we do not have immediate plans to have a public offering of our common stock and there is no guarantee that any such offering would be successful or be completed on terms that are beneficial to the Company.

CRITICAL ACCOUNTING POLICIES

In presenting our financial statements in conformity with generally accepted accounting principles, we are required to make estimates and assumptions that affect the amounts reported therein. Several of the estimates and assumptions we are required to make relate to matters that are inherently uncertain as they pertain to future events. However, events that are outside of our control cannot be predicted and, as such, they cannot be contemplated in evaluating such estimates and assumptions. If there is a significant unfavorable change to current conditions, it could result in a material adverse impact to our results of operations, financial position and liquidity. We believe that the estimates and assumptions we used when preparing our financial statements were the most appropriate at that time. Presented below are those accounting policies that we believe require subjective and complex judgments that could potentially affect reported results. However, the majority of our businesses operate in environments where we pay a fee for a service performed, and therefore the results of the majority of our recurring operations are recorded in our financial statements using accounting policies that are not particularly subjective, nor complex.

Revenue Recognition

Revenue from the sale of product obtained from our mining contractor is recognized when ownership passes to the purchaser at which time the following conditions are met:

i) persuasive evidence that an agreement exists;

ii) the risks and rewards of ownership pass to the purchaser including delivery of the product;

iii) the selling price is fixed and determinable; or,

iv) collectively is reasonably assured.

9

Stock Based Compensation

The Company has share-based compensation plans under which non-employees, consultants and suppliers may be granted restricted stock, as well as options to purchase shares of Company common stock at the fair market value at the time of grant. Stock-based compensation cost is measured by the Company at the grant date, based on the fair value of the award over the requisite service period. For options issued to employees, the Company recognizes stock compensation costs utilizing the fair value methodology over the related period of benefit. Grants of stock options and stock to non-employees and other parties are accounted for in accordance with ASC 505.

The Company applies ASC 718 for options, common stock and other equity-based grants to its employees and directors. ASC 718 requires measurement of all employee equity-based payment awards using a fair-value method and recording of such expense in the consolidated financial statements over the requisite service period.  The fair value concepts have not changed significantly in ASC 718; however, in adopting this standard, companies must choose among alternative valuation models and amortization assumptions.  After assessing alternative valuation models and amortization assumptions, the Company will continue using both the Black-Scholes valuation model and straight-line amortization of compensation expense over the requisite service period for each separately vesting portion of the grant.  

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

ITEM 3.      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

ITEM 4.      CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the specified time period. Management, with the participation of the Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of September 30, 2016. Based on that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2016. 

Changes in internal controls over financial reporting

There was no change in our internal controls over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

10

 PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

ITEM 1A. RISK FACTORS.

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

Exhibit No.	Description
31.1	Certification of Chief Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

11

SIGNATURES

In accordance with the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

	U.S. Rare Earth Minerals, Inc
Dated: December 8, 2016	By	/s/ D. Quincy Farber
		D. Quincy Farber
		Chief Executive Officer, President and Director
Dated: December 8, 2016	By	/s/ Donita R. Kendig
		Donita R. Kendig
		Chief Financial Officer, Secretary-Treasurer and Director

12

EX-31.1

EXHIBIT 31.1 

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

I, D. Quincy Farber, certify that:

1. I have reviewed this Form 10-Q for the quarter ended September 30, 2016 of U.S. Rare Earth Minerals, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 8, 2016

/s/ D. Quincy Farber

D. Quincy Farber

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

I, Donita R. Kendig, certify that:

1. I have reviewed this Form 10-Q for the quarter ended September 30, 2016 of U.S. Rare Earth Minerals, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 8, 2016

/s/ Donita R. Kendig

Donita R. Kendig

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of U. S. Rare Earth Minerals, Inc., a Nevada corporation (the "Company"), does hereby certify, to such officer's knowledge, that:

The quarterly report on Form 10-Q for the quarter ended September 30, 2016 (the "Form 10-Q") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: December 8, 2016
	/s/ D. Quincy Farber
	D. Quincy Farber Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to U. S. RARE EARTH MINERALS, INC. and will be retained by U. S. RARE EARTH MINERALS, INC. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350) 

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of U. S. Rare Earth Minerals, Inc., a Nevada corporation (the "Company"), does hereby certify, to such officer's knowledge, that:

The quarterly report on Form 10-Q for the quarter ended September 30, 2016 (the "Form 10-Q") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  December 8, 2016
	/s/ Donita R. Kendig
	Donita R. Kendig Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to U. S. RARE EARTH MINERALS, INC. and will be retained by U. S. RARE EARTH MINERALS, INC. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Dec. 08, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	U.S. RARE EARTH MINERALS, INC
Entity Central Index Key	0001445815
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		31,166,438

XML

Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash	$ 18,773	$ 3,481
Accounts Receivable	30,240
Inventory	3,642
Total current assets	52,655	3,481
Property and Equipment, Net of Accumulated Depreciation of $261,899 and $238,738, respectively	29,174	52,335
Total assets	81,829	55,816
CURRENT LIABILITIES:
Accounts payable and accrued expenses	60,706	91,056
Accounts payable - related party	140,171	24,003
10% Series A Senior (non subordinated) debentures	5,000	5,000
Loans payable	25,000	25,000
Notes payable, related party	80,000	80,000
Accrued interest	31,826	25,976
Total current liabilities	342,703	251,035
Total liabilities	342,703	251,035
STOCKHOLDERS' DEFICIT:
Common stock: $0.001 par value; 300,000,000 authorized, 31,166,438 and 12,316,438 shares issued and outstanding as of September 30, 2016 and December 31, 2015	31,166	12,316
Preferred stock: $0.001 par value; 50,000,000 authorized, 440,500 shares issued and outstanding as of September 30, 2016 and December 31, 2015	441	441
Additional paid in capital	13,725,598	12,978,068
Accumulated deficit	(14,018,079)	(13,186,044)
Total stockholders' deficit	(260,874)	(195,219)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 81,829	$ 55,816

XML

Balance Sheets (Parenthetical) (Unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Balance Sheets [Abstract]
Accumulated depreciation	$ 261,899	$ 238,738
Series A Senior (non-subordinated) debentures	10.00%	10.00%
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	31,166,438	12,316,438
Common stock, shares outstanding	31,166,438	12,316,438
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issue	440,500	440,500
Preferred stock, shares outstanding	440,500	440,500

XML

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statements of Operations [Abstract]
REVENUES	$ 101,140	$ 110,780	$ 188,295	$ 2,326,700
Cost of goods sold	38,200	67,792	73,835	107,731
Gross Profit	62,940	42,988	114,460	124,939
OPERATING EXPENSES:
General, selling and administrative expenses	274,980	71,142	922,968	2,104,362
Total operating expenses	274,980	71,142	922,968	2,104,362
Operating Income (Loss)	(212,040)	(28,154)	(808,508)	(1,979,423)
Other income (expense):
Other income				75
Loss on Settlement of Accounts Payable			(17,677)
Interest expense	(1,950)	(1,959)	(5,850)	(5,827)
Total other expense	(1,950)	(1,959)	(23,527)	(5,752)
Net Income (Loss)	$ (213,990)	$ (30,113)	$ (832,035)	$ (1,985,175)
Net Income (Loss) per common share-basic and diluted	$ (0.01)	$ 0.00	$ (0.03)	$ (0.21)
Weighted average of common shares outstanding	29,209,916	12,316,438	25,347,551	9,329,259

XML

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows From Operating Activities:
Net Loss	$ (832,035)	$ (1,985,175)
Adjustments to reconcile net loss to net cash provided by operations:
Depreciation	23,161	43,643
Stock for services	674,700	1,890,000
Loss on Settlement of Accounts Payable	17,677
Changes in assets and liabilities:
Increase in accounts receivable	(30,240)	(21,742)
Decrease in accounts payable and accrued expenses	109,821	87,926
Increase in accrued interest	5,850	(4,173)
Increase inventory	(3,642)
Net cash used in operating	(34,708)	10,479
Cash Flows From Financing Activities:
Repayment of loans payable		(5,000)
Proceeds from issuance of loans payable		7,175
Repayment of loans payable- related party		(7,175)
Shares issued for cash	50,000
Net cash provided by financing activities	50,000	(5,000)
Net increase (decrease) in cash	15,292	5,479
Cash, beginning of period	3,481	6,168
Cash, end of period	18,773	11,647
Cash paid for:
Interest		10,000
Supplemental schedule of non-cash activities:
Settlement of Accounts Payable - related party	$ 24,003	$ (236,362)

XML

Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2016

Basis of Presentation and Summary of Significant Accounting Policies[Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 1. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying financial statements have been prepared on substantially the same basis as the audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2015. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission (SEC) rules and regulations regarding interim financial statements. All amounts included herein related to the financial statements as of September 30, 2016 and the nine months ended September 30, 2016 and 2015 are unaudited and should be read in conjunction with the audited financial statements and the notes there to included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

In the opinion of management, the accompanying financial statements include all necessary adjustments for the fair presentation of the Company’s financial position, results of operations and cash flows. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the full fiscal year ending December 31, 2016.

U.S. Rare Earth Minerals, Inc. was incorporated in the state of Nevada on September 9, 2008.

As used in these Notes to the Financial Statements, the terms the “Company”, “we”, “us”, “our” and similar terms refer to U. S. Rare Earth Minerals, Inc.

Going Concern

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. To date, the Company has generated minimal revenue and has a working capital deficiency of $290,048 as of September 30, 2016. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty. We will need to raise funds or implement our business plan to continue operations. 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital sufficient to meet its minimal operating expenses by seeking equity and/or debt financing. However management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

The ability of the Company to continue as a going concern is dependent upon among other things; its ability to successfully accomplish the plans described in the preceding paragraph and eventually begin operations in accordance with its business plan. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Recent Accounting Pronouncements

From time to time new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations and cash flows when implemented.

XML

Capital Stock

9 Months Ended

Sep. 30, 2016

Capital Stock [Abstract]

Capital Stock

Note 2. Capital Stock

The Company is authorized to issue 50,000,000 shares of its $0.001 par value preferred stock and 300,000,000 shares of its $0.001 par value common shares.

On January 20, 2016, the Company granted 6,000,000 shares to three board members – 2,000,000 shares each - for past and future services to be provided. These shares are granted as fully vested, but are restricted from sale or transfer for three years. The fair value of these shares is $0.041 per share based on the stock price; thus $246,000 was recognized as stock based compensation.

On January 20, 2016, the Company granted 3,000,000 shares to two consultants – 1,500,000 shares each - for past and future services to be provided. These shares are granted as fully vested. The fair value of these shares is $0.041 per share based on the stock price; thus $123,000 was recognized as stock based compensation.

On February 29, 2016, 1,500,000 shares of common stock were issued to another Director for services to be rendered to the Company during the next three years. These 1,500,000 shares are to be issued as fully vested but with an additional legend restricting the sale or transfer of said shares for three years from date of issue. The fair value of these shares is $0.02 per share based on the stock price; thus $30,000 was recognized as stock based compensation.

In March 2016, the Company sold 1,125,000 and 125,000 shares to two individual investors for $22,500 and $2,500 respectfully.

On April 14, 2016, the Company issued 1,250,000 shares to an investor for $0.02 per share for a total consideration of $25,000.

On April 21, 2016, the Company issued 800,000 shares of common stock to a vendor for settlement of a payable owed to him in the amount of $24,003. The fair value of these shares is $0.05 per share, based on the stock price. As a result, the Company recognized a loss on settlement of accounts payable in the amount of $17,677. On May 16, 2016, he was elected a Director of the company.

On May 12, 2016, 1,500,000 shares were issued to a Board member and 200,000 shares and 350,000 shares respectfully to two consultants for past and future services to be provided. These shares are granted as fully paid, but are restricted from sale or transfer for three years. The fair value of these shares is $0.054 per share based on the stock price; thus $110,700 was recognized as stock based compensation.

On August 29, 2016, 3,000,000 shares of common stock were issued to a related party. 6,000,000 shares were granted, but only 3,000,000 shares were issued as of September 30, 2016. The shares were valued at 165,000 and recognized as stock based compensation. These shares were refused by the related party and were cancelled by the company in the subsequent period.

There were 31,166,438 shares of common stock outstanding as of September 30, 2016.

XML

Notes and Debentures Payable

9 Months Ended

Sep. 30, 2016

Notes and Debentures Payable/ Loan Payable [Abstract]

Notes and Debentures Payable

NOTE 3. Notes and Debentures Payable

As of September 30, 2016, the Company had one debenture of $5,000 outstanding.

In 2009 the Company received multiple set of funds and the terms of each note payable are set forth: $5,000 note payable due upon demand and then in 2013 an $80,000 note bearing 6% per annum, simple interest, payable on or before August 23, 2013. The Company and note holders are in discussions with respect to the payoff of the notes. Said notes are in default.

At September 30, 2016, the Company has recorded accrued interest of $14,373 related to the notes and debentures payable which is included in the $31,826 accrued interest balance on the balance sheet.

XML

Loans Payable

9 Months Ended

Sep. 30, 2016

Notes and Debentures Payable/ Loan Payable [Abstract]

Loans Payable

Note 4. Loans Payable

We have two short-term loans totaling $25,000 at September 30, 2016. These loans were due in 2012 and as of September 30, 2016, are in default. These notes are accruing interest at a rate of 10% per annum. At September 30, 2016, the Company has recorded accrued interest of $17,453 related to the loans payable which is included in the $31,826 accrued interest balance on the balance sheet.

XML

Related Party Transactions

9 Months Ended

Sep. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions

Note 5. Related Party Transactions

In 2009 the Company received funds from a related party of $80,000 note bearing 6% per annum, simple interest, payable on or before August 23, 2013. The Company and note holder are in discussions with respect to the payoff of the note. Said note is in default.

On January 20, 2016, the Company granted 6,000,000 shares to three board members, 2,000,000 shares each, for past and future services to be provided. These shares are granted as fully vested, but are restricted from sale or transfer for three years. The fair value of these shares is $0.041 per share based on the stock price; thus $246,000 was recognized as stock based compensation.

On January 20, 2016, the Company granted 1,500,000 shares to one consultant for past and future services to be provided. These shares are granted as fully vested. The fair value of these shares is $0.041 per share based on the stock price; thus $61,500, was recognized as stock based compensation.

On February 29, 2016, 1,500,000 shares of common stock were issued to another Director for services to be rendered to the Company during the next three years. These 1,500,000 shares are to be issued as fully vested but with an additional legend restricting the sale or transfer of said shares for three years from date of issue. The fair value of these shares is $0.02 per share based on the stock price; thus $30,000 was recognized as stock based compensation.

On April 21, 2016, the Company issued 800,000 shares of common stock to a vendor for settlement of a payable in the amount of $24,003. The fair market value of these shares is $.05 per share based on the stock price, creating an inadvertent overpayment of $17,677. This vendor was elected a Director of the company on May 16, 2016.

On May 12, 2016, 1,500,000 shares were issued to a Director for services to be rendered to the Company during the next three years. These shares are to be issued as fully paid but with an additional legend restricting the sale or transfer of said shares for three years from date of issue. The fair value of these shares is $0.054 per share based on the stock price; thus $81,000 was recognized as stock based compensation.

On August 29, 2016, 3,000,000 shares of common stock were issued to a related party. 6,000,000 shares were granted, but only 3,000,000 shares were issued as of September 30, 2016. The shares were valued at $165,000 and recognized as stock based compensation. These shares were refused by the related party and were cancelled by the company in the subsequent period.

XML

Revision of Previously Issued Financial Statements

9 Months Ended

Sep. 30, 2016

Revision of Previously Issued Financial Statements [Abstract]

Revision of Previously Issued Financial Statements

Note 6. Revision of Previously Issued Financial Statements

During the nine months ended September 30, 2016, the Company identified errors in its financial statements for the three and nine months ended September 30, 2015 financial statements. The $236,362 write off of the related party payable balance of $236,362 in September 30, 2015 was accounted for as a gain on accounts payable and was corrected to post to additional paid-in capital.

The Company assessed the effect of the below errors in the aggregate on prior periods’ financial statements in accordance with the SEC’s Staff Accounting Bulletins No. 99 and 108 and, based on an analysis of quantitative and qualitative factors, determined that the errors were not material to any of the Company’s prior interim and annual financial statements.

The Company determined that the correction of the cumulative amounts of the errors would be material to its financial statements for the three and nine months ended September 30, 2016. Therefore, the Company revised its previously-issued financial statements for the three and nine months ended September 30, 2015.

All financial information contained in the accompanying notes to these financial statements has been revised to reflect the correction of these errors.

For the nine months ended September 30, 2015 revised income statement, the gain of $236,362 as reported on the September 30, 2015 income statement was changed to zero causing the net loss to change from $1,748,813 as reported on the September 30, 2015 income statement to $832,035 in the revised September 30, 2015 financial statement. For the three months ended September 30, 2015 revised income statement, the gain of $236,362 as reported on the September 30, 2015 income statement was changed to zero causing the net gain of $206,249 as reported on the September 30, 2015 income statement to change to a net loss of $30,113 in the revised September 30, 2015 financial statement. For the nine months ended September 30, 2015 revised cash flow, the net loss of $1,748,813 as reported on September 30, 2015 cash flow was revised to $1,985,175 and the gain of $236,362 was revised to zero.

XML

Subsequent Events

9 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

Note 7. Subsequent Events

6,000,000 shares were granted, only 3,000,000 shares were issued as of September 30, 2016, to a related party. In November 2016, these shares were refused by the related party and were cancelled by the company in the subsequent period.

XML

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2016

Basis of Presentation and Summary of Significant Accounting Policies[Abstract]

Basis of Presentation

Basis of Presentation

The accompanying financial statements have been prepared on substantially the same basis as the audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2015. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission (SEC) rules and regulations regarding interim financial statements. All amounts included herein related to the financial statements as of September 30, 2016 and the nine months ended September 30, 2016 and 2015 are unaudited and should be read in conjunction with the audited financial statements and the notes there to included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

In the opinion of management, the accompanying financial statements include all necessary adjustments for the fair presentation of the Company’s financial position, results of operations and cash flows. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the full fiscal year ending December 31, 2016.

U.S. Rare Earth Minerals, Inc. was incorporated in the state of Nevada on September 9, 2008.

As used in these Notes to the Financial Statements, the terms the “Company”, “we”, “us”, “our” and similar terms refer to U. S. Rare Earth Minerals, Inc.

Going Concern

Going Concern

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. To date, the Company has generated minimal revenue and has a working capital deficiency of $290,048 as of September 30, 2016. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty. We will need to raise funds or implement our business plan to continue operations. 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital sufficient to meet its minimal operating expenses by seeking equity and/or debt financing. However management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

The ability of the Company to continue as a going concern is dependent upon among other things; its ability to successfully accomplish the plans described in the preceding paragraph and eventually begin operations in accordance with its business plan. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

From time to time new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on the Company’s accounting and reporting. The Company believes that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations and cash flows when implemented.

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Basis of Presentation and Summary of Significant Accounting Policies (Details)	Sep. 30, 2016 USD ($)
Basis of Presentation and Summary of Significant Accounting Policies (Textual)
Working capital deficiency amount	$ 290,048

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Capital Stock (Details)			1 Months Ended					3 Months Ended		9 Months Ended
	May 12, 2016 USD ($) $ / shares shares	Apr. 14, 2016 USD ($) $ / shares shares	Aug. 29, 2016 shares	Apr. 21, 2016 USD ($) $ / shares shares	Mar. 31, 2016 USD ($) Investors shares	Feb. 29, 2016 USD ($) $ / shares shares	Jan. 20, 2016 USD ($) Boardmembers Consultants $ / shares shares	Sep. 30, 2016 USD ($) $ / shares shares	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) $ / shares shares	Sep. 30, 2015 USD ($)	Dec. 31, 2015 $ / shares shares
Capital Stock (Textual)
Preferred stock, shares authorized								50,000,000		50,000,000		50,000,000
Preferred stock, par value | $ / shares								$ 0.001		$ 0.001		$ 0.001
Common stock, shares authorized								300,000,000		300,000,000		300,000,000
Common stock, par value | $ / shares								$ 0.001		$ 0.001		$ 0.001
Stock issuance price per share | $ / shares	$ 0.054			$ 0.05
Stock based compensation | $							$ 61,500
Shares granted			6,000,000				1,500,000
Common stock, shares outstanding								31,166,438		31,166,438		12,316,438
Common stock, shares issued			3,000,000	800,000				3,000,000		3,000,000
Accounts payable related party | $				$ 24,003
Number of individual investors | Investors					2
Loss on settlement of accounts payable | $										$ 17,677
Board members [Member]
Capital Stock (Textual)
Stock issuance price per share | $ / shares							$ 0.041
Stock based compensation | $	$ 110,700						$ 246,000
Shares granted							2,000,000
Number of board members | Boardmembers							3
Shares issued, Shares	1,500,000
Consultant [Member]
Capital Stock (Textual)
Stock issuance price per share | $ / shares							$ 0.041
Stock based compensation | $							$ 123,000
Shares granted							3,000,000
Number of consultants | Consultants							2
Consultant one [Member]
Capital Stock (Textual)
Shares granted							1,500,000
Shares issued, Shares	200,000
Consultant two [Member]
Capital Stock (Textual)
Shares granted							1,500,000
Shares issued, Shares	350,000
Director [Member]
Capital Stock (Textual)
Issuance of stock for services, shares	1,500,000					1,500,000
Stock issuance price per share | $ / shares						$ 0.02
Stock based compensation | $	$ 81,000					$ 30,000
Vested shares issued						1,500,000
Investor one [Member]
Capital Stock (Textual)
Stock issuance price per share | $ / shares		$ 0.02
Shares sold to investors					1,125,000
Sold to investor amount | $					$ 22,500
Shares issued, Shares		1,250,000
Shares issued, Value | $		$ 25,000
Investor two [Member]
Capital Stock (Textual)
Shares sold to investors					125,000
Sold to investor amount | $					$ 2,500
Related Party [Member]
Capital Stock (Textual)
Stock based compensation | $										$ 165,000
Shares granted										6,000,000
Shares issued, Shares			3,000,000							3,000,000

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Notes and Debentures Payable (Details)	Sep. 30, 2016 USD ($) Debenture	Dec. 31, 2015 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2009 USD ($)
Notes and Debentures Payable (Textual)
Number of debentures issued | Debenture	1
Debenture outstanding	$ 5,000
Accrued interest	31,826	$ 25,976
Accrued interest related to notes	$ 14,373
Note payable upon demand [Member]
Notes and Debentures Payable (Textual)
Note payable				$ 5,000
Note payable upon demand 1[Member]
Notes and Debentures Payable (Textual)
Note payable			$ 80,000
Note bearing, interest rate			6.00%

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Loans Payable (Details)	9 Months Ended
	Sep. 30, 2016 USD ($) Loans	Dec. 31, 2015 USD ($)
Loan Payable (Textual)
Two short-term loans totaling	$ 25,000	$ 25,000
Accrued interest related to loans payable	$ 17,453
Accrued interest percentage	10.00%
Accrued interest	$ 31,826	$ 25,976
Number of loans | Loans	2

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Related Party Transactions (Details) - USD ($)		1 Months Ended				9 Months Ended
	May 12, 2016	Aug. 29, 2016	Apr. 21, 2016	Feb. 29, 2016	Jan. 20, 2016	Sep. 30, 2016	Dec. 31, 2015
Related Party Transactions (Textual)
Shares granted		6,000,000			1,500,000
Granted shares per share			$ 0.05		$ 0.041
Stock based compensation					$ 61,500
Common stock, shares issued		3,000,000	800,000			3,000,000
Accounts payable related party			$ 24,003
Inadvertent overpayment			$ 17,677
Notes payable, related party						$ 80,000	$ 80,000
Directors [Member]
Related Party Transactions (Textual)
Granted shares per share	$ 0.054			$ 0.02
Fair value of granted shares				$ 30,000
Common shares issued for services, shares	1,500,000			1,500,000
Stock based compensation	$ 81,000			$ 30,000
Expire term				3 years
Board members [Member]
Related Party Transactions (Textual)
Shares granted					2,000,000
Granted shares per share					$ 0.041
Stock based compensation	$ 110,700				$ 246,000
Expire term					3 years
Related Party [Member]
Related Party Transactions (Textual)
Shares granted						6,000,000
Stock based compensation						$ 165,000

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Revision of Previously Issued Financial Statements (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revision of Previously Issued Financial Statements (Textual)
Settlement of Accounts Payable - related party			$ 24,003	$ (236,362)
Net Income (Loss)	$ (213,990)	$ (30,113)	$ (832,035)	(1,985,175)
Reported [Member]
Revision of Previously Issued Financial Statements (Textual)
Net Income (Loss)		236,362		236,362
Revised [Member]
Revision of Previously Issued Financial Statements (Textual)
Net Income (Loss)		$ 206,249		$ 1,748,813

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Subsequent Events (Details) - shares	1 Months Ended		9 Months Ended
	Aug. 29, 2016	Jan. 20, 2016	Sep. 30, 2016
Subsequent Event [Line Items]
Shares granted	6,000,000	1,500,000
Related Party [Member]
Subsequent Event [Line Items]
Shares granted			6,000,000
Shares issued, Shares	3,000,000		3,000,000