0001171843-13-004711.txt : 20131119 0001171843-13-004711.hdr.sgml : 20131119 20131119060049 ACCESSION NUMBER: 0001171843-13-004711 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20130930 FILED AS OF DATE: 20131119 DATE AS OF CHANGE: 20131119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Graystone Co CENTRAL INDEX KEY: 0001510524 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 273051592 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-54254 FILM NUMBER: 131228400 BUSINESS ADDRESS: STREET 1: 2620 REGATTA DRIVE STREET 2: STE 102 CITY: LAS VEGAS STATE: NV ZIP: 89128 BUSINESS PHONE: 7025825535 MAIL ADDRESS: STREET 1: 2620 REGATTA DRIVE STREET 2: STE 102 CITY: LAS VEGAS STATE: NV ZIP: 89128 10-Q 1 f10q_111813.htm FORM 10-Q f10q_111813.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549 

 
FORM 10-Q 
 

 
[x]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended SEPTEMBER 30, 2013
 
or
 
[  ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                                             to                                                  .
 
Commission File Number: 000-54254
 
The Graystone Company, Inc.
(Exact name of registrant as specified in its charter)
 
DELAWARE
(State of Incorporation)
 
27-3051592
(I.R.S. Employer Identification No.)
     
2620 Regatta Drive, Ste 102, Las Vegas, NV
(Address of principal executive offices)
 
89128
(Zip Code)
 
(702) 438-4100
(Registrant’s telephone number, including area code)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes [x] No [  ]
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes [x] 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 [  ]
 
Non-accelerated filer [  ]
Accelerated filer [  ]
 
Smaller reporting company [x]
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [  ] No [x]
 
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
 
Title of Each Class
 
Outstanding as of November 19, 2013,
Class A Common stock, par value $0.0001 per share
 
Class B Common stock, par value $0.001 per share
 
242,444,307
 
5,000,000
 
 
THE GRAYSTONE COMPANY, INC.

FORM 10-Q
September 30, 2013

TABLE OF CONTENTS
 
PART I -- FINANCIAL INFORMATION
 
 
PART II -- OTHER INFORMATION
 
 
 
PART I -- FINANCIAL INFORMATION
 
ITEM 1 –FINANCIAL STATEMENTS
 
THE GRAYSTONE COMPANY, INC.
BALANCE SHEET
(Unaudited)
 
   
September 30,
2013
   
December 31,
2012
 
             
ASSETS
 
Current assets
           
Cash and cash equivalents
  $ 3,630     $ 14,922  
Prepaid expense
    -       50,000  
Loan to joint venture
    145,624       -  
Total current assets
    149,254       64,922  
                 
Plant, property & equipment (net of depreciation)
    53,238       70,841  
                 
    $ 202,492     $ 135,763  
                 
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
 
                 
Current liabilities
               
Accounts payable
  $ 14,732     $ 10,487  
Accrued expenses
    10,147       8,604  
Accrued expenses - related party
    119,649       78,399  
Convertible notes payable
    135,500       136,373  
Notes payable
    262,500       244,950  
Notes payable (related party)
    198,914       82,908  
Derivative liability
    91,580       19,807  
Total liabilities
    833,022       581,528  
                 
Stockholders' Deficit
               
Class A Common stock, $.0001 par value; 500,000,000 shares authorized, 35,979,264 and 69,155 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively.
    3,598       7  
Class B Common stock, $.001 par value; 5,000,000 shares authorized, 5,000,000 shares issued and outstanding as of September 30, 2013 and December 31, 2012
    5,000       5,000  
Additional paid-in capital
   
24,057,402
      5,506,241  
Accumulated deficit
   
(24,696,530
)    
(5,957,013
)
Total stockholders' deficit
    (630,530 )     (445,765 )
                 
 Total liabilities and stockholders' (deficit) equity
  $ 202,492     $ 135,763  
 
See accompanying notes to unaudited condensed financial statements
THE GRAYSTONE COMPANY, INC.
STATEMENT OF OPERATIONS
(Unaudited)
 
   
Nine Months Ended
September 30,
   
Three Months Ended
September 30,
 
   
2013
   
2012
   
2013
   
2012
 
                         
Sales, net
  $ 73,610       88,478       33,290       46,008  
Cost of goods sold
    302,804     $ 55,278     $ 105,893     $ 40,999  
Gross profit
  $ (229,194 )   $ 33,200     $ (72,603 )   $ 5,009  
                                 
Operating Expenses
                               
General and administrative
    11,809,418       911,643       11,262,648       609,209  
Legal and professional
    290,179       737,803       61,561       182,611  
Depreciation and amortization
    17,603       -       1,979       -  
Loss on settlement of accounts payable
    210,000       -       100,400       -  
Research and development
    -       90,805       -       45,770  
Total operating expenses
    12,327,200       1,740,251       11,426,588       837,590  
                                 
Loss from operations
    (12,556,394 )     (1,707,051 )     (11,499,191 )     (832,581 )
                                 
Other income (expense)
                               
Interest income
    -       -               -  
Interest expense
    (24,256 )     (115,791 )     (4,500 )     (31,308 )
Loss on settlement of debt
    (6,182,800 )     -       (5,981,000 )     -  
Gain/loss on derivatives
    23,933       -       -       -  
Loss on sale of assets
    -       (18,579 )     -       (13,250 )
Total other income (expense)
    (6,183,123 )     (134,370 )     (5,985,500 )     (44,558 )
                                 
Loss before income taxes
    (18,739,517 )     (1,841,421 )     (17,484,691 )     (877,139 )
                                 
Provision for income taxes
    0       0       0       0  
                                 
Net loss
  $ (18,739,517 )   $ (1,841,421 )   $ (17,484,691 )   $ (877,139 )
                                 
Net loss per share of common stock:
                               
Basic
  $ (18.40 )   $ (79.96 )   $ (6.22 )   $ (20.77 )
                                 
Weighted average number of shares outstanding
    1,018,629       23,028       2,813,300       42,229  
 
See accompanying notes to unaudited condensed financial statements
 
4

THE GRAYSTONE COMPANY, INC.
STATEMENT OF CASH FLOWS
(Unaudited)
 
   
Nine Months Ended September 30,
 
   
2013
   
2012
 
Cash flows from operating activities
           
               Net Income(loss)
  $ (18,739,517 )   $ (1,841,421 )
       Adjustments to reconcile net income (loss) to net cash used by operating activities:
               
               Depreciation
    17,603       1,800  
               Amortization on intangible assets
    -       750  
               Loss on settlement of debt
    6,182,800       -  
               Loss on settlement of AP – related party
    210,000       -  
               Gain on derivative liability
    (23,933 )     120,795  
               Impairment of acquired intangible assets
    -       13,250  
               Loss on sale of plant, property, & equipment
    -       18,579  
               Issuance of common stock for services
    11,395,625       937,783  
               Issuance of notes for services
    -       31,250  
               Amortization of debt discount
    177,113       109,501  
Changes in operating assets and liabilities:
               
               Accounts receivable
    -       17,120  
               Prepaid expenses
    50,000       -  
               Accounts payable
    45,343       2,943  
               Accrued expenses- related party
    265,876          
               Accrued expenses
    8,542       5,153  
Net cash used by operating activities
    (410,548 )     (582,497 )
                 
Cash flows from investing activities
               
               Sale of plant, property & equipment
    -       14,942  
               Purchase of plant, property & equipment
    -       (268,521 )
               Loan to joint venture
    (145,624 )     -  
Net cash provided (used) by investing activities
    (145,624 )     (253,579 )
                 
Cash flows from financing activities
               
               Proceeds from issuance of common stock, net of issuance costs
    -       430,350  
               Proceeds from notes payable
    468,500       535,436  
               Repayment on  notes payable
    -       (67,450 )
               Repayment on notes payable- related party
    (147,918 )     -  
               Proceeds from notes payable - related party
    224,298       -  
Net cash provided by financing activities
    544,880       898,336  
                 
Net change in cash and cash equivalent
    (11,292 )     62,260  
                 
Cash and cash equivalent at the beginning of period
    14,922       793  
                 
Cash and cash equivalent at the end of period
  $ 3,630     $ 63,053  
                 
Noncash financing and investing activities:
               
Stock issued for conversion of debt and accrued interest
  $ 162,000       124,948  
Stock issued for settlement of debt
  $ 303,800       -  
Stock issued to settled accrued liabilities- related party
  $ 185,000       -  
Debt discount
  $ 130,000       109,501  
Reclass of derivatives
  $ 115,527          
Cancellation of common stock
  $ (19,625 )     (218,200 )
Subscription receivable
  $ -       131,800  
 
See accompanying notes to unaudited condensed financial statements
THE GRAYSTONE COMPANY, INC.
CONDENSED NOTES TO UNAUDITED FINANCIAL STATEMENTS
 
Note 1 – Basis of Presentation

The accompanying unaudited financial statements of The Graystone Company, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's registration statement filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year 2012 as reported in Form 10-K, have been omitted.

Note 2 – Going Concern
 
The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has negative working capital, recurring losses, and does not have an established source of revenues sufficient to cover its operating costs.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.
 
Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading, or seeking protection from creditors pursuant to laws or regulations. Accordingly, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business.
 
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.
 
In the coming year, the Company’s foreseeable cash requirements will relate to continual development of the operations of its business, maintaining its good standing and making the requisite filings with the Securities and Exchange Commission, and the payment of expenses associated with operations and business developments. The Company may experience a cash shortfall and be required to raise additional capital.
 
Historically, it has mostly relied upon internally generated funds such as shareholder loans and advances to finance its operations and growth. Management may raise additional capital by retaining net earnings or through future public or private offerings of the Company’s stock or through loans from private investors, although there can be no assurance that it will be able to obtain such financing. The Company’s failure to do so could have a material and adverse effect upon it and its shareholders.
 
Note 3 – Related Party Transaction

On March 8, 2013, the Company issued 6,300 of our Class A Common Stock to Renard Properties for services rendered. The price per share was $15for $94,500 in bonus payment for achieving pre-determined mining goals.  Our CEO is the managing member of Renard Properties.

On March 8, 2013, the Company issued 6,300 of our Class A Common Stock to our CFO for services rendered.  The price per share was $15 for $94,500 in bonus payment for achieving pre-determined mining goals.

On March 18, 2013, the Company issued 1,000 of our Class A Common Stock to our CFO for services rendered.  The price per share was $14 for $14,000 in bonus payment for achieving pre-determined mining goals.

On March 18, 2013, the Company issued 1,000 of our Class A Common Stock to our CEO for services rendered.  The price per share was $14 for $14,000 in bonus payment for achieving pre-determined mining goals.

On June 19, 2013, the Company issued 37,500 of our Class A Common Stock to our CEO for $45,000 in debt.  The price per share was $4.  The shares are restricted for 24 months from the issuance. A loss of $105,000 was recorded on the issuance.
 
On June 19, 2013, the Company issued 37,500 of our Class A Common Stock to our CFO for $45,000 in debt.  The price per share was $4.  The shares are restricted for 24 months from the issuance. A loss of $105,000 was recorded on the issuance.

On August 7, 2013, the Company issued 30,000 of our Class A Common Stock to JW Group, Inc. for $30,000 in debt.  The price per share was $1.  The shares are restricted for 24 months from the issuance.

On August 7, 2013, the Company issued 30,000 of our Class A Common Stock to our CEO for $30,000 in debt.  The price per share was $1.  The shares are restricted for 24 months from the issuance.

On August 27, 2013, the Company issued 35,000 of our Class A Common Stock to our CFO for $17,500 in debt.  The price per share was $.50.  The shares are restricted for 24 months from the issuance.

On August 27, 2013, the Company issued 35,000 of our Class A Common Stock to our CEO for $17,500 in debt.  The price per share was $.50.  The shares are restricted for 24 months from the issuance.

During the three months ended September 30, 2013, the Company issued 196,250,000 shares to related parties. On November 13, 2013, the Company decided to cancel the shares; as such, the shares were not accounted for as issued and outstanding as of September 30, 2013. The shares were reissued on November 13, 2013.

The Company entered into an agreement with Renard Properties, LLC whereby Renard agreed to loan to the Company funds necessary to continue the company’s operations in Suriname.  The Company agreed to repay the loan on December 31, 2018.  The Company may prepay the loan prior to December 31, 2018 by paying a prepayment penalty equal to 100%.  As part of the loan, Renard is entitled to any profits that are generated from the Suriname operations until the loan reaches maturity or is prepaid by the Company.  The Company has borrowed 41,200 as of September 30, 2013 under this agreement.
 
During the nine months ended September 30, 2013, $125,000 was recorded to related party payables from amounts paid on behalf of the Company by Renard Properties, for accrued salaries and consulting fees.  $127,500 was repaid against these payables. As of September 30, 2013, $79,003 was due.  
 
During the nine months ended September 30, 2013, $140,625 was recorded to related party payables from amounts paid on behalf of the Company to our CFO, for accrued salaries and consulting fees.  $112,500 was repaid against these payables. As of September 30, 2013 $40,646 was due.  

During the nine months ended September 30, 2013, the Company borrowed $165,780 in cash from Renard Properties and repaid $46,979 in cash leaving a balance of $134,671 owed to Renard Properties. Our CEO is the managing member of Renard Properties. These loans bear no interest and are due in December 2013.  

During the nine months ended September 30, 2013, the Company borrowed $58,519 in cash from JW Group and repaid $61,313 in cash. As of September 30, 2013, $3,439 was owed to JW Group. Our CFO is the President of JW Group.  These loans bear no interest and are due in December 2013.  

Note 4 – Common Stock and Preferred Stock
 
During nine months Ending September, 2013, the Company issued the following Class A shares:
 
·
13,738,608 shares for conversion of notes payable and accrued interest of $458,800. A loss of $6,182,800 was recorded on the conversion.
·
21,996,500 shares for services with a fair value of $11,395,625
·
205,000 shares for settlement of related party payables of $185,000. A loss of $210,000 was recorded on the settlement.
 
Note 5 – Notes Payable and Derivative Liabilities
 
Convertible Notes
 
Fiscal 2012 Asher Convertible Note.  Throughout fiscal 2012, the Company borrowed $275,000 from Asher Enterprises, Inc. in eight notes.  The notes bear simple interest of 8% per annum from the issuance date.  The notes become convertible into Class A common stock at 57% of market price 180 days after issuance and mature 270 days after issuance.  On the date the notes become convertible, the embedded conversion options are classified as liabilities under ASC 815 at their fair value.  During 2013, $130,000 of these notes became convertible.  The fair value of the conversion options exceeded the principal balance resulting in a full discount to the notes payable of $130,000.  The entire amount was amortized the interest expense during the nine months ended September 30, 2013. 
 
Fiscal 2013 Asher Convertible Note.  In the nine months ended September 30, 2013, the Company borrowed $143,500 from Asher Enterprises, Inc. in three notes.  The notes bear simple interest of 8% per annum from the issuance date.  The notes become convertible into Class A common stock at 57% of market price 180 days after issuance and mature 270 days after issuance.  On the date the notes become convertible, the embedded conversion options will be classified as liabilities under ASC 815.  
 
During the nine months ended September 30, 2013, the Company issued 54,108 Class A Common Shares to Asher in satisfaction of $155,500 loaned to the Company.  As a result of the conversion of the related notes, the Company re-valued its derivative liabilities on the settlement dates and reclassified these amounts to additional paid-in capital.  As of September 30, 2013, the Company owes Asher a remaining total of $135,500.

Notes Payable 

On June 28, 2013, the Company entered into a line of credit agreement for $500,000 with a maturity date of December 31, 2015 and an effective interest rate of 9%. All previous amounts due to SC Capital were transferred to this line of credit. All accrued interest on the previous notes is waived and all interest under the line of credit was waived through September 30, 2013.

During the nine months ended September 30, 2013, the Company borrowed $143,500 under the line of credit above:
 
Ending balance as of December 31, 2012
  $ 244,950  
         
Additions due to new debt issued
    325,000  
         
Amount of debt converted into shares
    (307,450 )
         
Ending balance as of September 30, 2013
  $ 262,500  
 
NOTE 6 – FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITY
 
The Company evaluates all of it financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. For option-based derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.
Under ASC-815 the conversion options embedded in the notes payable described in Note 6 require liability classification because they do not contain an explicit limit to the number of shares that could be issued upon settlement.

During 2013, certain notes payable were converted resulting in settlement of the related derivative liabilities.  The Company re-measured the embedded conversion options at fair value on the date of settlement and recorded these amounts to additional paid-in capital.

During 2013, the Company issued additional convertible notes.  The conversion options and warrants were classified as derivative liabilities at their fair value on the date of issuance.

As defined in FASB ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilized the market data of similar entities in its industry or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).

 
The three levels of the fair value hierarchy are as follows:
 
Level 1 –
Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.
 
Level 2 -
Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date.
 
Level 3 -
Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.
 
The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as September 30, 2013.
 
Recurring Fair Value Measures
 
Level 1
   
Level 2
   
Level 3
   
Total
 
                         
LIABILITIES:
                       
     Derivative liabilities, September 30, 2013
  $ -     $ -     $ 91,580     $ 91,580  

The following table summarizes the changes in the derivative liabilities during the nine months ended September 30, 2013:

Ending balance as of December  31, 2012
  $ 19,807  
Reclassification of derivative liabilities to additional paid-in capital due to conversion of related notes payable
    (115,527 )
Additions due to new convertible debt and warrants issued
    130,000  
Change in fair value
    57,300  
Ending balance as of September 30, 2013
  $ 91,580  

Note 7 – Loan to Joint Venture

In December 2012, the Company entered into a joint venture regarding a mining project in Suriname.  The Company agreed to invest $75,000 into the joint venture and any additional investments made above this initial $75,000 would be considered a loan to the joint venture by the Company.  As of September 30, 2013, the Company lent an additional $145,624.  This amount shall be repaid to the Company prior to any disbursements made to the partners in the joint venture.  The terms of the joint venture provide that the Company has a 40% undivided interest in the profits of the joint venture, Aurora Mining owns 50% and Renard Properties owns the remaining 10%.

Note 8 – Subsequent Events

On November 12, 2013, the Board of Directors and Shareholders approved to amend the Articles of Incorporation to increase the authorized share count from 300,000,000 to 500,000,000 shares of Class A Common Stock.

On November 13, 2013, the Company cancelled 196,250,000 common shares issued to related parties. The shares were reissued on November 13, 2013.
 
In October and November 2013, the company received proceeds of $65,591 from a related party for the project in Suriname.
 
On October 9, 2013, the Company issued 1,086,956 shares of its Class A Common stock at an applicable conversion price of $0.0138.  Asher Enterprises converted $15,000 of its note convertible dated February 11, 2013.  The agreement with Asher allows them to convert their debt after six (6) months at a conversion price equal to 55% of the average of the three (3) lowest closing bid prices ten (10) trading days prior to the conversion date.  This draw is against the note dated February 11, 2013 in the amount of $78,500.  There is $55,500 remaining on the note.
 
On October 17, 2013, the Company issued 2,380,952 shares of its Class A Common stock at an applicable conversion price of $0.0063.  Asher Enterprises converted $15,000 of its note convertible dated February 11, 2013.  The agreement with Asher allows them to convert their debt after six (6) months at a conversion price equal to 55% of the average of the three (3) lowest closing bid prices ten (10) trading days prior to the conversion date.  This draw is against the note dated February 11, 2013 in the amount of $78,500.  There is $40,500 remaining on the note.
 
On October 22, 2013, the Company issued 6,750,000 shares of its Class A Common stock at an applicable conversion price of $0.0034.  SC Capital converted $23,000 of its note convertible dated March 4, 2013.  There is $0 remaining on the note.
 
 
ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
NOTE REGARDING FORWARD-LOOKING STATEMENTS
 
Certain matters discussed herein are forward-looking statements. Such forward-looking statements contained herein involve risks and uncertainties, including statements as to:
 
 
·
our future operating results;
 
 
·
our business prospects;
 
 
·
our contractual arrangements and relationships with third parties;
 
 
·
the dependence of our future success on the general economy;
 
 
·
our possible financings; and
 
 
·
the adequacy of our cash resources and working capital.
 
These forward-looking statements can generally be identified as such because the context of the statement will include words such as we “believe,” “anticipate,” “expect,” “estimate” or words of similar meaning. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which are described in close proximity to such statements and which could cause actual results to differ materially from those anticipated as of the date of this report. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are only made as of the date of this report, and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
You should read the following discussion of our financial condition and results of operations in conjunction with the financial statements and the notes thereto, included elsewhere in this report.  The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs.  Our actual results could differ materially from those discussed in the forward-looking statements.  Factors that could cause or contribute to those differences include those discussed below and elsewhere in this report, particularly in the “Risk Factors” section.
 
Going Concern
 
Our financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has generated modest revenues since inception and has never paid any dividends and is unlikely to pay dividends. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations and to determine the existence, discovery and successful exploration of economically recoverable reserves in its resource properties, confirmation of the Company’s interests in the underlying properties, and the attainment of profitable operations. The Company has had very little operating history to date. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
 
Overview
 
During the Three Months Ending September 30, 2013, we generated sales of $33,290 and incurred a net loss of $17,484,691.  We have received no substantial revenue ($73,610 from the production of gold or other metals), and historically relied on equity and debt financings to finance our ongoing operations. Our operations generated a net loss of $24,696,530 from inception (March 27, 2010) through September 30, 2013. In order to fund operations, we relied on proceeds received under the private placement sale in secured convertible debentures from Asher Enterprises, loans payable from SC Capital and proceeds received from notes payable from our shareholders.

 
Results of Operations
 
For the nine months and three months ending September 30, 2013 and 2012 respectively, the Company generated the following revenue:

   
Nine Months Ended
September 30,
   
Three Months Ended
September 30,
 
   
2013
   
2012
   
2013
   
2012
 
                         
Sales, net
  $ 73,610       88,478       33,290       46,008  
Cost of goods sold
    302,804       55,278       105,893     $ 40,999  
Gross profit
  $ (229,194 )     33,200       (72,603 )   $ 5,009  

The increase in the Company’s cost of goods sold includes an increase in mining expenses that the Company incurred since the fiscal year ended December 31, 2012.  The Company previously classified these expenses as general expenses.

For the nine months and three months ending September 30, 2013 and 2012 respectively, the Company generated the following expenses:
 
   
Nine Months Ended
September 30,
   
Three Months Ended
September 30,
 
   
2013
   
2012
   
2013
   
2012
 
Operating Expenses
                       
General and administrative
    11,809,418       911,643       11,262,648       609,209  
Legal and professional
    290,179       737,803       61,561       182,611  
Depreciation and amortization
    17,603       -       1,979       -  
Loss on settlement of accounts    payable- related party
    210,000       -       100,400       -  
Research and development
    -       90,805       -       45,770  
Total operating expenses
    12,327,200       1,740,251       11,426,588       837,590  
 
The Company's research and development expenses are related to the Company's mining activities in Peru and include exploration on the Company's mining properties but do not include the actual mining expenses. The Company’s research and development expense decreased as the Company’s focused more assets to mining production and less on general exploration and development of its mining claims. The major increase in general and administrative expenses is related to the fair value of shares issued for services. During the nine months ended September 30, 2013, the Company issued 21,996,500 common shares valued at $11,395,625.   
 
Liquidity and Capital Resources
 
The following is a summary of our balance sheet as of June 30, 2013 and December 31, 2012 respectively:

   
September 30,
   
December 31,
 
   
2013
   
2012
 
Current assets
           
   Cash and cash equivalents
   
3,630
     
14,922
 
   Prepaid expense
   
-
     
50,000
 
   Loan to joint venture
   
145,624
     
-
 
Total current assets
   
149,254
     
64,922
 
 
 
In the opinion of management, available funds will not satisfy our growth requirements for the next twelve months. The Company expects that its current revenue will allow us to satisfy our current operations and our reporting requirement for the next twelve months.   However, if our revenue decreases we may not able to support our current operations and reporting obligations without obtaining additional funds.  We believe our currently available capital resources will allows us to begin operations within our natural resource division and maintain its operation over the course of the next 12 months; however, our other expansion plans would be put on hold until we could raise sufficient capital.  The Company expects that it needs to raise an additional $500,000 to expand its mining operations in Peru whereby the operations in Peru will be operating at a breakeven point or a profit.  Currently, the Company loses approximately $5,000 - $10,000 per month related to its mining operations in Peru.  We cannot guaranty that we will be able to raise additional funds. Moreover, in the event that we can raise additional funds, we cannot guaranty that additional funding will be available on favorable terms.  

Loans

The Company has received the following loans from 3rd parties:

Asher:

The Company borrowed $143,500 during the nine months ending September 30, 2013 from Asher.  The amount owed at September 30, 2013 was $135,500 as Asher converted $147,500 in exchange for shares of our Class A Common Stock.

Date of Note
 
Funding Date
 
Amount of Loan
   
Funding Date
 
Remaining Balance
 
1/10/2012
 
1/18/2012
 
$
32,500
   
7/16/2012
 
$
0
 
2/28/2012
 
3/7/2012
 
$
32,500
   
9/3/2012
 
$
0
 
4/26/2012
 
5/2/2012
 
$
47,500
   
10/29/2012
 
$
0
 
6/21/2012
 
6/27/2012
 
$
32,500
   
12/24/2012
 
$
0
 
8/7/2012
 
8/27/2012
 
$
32,500
   
2/23/2013
 
$
0
 
8/27/2012
 
9/14/2012
 
$
32,500
   
3/13/2013
 
$
0
 
10/5/2012
 
10/23/2012
 
$
32,500
   
4/21/2013
 
$
0
 
12/4/2012
 
12/13/2012
 
$
32,500
   
6/11/2013
 
$
0
 
2/11/2013
 
2/20/2013
 
$
78,500
   
8/19/2013
 
$
70,500
 
4/5/2013
 
4/19/2013
 
$
32,500
   
10/20/2013
 
$
32,500
 
5/13/2013
 
5/17/2013
 
$
32,500
   
11/17/2013
 
$
32,500
 

SC Capital Group:

The Company borrowed $565,450 during the nine months ending September 30, 2013 from SC Capital as part of the Investment Agreement executed with SC Capital.  The amount owed at September 30, 2013 was $262,500.

Date of Note
 
Funding Date
 
Amount of Loan
   
Remaining Balance
 
10/10/2012
 
10/10/2012
  $ 21,000     $ 0  
10/22/2012
 
10/22/2012
  $ 64,500     $ 0  
10/26/2012
 
10/26/2012
  $ 26,000     $ 0  
11/1/2012
 
11/1/2012
  $ 18,000     $ 0  
11/7/2012
 
11/7/2012
  $ 25,000     $ 0  
11/20/2012
 
11/20/2012
  $ 50,800     $ 0  
12/5/2012
 
12/5/2012
  $ 3,650     $ 0  
12/27/2012
 
12/27/2012
  $ 36,000     $ 0  
1/11/2013
 
1/11/2013
  $ 20,500     $ 0  
1/25/2013
 
1/25/2013
  $ 20,000     $ 0  
2/1/2013
 
2/1/2013
  $ 17,500     $ 0  
2/12/2013
 
2/12/2013
  $ 18,500     $ 18,500  
2/19/2013
 
2/19/2013
  $ 8,000     $ 8,000  
3/4/2013
 
3/4/2013
  $ 23,000     $ 0  
3/7/2013
 
3/7/2013
  $ 15,000     $ 15,000  
3/13/2013
 
3/13/2013
  $ 9,500     $ 9,500  
4/8/2013
 
4/8/2013
  $ 19,000     $ 19,000  
 
 
 
12

 
5/3/2013
 
5/3/2013
  $ 7,500     $ 7,500  
5/16/2013
 
5/16/2013
  $ 15,000     $ 15,000  
5/29/2013
 
5/29/2013
  $ 15,000     $ 15,000  
6/5/2013
 
6/5/2013
  $ 13,000     $ 13,000  
6/11/2013
 
6/11/2013
  $ 21,500     $ 21,500  
6/19/2013
 
6/19/2013
  $ 10,000     $ 10,000  
6/26/2013
 
6/26/2013
  $ 14,000     $ 14,000  
7/12/2013
 
7/12/2013
  $ 7,500     $ 7,500  
7/16/2013
 
7/16/2013
  $ 6,000     $ 6,000  
7/25/2013
 
7/25/2013
  $ 9,000     $ 9,000  
7/31/2013
 
7/31/2013
  $ 12,000     $ 12,000  
8/9/2013
 
8/9/2013
  $ 9,000     $ 9,000  
8/16/2013
 
8/16/2013
  $ 15,000     $ 15,000  
8/29/2013
 
8/29/2013
  $ 15,000     $ 15,000  
10/9/2013
 
10/9/2013
  $ 7,500     $ 7,500  
10/11/2013
 
10/11/2013
  $ 4,250     $ 4,250  
 
Going Concern
 
We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive exploration activities. For these reasons our auditors stated in their report that they have substantial doubt we will be able to continue as a going concern.

Accounting and Audit Plan
 
In the next twelve months, we anticipate spending approximately $20,000 - $30,000 to pay for our accounting and audit requirements.
 
Mining Operations
 
Peru

The Company currently owns 1,600 hectares and is in the process of completing the transfer of these properties into the Company’s wholly owned subsidiary in Peru.  The properties include the following projects:
 
Name
 
Area (hectares)
 
Dept
 
Province
 
District
Gorilla
   
400
 
Loreto
 
Datem del Maranon
 
Manseriche
Graystone II
   
800
 
Loreto
 
Datem del Maranon
 
Manseriche
Graystone IV
   
400
 
Loreto
 
Datem del Maranon
 
Manseriche

The Company’s operations in Peru have focused on its property referred to as Gorilla. In June 2011, the Company acquired the Gorilla Project. The purchase price for the property was $44,000 USD.  The project consists of 400 hectares (one hectares equals 2.47 acres) located in Loreto, Peru (Northern Peru).  The Gorilla Project operation involves alluvial mining of gold from the deposits of sand and gravel usually left from modern or ancient stream beds.

In November 2012, the Company has begun initial mining production in Peru for Gorilla.  The company was limited in the amount of gold that could be extracted.  In January 2013, the Company received a 2-year permit from the Peruvian Ministry of Energy and Mines to conduct full mining operations on its mining properties Gorilla and Graystone II.  The permit required the Company to file the Corrective Environmental Management Instrument by February 5, 2013 and the final Corrective Environmental Management Instrument by the expiration of the 2-year permit.  The Company filed the Corrective Environmental Management Instrument on February 5, 2013. The Company expects to submit and file the final Corrective Environmental Management Instrument in approximately 7 months.
 
Exploration and Bulk Sampling Activities

The Company has completed 2 separate bulk sampling projects on the Gorilla Project.  The first was lasted for 23 days and the second lasted 2 days.  The bulk sampling was conducted to provide internal numbers to management to determine the feasibility of continuing with the project.  In addition to the bulk sampling activities we carried out the following activities:

·  
Implemented a community relations program to inform local communities of the project and what potential opportunities that may exist for community involvement in the implementation phases of the development program;
 
 
·  
Acquired equipment for further evaluation and development of resources;
·  
Set-up an operational base in the project area to continuously review the exploration program and prior experiences gained operating in this difficult terrain;
·  
Began bulk sampling of the site to assist in mapping the property
·  
Commissioned a preliminary master plan which indicated the size and scope of our projected operations and areas where more information is required.
 
 The bulk sampling resulted in following data(1):
 
Gravel Mined:
135 m3 (apprx. 165 tons)
Raw Gold Produced:
122 grams
Raw Gold Grade:
.90g/ m3

The Company’s mining operations in Peru have generated approximately 240-260 grams per month for the months of June, July, and August.  The Company has generated approximately 160 grams through the first 20 days of mining in September.  The Company has doubled its production since April 2013 when it produced approximately 130 grams.   The Company’s operating expenses in Peru exceed the gold produced by approximately $7,500 - $15,000 per month.  The Company was losing between $7,500 - $15,000 in Peru.  The company needs to acquire an excavator and additional heavy machinery to remove the layers of clay located on its mining properties before the Company expects to see any significant increase in its mining production in Peru. The Company’s operations have completed its current operations and will begin general mining operations once it has secured an excavator for Gorilla.  The Company cannot provide a timetable for when that it will be able to acquire the excavator as the Company currently does not have the cash resources to acquire one and will need to raise approximately $200,000 to acquire the excavator.

Suriname

The Company’s Suriname operations are conducted as a joint venture whereby Graystone owns 40% of the joint venture with Arara mining owning 50% and Renard Properties, LLC owning 10%.  The Company has entered into 2 new prospecting contracts in Suriname.  One is for 200 hectares and the second one if for 2,400 hectares.  The joint venture is currently prospecting on the two properties and will enter into long term leases with the property owners if the results of the prospecting are favorable.  The terms of these leases typically range from 10%-15% of the gold produced.  Each property is owned by a separate company but are adjacent to each other.  Pursuant to the prospecting contracts, the joint venture has 6 months of exploration rights with the ability to extend those rights by an additional 6 months.

The Company’s joint venture operations in Suriname are currently ahead of schedule.  The Company expected the joint venture to continue its general exploration for the next 12 months.  However, the Company expects within the next 30 days the joint venture will begin its bulk prospecting phase.   The bulk prospecting phase is focusing on an area that can be mined with the current equipment on site.  The Company does not have a timetable on how long the bulk prospecting phase is expected to continue.
 
The Company received the initial lab results from Suriname.  The initial tests indicate approximately 4 grams of gold per ton.  However, the Company expects recovery rates to be approximately 50% of the lab results.
 
The Company is currently financing the operations in Suriname through debt financing being provided by Renard Properties, LLC.  More information on this is provided under Note 3.
 
Although the mining operations in Suriname look promising there are a number of risks that the joint venture is facing.  These include, but not limited, to: inability to locate a rich gold vein on the properties, insufficient water during the dry season, inability to identify a water source that conforms to environmental plans for the area, cost of trucking pay dirt to a water source for processing, the possibility of not coming to terms with the claim owners, inability to properly fund the project during prospect phase and/or during production, risk of the mining camp could be robbed and risk that the material/gold could be robed during transport.  Additionally, the Company’s current cash position is insufficient to cover the expected expenses related to get Suriname’s operations into the next phase.  If the Company cannot borrow or raise the necessary capital required then the Company may have to sell a piece of its ownership in the joint venture or shut the operations down in Suriname.

Off-balance sheet arrangements
 
We have no significant 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 stockholders.
 
Critical Accounting Policies
 
Our financial statements are impacted by the accounting policies used and the estimates and assumptions made by management during their preparation. A complete summary of these policies is included in Note 2 of the notes to our historical financial statements. We have identified below the accounting policies that are of particular importance in the presentation of our financial position, results of operations and cash flows and which require the application of significant judgment by management.

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
There has been no material change in the market risks discussed in Item 7A of The Graystone Company's Form 10-K for the fiscal year ended December 31, 2011.
 
ITEM 4 – CONTROLS AND PROCEDURES
 
 (a) Evaluation of Disclosure Controls and Procedures
 
Our principal executive and principal financial officers have evaluated the effectiveness of our disclosure controls and procedures, as defined in Rules 13a – 15(e) and 15d – 15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act, is recorded, processed, summarized and reported within the time periods required under the SEC’s rules and forms and that the information is gathered and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow for timely decisions regarding required disclosure.
 
Our principal executive officer and principal financial officer evaluated the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of the end of the period covered by this report. Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this report.
 
The reason we believe our disclosure controls and procedures are not effective is because:
 
 
1.  
No independent directors;
 
2.  
No segregation of duties;
 
3.  
No audit committee; and
 
4.  
Ineffective controls over financial reporting.

As of September 30, 2013, the Company has not taken any remediation actions to address these weaknesses in our controls even though they were identified in 2011.  The Company’s management expects, once it is in the financial position to do so, to hire additional staff in its accounting department to be able to segregate the duties.  The Company expects that the expense will be approximately $60,000 per year which would allow the Company to hire 2 new staff members.
 
This 10-Q does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to Rule 308(b) of Regulation S-K.
 
Management’s Report on Internal Control Over Financial Reporting
 
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed 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. Our internal control over financial reporting includes those policies and procedures that:
 
 
1.
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

 
2.
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance  with U.S. GAAP, and that our receipts and expenditures are being made only in accordance with the authorization of our management and directors; and

 
3.
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 
Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2012. Based on this assessment, management concluded that the Company did not maintain effective internal controls over financial reporting as a result of the identified material weakness in our internal control over financial reporting described below. In making this assessment, management used the framework set forth in the report entitled Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, or COSO. The COSO framework summarizes each of the components of a company's internal control system, including (i) the control environment, (ii) risk assessment, (iii) control activities, (iv) information and communication, and (v) monitoring.

Identified Material Weakness
 
A material weakness in our internal control over financial reporting is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected.
 
Management identified the following material weakness during its assessment of internal controls over financial reporting as of March 31, 2012:
 
Resources: As of June 30, 2013, we have no full-time employees with the requisite expertise in the key functional areas of finance and accounting.  As a result, there is a lack of proper segregation of duties necessary to insure that all transactions are accounted for accurately and in a timely manner.
 
Written Policies & Procedures: We need to prepare written policies and procedures for accounting and financial reporting to establish a formal process to close our books monthly on an accrual basis and account for all transactions, including equity transactions, and prepare, review and submit SEC filings in a timely manner.
 
Management’s Remediation Initiatives
 
As our resources allow, we will add financial personnel to our management team.  We plan to prepare written policies and procedures for accounting and financial reporting to establish a formal process to close our books monthly on an accrual basis and account for all transactions, including equity transactions.  We will also create an audit committee made up of our independent directors.

As of September 30, 2013, the Company has not taken any remediation actions to address these weaknesses in our controls even though they were identified in 2011.  The Company’s management expects, once it is in the financial position to do so, to hire additional staff in its accounting department to be able to segregate the duties.  The Company expects that the expense will be approximately $60,000 per year which would allow the Company to hire 2 new staff members.
 
(b)           Changes In Internal Control Over Financial Reporting
 
We need to prepare written policies and procedures for accounting and financial reporting to establish a formal process to close our books monthly on an accrual basis and account for all transactions, including equity transactions, and prepare, review and submit SEC filings in a timely manner
 

 
 
PART II --  OTHER INFORMATION
 
ITEM 1. LEGAL PROCEEDINGS
 
None.
 
ITEM 1A. RISK FACTORS
 
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

The above statement notwithstanding, shareholders and prospective investors should be aware that certain risks exist with respect to the Company and its business, including those risk factors contained in our most recent Registration Statements on Form S-1 and Form 10, as amended. These risks include, among others: limited assets, lack of significant revenues and only losses since inception, industry risks, dependence on third party manufacturers/suppliers and the need for additional capital. The Company’s management is aware of these risks and has established the minimum controls and procedures to insure adequate risk assessment and execution to reduce loss exposure.

ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS
 
Non-Related Party

On January 7, 2013, the Company issued 2,089 shares to Asher Enterprises in exchange for $17,500 in debt at a price per shares of $9.00.

On February 28, 2013, the Company issued 1,429 shares to Asher Enterprises in exchange for $15,000 in debt at a price per shares of $10.50.

On March 11, 2013, the Company issued 2,089 shares to Asher Enterprises in exchange for $17,500 in debt at a price per shares of $9.50.
 
On March 20, 2013, the Company issued 1,875 shares to Asher Enterprises in exchange for $15,000 in debt at a price per shares of $7.50.
 
On March 27, 2013, the Company issued 2,507 shares to Asher Enterprises in exchange for $17,500 in debt at a price per shares of $7.00.
 
On April 11, 2013, the Company issued 3,000 shares to SC Capital in exchange for $22,500 in debt at a price per shares of $7.50.

On April 24, 2013, the Company issued 2,308 shares to Asher Enterprises in exchange for $15,000 in debt at a price per shares of $6.50.

On April 29, 2013, the Company issued 3,133 shares to Asher Enterprises in exchange for $17,500 in debt at a price per shares of $6.00.

On May 1, 2013, the Company issued 3,000 shares to SC Capital in exchange for $15,000 in debt at a price per shares of $5.00.

On May 16, 2013, the Company issued 3,000 shares to SC Capital in exchange for $15,000 in debt at a price per shares of $5.00.
 

On May 23, 2013, the Company issued 3,000 shares to SC Capital in exchange for $15,000 in debt at a price per shares of $5.00.

On May 31, 2013, the Company issued 5,000 shares to SC Capital in exchange for $22,500 in debt at a price per shares of $4.50.

On June 7, 2013, the Company issued 3,000 shares to SC Capital in exchange for $11,250 in debt at a price per shares of $3.75.
 
On June 14, 2013, the Company issued 4,918 shares to Asher Enterprises in exchange for $15,000 in debt at a price per shares of $3.05.

On June 17, 2013, the Company issued 5,900 shares to SC Capital in exchange for $14,750 in debt at a price per shares of $2.50.

On June 19, 2013, the Company issued 7,094 shares to Asher Enterprises in exchange for $17,500 in debt at a price per shares of $2.65.

On July 11, 2013, the Company issued 10,000 shares of its Class A Common stock.  SC Capital converted $12,500 of its note convertible in the amount of $25,000 from its note dated November 7, 2012.  There was $12,500 remaining on the note A loss of $17,500 was recorded.

On July 19, 2013, the Company issued 12,000 shares of its Class A Common stock.  SC Capital converted $12,500 of its note convertible in the amount of $25,000 from its note dated November 7, 2012.  There was $0 remaining on the note. A loss of $17,500 was recorded.

On July 30, 2013, the Company issued 12,600 shares of its Class A Common stock.  SC Capital converted $10,000 of its note convertible in the amount of $50,800 from its note dated November 20, 2012.  There was $40,800 remaining on the note. A loss of $15,200 was recorded.

On August 8, 2013, the Company issued 34,000 shares of its Class A Common stock.  SC Capital converted $17,000 of its note convertible in the amount of $23,800 from its note dated November 20, 2012.  There was $23,800 remaining on the note.  A loss of $34,000 was recorded.

On August 30, 2013, the Company issued 40,000 shares of its Class A Common stock.  SC Capital converted $15,000 of its note convertible from its note dated November 20, 2012.  There was $8,800 remaining on the note. A loss of $5,000 was recorded.

On August 21, 2013, the Company issued 26,667 shares to Asher Enterprises in exchange for $8,000 in debt at a price per shares of $3.00.

On August 30, 2013, the Company issued 40,000 shares of its Class A Common stock.  SC Capital converted $8,800 of its note convertible from its note dated November 20, 2012.  There was $0 remaining on the note. A loss of $11,200 was recorded.

On September 24, 2013, the Company issued 13,500,000 shares of its Class A Common stock.  SC Capital converted $94,000 of its note convertible from its note dated December 27, 2012, January 11, 2013, January 25, 2013 and February 1, 2013.  There was $0 remaining on these 4 notes.  A loss of $5,981,000 was recorded.

Related Party

On March 8, 2013, the Company issued 6,300 of our Class A Common Stock to Renard Properties for services rendered. The price per share was $15for $94,500 in bonus payment for achieving pre-determined mining goals.  Our CEO is the managing member of Renard Properties.

On March 8, 2013, the Company issued 6,300 of our Class A Common Stock to our CFO for services rendered.  The price per share was $15 for $94,500 in bonus payment for achieving pre-determined mining goals.

On March 18, 2013, the Company issued 1,000 of our Class A Common Stock to our CFO for services rendered.  The price per share was $14 for $14,000 in bonus payment for achieving pre-determined mining goals.

On March 18, 2013, the Company issued 1,000 of our Class A Common Stock to our CEO for services rendered.  The price per share was $14 for $14,000 in bonus payment for achieving pre-determined mining goals.

On June 19, 2013, the Company issued 37,500 of our Class A Common Stock to our CEO for $45,000 in debt.  The price per share was $4.  The shares are restricted for 24 months from the issuance. A loss of $105,000 was recorded on the issuance.
 
On June 19, 2013, the Company issued 37,500 of our Class A Common Stock to our CFO for $45,000 in debt.  The price per share was $4.  The shares are restricted for 24 months from the issuance. A loss of $105,000 was recorded on the issuance.

On August 7, 2013, the Company issued 30,000 of our Class A Common Stock to JW Group, Inc. for $30,000 in debt.  The price per share was $1.  The shares are restricted for 24 months from the issuance.

On August 7, 2013, the Company issued 30,000 of our Class A Common Stock to our CEO for $30,000 in debt.  The price per share was $1.  The shares are restricted for 24 months from the issuance.

On August 27, 2013, the Company issued 35,000 of our Class A Common Stock to our CFO for $17,500 in debt.  The price per share was $.50.  The shares are restricted for 24 months from the issuance.

On August 27, 2013, the Company issued 35,000 of our Class A Common Stock to our CEO for $17,500 in debt.  The price per share was $.50.  The shares are restricted for 24 months from the issuance.

During the three months ended September 30, 2013, the Company issued 196,250,000 shares to related parties. On November 13, 2013, the Company decided to cancel the shares; as such, the shares were not accounted for as issued and outstanding as of September 30, 2013. The shares were reissued on November 13, 2013.
 
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
 
None.
 
ITEM 4. MINE SAFETY DISCLOSURES
 
The Company has not received any disclosures or other communications regarding any of its mining properties.
 
ITEM 5. OTHER INFORMATION
 
There was no other information during the quarter ended September 30, 2013 that was not previously disclosed in our filings during that period.
 
 
ITEM 6. EXHIBITS
 
31.1
Certifications pursuant to Section 302 of Sarbanes Oxley Act of 2002
31.2
Certifications pursuant to Section 302 of Sarbanes Oxley Act of 2002
32.1
Certifications pursuant to Section 906 of Sarbanes Oxley Act of 2002
32.2
Certifications pursuant to Section 906 of Sarbanes Oxley Act of 2002
101.INS
XBRL Instance Document
101.SCH
XBRL Taxonomy Extension Schema
101.CAL
XBRL Taxonomy Extension Calculation Linkbase
101.DEF
XBRL Taxonomy Extension Definition Linkbase
101.LAB
XBRL Taxonomy Extension Label Linkbase
101.PRE
XBRL Taxonomy Extension Presentation Linkbase
 
 
 
20

 
SIGNATURES
 
In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, there unto duly authorized.
 
 
THE GRAYSTONE COMPANY, INC.
 
     
Date:   November 19, 2013
By: /s/ Paul Howarth
 
 
Paul Howarth
 
 
Chief Executive Officer
 
 
     
Date:  November 19, 2013
By: /s/ Joseph Wade
 
 
Joseph Wade
Chief Financial and Accounting Officer
 
 
 
 
 
 
 21

EX-31.1 2 exh_311.htm EXHIBIT 31.1 exh_311.htm
Exhibit 31.1
 
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
 
I, Paul Howarth, certify that:
 
1.
I have reviewed this quarterly report on Form 10-Q of The Graystone Company, 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 period 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 consolidated 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 the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5.
The registrant’s other certifying officer and I have disclosed, based on our 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 person 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: November 19, 2013
 
 
/s/ Paul Howarth
 
 
Paul Howarth
 
 
Chief Executive Officer
 
 
EX-31.2 3 exh_312.htm EXHIBIT 31.2 exh_312.htm
Exhibit 31.2
 
CERTIFICATION OF CHIEF FINANCIAL OFFICER
 
I, Joseph Wade, certify that:

1.
I have reviewed this quarterly report on Form 10-Q of The Graystone Company, 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 period 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 consolidated 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 the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5.
The registrant’s other certifying officer and I have disclosed, based on our 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 person 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: November 19, 2013
 
 
/s/ Joseph Wade
 
 
Joseph Wade 
 
 
Chief Financial Officer 
 
 
 
EX-32.1 4 exh_321.htm EXHIBIT 32.1 exh_321.htm
Exhibit 32.1
 
CERTIFICATION PURSUANT TO RULE 13b — 14(b) OF THE SECURITIES EXCHANGE ACT AND 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of The Graystone Company, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I Paul Howarth, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
/s/ Paul Howarth  
 
 
Paul Howarth 
 
 
Chief Executive Officer 
 
November 19, 2013 
 
EX-32.2 5 exh_322.htm EXHIBIT 32.2 exh_322.htm
Exhibit 32.2
 
CERTIFICATION PURSUANT TO RULE 13b — 14(b) OF THE SECURITIES EXCHANGE ACT AND 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of The Graystone Company, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Joseph Wade, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
/s/ Joseph Wade  
 
 
Joseph Wade 
 
 
Chief Financial Officer 
 
November 19, 2013
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&#8211; Basis of Presentation</font></font> </div><br/><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The accompanying unaudited financial statements of The Graystone Company, Inc. (the &#8220;Company&#8221;) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's registration statement filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year 2012 as reported in Form 10-K, have been omitted.</font> </div><br/> <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">Note 2 &#8211; Going Concern</font></font> </div><br/><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has negative working capital, recurring losses, and does not have an established source of revenues sufficient to cover its operating costs.&#160;&#160;These factors raise substantial doubt about the Company&#8217;s ability to continue as a going concern.</font> </div><br/><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading, or seeking protection from creditors pursuant to laws or regulations. Accordingly, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business.</font> </div><br/><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.</font> </div><br/><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In the coming year, the Company&#8217;s foreseeable cash requirements will relate to continual development of the operations of its business, maintaining its good standing and making the requisite filings with the Securities and Exchange Commission, and the payment of expenses associated with operations and business developments. 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DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Note&#160;7 &#8211; Loan to Joint Venture</font></font> </div><br/><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In December 2012, the Company entered into a joint venture regarding a mining project in Suriname.&#160;&#160;The Company agreed to invest $75,000 into the joint venture and any additional investments made above this initial $75,000 would be considered a loan to the joint venture by the Company.&#160;&#160;As of September 30, 2013, the Company lent an additional $145,624.&#160;&#160;This amount shall be repaid to the Company prior to any disbursements made to the partners in the joint venture.&#160;&#160;The terms of the joint venture provide that the Company has a 40% undivided interest in the profits of the joint venture, Aurora Mining owns 50% and Renard Properties owns the remaining 10%.</font> </div><br/> 75000 75000 The terms of the joint venture provide that the Company has a 40% undivided interest in the profits of the joint venture 0.40 0.50 0.10 <div style="TEXT-INDENT: 0pt; 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Note 4 - Common Stock and Preferred Stock (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Sep. 30, 2012
Note 4 - Common Stock and Preferred Stock (Details) [Line Items]      
Debt Conversion, Original Debt, Amount   $ 162,000 $ 124,948
Other Nonoperating Gains (Losses) (5,981,000) (6,182,800)  
Stock Issued During Period, Shares, Other (in Shares) 196,250,000    
Common Class A [Member] | Shares Issued For Conversion Of Notes Payable And Accrued Interest [Member]
     
Note 4 - Common Stock and Preferred Stock (Details) [Line Items]      
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares)   13,738,608  
Debt Conversion, Original Debt, Amount   458,800  
Other Nonoperating Gains (Losses)   6,182,800  
Common Class A [Member] | Shares Issued For Settlement Of Related Party Payables [Member]
     
Note 4 - Common Stock and Preferred Stock (Details) [Line Items]      
Debt Conversion, Original Debt, Amount   185,000  
Other Nonoperating Gains (Losses)   210,000  
Stock Issued During Period, Shares, Other (in Shares)   205,000  
Common Class A [Member]
     
Note 4 - Common Stock and Preferred Stock (Details) [Line Items]      
Stock Issued During Period, Shares, Issued for Services (in Shares)   21,996,500  
Stock Issued During Period, Value, Issued for Services   $ 11,395,625  
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Statement of Operations (Unaudited) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Sales, net $ 33,290 $ 46,008 $ 73,610 $ 88,478
Cost of goods sold 105,893 40,999 302,804 55,278
Gross profit (72,603) 5,009 (229,194) 33,200
Operating Expenses        
General and administrative 11,262,648 609,209 11,809,418 911,643
Legal and professional 61,561 182,611 290,179 737,803
Depreciation and amortization 1,979   17,603  
Loss on settlement of accounts payable 100,400   210,000  
Research and development   45,770   90,805
Total operating expenses 11,426,588 837,590 12,327,200 1,740,251
Loss from operations (11,499,191) (832,581) (12,556,394) (1,707,051)
Other income (expense)        
Interest expense (4,500) (31,308) (24,256) (115,791)
Loss on settlement of debt (5,981,000)   (6,182,800)  
Gain/loss on derivatives     23,933  
Loss on sale of assets   (13,250)   (18,579)
Total other income (expense) (5,985,500) (44,558) (6,183,123) (134,370)
Loss before income taxes (17,484,691) (877,139) (18,739,517) (1,841,421)
Provision for income taxes 0 0 0 0
Net loss $ (17,484,691) $ (877,139) $ (18,739,517) $ (1,841,421)
Net loss per share of common stock:        
Basic (in Dollars per share) $ (6.22) $ (20.77) $ (18.40) $ (79.96)
Weighted average number of shares outstanding (in Shares) 2,813,300 42,229 1,018,629 23,028
XML 15 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 5 - Notes Payable and Derivative Liabilities
9 Months Ended
Sep. 30, 2013
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]
Note 5 – Notes Payable and Derivative Liabilities

Convertible Notes

Fiscal 2012 Asher Convertible Note.  Throughout fiscal 2012, the Company borrowed $275,000 from Asher Enterprises, Inc. in eight notes.  The notes bear simple interest of 8% per annum from the issuance date.  The notes become convertible into Class A common stock at 57% of market price 180 days after issuance and mature 270 days after issuance.  On the date the notes become convertible, the embedded conversion options are classified as liabilities under ASC 815 at their fair value.  During 2013, $130,000 of these notes became convertible.  The fair value of the conversion options exceeded the principal balance resulting in a full discount to the notes payable of $130,000.  The entire amount was amortized the interest expense during the nine months ended September 30, 2013. 

Fiscal 2013 Asher Convertible Note.  In the nine months ended September 30, 2013, the Company borrowed $143,500 from Asher Enterprises, Inc. in three notes.  The notes bear simple interest of 8% per annum from the issuance date.  The notes become convertible into Class A common stock at 57% of market price 180 days after issuance and mature 270 days after issuance.  On the date the notes become convertible, the embedded conversion options will be classified as liabilities under ASC 815.  

During the nine months ended September 30, 2013, the Company issued 54,108 Class A Common Shares to Asher in satisfaction of $155,500 loaned to the Company.  As a result of the conversion of the related notes, the Company re-valued its derivative liabilities on the settlement dates and reclassified these amounts to additional paid-in capital.  As of September 30, 2013, the Company owes Asher a remaining total of $135,500.

Notes Payable 

On June 28, 2013, the Company entered into a line of credit agreement for $500,000 with a maturity date of December 31, 2015 and an effective interest rate of 9%. All previous amounts due to SC Capital were transferred to this line of credit. All accrued interest on the previous notes is waived and all interest under the line of credit was waived through September 30, 2013.

During the nine months ended September 30, 2013, the Company borrowed $143,500 under the line of credit above:

Ending balance as of December 31, 2012
  $ 244,950  
         
Additions due to new debt issued
    325,000  
         
Amount of debt converted into shares
    (307,450 )
         
Ending balance as of September 30, 2013
  $ 262,500  

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Note 5 - Notes Payable and Derivative Liabilities (Details) (USD $)
9 Months Ended 12 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Dec. 31, 2012
Asher Convertible Notes 2012 [Member]
Sep. 30, 2013
Asher Convertible Notes 2013 [Member]
Common Class A [Member]
Sep. 30, 2013
Asher Convertible Notes 2013 [Member]
Priincipal Amount [Member]
Sep. 30, 2013
Asher Convertible Notes 2013 [Member]
Sep. 30, 2013
Line of Credit [Member]
Jun. 28, 2013
Line of Credit [Member]
Note 5 - Notes Payable and Derivative Liabilities (Details) [Line Items]                  
Proceeds from Convertible Debt       $ 275,000     $ 143,500    
NumberOfNotes       8     3    
Debt Instrument, Interest Rate, Stated Percentage       8.00%       9.00%  
Debt Instrument, Description       $130,000 of these notes became convertible          
Debt Instrument, Unamortized Discount       130,000          
Debt Instrument, Convertible, Terms of Conversion Feature       convertible into Class A common stock at 57% of market price 180 days after issuance and mature 270 days after issuance     convertible into Class A common stock at 57% of market price 180 days after issuance and mature 270 days after issuance    
Debt Instrument, Maturity Date, Description       mature 270 days after issuance     mature 270 days after issuance    
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares)         54,108        
Debt Conversion, Original Debt, Amount 162,000 124,948       155,500      
Convertible Notes Payable, Current 135,500   136,373       135,500    
Line of Credit Facility, Maximum Borrowing Capacity                 500,000
Line of Credit Facility, Description All previous amounts due to SC Capital were transferred to this line of credit                
Proceeds from Issuance of Debt               $ 143,500  
XML 18 R6.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 1 - Basis of Presentation
9 Months Ended
Sep. 30, 2013
Disclosure Text Block [Abstract]  
Basis of Presentation and Significant Accounting Policies [Text Block]
Note 1 – Basis of Presentation

The accompanying unaudited financial statements of The Graystone Company, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's registration statement filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year 2012 as reported in Form 10-K, have been omitted.

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Note 3 - Related Party Transaction
9 Months Ended
Sep. 30, 2013
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
Note 3 – Related Party Transaction

On March 8, 2013, the Company issued 6,300 of our Class A Common Stock to Renard Properties for services rendered. The price per share was $15for $94,500 in bonus payment for achieving pre-determined mining goals.  Our CEO is the managing member of Renard Properties.

On March 8, 2013, the Company issued 6,300 of our Class A Common Stock to our CFO for services rendered.  The price per share was $15 for $94,500 in bonus payment for achieving pre-determined mining goals.

On March 18, 2013, the Company issued 1,000 of our Class A Common Stock to our CFO for services rendered.  The price per share was $14 for $14,000 in bonus payment for achieving pre-determined mining goals.

On March 18, 2013, the Company issued 1,000 of our Class A Common Stock to our CEO for services rendered.  The price per share was $14 for $14,000 in bonus payment for achieving pre-determined mining goals.

On June 19, 2013, the Company issued 37,500 of our Class A Common Stock to our CEO for $45,000 in debt.  The price per share was $4.  The shares are restricted for 24 months from the issuance. A loss of $105,000 was recorded on the issuance.

On June 19, 2013, the Company issued 37,500 of our Class A Common Stock to our CFO for $45,000 in debt.  The price per share was $4.  The shares are restricted for 24 months from the issuance. A loss of $105,000 was recorded on the issuance.

On August 7, 2013, the Company issued 30,000 of our Class A Common Stock to JW Group, Inc. for $30,000 in debt.  The price per share was $1.  The shares are restricted for 24 months from the issuance.

On August 7, 2013, the Company issued 30,000 of our Class A Common Stock to our CEO for $30,000 in debt.  The price per share was $1.  The shares are restricted for 24 months from the issuance.

On August 27, 2013, the Company issued 35,000 of our Class A Common Stock to our CFO for $17,500 in debt.  The price per share was $.50.  The shares are restricted for 24 months from the issuance.

On August 27, 2013, the Company issued 35,000 of our Class A Common Stock to our CEO for $17,500 in debt.  The price per share was $.50.  The shares are restricted for 24 months from the issuance.

During the three months ended September 30, 2013, the Company issued 196,250,000 shares to related parties. On November 13, 2013, the Company decided to cancel the shares; as such, the shares were not accounted for as issued and outstanding as of September 30, 2013. The shares were reissued on November 13, 2013.

The Company entered into an agreement with Renard Properties, LLC whereby Renard agreed to loan to the Company funds necessary to continue the company’s operations in Suriname.  The Company agreed to repay the loan on December 31, 2018.  The Company may prepay the loan prior to December 31, 2018 by paying a prepayment penalty equal to 100%.  As part of the loan, Renard is entitled to any profits that are generated from the Suriname operations until the loan reaches maturity or is prepaid by the Company.  The Company has borrowed 41,200 as of September 30, 2013 under this agreement.

During the nine months ended September 30, 2013, $125,000 was recorded to related party payables from amounts paid on behalf of the Company by Renard Properties, for accrued salaries and consulting fees.  $127,500 was repaid against these payables. As of September 30, 2013, $79,003 was due.  

During the nine months ended September 30, 2013, $140,625 was recorded to related party payables from amounts paid on behalf of the Company to our CFO, for accrued salaries and consulting fees.  $112,500 was repaid against these payables. As of September 30, 2013 $40,646 was due.  

During the nine months ended September 30, 2013, the Company borrowed $165,780 in cash from Renard Properties and repaid $46,979 in cash leaving a balance of $134,671 owed to Renard Properties. Our CEO is the managing member of Renard Properties. These loans bear no interest and are due in December 2013.  

During the nine months ended September 30, 2013, the Company borrowed $58,519 in cash from JW Group and repaid $61,313 in cash. As of September 30, 2013, $3,439 was owed to JW Group. Our CFO is the President of JW Group.  These loans bear no interest and are due in December 2013.  

XML 21 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 6 - Fair Value Measurement And Derivative Liability
9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
NOTE 6 – FAIR VALUE MEASUREMENTS AND DERIVATIVE LIABILITY

The Company evaluates all of it financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income. For option-based derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.

Under ASC-815 the conversion options embedded in the notes payable described in Note 6 require liability classification because they do not contain an explicit limit to the number of shares that could be issued upon settlement.

During 2013, certain notes payable were converted resulting in settlement of the related derivative liabilities.  The Company re-measured the embedded conversion options at fair value on the date of settlement and recorded these amounts to additional paid-in capital.

During 2013, the Company issued additional convertible notes.  The conversion options and warrants were classified as derivative liabilities at their fair value on the date of issuance.

As defined in FASB ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilized the market data of similar entities in its industry or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. FASB ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).

The three levels of the fair value hierarchy are as follows:

Level 1 –
Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.

Level 2 -
Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date.

Level 3 -
Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as September 30, 2013.

Recurring Fair Value Measures
 
Level 1
   
Level 2
   
Level 3
   
Total
 
                         
LIABILITIES:
                       
     Derivative liabilities, September 30, 2013
  $ -     $ -     $ 91,580     $ 91,580  

The following table summarizes the changes in the derivative liabilities during the nine months ended September 30, 2013:

Ending balance as of December  31, 2012
  $ 19,807  
Reclassification of derivative liabilities to additional paid-in capital due to conversion of related notes payable
    (115,527 )
Additions due to new convertible debt and warrants issued
    130,000  
Change in fair value
    57,300  
Ending balance as of September 30, 2013
  $ 91,580  

XML 22 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 4 - Common Stock and Preferred Stock
9 Months Ended
Sep. 30, 2013
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
Note 4 – Common Stock and Preferred Stock

During nine months Ending September, 2013, the Company issued the following Class A shares:

·
13,738,608 shares for conversion of notes payable and accrued interest of $458,800. A loss of $6,182,800 was recorded on the conversion.

·
21,996,500 shares for services with a fair value of $11,395,625

·
205,000 shares for settlement of related party payables of $185,000. A loss of $210,000 was recorded on the settlement.

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Sep. 30, 2013
Dec. 31, 2012
Common Class A [Member]
   
Common stock, par value (in Dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized 500,000,000 500,000,000
Common Stock, shares issued 35,979,264 69,155
Common Stock, shares outstanding 35,979,264 69,155
Common Class B [Member]
   
Common stock, par value (in Dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 5,000,000 5,000,000
Common Stock, shares issued 5,000,000 5,000,000
Common Stock, shares outstanding 5,000,000 5,000,000
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Note 5 - Notes Payable and Derivative Liabilities (Tables)
9 Months Ended
Sep. 30, 2013
Debt Disclosure [Abstract]  
Schedule of Debt [Table Text Block]
Ending balance as of December 31, 2012
  $ 244,950  
         
Additions due to new debt issued
    325,000  
         
Amount of debt converted into shares
    (307,450 )
         
Ending balance as of September 30, 2013
  $ 262,500  
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Statement of Cash Flows (Unaudited) (USD $)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash flows from operating activities    
Net Income(loss) $ (18,739,517) $ (1,841,421)
Adjustments to reconcile net income (loss) to net cash used by operating activities:    
Depreciation 17,603 1,800
Amortization on intangible assets   750
Loss on settlement of debt 6,182,800  
Loss on settlement of AP – related party 210,000  
Gain on derivative liability (23,933) 120,795
Impairment of acquired intangible assets   13,250
Loss on sale of plant, property, & equipment   18,579
Issuance of common stock for services 11,395,625 937,783
Issuance of notes for services   31,250
Amortization of debt discount 177,113 109,501
Changes in operating assets and liabilities:    
Accounts receivable   17,120
Prepaid expenses 50,000  
Accounts payable 45,343 2,943
Accrued expenses- related party 265,876  
Accrued expenses 8,542 5,153
Net cash used by operating activities (410,548) (582,497)
Cash flows from investing activities    
Sale of plant, property & equipment   14,942
Purchase of plant, property & equipment   (268,521)
Loan to joint venture (145,624)  
Net cash provided (used) by investing activities (145,624) (253,579)
Cash flows from financing activities    
Proceeds from issuance of common stock, net of issuance costs   430,350
Proceeds from notes payable 468,500 535,436
Repayment on notes payable   (67,450)
Repayment on notes payable- related party (147,918)  
Proceeds from notes payable - related party 224,298  
Net cash provided by financing activities 544,880 898,336
Net change in cash and cash equivalent (11,292) 62,260
Cash and cash equivalent at the beginning of period 14,922 793
Cash and cash equivalent at the end of period 3,630 63,053
Noncash financing and investing activities:    
Stock issued for conversion of debt and accrued interest 162,000 124,948
Stock issued for settlement of debt 303,800  
Stock issued to settled accrued liabilities- related party 185,000  
Debt discount 130,000 109,501
Cancellation of common stock (19,625) (218,200)
Reclass of Derivatives [Member]
   
Noncash financing and investing activities:    
noncash transaction 115,527  
Subscription Receivable [Member]
   
Noncash financing and investing activities:    
noncash transaction   $ 131,800
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Balance Sheet (Unaudited) (USD $)
Sep. 30, 2013
Dec. 31, 2012
Current assets    
Cash and cash equivalents $ 3,630 $ 14,922
Prepaid expense   50,000
Loan to joint venture 145,624  
Total current assets 149,254 64,922
Plant, property & equipment (net of depreciation) 53,238 70,841
202,492 135,763
Current liabilities    
Accounts payable 14,732 10,487
Accrued expenses 10,147 8,604
Accrued expenses - related party 119,649 78,399
Convertible notes payable 135,500 136,373
Notes payable 262,500 244,950
Notes payable (related party) 198,914 82,908
Derivative liability 91,580 19,807
Total liabilities 833,022 581,528
Stockholders' Deficit    
Additional paid-in capital 24,057,402 5,506,241
Accumulated deficit (24,696,530) (5,957,013)
Total stockholders' deficit (630,530) (445,765)
Total liabilities and stockholders' (deficit) equity 202,492 135,763
Common Class A [Member]
   
Stockholders' Deficit    
Common stock, value issued 3,598 7
Common Class B [Member]
   
Stockholders' Deficit    
Common stock, value issued $ 5,000 $ 5,000
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Note 8 - Subsequent Events (Details) (USD $)
9 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended 1 Months Ended 2 Months Ended
Sep. 30, 2013
Oct. 09, 2013
Subsequent Event [Member]
Common Class A [Member]
Oct. 17, 2013
Subsequent Event [Member]
Common Class A [Member]
Oct. 22, 2013
Subsequent Event [Member]
Common Class A [Member]
Nov. 12, 2013
Subsequent Event [Member]
Common Class A [Member]
Minimum [Member]
Nov. 12, 2013
Subsequent Event [Member]
Common Class A [Member]
Maximum [Member]
Nov. 13, 2013
Subsequent Event [Member]
Oct. 09, 2013
Subsequent Event [Member]
Oct. 17, 2013
Subsequent Event [Member]
Oct. 22, 2013
Subsequent Event [Member]
Nov. 30, 2013
Subsequent Event [Member]
Sep. 30, 2013
Common Class A [Member]
Dec. 31, 2012
Common Class A [Member]
Note 8 - Subsequent Events (Details) [Line Items]                          
Common Stock, Shares Authorized (in Shares)         300,000,000 500,000,000           500,000,000 500,000,000
Stock Cancelled During Period Shares Issued Related Parties (in Shares)             196,250,000            
Shares, Issued (in Shares)             196,250,000            
Proceeds from Related Party Debt $ 224,298                   $ 65,591    
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares)   1,086,956 2,380,952 6,750,000                  
Shares Issued, Price Per Share (in Dollars per share)   $ 0.0138 $ 0.0063 $ 0.0034                  
Stock Issued During Period, Value, Conversion of Convertible Securities               15,000 15,000 23,000      
Conversion Price Percentage               55.00% 55.00%        
Debt Instrument, Face Amount               78,500 78,500        
Notes Payable, Related Parties               55,500          
Notes Payable, Related Parties, Noncurrent                 $ 40,500 $ 0      
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Note 8 - Subsequent Events
9 Months Ended
Sep. 30, 2013
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
Note 8 – Subsequent Events

On November 12, 2013, the Board of Directors and Shareholders approved to amend the Articles of Incorporation to increase the authorized share count from 300,000,000 to 500,000,000 shares of Class A Common Stock.

On November 13, 2013, the Company cancelled 196,250,000 common shares issued to related parties. The shares were reissued on November 13, 2013.

In October and November 2013, the company received proceeds of $65,591 from a related party for the project in Suriname.

On October 9, 2013, the Company issued 1,086,956 shares of its Class A Common stock at an applicable conversion price of $0.0138.  Asher Enterprises converted $15,000 of its note convertible dated February 11, 2013.  The agreement with Asher allows them to convert their debt after six (6) months at a conversion price equal to 55% of the average of the three (3) lowest closing bid prices ten (10) trading days prior to the conversion date.  This draw is against the note dated February 11, 2013 in the amount of $78,500.  There is $55,500 remaining on the note.

On October 17, 2013, the Company issued 2,380,952 shares of its Class A Common stock at an applicable conversion price of $0.0063.  Asher Enterprises converted $15,000 of its note convertible dated February 11, 2013.  The agreement with Asher allows them to convert their debt after six (6) months at a conversion price equal to 55% of the average of the three (3) lowest closing bid prices ten (10) trading days prior to the conversion date.  This draw is against the note dated February 11, 2013 in the amount of $78,500.  There is $40,500 remaining on the note.

On October 22, 2013, the Company issued 6,750,000 shares of its Class A Common stock at an applicable conversion price of $0.0034.  SC Capital converted $23,000 of its note convertible dated March 4, 2013.  There is $0 remaining on the note.

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Note 3 - Related Party Transaction (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Note 3 - Related Party Transaction (Details) [Line Items]        
Debt Conversion, Original Debt, Amount   $ 162,000 $ 124,948  
Gains (Losses) on Extinguishment of Debt (100,400) (210,000)    
Stock Issued During Period, Shares, Other (in Shares) 196,250,000      
Repayments of Related Party Debt   147,918    
Due to Related Parties, Current 198,914 198,914   82,908
Proceeds from Related Party Debt   224,298    
Stock Issued March 8, 2013 [Member] | Common Class A [Member] | Chief Financial Officer [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Stock Issued During Period, Shares, Issued for Services (in Shares)   6,300    
Shares Issued, Price Per Share (in Dollars per share) $ 15 $ 15    
Stock Issued During Period, Value, Issued for Services   94,500    
Stock Issued March 18, 2013 [Member] | Common Class A [Member] | Chief Financial Officer [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Stock Issued During Period, Shares, Issued for Services (in Shares)   1,000    
Shares Issued, Price Per Share (in Dollars per share) $ 14 $ 14    
Stock Issued During Period, Value, Issued for Services   14,000    
Stock Issued March 18, 2013 [Member] | Common Class A [Member] | Chief Executive Officer [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Stock Issued During Period, Shares, Issued for Services (in Shares)   1,000    
Shares Issued, Price Per Share (in Dollars per share) $ 14 $ 14    
Stock Issued During Period, Value, Issued for Services   14,000    
Stock Issued June 19, 2013 [Member] | Common Class A [Member] | Chief Financial Officer [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Shares Issued, Price Per Share (in Dollars per share) $ 4 $ 4    
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares)   37,500    
Debt Conversion, Original Debt, Amount   45,000    
SharesIssuedRestrictedPeriod   24 months    
Gains (Losses) on Extinguishment of Debt   (105,000)    
Stock Issued June 19, 2013 [Member] | Common Class A [Member] | Chief Executive Officer [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Shares Issued, Price Per Share (in Dollars per share) $ 4 $ 4    
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares)   37,500    
Debt Conversion, Original Debt, Amount   45,000    
SharesIssuedRestrictedPeriod   24 months    
Gains (Losses) on Extinguishment of Debt   (105,000)    
Stock Issued August 7, 2013 [Member] | Common Class A [Member] | Chief Executive Officer [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Shares Issued, Price Per Share (in Dollars per share) $ 1 $ 1    
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares)   30,000    
Debt Conversion, Original Debt, Amount   30,000    
SharesIssuedRestrictedPeriod   24 months    
Stock Issued August 7, 2013 [Member] | Common Class A [Member] | JW Group [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Shares Issued, Price Per Share (in Dollars per share) $ 1 $ 1    
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares)   30,000    
Debt Conversion, Original Debt, Amount   30,000    
SharesIssuedRestrictedPeriod   24 months    
Stock Issued August 27, 2013 [Member] | Common Class A [Member] | Chief Financial Officer [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Shares Issued, Price Per Share (in Dollars per share) $ 0.50 $ 0.50    
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares)   35,000    
Debt Conversion, Original Debt, Amount   17,500    
SharesIssuedRestrictedPeriod   24 months    
Stock Issued August 27, 2013 [Member] | Common Class A [Member] | Chief Executive Officer [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Shares Issued, Price Per Share (in Dollars per share) $ 0.50 $ 0.50    
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares)   35,000    
Debt Conversion, Original Debt, Amount   17,500    
SharesIssuedRestrictedPeriod   24 months    
Common Class A [Member] | Renard Properties [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Stock Issued During Period, Shares, Issued for Services (in Shares)   6,300    
Shares Issued, Price Per Share (in Dollars per share) $ 15 $ 15    
Stock Issued During Period, Value, Issued for Services   94,500    
Common Class A [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Stock Issued During Period, Shares, Issued for Services (in Shares)   21,996,500    
Stock Issued During Period, Value, Issued for Services   11,395,625    
Renard Properties [Member] | Related Party Notes [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Repayments of Related Party Debt   46,979    
Due to Related Parties, Current 134,671 134,671    
Proceeds from Related Party Debt   165,780    
Renard Properties [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Related Party Transaction, Amounts of Transaction   125,000    
Repayments of Related Party Debt   127,500    
Due to Related Parties, Current 79,003 79,003    
Chief Financial Officer [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Related Party Transaction, Amounts of Transaction   140,625    
Repayments of Related Party Debt   112,500    
Due to Related Parties, Current 40,646 40,646    
JW Group [Member] | Related Party Notes [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Repayments of Related Party Debt   61,313    
Due to Related Parties, Current 3,439 3,439    
Proceeds from Related Party Debt   58,519    
Renard Properties [Member]
       
Note 3 - Related Party Transaction (Details) [Line Items]        
Line of Credit Facility, Amount Outstanding $ 41,200 $ 41,200    
XML 32 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 7 - Loan to Joint Venture
9 Months Ended
Sep. 30, 2013
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments and Joint Ventures Disclosure [Text Block]
Note 7 – Loan to Joint Venture

In December 2012, the Company entered into a joint venture regarding a mining project in Suriname.  The Company agreed to invest $75,000 into the joint venture and any additional investments made above this initial $75,000 would be considered a loan to the joint venture by the Company.  As of September 30, 2013, the Company lent an additional $145,624.  This amount shall be repaid to the Company prior to any disbursements made to the partners in the joint venture.  The terms of the joint venture provide that the Company has a 40% undivided interest in the profits of the joint venture, Aurora Mining owns 50% and Renard Properties owns the remaining 10%.

XML 33 R7.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 2 - Going Concern
9 Months Ended
Sep. 30, 2013
Going Concern [Abstract]  
Going Concern [Text Block]
Note 2 – Going Concern

The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has negative working capital, recurring losses, and does not have an established source of revenues sufficient to cover its operating costs.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading, or seeking protection from creditors pursuant to laws or regulations. Accordingly, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.

In the coming year, the Company’s foreseeable cash requirements will relate to continual development of the operations of its business, maintaining its good standing and making the requisite filings with the Securities and Exchange Commission, and the payment of expenses associated with operations and business developments. The Company may experience a cash shortfall and be required to raise additional capital.

Historically, it has mostly relied upon internally generated funds such as shareholder loans and advances to finance its operations and growth. Management may raise additional capital by retaining net earnings or through future public or private offerings of the Company’s stock or through loans from private investors, although there can be no assurance that it will be able to obtain such financing. The Company’s failure to do so could have a material and adverse effect upon it and its shareholders.

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Note 5 - Notes Payable and Derivative Liabilities (Details) - Debt (USD $)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Note 5 - Notes Payable and Derivative Liabilities (Details) - Debt [Line Items]    
Ending balance as of December 31, 2012 $ 244,950  
Ending balance as of September 30, 2013 262,500  
Amount of debt converted into shares (162,000) (124,948)
Third Party Notes [Member]
   
Note 5 - Notes Payable and Derivative Liabilities (Details) - Debt [Line Items]    
Ending balance as of December 31, 2012 244,950  
Ending balance as of September 30, 2013 262,500  
Additions due to new debt issued 325,000  
Amount of debt converted into shares $ (307,450)  
XML 36 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 6 - Fair Value Measurement And Derivative Liability (Tables)
9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
Recurring Fair Value Measures
 
Level 1
   
Level 2
   
Level 3
   
Total
 
                         
LIABILITIES:
                       
     Derivative liabilities, September 30, 2013
  $ -     $ -     $ 91,580     $ 91,580  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
Ending balance as of December  31, 2012
  $ 19,807  
Reclassification of derivative liabilities to additional paid-in capital due to conversion of related notes payable
    (115,527 )
Additions due to new convertible debt and warrants issued
    130,000  
Change in fair value
    57,300  
Ending balance as of September 30, 2013
  $ 91,580  
XML 37 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 7 - Loan to Joint Venture (Details) (USD $)
9 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Note 7 - Loan to Joint Venture (Details) [Line Items]    
Payments to Acquire Interest in Joint Venture   $ 75,000
LoansToJointVenture 145,624 75,000
JointVentureTerms The terms of the joint venture provide that the Company has a 40% undivided interest in the profits of the joint venture  
Noncontrolling Interest in Joint Ventures 0.40  
Aurora Mining [Member]
   
Note 7 - Loan to Joint Venture (Details) [Line Items]    
Noncontrolling Interest in Joint Ventures 0.50  
Renard Properties [Member]
   
Note 7 - Loan to Joint Venture (Details) [Line Items]    
Noncontrolling Interest in Joint Ventures $ 0.10  
XML 38 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 6 - Fair Value Measurement And Derivative Liability (Details) - Fair Value Hierarchy Of Financial Assets and Liabilities (USD $)
Sep. 30, 2013
Dec. 31, 2012
LIABILITIES:    
Derivative liabilities, September 30, 2013 $ 91,580 $ 19,807
Fair Value, Inputs, Level 1 [Member]
   
LIABILITIES:    
Derivative liabilities, September 30, 2013 0  
Fair Value, Inputs, Level 2 [Member]
   
LIABILITIES:    
Derivative liabilities, September 30, 2013 0  
Fair Value, Inputs, Level 3 [Member]
   
LIABILITIES:    
Derivative liabilities, September 30, 2013 $ 91,580  
XML 39 R1.htm IDEA: XBRL DOCUMENT v2.4.0.8
Document And Entity Information
9 Months Ended
Sep. 30, 2013
Nov. 18, 2013
Common Class A [Member]
Nov. 18, 2013
Common Class B [Member]
Document Information [Line Items]      
Entity Registrant Name Graystone Co    
Document Type 10-Q    
Current Fiscal Year End Date --12-31    
Entity Common Stock, Shares Outstanding   242,444,307 5,000,000
Amendment Flag false    
Entity Central Index Key 0001510524    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Filer Category Smaller Reporting Company    
Entity Well-known Seasoned Issuer No    
Document Period End Date Sep. 30, 2013    
Document Fiscal Year Focus 2013    
Document Fiscal Period Focus Q3    
XML 40 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 6 - Fair Value Measurement And Derivative Liability (Details) - Changes In The Derivative Liabilities (USD $)
9 Months Ended
Sep. 30, 2013
Changes In The Derivative Liabilities [Abstract]  
Balance $ 19,807
Reclassification of derivative liabilities to additional paid-in capital due to conversion of related notes payable (115,527)
Additions due to new convertible debt and warrants issued 130,000
Change in fair value 57,300
Balance $ 91,580