SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Earnings (Loss) Per Share

We are authorized to issue 750,000,000 shares of common stock, $0.10 par value per share. At June 30, 2023, there were 195,226,190 shares of our common stock issued and outstanding.

For the three and six-month periods ended June 30, 2023 and 2022, potentially dilutive shares including outstanding stock options, warrants, convertible interest payable, and convertible preferred stock were excluded from the computation of diluted loss per share because they were anti-dilutive due to net losses in those periods. For the three and six-month periods ended June 30, 2023 and 2022, potentially dilutive common stock equivalents excluded from the calculation of diluted earnings per share are as follows:

	June 30, 2023		June 30, 2022
Stock options		1,025,000		1,050,000
Warrants		11,333,334		18,667,077
Convertible Preferred Stock		30,190,475		30,190,475
Convertible interest payable		164,492,964		122,559,086
Total		207,041,773		172,466,638

Fair Value Measurements

When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date.

During 2023 and 2022, the Company determined fair value on a recurring basis and non-recurring basis as follows:

	Balance June 30, 2023		Balance December 31, 2022		Fair Value Hierarchy level
Liabilities
Recurring: Notes payable in gold (Note 7)	$	510,166	$	483,514		2

The carrying amounts of financial instruments, including notes payable and notes payable – related party, approximate fair value at June 30, 2023 and December 31, 2022. The inputs to the valuation of Level 2 liabilities are described in Note 6 Notes Payable in Gold.