UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2022

 

Or

 

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

 

For the transition period from  ________________to ________________

 

Commission File Number 000-54332

 

LITHIUM CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Nevada

 

98-0530295

(State or other jurisdiction of incorporation or organization)

 

(IRS Employer Identification No.)

 

 

 

1031 Railroad St. Ste. 102B, Elko, Nevada

 

89801

(Address of principal executive offices)

 

(Zip Code)

 

(775) 410-5287

(Registrant’s telephone number, including area code)

 

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of exchange on which registered

 

 

 

 

 

Common Stock

 

LTUM

 

N/A

 

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  No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes  No

 

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

 

Large accelerated filer 

Accelerated filer

Non-accelerated Filer

Smaller reporting company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

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

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 109,092,441 common shares issued and outstanding as of August 18, 2022

 

 

 

 

 

LITHIUM CORPORATION

 

FORM 10-Q

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

4

Item 1.

Financial Statements

4

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

14

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

30

Item 4.

Controls and Procedures

30

PART II - OTHER INFORMATION

31

Item 1.

Legal Proceedings

31

Item 1A.

Risk Factors

31

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

31

Item 3.

Defaults Upon Senior Securities

31

Item 4.

Mine Safety Disclosures

31

Item 5.

Other Information

31

Item 6.

Exhibits

32

SIGNATURES

33

 

 

2

Table of Contents

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Our unaudited interim financial statements for the three month period ended June 30, 2022 form part of this quarterly report. They are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

 

LITHIUM Corporation

Balance Sheets

 

 

 

 

 

 

 

ASSETS

 

 

June 30,

2022

 

 

December 31,

2021

 

CURRENT ASSETS

 

 

 

 

 

 

Cash

 

$

2,860,902

 

 

$

2,243,121

 

Marketable securities

 

 

338,476

 

 

 

393,481

 

Deposits

 

 

700

 

 

 

700

 

Prepaid expenses

 

 

17,419

 

 

 

21,804

 

Total  Current Assets

 

 

3,217,497

 

 

 

2,659,106

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS

 

 

 

 

 

 

 

 

Equipment, net of accumulated depreciation

 

 

31,984

 

 

 

-

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

3,249,481

 

 

$

2,659,106

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

15,215

 

 

$

18,705

 

Accounts payable and accrued liabilities - related party

 

 

16,798

 

 

 

2,251

 

Allowance for optioned properties

 

 

1,645,970

 

 

 

1,580,970

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

 

1,677,983

 

 

 

1,601,926

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES 

 

 

1,677,983

 

 

 

1,601,926

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Common stock, 3,000,000,000 shares authorized, par value $0.001; 107,092,441 and 103,492,441 common shares outstanding, respectively

 

 

107,093

 

 

 

103,493

 

Additional paid in capital

 

 

7,699,324

 

 

 

6,925,724

 

Additional paid in capital - options

 

 

887,910

 

 

 

191,513

 

Additional paid in capital - warrants

 

 

369,115

 

 

 

369,115

 

Accumulated deficit

 

 

(7,491,944

)

 

 

(6,532,665

)

 

 

 

 

 

 

 

 

 

TOTAL STOCKHOLDERS' EQUITY

 

 

1,571,498

 

 

 

1,057,180

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

3,249,481

 

 

$

2,659,106

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

3

Table of Contents

 

LITHIUM Corporation

Statements of Operations

 

 

 

Three Months Ended

 June 30, 2022

 

 

Three Months Ended

 June 30, 2021

 

 

Six Months Ended

June 30, 2022

 

 

Six Months Ended

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional fees

 

 

32,431

 

 

 

18,418

 

 

 

42,313

 

 

 

54,527

 

Depreciation

 

 

1,833

 

 

 

-

 

 

 

3,666

 

 

 

-

 

Exploration expenses - related party

 

 

3,078

 

 

 

5,255

 

 

 

9,297

 

 

 

5,255

 

Exploration expenses

 

 

62,355

 

 

 

3,181

 

 

 

71,221

 

 

 

29,813

 

Consulting fees - related party

 

 

367,967

 

 

 

30,000

 

 

 

412,967

 

 

 

60,000

 

Consulting fees  

 

 

384,480

 

 

 

(15,587

)

 

 

389,730

 

 

 

557,468

 

Transfer agent and filing fees

 

 

10,634

 

 

 

8,375

 

 

 

17,227

 

 

 

16,156

 

Travel

 

 

3,692

 

 

 

3,131

 

 

 

6,825

 

 

 

3,173

 

General and administrative expenses

 

 

6,579

 

 

 

4,243

 

 

 

10,528

 

 

 

6,559

 

TOTAL OPERATING EXPENSES

 

 

873,049

 

 

 

57,016

 

 

 

963,774

 

 

 

732,951

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS FROM OPERATIONS

 

 

(873,049

)

 

 

(57,016

)

 

 

(963,774

)

 

 

(732,951

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSES)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of marketable securities

 

 

(400,605

)

 

 

-

 

 

 

(55,005

)

 

 

-

 

Other income

 

 

19,500

 

 

 

26,000

 

 

 

59,500

 

 

 

41,000

 

TOTAL OTHER INCOME (EXPENSE)

 

 

(381,105

)

 

 

26,000

 

 

 

4,495

 

 

 

41,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS BEFORE INCOME TAXES

 

 

(1,254,154

)

 

 

(31,016

)

 

 

(959,279

)

 

 

(691,951

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAXES

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

(1,254,154

)

 

$

(31,016

)

 

$

(959,279

)

 

$

(691,951

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS PER SHARE: BASIC AND DILUTED

 

$

(0.01

)

 

$

(0.00

)

 

$

(0.01

)

 

$

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED

 

 

105,861,672

 

 

 

98,385,558

 

 

 

104,990,784

 

 

 

97,579,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

4

Table of Contents

 

LITHIUM Corporation

Statements of Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Paid-in

 

 

Paid-in

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-in

 

 

Capital -

 

 

Capital -

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Warrants

 

 

Options

 

 

Deficit

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2020

 

 

95,651,644

 

 

$

95,652

 

 

$

4,322,347

 

 

$

369,115

 

 

$

191,513

 

 

$

(4,787,392

)

 

$

191,235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued for services

 

 

1,375,779

 

 

 

1,376

 

 

 

555,814

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

557,190

 

Shares issued for cash

 

 

6,465,018

 

 

 

6,465

 

 

 

2,047,563

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,054,028

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,745,273

)

 

 

(1,745,273

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2021

 

 

103,492,441

 

 

 

103,493

 

 

 

6,925,724

 

 

 

369,115

 

 

 

191,513

 

 

 

(6,532,665

)

 

 

1,057,180

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued for cash

 

 

3,600,000

 

 

 

3,600

 

 

 

773,600

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

777,200

 

Stock based compensation

 

 

-