NOTE 1 ORGANIZATION AND BASIS OF PRESENTATION
Nature of Business & Going Concern
Nova Mining, Corp. (Nova Mining or the Company), was incorporated in the state of Nevada on December 29, 2005. The Company is an Exploration Stage Company, as defined by ASC 915 Development Stage Companies. The Companys principal business is the acquisition and exploration of mineral resources. The Company has not presently determined whether its mineral claims contain reserves that are economically recoverable.
The accompanying financial statements have been prepared on the basis of accounting principles applicable to a going concern, which assume that Nova Mining will continue in operation for at least one year and will be able to realize its assets and discharge its liabilities in the normal course of operations.
Several conditions and events cast substantial doubt about Nova Minings ability to continue as a going concern. Nova Mining has incurred net losses of $796,695 for the period from (inception), December 29, 2005 to August 31, 2012, has had no revenues and requires additional financing in order to finance its business activities on an ongoing basis. Nova Minings future capital requirements will depend on numerous factors including, but not limited to, executing its existing mining based business plan and the pursuit of business opportunities. Nova Mining is actively pursuing alternative financing and has had discussions with various third parties, although no firm commitments have been obtained. In the interim, shareholders of Nova Mining have committed to meeting its minimal operating expenses.
Management believes that actions presently being taken to revise Nova Minings operating and financial requirements provide them with the opportunity to continue as a going concern.
These financial statements do not reflect adjustments that would be necessary if Nova Mining were unable to continue as a going concern. While management believes that the actions already taken or planned, will mitigate the adverse conditions and events which raise doubt about the validity of the going concern assumption used in preparing these financial statements, there can be no assurance that these actions will be successful. If Nova Mining were unable to continue as a going concern, then substantial adjustments would be necessary to the carrying values of assets, the reported amounts of its liabilities, the reported revenues and expenses, and the balance sheet classifications used.