1. Nature of Business and Summary of Significant Accounting Policies (Policies)
|12 Months Ended
Aug. 31, 2012
|Organization, Consolidation and Presentation of Financial Statements [Abstract]
|Nature of business and organization
of business and organization
Corp. (the Company), formerly named Spartan Business Services Corp., was incorporated in the State of Nevada on November
19, 2008. The Company is an Exploration Stage Company as defined by Guide 7 of the Securities Exchange Commissions Industry
Guide and ASC Topic 915-10 Development Stage Entities. The Company has entered
into an agreement to acquire a mineral property located in the La Paz County, Arizona, and has not yet determined whether this
property contains reserves that are economically recoverable. The recoverability of property expenditures will be dependent upon
the discovery of economically recoverable reserves, confirmation of the Companys interest in the underlying property, the
ability of the Company to obtain necessary financing to satisfy the expenditure requirements under the property agreement and
upon future profitable production or proceeds from the sale thereof.
On December 13,
2011 Mr. Neil Pestell resigned as President, Treasurer, Secretary and Director of the Company.
On December 13,
2011, Mr. Michael Nott was appointed President, Treasurer, Secretary and Director of the Company. Mr. Nott is paid $2,000 per
month for his services to the Company.
|Use of estimates
of financial statements in conformity with accounting principles generally accepted in the United States of America requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from these estimates.
|Cash and cash equivalents
cash equivalents include interest bearing and non-interest bearing bank deposits, money market accounts, and short-term instruments
with a liquidation provision of three month or less.
has no revenues to date from its operations. Once revenues are generated, management will establish a revenue recognition policy.
costs are generally expensed as incurred and are included in selling and marketing expenses in the accompanying statement of operations.
As of August 31, 2012 and 2011, there were $5,900 and $19,505 advertising costs incurred respectively
of the Company have been, and may in the future, be affected from time to time, in varying degrees, by changes in environmental
regulations, including those for future reclamation and site restoration costs. Both the likelihood of new regulations and their
overall effect upon the Company vary greatly and are not predictable. The Companys policy is to meet or, if possible, surpass
standards set by relevant legislation, by application of technically proven and economically feasible measures.
|Concentrations of credit risk
of credit risk
financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and accounts payable. The
Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash
equivalents with a particular financial institution may exceed any applicable government insurance limits.
|Impairment of Long-Lived Assets
of Long-Lived Assets
The Company reviews
and evaluates long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts
may not be recoverable. The assets are subject to impairment consideration under FASB ASC 360-10-35-17, if events or circumstances
indicate that their carrying amount might not be recoverable. When the Company determines that an impairment analysis should be
done, the analysis will be performed using the rules of FASB ASC 930-360-35, Asset Impairment, and 360-10 through 15-5, Impairment
or Disposal of Long-Lived Assets.
|Mineral Rights and Exploration Costs
Mineral Rights and Exploration
Costs of acquisition
and option costs of mineral rights are capitalized upon acquisition. Mine development costs incurred to develop new ore deposits,
to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized
once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current
production or to maintain assets on a standby basis are charged to operations. If the Company does not continue with exploration
after the completion of the feasibility study, the mineral rights will be expensed at that time. Costs of abandoned projects are
charged to mining costs including related property and equipment costs. To determine if these costs are in excess of their recoverable
amount periodic evaluation of carrying value of capitalized costs and any related property and equipment costs are based upon
expected future cash flows and/or estimated salvage value in accordance with FASB Accounting Standards Codification (ASC) 360-10-35-15,
Impairment or Disposal of Long-Lived Assets.
could impact our ability to achieve forecasted production schedules. Additionally, commodity prices, capital expenditure requirements
and reclamation costs could differ from the assumptions the Company may use in cash flow models from exploration stage mineral
interests. This, however, involves further risks in addition to those factors applicable to mineral interests where proven and
proven and probable reserves have been identified, due to the lower level of confidence that the identified mineralized material
can ultimately be mined economically.
|Risks and uncertainties
The Company operates
in the resource exploration industry that is subject to significant risks and uncertainties, including financial, operational,
technological, and other risks associated with operating a resource exploration business, including the potential risk of business
|Basic and diluted loss per share
diluted loss per share
The Company computes
net loss per share in accordance with FASB ASC 260, Earnings per Share, which requires presentation of both basic
and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss
available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period.
Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period.
diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the
exercise of stock options or warrants. Diluted EPS excludes all potentially dilutive shares if their effect is anti-dilutive.
accounts for comprehensive income (loss) in accordance with ASC Topic 220 "Reporting Comprehensive income" which requires
comprehensive income (loss) and its components to be reported when a company has items of comprehensive income (loss). Comprehensive
income (loss) includes net income (loss) plus other comprehensive income (loss). There are no differences or reconciling items
between net income and comprehensive income for the years ended August 31, 2012 and 2011.
accounts for its income taxes in accordance with ASC Topic 740, which requires recognition of deferred tax assets and liabilities
for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and
liabilities and their respective tax bases and tax credit carry-forwards. Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered
or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period
that includes the enactment date.
income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial
statement purposes and the amounts used for income tax purposes. Significant components of the Companys deferred tax liabilities
and assets as of August 31, 2012 and 2011 are as follows:
|Deferred tax assets:||
|| ||2012|| ||
|| ||2011|| |
|Net operating loss carryforwards||
|Income tax rate||
|| ||241,980|| ||
|| ||166,387|| |
|Less valuation allowance||
Through August 31, 2012, a valuation
allowance has been recorded to offset the deferred tax assets, including those related to the net operating losses carryforwards.
At August 31, 2012, the Company had $711,706 of federal and state net operating losses carryforwards. The net operating loss carryforwards,
if not utilized will begin to expire in 2028.
of the U.S. federal statutory rate to the actual tax rate for the years ended August 31, 2012 and 2011 is as follows
|| ||2012|| ||
|| ||2011|| |
|U.S. federal statutory income tax
|State tax - net of federal benefit||
|Increase in valuation
|Newly issued pronouncements
The Company has
evaluated all recent accounting pronouncements and believes that none of them will have a material effect on the Companys