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EX-31.1 - CERTIFICATION PURSUANT TO RULE 13A-14(A)/15D-14(A) CERTIFICATIONS SECTION 302 OF THE SARBANES-OXLY ACT OF 2002 - Aim Exploration Inc.aexe_ex311.htm
EX-32.2 - CERTIFICATE PURSUANT TO SECTION 18 U.S.C. PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 - Aim Exploration Inc.aexe_ex322.htm
EX-32.1 - CERTIFICATE PURSUANT TO SECTION 18 U.S.C. PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 - Aim Exploration Inc.aexe_ex321.htm
EX-31.2 - CERTIFICATION PURSUANT TO RULE 13A-14(A)/15D-14(A) CERTIFICATIONS SECTION 302 OF THE SARBANES-OXLY ACT OF 2002 - Aim Exploration Inc.aexe_ex312.htm
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
☑   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended May 31, 2016
 
☐ TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT
 
For the transition period from _________ to _________
 
Commission File Number: 333-182071
 
AIM EXPLORATION INC.
(Name of Small Business Issuer in its charter)
 
 
 
Nevada
67-0682135
(state or other jurisdiction of incorporation or organization)
(I.R.S. Employer I.D. No.)
 
 
170 S Green Valley Pkwy, Suite 300
Henderson, Nevada
89012
(Address of principal executive offices)
(Zip Code)
 
(844) 246-7378
(Registrant’s telephone number, including area code)
 
Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was require 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 is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of large accelerated filer , accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.  (Check one):
 
Large accelerated filer  ☐       Accelerated filer  ☐     Non-accelerated filer  ☐       Smaller reporting company ☑
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes  ☐      No ☑
 
 
As of July 19, 2016 the registrant had 16,399,876 shares of common stock issued and outstanding and 100,000 shares of preferred stock issued and outstanding.
 

 
 
 
AIM EXPLORATION INC.
 
TABLE OF CONTENTS
 
 
 
 
 
 
 
  
 
 
 
PART I - FINANCIAL INFORMATION
  
 
 
 
 
 
 
 
 
 
Item 1.
  
Financial Statements (unaudited)
  
3
 
  
       Condensed Consolidated Balance Sheets
  
F-1
 
  
       Condensed Consolidated Statements of Operations
  
F-2
 
  
       Condensed Consolidated Statements of Cash Flows
  
F-3
 
  
Notes to Condensed Consolidated Financial Statements
  
F-4
Item 2.
  
Management Discussion & Analysis of Financial Condition and Results of Operations
  
4
Item 3.
  
Quantitative and Qualitative Disclosures About Market Risk
  
5
Item 4.
  
Controls and Procedures
  
6
 
 
 
 
 
 
 
 
 
 
PART II - OTHER INFORMATION
  
 
 
 
 
 
 
 
 
 
Item 1.
  
Legal Proceedings
  
6
Item 2.
  
Unregistered Sales of Equity Securities and Use of Proceeds
  
6
Item 3.
  
Defaults Upon Senior Securities
  
8
Item 4.
  
Mine Safety Disclosures
  
8
Item 5.
  
Other information
  
8
Item 6.
  
Exhibits
  
9
 
 
 
PART I – FINANCIAL INFORMATION
 
ITEM 1. FINANCIAL STATEMENTS
 
 
 
 
AIM EXPLORATION INC.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
May 31, 2016
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Condensed Consolidated Balance Sheets of May 31, 2016 (Unaudited) and August 31, 2015 (Amended)
 
Condensed Consolidated Statements of Operations for the 3 and 9 months ended May 31, 2016 & 2015 (Unaudited)
 
Condensed Consolidated Statements of Cash Flows for the 9 months ended May 31, 2016 & 2015 (Unaudited)
 
Notes to the Condensed Consolidated Financial Statements (Amended) (Unaudited)
 
3
 
AIM EXPLORATION INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
ASSETS
 
 
May 31,
2016
 
 
 
August 31,
2015
 
 
 
 
 
 
(Restated)
 
CURRENT ASSETS
 
 
 
 
 
 
Cash
  $1,036 
  $2,349 
Loans receivable
    45,800 
    45,800 
Deposits
    22,239 
    39,303 
Total Current Assets
    69,075 
    87,452 
 
       
       
Mineral property investment
    342,656 
    326,969 
 
       
       
TOTAL ASSETS
  $411,731 
  $414,421 
 
       
       
LIABILITIES AND STOCKHOLDER'S DEFICIT
       
       
 
       
       
CURRENT LIABILITIES
       
       
Accounts payable and accrued liabilities
  $295,506 
  $214,513 
Loans payable – related party
    568,248 
    478,453 
Convertible note – related party, net
    186,514 
    103,762 
Convertible note, net
    366,480 
    86,707 
Derivative liability
    771,381 
    571,687 
TOTAL LIABILITIES
    2,188,129 
    1,455,122 
 
       
       
 
       
       
STOCKHOLDERS' DEFICIT
       
       
Capital Stock Authorized
250,000,000 shares of common stock, $0.001 par value
Issued and outstanding 16,399,876 shares (356,400 shares outstanding as at August 31, 2015) (Note 6)
    1,000,000 shares of preferred stock, $0.001 par value
Issued and outstanding 100,000 shares (100,000 as at August 31, 2015)
    142,122 
    89,200 
Additional paid in capital
    756,806 
    626,098 
Accumulated deficit
    (2,675,326)
    (1,755,999)
 
       
       
TOTAL STOCKHOLDERS' DEFICIT
    (1,776,398)
    (1,040,701)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
  $411,731 
  $414,421 
 
The accompanying notes are an integral part of these condensed consolidated financial statements
 
F-1
 
AIM EXPLORATION INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 
 
9 months
ended
May 31,
2016
 
 
9 months
ended
May 31,
2015
 
 
3 months
ended
May 31,
2016
 
 
3 months
ended
May 31,
2015
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
Total Revenue
  $- 
  $- 
  $- 
  $- 
 
       
       
       
       
Gross Profit
    - 
    - 
    - 
    - 
 
       
       
       
       
MINERAL PROPERTY OPERATIONS
       
       
       
       
Acquisition
    - 
    (37,556)
    - 
    (37,556)
Exploration
    - 
    12,349 
    - 
    1,950 
Total Mineral Property Operations
    - 
    (25,207)
    - 
    (35,606)
 
       
       
       
       
EXPENSES
       
       
       
       
Consulting fees
    64,437 
    42,644 
    5,400 
    32,306 
Filling fees
    9,835 
    9,140 
    1,885 
    4,867 
Finder’s fees
    15,000 
    9,000 
    - 
    - 
Management fees
    162,000 
    18,000 
    54,000 
    18,000 
Office & general
    40,509 
    36,244 
    20,934 
    23,848 
Professional fees
    105,016 
    121,396 
    10,942 
    44,683 
Public relations
    38,868 
    179,599 
    23,462 
    46,467 
 
       
       
       
       
Total Expenses
    435,665 
    416,023 
    116,623 
    170,171 
 
       
       
       
       
Net Loss
    (435,665)
    (390,816)
    (116,623)
    (134,565)
 
       
       
       
       
  Accretion
    (452,826)
    (34,089)
    (128,470)
    (11,342)
  Interest expense
    (46,143)
    (12,268)
    (16,136)
    (8,444)
  Finance costs
    (172,601)
    (67,135)
    - 
    - 
  Gain (loss) on derivative liability
    187,908 
    8,405 
    (41,528)
    1,167 
 
       
       
       
       
Total Other Expense
    (483,662)
    (105,087)
    (186,134)
    (18,619)
 
       
       
       
       
Net Loss
  $(919,327)
  $(495,903)
  $(302,757)
  $(153,184)
 
       
       
       
       
BASIC AND DILUTED LOSS PER COMMON SHARE
  $(0.37)
  $(0.01)
  $(0.04)
  $0.00 
 
       
       
       
       
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (Note 6)
    2,481,750 
    88,225,824 
    6,728,673 
    89,100,000 
WEIGHTED AVERAGE NUMBER OF PREFERRED SHARES OUTSTANDING
    100,000 
    99,267 
    100,000 
    100,000 
 
The accompanying notes are an integral part of these condensed consolidated financial statements
 
F-2
 
AIM EXPLORATION INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
 
9 months
ended
May 31, 2016
 
 
9 months
ended
May 31, 2015
 
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Net Loss
  $(919,327)
  $(495,903)
   Accretion related to convertible note
    452,826 
    34,089 
   Finance costs and derivative expense
    218,744 
    67,135 
   Accrued interest on convertible note
    - 
    10,306 
   Change in fair value of derivative liability
    (187,908)
    (31,921)
   Shares issued for services
    31,500 
    193,000 
Adjustments to reconcile Net Loss to netCash used in operating activities:
       
       
Loans Receivable
    - 
    (45,800)
Deposits
    17,064 
    14,171 
Provisions
    - 
    (55,000)
Accounts Payable
    80,993 
    19,393 
 
       
       
NET CASH USED IN OPERATING ACTIVITIES
    (306,108)
    (290,530)
 
       
       
FINANCING ACTIVITIES
       
       
Convertible debt – related party
    - 
    100,000 
Convertible debt
    215,000 
    45,000 
Loans from related party
    89,795 
    150,332 
NET CASH PROVIDED BY FINANCING ACTIVITIES
    304,795 
    295,332 
 
       
       
NET (DECREASE) INCREASE IN CASH
    (1,313)
    4,802 
 
       
       
CASH, BEGINNING OF PERIOD
    2,349 
    1,862 
 
       
       
CASH, END OF PERIOD
  $1,036 
  $6,664 
NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION
 
Aim Exploration, Inc. (“Company”) is an exploration stage company as defined by FASB ASC 915. The Company was organized to engage in mineral exploration and has incurred losses totaling $2,675,326 since inception. The Company was incorporated on February 18, 2010 in the State of Nevada and established a fiscal year end at August 31.
 
 
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Basis of Presentation
The condensed consolidated financial statements present the condensed consolidated balance sheets, condensed consolidated statements of operations and condensed consolidated cash flows of the Company. These financial statements are presented in United States dollars and have been prepared in accordance with accounting principles generally accepted in the United States.
 
Principles of Consolidation
The condensed consolidated statements incorporate the financial statements of the Company and its wholly-owned subsidiary, Aim Exploration SA, of Peru. All significant intercompany accounts and transactions have been eliminated in consolidation.
 
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. There were no cash equivalents at May 31, 2016 and 2015.
 
Advertising
Advertising costs are expensed as incurred. As of May 31, 2016, no advertising costs have been incurred.
 
Property
The Company does not own or rent any property. The Company’s office space is being provided by the president at no charge to the Company.
 
Use of Estimates and Assumptions
Preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
 
Income Taxes
The Company follows the liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more
 
F-4
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
Income Taxes (Continued)
likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.
 
Fair Value of Financial Instruments
The Company has adopted Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures ("ASC 820-10"). ASC 820-10 defines fair value, establishes a framework for measuring fair value and enhances fair value measurement disclosure The adoption of ASC 820-10 requires that the Company disclose assets and liabilities that are recognized and measured at fair value on a non-recurring basis, presented in a three-tier fair value hierarchy, as follows:
 
- Level 1. Observable inputs such as quoted prices in active markets;
- Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
- Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
 
The following presents the gross value of assets that were measured and recognized at fair value:
 
- Level 1: none
- Level 2: none
- Level 3: none
 
The Company adopted ASC 825-10, Financial Instruments, which permits entities to choose to measure many financial instruments and certain other items at fair value. The adoption of this standard did not have an impact on the Company's financial position, results of operations or cash flows. The carrying value of cash and cash equivalents, accounts payable and accrued expenses, as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments.
 
Derivative Liability
The conversion features embedded in the outstanding convertible notes payable are separately accounted for as a derivative liability in accordance with ASC 815-15, Embedded Derivative. This is because the number of shares that may be acquired upon conversion is indeterminable as the conversion rates are expressed as a percentage discount to the current fair market value of common stock at the time of conversion. Derivative liabilities are valued when the host instruments (convertible notes) are initially issued and are also revalued at each reporting date, with the change in the respective fair values being recorded as a gain or loss to the derivative liability.
 
Net Loss per Share
Basic loss per share includes no dilution and is computed by dividing loss available to common stockholders by the weighted average number of common shares outstanding for the period. Dilutive loss per share reflects the potential dilution of securities that could share in the losses of the Company. Because the Company does not have any potentially dilutive securities, the accompanying presentation is only of basic loss per share.
 
F-5
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
 
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
Impairment of Long-Lived Assets
In accordance with ASC 360, Property Plant and Equipment, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.
 
Mineral Property Costs
Mineral property exploration costs are expensed as incurred until such time as economic reserves are quantified. To date, the Company has not established any proven or probable reserves on its mineral properties. The Company has capitalized $326,969 of mineral property acquisition costs reflecting its investment in its properties.
 
Stock-based Compensation
The Company adopted FASB guidance on stock based compensation upon inception at February 18, 2010. ASC 718-10-30-2 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. The Company has not had any stock and stock options issued for services and compensation for the period from inception (February 18, 2010) through May 31, 2016.
 
Recent Accounting Pronouncements
 
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The Company does not expect the adoption to have a significant impact on its consolidated financial statements.
 
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This new standard will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount it expects to receive for those goods and services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and estimates, and changes in those estimates. The ASU will be effective for the Company beginning January 1, 2017, and allows for both retrospective and modified- retrospective methods of adoption. The Company is in the process of determining the method of adoption it will elect and is currently assessing the impact of this ASU on its consolidated financial statements and footnote disclosures.
 
F-6
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
Recent Accounting Pronouncements (Continued)
 
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The amendment in the ASU provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Earlier adoption is permitted. The Company does not expect the adoption to have a significant impact on its consolidated financial statements.
 
In November 2014, the FASB issued ASU No. 2014-16 (ASU 2014-16), Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity . The amendments in this ASU do not change the current criteria in U.S. GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. The ASU applies to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share and is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2014-16 is not expected to have a material effect on the Company’s consolidated financial statements. Early adoption is permitted.
 
In February, 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. ASU 2015-02 provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). ASU 2015-02 is effective for periods beginning after December 15, 2015. The adoption of ASU 2015-02 is not expected to have a material effect on the Company’s financial statements. Early adoption is permitted.
 
In August, 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendment in this ASU defers the effective date of ASU No. 2014-09 for all entities for one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods with that reporting period.
 
F-7
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
Recent Accounting Pronouncements (Continued)
 
In September, 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805). Topic 805 requires that an acquirer retrospectively adjust provisional amounts recognized in a business combination, during the measurement period. To simplify the accounting for adjustments made to provisional amounts, the amendments in the Update require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.  In addition an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The adoption of ASU 2015-016 is not expected to have a material effect on the Company’s financial statements.
 
Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.
 
NOTE 3 – GOING CONCERN
 
The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Currently, the Company has a working capital deficit of $2,119,054, an accumulated deficit of $2,675,326 and net loss from operations since inception of $2,675,326. The Company does not have a source of revenue sufficient to cover its operation costs giving substantial doubt for it to continue as a going concern. The Company will be dependent upon the raising of additional capital through placement of our common stock in order to implement its business plan, or merging with an operating company. There can be no assurance that the Company will be successful in either situation in order to continue as a going concern.
 
The Company is funding its initial operations by way of issuing common shares.
 
The officers and directors have committed to advancing certain operating costs of the Company, including Legal, Audit, Transfer Agency and Edgarizing costs.
 
NOTE 4 – MINERAL PROPERTY
 
Peruvian Mining Claims:
On June 23, 2014, Aim Exploration, Inc. entered into a Mining Concession Asset Acquisition Agreement (the “Agreement”) with Percana Mining Corp. (“Percana”). Pursuant to the Agreement, the Company acquired three separate mining concessions. Two of the concession titles are unencumbered and comprise 40% of the mining concessions. These two concessions are known as El Tunel Del Tiempo 1 code 11060780 and El Tunel Del Tiempo 2 code 11060781, and the registered ownership of these two concessions have been transferred to the Company. The third concession property known as Agujeros Negros MA-AG comprising the remaining 60% has not yet been transferred to the Company, however the Company has entered into a Contract of Mining Assignment and Option to Purchase the concession for a five year term. This contract provides AIM with full rights and authorities over the concession. . 
 
F-8
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
NOTE 4 – MINERAL PROPERTY (Continued)
 
Peruvian Mining Claims (Continued):
 
In consideration for the above concessions, the Company has issued 15,750,000 restricted common shares (Note 6) to Percana in two separate blocks; the first block consists of 6,300,000 common shares which are to be held in escrow until either the Company raises $1,000,000 or when Percana waives this requirement. The second block consists of 9,450,000 shares which are to be held in escrow until such time as the Company is satisfied at its discretion that any arbitration issues have been resolved with the third concession, at which time the shares may be released out of escrow at the option of Percana. These Mining Concessions were acquired based on the assumption the properties are rich in high grade Anthracite Coal, currently there are 20 small tunnels on the property already producing anthracite coal which was being mined by illegal miners. Testing of the coal samples was performed indicating the presence of high-grade anthracite coal. Prior to acquisition AIM reviewed a non-compliant technical report prepared by Engineers/Geologists together with hiring a US based firm Gustavson Associates to visit the property and review the reports. The firm provided AIM with a report, which included recommendation for further exploration.
 
NOTE 5 – CONVERTIBLE NOTE
 
During the nine months ended May 31, 2016, the Company issued convertible notes with a principal balance of $215,000, with maturity dates ranging from February 29, 2016 to January 12, 2017, and an interest rate per annum ranging from 10% to 22%. The principal is convertible into common shares of the Company at a conversion rate equal to 50% - 60% of the lowest trading price of the Company’s common stock for the fifteen prior trading days, as defined in the agreements.
 
During the nine months ended May 31, 2016, 355,039 common shares were issued in relation to conversion options exercised during the period. Of these common shares, $117,449 related to principal of the convertible notes, $7,895 to accrued interest, and $11,100 to fees.
 
During the year ended August 31, 2015, the Company issued convertible notes with a principal balance of $306,875, with maturity dates ranging from November 6, 2015 to July 22, 2016, and an interest rate per annum ranging from 8% to 12%. The principal is convertible into common shares of the Company at a conversion rate equal to 55% - 60% of the lowest trading price of the Company’s common stock for the fifteen prior trading days, as defined in the agreements.
 
The Company is accounting for the conversion feature as a separate derivative liability under ASC 815. As such, the Company will carry the conversion feature liability at fair value on the balance sheet. The Company determined the fair value of the conversion feature as at the dates of issue and also as of the period ended May 31, 2016. To determine the put and call values, the Company used the Black-Scholes option valuation model using the following inputs:
 
 
May 31, 2016
August 31, 2015
Fair value of common stock
$0.08
$0.21 - $0.42
Exercise price
$0.04
$0.1350 - $0.2585
Contractual term
0.10 year – 0.62 year
9 months – 1 year
Volatility
682.3%
119.50% - 143.10%
Risk-free interest rate
0.68%
0.12% - 0.41%
 
F-9
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
NOTE 5 – CONVERTIBLE NOTE (CONTINUED)
 
Volatility was determined using a peer group of public companies, and the Company used US treasuries with a similar contractual term to determine the risk-free interest rate.
 
On May 11, 2015, the Company exercised its option to redeem convertible notes with a principal balance of $47,250 within 180 days of their issuance, by opting to prepay the note at 150% of the principal amount plus accrued interest in the amount of $1,853. The Company recorded a loss on the repurchase of the convertible note in the amount of $20,664, which was credited to the additional paid in capital account.
 
During the nine months ended May 31, 2016, the Company recognized change in fair value of the derivative liability of $187,908 related to the change in fair value of the conversion feature. The change in fair value of the conversion feature was recorded through operating results.
 
When recording the conversion feature liability during the period, the Company recognized a 100% debt discount on the convertible notes payable of $215,000 and finance costs expense of $172,601 from amortization of debt discounts and excess of derivative liability over the face value of the note. The debt discount is being accreted to finance costs using the straight-line method over the contractual term of the debt. During the period ended May 31, 2016, the Company also recognized in the normal course accretion expense of $452,826.
 
 
NOTE 6 – CAPITAL STOCK
 
On April 25, 2016, the Company consolidated its share capital on a 250:1 basis. All common shares and per share amounts have been restated to reflect this share consolidation.
 
The Company has authorized 250,000,000 shares of common stock with a par value of $0.001 per share and 1,000,000 shares of preferred stock with a par value of $0.001 per share.
 
At May 31, 2016, 16,399,876 shares of common stock were issued and outstanding, and 100,000 shares of preferred stock were issued and outstanding.
 
In July 2014, the Company issued 63,000 common shares in connection with the acquisition of certain mining property to Percana. As a result of the share consolidation on April 25, 2016, the Company issued an additional 15,687,000 common shares to Percana on April 25, 2016, to bring their holdings up to their original position of 15,750,000 common shares. (Note 4)
 
During the year ended August 31, 2015, the Company issued 20,000 shares to 1 shareholder in connection with an asset acquisition agreement at fair value of $5,000. The Company also issued 1,400 common shares to 1 shareholder in connection with a six-month investor relations campaign at fair value of $175,000.
 
During the period ended May 31, 2016, the Company issued 355,039 common shares pursuant to the exercise of the option attached to outstanding convertible notes. (Note 5)
 
During the period ended August 31, 2015, the Company issued 100,000 preferred shares to 1 shareholder at fair value of $18,000, a related party of the Company, in connection with services rendered.
 
F-10
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
NOTE 7 – LOANS PAYABLE - RELATED PARTIES
 
During the period ended May 31, 2016 and 2015, advances from a director of the Company were $550 and $Nil, respectively. The amounts are unsecured, non-interest bearing and are due on demand.
 
During the period ended May 31, 2016 and 2015, advances from related parties were $49,240 and $166,128, respectively, and amounts advanced to one related party were $121,995 and $25,500, respectively. The amounts are unsecured, non-interest bearing and are due on demand.
 
During the period ended May 31, 2016 and 2015, management fees totaling $162,000 and $Nil, respectively, were accrued as payable to two directors of the Company
 
 
NOTE 8 – RESTATEMENTS
 
During the period ended May 31, 2016, accounting errors were discovered that required a restatement of amounts previously reported, related to loan payable that was issued against a finder's fee incurred. The loan payable was amended, and the terms revised to a convertible note payable. The loan payable and its subsequent amendment to a convertible note payable were not reported during the year ended August 31, 2015. This error resulted in changes to the convertible note, derivative liability, accretion expense, finder's fee expense, interest expense, finance costs, and the change in fair value of derivative liability. As a result of correcting these errors, our net loss increased by $157,923 for the year ended August 31, 2015, and $18,484 for the three months ended November 30, 2015.
 
 
F-11
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
NOTE 8 – RESTATEMENTS – CONTINUED
 
BALANCE SHEET
 
 
August 31, 2015
 
ASSETS
 
Originally
Stated
 
 
 
Adjustments
 
 
Note
 
 
 
Restated
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Cash
  $2,349 
 
 
 
 
 
 
  $2,349 
Loans receivable
    45,800 
 
 
 
 
 
 
    45,800 
Deposits
    39,303 
 
 
 
 
 
 
    39,303 
Total Current Assets
    87,452 
 
 
 
 
 
 
    87,452 
Mineral property investment
    326,969 
 
 
 
 
 
 
    326,969 
TOTAL ASSETS
  $414,421 
 
 
 
 
 
 
  $414,421 
 
       
 
 
 
 
 
 
       
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
       
 
 
 
 
 
 
       
 
       
 
 
 
 
 
 
       
CURRENT LIABILITIES
       
 
 
 
 
 
 
       
Accounts payable and accrued liabilities
  $214,513 
 
 
 
 
 
 
  $214,513 
Loans payable – related party
    478,453 
 
 
 
 
 
 
    478,453 
Convertible note – related party
    103,762 
 
 
 
 
 
 
    103,762 
Convertible note, net of unamortized discount
    70,936 
    13,328 + 2,443 
    b 
    86,707 
Derivative liability
    429,535 
    146,204 – 4,052 
    a, c 
    571,687 
TOTAL LIABILITIES
    1,297,199 
    157,923 
       
    1,455,122 
 
       
       
       
       
STOCKHOLDERS' EQUITY (DEFICIT)
       
       
       
       
Capital StockAuthorized
250,000,000 shares of common stock, $0.001 par value
Issued and outstanding 126,126,678 shares (89,100,000 shares outstanding as at August 31, 2015)
    1,000,000 shares of preferred stock, $0.001 par value
Issued and outstanding 100,000 shares (1,000,000 as at August 31, 2015)
    89,200 
       
       
    89,200 
Additional paid in capital
    626,098 
       
       
    626,098 
Accumulated deficit
    (1,598,076)
    (157,923)
       
    (1,755,999)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)
    (882,778)
    (157,923)
       
    (1,040,701)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
  $414,421 
       
       
  $414,421 
 
Notes:
 
a.
Record issuance of convertible note
b.
Record accretion and accrue interest
c.
Mark-to market convertible note
 
 
F-12
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
 
NOTE 8 – RESTATEMENTS – CONTINUED
 
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
 
 
August 31, 2015
 
 
 
Originally
Stated
 
 
 
Adjustments
 
 
Note
 
 
 
Restated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
Total Revenue
  $0 
 
 
 
 
 
 
  $0 
Gross Profit
    0 
 
 
 
 
 
 
    0 
MINERAL PROPERTY OPERATIONS
       
 
 
 
 
 
 
       
Acquisition expenses
    (37,556)
 
 
 
 
 
 
    (37,556)
Exploration expenses
    15,713 
 
 
 
 
 
 
    15,713 
Total Mineral Property Operations
    (21,843)
 
 
 
 
 
 
    (21,843)
 
       
 
 
 
 
 
 
       
EXPENSES
       
 
 
 
 
 
 
       
Accretion
    72,001 
    13,328 
    b 
    85,329 
Consulting fees
    128,451 
       
       
    128,451 
Filling fees
    15,923 
       
       
    15,923 
Finder’s fees
    34,925 
    78,678 
    a 
    113,603 
Management fees
    241,500 
       
       
    241,500 
Office & general
    70,806 
       
       
    70,806 
Professional fees
    306,925 
       
       
    306,925 
Public relations
    180,452 
       
       
    180,452 
Total Expenses
    1,050,983 
    92,006 
       
    1,050,983 
 
       
       
       
       
Net Loss
    (1,029,140)
       
       
    (1,029,140)
 
       
       
       
       
   Interest expense
    (46,669)
    (2,443)
    b 
    (49,112)
   Finance costs
    (238,472)
    (67,526)
    a 
    (305,998)
   Change in fair value of derivative liability
    12,301 
    4,052 
    c 
    16,353 
   Write-down of accounts payable
    11,285 
       
       
    11,285 
 
       
       
       
       
Total Other Expense
    (261,555)
    (65,917)
       
    (327,472)
 
       
       
       
       
Net Loss
  $(1,290,695)
  $(157,923)
       
  $(1,448,618)
 
       
       
       
       
BASIC AND DILUTED LOSS PER COMMON SHARE
  $0.01 
       
       
  $0.01 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
    88,446,164 
       
       
    88,446,164 
BASIC AND DILUTED LOSS PER PREFERRED SHARE
  $0.00 
       
       
  $0.00 
WEIGHTED AVERAGE NUMBER OF PREFERRED SHARES OUTSTANDING
    99,452 
       
       
    99,452 
 
Notes:
 
a.
Record issuance of convertible note
b.
Record accretion and accrue interest
c.
Mark-to market convertible note
 
F-13
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
NOTE 8 – RESTATEMENTS – CONTINUED
 
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)
 
 
 
Common Stock
 
 
Preferred Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of
shares
 
 
Amount
$
 
 
Number of
shares
 
 
Amount
 $
 
  
 
Additional Paid-in Capital
$
 
  
 
Share Subscriptions Receivable
$
 
 
Accumulated Deficit
Originally Stated
$
 
  
 
 
 
Adjustments
$
 
 Notes
 
Total
$
 
Balance at inception – February 18, 2010
Founders shares, issued for cash
    -10,000,000 
    -10,000 
    -- 
    -- 
    -- 
    -(10,000) 
    -- 
       
 
    -- 
Net Loss to August 31, 2010
    - 
    - 
    - 
    - 
    - 
    - 
    (29,400)
       
 
    (29,400)
Balance, August 31, 2010
    10,000,000 
    10,000 
    - 
    - 
    - 
    (10,000)
    (29,400)
       
 
    (29,400)
Subscription Received
Common stock issued for cash
Net loss for the year ended August 31, 2011
    -40,000,000- 
    -40,000- 
    --- 
    --- 
    --- 
    10,000-- 
    --(18,939) 
       
 
    10,00040,000(18,939)
Balance, August 31, 2011
    50,000,000 
    50,000 
    - 
       
    - 
    - 
    (48,339)
       
 
    1,661 
Net loss to August 31, 2012
     
     
     
     
    - 
    - 
    (28,109)
       
 
    (28,109)
Balance, August 31, 2012
    50,000,000 
    50,000 
    - 
    - 
    - 
    - 
    (76,448)
       
 
    (26,448)
Sale of common stock 18,000,000 common shares at $0.001 par value
    18,000,000 
    18,000 
    - 
    - 
    - 
    - 
    - 
       
 
    18,000 
Imputed Interest
    - 
    - 
    - 
    - 
    2,035 
    - 
    - 
       
 
    2,035 
Net loss for the year ended August 31, 2013
    - 
    - 
    - 
    - 
    - 
    - 
    (47,901)
       
 
    (47,901)
Balance, August 31, 2013
    68,000,000 
    68,000 
    - 
    - 
    2,035 
    - 
    (124,349)
       
 
    (54,314)
15,750,000 common shares at $0.001 par value
    15,750,000 
    15,750 
    - 
    - 
    311,219 
    - 
    - 
       
 
    326,969 
Net loss for the year ended August 31, 2014
    - 
    - 
    - 
    - 
    - 
    - 
    (183,032)
       
 
    (183,032)
Balance, August 31, 2014
    83,750,000 
    83,750 
    - 
    - 
    313,254 
    - 
    (307,381)
       
 
    89,623 
Shares issued for services
    350,000 
    350 
    1,000,000 
    100 
    192,550 
    - 
    - 
       
 
    193,000 
Shares issued in deposit
    5,000,000 
    5,000 
    - 
    - 
    - 
    - 
    - 
       
 
    5,000 
Convertible debt discount
    - 
    - 
    - 
    - 
    99,630 
    - 
    - 
       
 
    99,630 
Gain on repurchase of convertible note
    - 
    - 
    - 
    - 
    20,664 
    - 
    - 
       
 
    20,664 
Net loss for the year ended August 31, 2015
    - 
    - 
    - 
    - 
    - 
    - 
    (1,290,695)
    (157,923)
a
    (1,448,618)
Balance, August 31, 2015
    89,100,000 
    89,100 
    1,000,000 
    100 
    626,098 
    - 
    (1,598,076)
    (157,923)
 
    (1,755,999)
 
Notes:
 
a.
Record issuance of convertible note
 
F-14
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
NOTE 8 – RESTATEMENTS – CONTINUED
 
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
 
 
August 31, 2015
 
 
 
Originally
Stated
 
 
 
Adjustments
 
 
Note
 
 
 
Restated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
 
Net Loss
  $(1,290,695)
  $(157,923)
    a, b, c 
  $(1,290,695)
   Accretion related to convertible note
    72,001 
    13,328 
    b 
    72,001 
   Debt discount related to convertible note
    (35,478)
       
       
    (35,478)
   Finance costs
    238,472 
    67,526 
    a 
    238,472 
   Accrued interest on convertible note
    11,544 
    2,443 
    b 
    11,544 
   Loss on derivative liability
    (12,301)
    (4,052)
    c 
    (12,301)
   Loss on repurchase of convertible note
    20,664 
       
       
    20,664 
   Shares issued for services
    193,000 
       
       
    193,000 
   Write-down of accounts payable
    (11,285)
       
       
    (11,285)
Adjustments to reconcile Net Income (Loss) to netCash used in operating activities:
       
       
       
       
Loans Receivable
    (45,800)
       
       
    (45,800)
Deposits
    (8,798)
       
       
    (8,798)
Provisions
    (55,000)
       
       
    (55,000)
Accounts Payable
    189,566 
       
       
    189,566 
 
       
       
       
       
NET CASH USED INOPERATING ACTIVITIES
    (734,110)
    (78,678)
       
    (734,110)
 
       
       
       
       
FINANCING ACTIVITIES
       
       
       
       
Convertible debt – related party
    170,000 
       
       
    170,000 
Convertible debt
    306,875 
    78,678 
    a 
    306,875 
Payments on convertible notes
    (47,250)
       
       
    (47,250)
Loans from related party
    304,972 
       
       
    304,972 
NET CASH PROVIDED BY FINANCING ACTIVITIES
    734,597 
    78,678 
       
    734,597 
 
       
       
       
       
NET INCREASE IN CASH
    487 
       
       
    487 
 
       
       
       
       
CASH, BEGINNING OF PERIOD
    1,862 
       
       
    1,862 
 
       
       
       
       
CASH, END OF PERIOD
  $2,349 
       
       
  $2,349 
 
Notes:
 
a.
Record issuance of convertible note
b.
Record accretion and accrue interest
c.
Mark-to market convertible note
 
F-15
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
NOTE 8 – RESTATEMENTS – CONTINUED
 
BALANCE SHEET
 
 
November 30, 2015
 
ASSETS
 
Originally
Stated
 
 
 
Adjustments
 
 
Note
 
 
 
Restated
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
Cash
  $2,722 
 
 
 
 
 
 
  $2,722 
Loans receivable
    45,800 
 
 
 
 
 
 
    45,800 
Deposits
    17,707 
 
 
 
 
 
 
    17,707 
Total Current Assets
    66,229 
 
 
 
 
 
 
    66,229 
Mineral property investment
    326,969 
 
 
 
 
 
 
    326,969 
TOTAL ASSETS
  $393,198 
 
 
 
 
 
 
  $393,198 
 
       
 
 
 
 
 
 
       
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
       
 
 
 
 
 
 
       
 
       
 
 
 
 
 
 
       
CURRENT LIABILITIES
       
 
 
 
 
 
 
       
Accounts payable and accrued liabilities
  $217,112 
 
 
 
 
 
 
  $217,112 
Loans payable – related party
    455,733 
 
 
 
 
 
 
    455,733 
Convertible note – related party
    82,255 
 
 
 
 
 
 
    82,255 
Convertible note, net of unamortized discount
    166,463 
    13,328 + 2,443 + 19,562 + 3,645 
    b 
    205,441 
Derivative liability
    736,435 
    146,204 – 4,052 – 4,723 
    a, c 
    873,864 
TOTAL LIABILITIES
    1,657,998 
    176,407 
       
    1,834,405 
 
       
       
       
       
STOCKHOLDERS' EQUITY (DEFICIT)
       
       
       
       
Capital StockAuthorized
250,000,000 shares of common stock, $0.001 par value
Issued and outstanding 126,126,678 shares (89,100,000 shares outstanding as at August 31, 2015)
    1,000,000 shares of preferred stock, $0.001 par value
Issued and outstanding 100,000 shares (1,000,000 as at August 31, 2015)
    89,200 
       
       
    89,200 
Additional paid in capital
    651,005 
       
       
    651,005 
Accumulated deficit
    (2,005,005)
    (176,407)
    a, b, c 
    (2,181,412)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)
    (1,264,800)
    (176,407)
       
    (1,441,207)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
  $393,198 
       
       
  $393,198 
 
Notes:
 
a.
Record issuance of convertible note
b.
Record accretion and accrue interest
c.
Mark-to market convertible note
 
F-16
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
NOTE 8 – RESTATEMENTS – CONTINUED
 
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
 
 
November 30, 2015
 
 
 
Originally
Stated
 
 
 
Adjustments
 
 
Note
 
 
 
Restated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUE
 
 
 
 
 
 
 
 
 
 
 
 
Total Revenue
  $- 
 
 
 
 
 
 
  $- 
Gross Profit
    - 
 
 
 
 
 
 
    - 
MINERAL PROPERTY OPERATIONS
       
 
 
 
 
 
 
       
Acquisition expenses
    - 
 
 
 
 
 
 
    - 
Exploration expenses
    - 
 
 
 
 
 
 
    - 
Total Mineral Property Operations
    - 
 
 
 
 
 
 
    - 
 
       
 
 
 
 
 
 
       
EXPENSES
       
 
 
 
 
 
 
       
Accretion
    76,883 
    19,562 
    b 
    96,445 
Consulting fees
    46,937 
       
       
    46,937 
Filling fees
    1,890 
       
       
    1,890 
Finder’s fees
    - 
       
       
    - 
Management fees
    54,000 
       
       
    54,000 
Office & general
    7,768 
       
       
    7,768 
Loss on impairment
    - 
       
       
    - 
Professional fees
    29,678 
       
       
    29,678 
Public relations
    829 
       
       
    829 
Total Expenses
    217,985 
    19,562 
       
    237,547 
 
       
       
       
       
Net Loss
    (217,985)
       
       
    (237,547)
 
       
       
       
       
   Interest expense
    (22,044)
    (3,645)
    b 
    (25,689)
   Finance costs
    (137,921)
       
       
    (137,921)
   Change in fair value of derivative liability
    (28,979)
    4,723 
    c 
    (24,256)
 
       
       
       
       
Total Other Expense
    (188,944)
    1,078 
       
    (187,866)
 
       
       
       
       
Net Loss
  $(406,929)
  $(18,484)
       
  $(425,413)
 
       
       
       
       
BASIC AND DILUTED LOSS PER COMMON SHARE
  $0.01 
       
       
  $0.01 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
    88,446,164 
       
       
    88,446,164 
BASIC AND DILUTED LOSS PER PREFERRED SHARE
  $0.00 
       
       
  $0.00 
WEIGHTED AVERAGE NUMBER OF PREFERRED SHARES OUTSTANDING
    99,452 
       
       
    99,452 
 
Notes:
 
b.
Record accretion and accrue interest
c.
Mark-to market convertible note
 
F-17
 
 
 
AIM EXPLORATION INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2016 (unaudited)
 
NOTE 8 – RESTATEMENTS – CONTINUED
 
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
 
 
November 30, 2015
 
 
 
Originally
Stated
 
 
 
Adjustments
 
 
Note
 
 
 
Restated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
 
Net Loss
  $(406,929)
  $(18,484)
    a, b, c 
  $(406,929)
   Accretion related to convertible note
    76,883 
    19,562 
    b 
    76,883 
   Finance costs and derivative expense
    122,921 
       
       
    122,921 
   Accrued interest on convertible note
    22,044 
    3,645 
    b 
    22,044 
   Change in fair value of derivative liability
    28,979 
    (4,723)
    c 
    28,979 
Adjustments to reconcile Net Income (Loss) to netCash used in operating activities:
       
       
       
       
Deposits
    21,596 
       
       
    21,596 
Accounts Payable
    2,599 
       
       
    2,599 
 
       
       
       
       
NET CASH USED INOPERATING ACTIVITIES
    (131,907)
       
       
    (131,907)
 
       
       
       
       
FINANCING ACTIVITIES
       
       
       
       
Convertible debt
    155,000 
       
       
    155,000 
Loans from related party
    (22,720)
       
       
    (22,720)
NET CASH PROVIDED BY FINANCING ACTIVITIES
    132,280 
       
       
    132,280