Discovery Minerals LTD (DSCR)

[Ryan8]

Fact 1. Embezzlement and Concealment with Scienter

Non Disclosure of Discovery Mineral Coin - Due Diligence

Between 5/11/2021 (Date of Discovery Minerals Ltd Yahoo Press Release) and Period ending 6/30/2021 (3rd Quarter end).

Discovery Minerals Ltd, through the Discovery Mineral COIN sold 1,238,234.50 Discovery Mineral tokens @ $2.00 a coin. Producing $2,576,469 in revenue which was not reported in the June 30, 2021 financial report of Discovery Minerals LTD.

PROOF

Discovery Minerals Ltd filed its Quarterly Report for Period Ending June 30, 2021 on August 16, 2021

https://www.otcmarkets.com/otcapi/company/financial-report/296352/content

in this mandatory filed report to the OTC the following omission were made:

1. Page 13 the reporting of 0 revenue

"...For the For the For the For the
Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended
June 30, June 30, June 30, June 30,
2021 2020 2021 2020
Revenue $ - $ - $ - $ -..."

2. Page 16

"...Revenue recognition

For revenue from product sales, the Company recognizes revenue using four basic criteria that must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgment regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded.
The Company defers any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required..."

3. Note 3 page 20

"...Note 3 – Related Party Transactions
The Company and Russell Smith, CEO and Director entered into a service agreement whereby Mr. Smith will provide office accommodations, telephone connections, computer time and space as well as maintain all files and corporate records for a quarterly fee
of $37,500. As of March 31, 2021 Mr. Smith is owed the amount of $720,990..."

4. Page 22

"...Note 8 – Subsequent Events
Management has evaluated subsequent events pursuant to the requirements of ASC Topic 855 after the balance sheet date through the date the financial statements were issued. The Company did not identify any additional material events or transactions occurring during this subsequent event reporting period that required further recognition or disclosure in these financial statements..."


No where can I find where Discovery Minerals Ltd, disclosed the sale and income from the Discovery Minerals Coin in this filed report.

The Etherscan.io report shows 1,238,234.50 Discovery Mineral tokens @ $2.00 a coin. Producing $2,576,469 in revenue which was not reported in the June 30, 2021 financial report filed with OTC markets on August 16, 2021

In summation, I beleive the company owes us an explanation as to this omitted information.

I feel that inadequate financial information has been communicated and under Section 12(k) and the SEC should suspend trading of Discovery Minerals, Ltd. A Wyoming Corporation, until these discrepancies are addressed.

I feel that the minority shareholders are at risk here and until a new 15(c) 211 is filed more investors stand the risk of losing money.

Do you due diligence, copy and paste links find the holes that I have, and ask yourself, do I want to be holding shares in a company that omits the reporting of Coin sales and goes as far as shutting down there website at https://disocverymineralscoin.com.

The SEC in my experience has suspended companies under SEC Section 12(k) for a lot less. I don't want to see innocent shareholders waking up one morning seeing their investment in this company being suspended.

Please - experienced shareholders chime in, not the paid promoters with snide 1 liners. I am talking about investors who see the due diligence presented, and realize the company has a lot of open questions here.

There past reputation is horrible in addressing these questions, and filing necessary paperwork. I truly feel the SEC is going to suspend this company.