Colorado Goldfields Inc. (fka CGFI)

[Akula42]

This is where their money comes from and what their key expenses were last quarter

They burn through considerably more than $5k a quarter and will like do so this quarter well. Unless I am missing something, I don’t believe cash on hand is relevant to this discussion thread both of you have been having because of the way CGFI has, and will continue to meet their financial obligations for the foreseeable future as described below.

From the most recent 10Q:

Where the money comes from:


“We have a working capital deficit of $2,326,318 at November 30, 2012, have incurred a net loss of $1,502,687 for the three months ended November 30, 2012, and have incurred a deficit accumulated during the exploration stage of $25,006,511 for the period from February 11, 2004 (inception) through November 30, 2012. Accordingly, we have not generated cash flows from operations and primarily rely upon advances from stockholders, promissory notes, advances from unrelated parties, and equity financing to fund its operations.

We currently have minimal cash on hand. Accordingly, we do not have sufficient cash resources or current assets to pay our obligations, and we have been meeting many of our obligations through the issuance of our common stock to our employees, consultants and advisors as payment for goods and services. Considering the foregoing, we are dependent on additional financing to continue our operations and exploration efforts and, if warranted, to develop and commence mining operations
For the three months ended November 30, 2012, we incurred a net loss of approximately $1,503,000 compared to a net loss of approximately $971,000 for the three months ended November 30, 2011 a 55% increase of $532,000.”

Some of the key expenses from last quarter:

“Mineral property and exploration costs were $782,000 and $187,000 for the three months ended November 30, 2012 and 2011, respectively. The increase of $595,000 was due to unforeseen expenses associated with the termination of the Brooklyn mining lease.

Professional fees decreased $78,000 from $119,000 for the three months ended November 30, 2011 to $41,000 for the three month ended November 30, 2012. The decrease was due to reduced legal expenses related to the Mill permit and Hennis lawsuit. (See "Legal Proceedings".)

General and administrative costs were approximately $419,000 and $287,000 for the three months ended November 30, 2012 and 2011, respectively, a 46% increase of $132,000. The increase was primarily due to the specific reasons presented below.


Consulting expenses were $233,000 and $131,000 for the three months ended November 30, 2012 and 2011, respectively, an increase of $102,000. The increase was due to increased use of outside services for corporate communications, economic imaging, arising from activities related to permit approval in August, 2012.

Salaries were $116,000 and $111,000 for the three months ended November 30, 2012 and 2011, respectively. Salaries are generally either accrued as an unpaid liability or, paid in the form of stock awards in lieu of cash, which are exempt under Rule 16b-3. Amounts owed pursuant to our executive employment agreements have been fully accrued as of November 30, 2012.
Filing fees and transfer agent fees were $13,000 and $5,000 for the three months ended November 30, 2012 and November 30, 2011, respectively. The $8,000 increase was due to filing and transfer agent fees associated with the reverse split, which was effective September 12, 2012.

Interest expense was $35,000 and $53,000 for the three months ended November 30, 2012 and 2011, respectively. The decrease of $18,000 is primarily related to the required accounting treatment of convertible debt derivative liabilities and the amortization of debt discounts, and lower total outstanding debt balances.”

http://www.marketwatch.com/story/10-q-colorado-goldfields-inc-2013-01-11