NOTE 6 -RELATED PARTY TRANSACTIONS
During 2005 and 2004, the Company paid advances to a company with a common officer. The balance of the advances at March 31, 2005 and December 31, 2004 was $0 and $0, respectively.
During 2005 and 2004, an officer loaned the Company $1,165 and $34,659, respectively. During the first quarter of 2005, the Company paid off $18,382 in credit card receipts as partial payment for the note. During 2004, the Company paid cash of $14,000 as partial payment for the note. During 2003, the Company paid cash of $1,009 and issued 1,000,000 shares of stock valued at $10,000 as partial payment for the note. The balance of the note payable at March 31, 2005 and 2004 is $74,271 and $91,488, respectively.
NOTE 7 - COMMON STOCK AND STOCK OPTIONS
In 1998, the Company adopted a non-qualified stock option plan authorizing the granting to officers, directors, or employees options to purchase common stock. Options are granted by the Administrative Committee, which is elected by the Board of Directors. The number of options granted under this plan and any other plans active may not exceed 10% of the currently issued and outstanding shares of the Company's common stock. The term of each option granted is determined by the Committee, but cannot be for more than five years from the date the option is granted. The option price per share with each option granted will be fixed by the Administrative Committee on the date of grant.
The Company adopted an incentive stock option plan in 1998. The stock option plan permits the Company to grant to key employees options to purchase shares of stock in the Company at the direction of the Committee. The price of shares purchased must be equal to or greater than fair market value of the common stock at the date. At March 31, 2005, no options have been granted under this plan.
During 2004, the company's board of directors approved an option to the Company's CEO to acquire up to 3.5 million shares of common stock over a five year period at $0.18 per share under the non-qualified stock option plan. The options vest 43% on January 1, 2005, and 14% on January 1, 2006 -2009.
The fair value of each option granted is estimated on the date granted using the Black-Scholes option pricing model. Assumptions used to compute the weighted-average grants during the quarter ended March 31, 2005 include risk-free interest rates of 2%, expected dividend yields of 0%, expected life of 3 years, and expected volatility 150%. During 2004, the Company granted options to purchase up to 3.5 million of its common shares with a calculated weighted average fair value of $0.13 each.
During the quarter ended March 31, 2005 the Company sold a total of 1,248,000 shares of restricted common stock at prices ranging from $0.25 to $0.50 per share for a total of $562,000 cash.
During the quarter ended March 31, 2005 the Company issued 867,170 shares of stock in payment of $382,660 worth of services provided to the company.
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NOTE 8 - COMMITMENTS AND CONTINGENCIES
On July 10, 2001, the Company entered into an agreement to lease and possibly purchase a mine in Juab County, Utah. The Company has the sole option to renew the lease on an annual basis. The agreement requires the lease payments be made through the issuance of 100,000 shares of the Company's common stock each year. In July 2004, the Company issued 100,000 shares of common stock valued at $20,000 to renew the lease. In July 2003, the Company issued 100,000 shares of common stock valued at $10,000 to renew the lease. The Company has the option to purchase the mine for $500,000 at anytime, or when it sells $1,000,000 of product from the mine during a twelve month period.
On February 16, 2005, a Settlement Agreement was entered into between the Company and the court appointed receiver for American National Mortgage Company regarding the resolution of approximately $711,174 principal debt owed by Atlas plus unpaid interest. According to the agreement, Atlas is to pay $406,000 plus 175,000 shares of common stock valued at $78,750. The agreement becomes effective upon approval by the courts which is anticipated in April, 2005.
NOTE 9 SUBSEQUENT EVENTS
The Company has no significant subsequent events to disclose.
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