**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q**

**QUARTERLY REPORT UNDER THE SECURITIES ACT OF 1933**

For the Period ended **September 30, 2015**

Commission File No. **333-167964**

 

 

**CHINA SHOUGUAN MINING CORPORATION**

(Exact name of registrant as specified in its charter)

**Nevada**

(State or other jurisdiction of incorporation)

**27-2513824**

(IRS Employer Identification No.)

**6009 Yitian Road**

**New World Center Rm. 3207**

**Futian District, Shenzhen**

**People’s Republic of China**

**Telephone 0086-755-82520008**

**Facsimile 0086-755-82520156**

(Address and telephone number of registrant’s principal executive offices)

__________________________

**Frank J. Hariton**

**1065 Dobbs Ferry Road**

**White Plains, New York**

**Tel: 914 674 4373; Fax: 914 693 2963**

(Name, address and telephone number of agent for service)

__________________________

Securities registered pursuant to Section 12(b) of the Act: **None.**

Securities registered pursuant to Section 12(g) of the Act: **Common Stock, $0.0001 par value**

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. 

Yes [   ]  No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.  Yes [   ]  No [X]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes [X]  No [   ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes [X]  No [   ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-Q or any amendment to this Form 10-Q.

----

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

| Large accelerated filer [  ]

Accelerated filer [  ] 

Non-accelerated filer [  ] 

Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [   ]  No [X]

Issuer's revenues for the nine months ended September 30, 2015 were $0.

As of September 30, 2015, there were 115,000,000 shares of our common stock issued and outstanding. The Company is now quoting at OTCQB for the symbol CHSO. The aggregate market value of the voting stock held by non-affiliates of the registrant, computed by reference to the $0.0001 par value price per share paid for the shares is approximately $7,318.

**DOCUMENTS INCORPORATED BY REFERENCE**

Some exhibits required to be filed hereunder, are incorporated herein by reference to our original Form S-1 Registration Statement, filed under CIK No 0001493893 on July 1, 2010, and in amendments filed thereafter, on the SEC website at www.sec.gov.

 

 

**TABLE OF CONTENTS**

PART I

 

 

3

ITEM 1.

 

Financial statements

3

ITEM 2

 

Management’s Discussion and Analysis of Financial Conditions and Results of Operations

4

ITEM 3.

 

Quantitative and Qualitative Disclosures About Market Risk

11

ITEM 4

 

Controls and procedures

12

 

 

 

 

PART II

 

 

13

ITEM 1

 

Legal proceedings

13

ITEM 1A

 

Risk factors

13

ITEM 2

 

Unregistered sales of equity securities and use of proceeds

13

ITEM 3

 

Defaults upon senior securities

13

ITEM 4

 

Mine Safety Disclosures

13

ITEM 5.

 

Other Information

13

ITEM 6

 

Exhibits

14

 

2

**PART I**

**ITEM 1. FINANCIAL STATEMENTS**

**CHINA SHOUGUAN MINING CORPORATION**

**INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

 

 

 

 

Page

 

 

 

Condensed Consolidated Balance Sheets as of September 30, 2015 And December 31, 2014 (Audited)

 

F-1

 

 

 

Condensed Consolidated Statements of Operations And Comprehensive Loss for the Three and Nine Months ended September 30, 2015 And 2014

  

F-2

 

 

 

Condensed Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2015 And 2014

 

F-3

 

 

 

Condensed Consolidated Statement of Stockholders’ Equity for the Nine Months ended September 30, 2015

 

F-4

 

 

 

Notes to Condensed Consolidated Financial Statements

 

F-5 to F-17

 

3

**CHINA SHOUGUAN MINING CORPORATION**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**AS OF SEPTEMBER 30, 2015 AND DECEMBER 31, 2014**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

 

**September 30,**

**2015**

 

**December 31,**

**2014**

 

**(Unaudited)**

 

**(Audited)**

**ASSETS**

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

$

167,512 

 

$

113,055 

Deposits and prepayments

117,865 

 

 

112,423 

Trade receivable

83,945 

 

 

347,428 

Prepaid mining rights, current

2,077,497 

 

 

2,157,215 

     Total current assets

2,446,819 

 

 

2,730,121 

Non-current assets:

 

 

 

 

Prepaid mining rights

2,577,466 

 

 

3,975,602 

Property, plant and equipment, net

2,466,025 

 

 

2,940,136 

**Total Assets**

$

7,490,310 

 

$

9,645,859 

 

 

 

 

 

**LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY**

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

$

181,508 

 

$

247,665 

Loans payable, unsecured

5,017,235 

 

 

4,804,707 

Note payable, related party

1,431,128 

 

 

849,035 

Accrued liabilities and other payable

1,711,435 

 

 

1,463,323 

     Total current liabilities

8,341,306 

 

 

7,364,730 

Long-term liabilities:

 

 

 

 

Loans payable, unsecured

105,055 

 

 

82,039 

Note payable, related party

854,496 

 

 

1,008,212 

     Total long-term liabilities

959,551 

 

 

1,090,251 

Total liabilities

9,300,857 

 

$

8,454,981 

 

 

 

 

 

Stockholders’ (deficit) equity:

 

 

 

 

Common stock, $0.0001 par value; 300,000,000 shares authorized; 115,000,000 shares issued and outstanding, respectively

11,500 

 

 

11,500 

Additional paid-in capital

8,899,597 

 

 

8,899,597 

Subscription receivable

(718,459)

 

 

(718,459)

Statutory reserve

308,898 

 

 

308,898 

Accumulated other comprehensive income

468,827 

 

 

432,256 

Accumulated deficits

(10,780,910)

 

 

(7,742,914)

 

 

 

 

 

Total stockholders’ (deficit) equity

(1,810,547)

 

 

1,190,878 

 

 

 

 

 

**TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY**

$

7,490,310 

 

$

9,645,859 

See accompanying notes to condensed consolidated financial statements.

F-1

**CHINA SHOUGUAN MINING CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

 

 

 

**Three months ended**

**September 30,**

 

**Nine months ended**

**September 30,**

 

 

**2015**

 

**2014**

 

**2015**

 

**2014**

 

 

 

 

 

 

 

 

 

 

 

 

 

**Revenues, net**

 

$

- 

 

$

554,157 

 

$

- 

 

$

1,919,715 

 

 

 

 

 

 

 

 

 

 

 

 

 

**Cost of revenue**

 

 

(848,562)

 

 

(1,017,159)

 

 

(2,446,469)

 

 

(3,223,204)   

 

 

 

 

 

 

 

 

 

 

 

 

 

**Gross loss**

 

 

(848,562)

 

 

(463,002)

 

 

(2,446,469)

 

 

(1,303,489)

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

     General and administrative

 

 

(118,227)

 

 

(199,764)

 

 

(391,586)

 

 

(637,086)   

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

(118,227)

 

 

(199,764)

 

 

(391,586)

 

 

(637,086)

 

 

 

 

 

 

 

 

 

 

 

 

 

**Loss from operations**

 

 

(966,789)

 

 

(662,766)

 

 

(2,838,055)

 

 

(1,940,575)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

     Interest expense

 

 

(67,215)

 

 

(99,786)

 

 

(200,040)

 

 

(219,693)   

     Interest income

 

 

27 

 

 

95 

 

 

99 

 

 

439   

     Other income

 

 

- 

 

 

- 

 

 

- 

 

 

454,200   

 

 

 

 

 

 

 

 

 

 

 

 

 

**Loss before income taxes**

 

 

(1,033,977)

 

 

(762,457)

 

 

(3,037,996)

 

 

(1,705,629)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

 

 

 

 

 

 

 

 

 

 

 

**NET LOSS**

 

$

(1,033,977)

 

$

(762,457)

 

$

(3,037,996)

 

$

(1,705,629)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

- Foreign currency translation gain (loss)

 

 

38,132 

 

 

149,157 

 

 

36,571 

 

 

(91,807)   

 

 

 

 

 

 

 

 

 

 

 

 

 

**COMPREHENSIVE LOSS**

 

$

(995,845)

 

$

(613,300)

 

$

(3,001,425)

 

$

(1,797,436)   

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share – Basic and diluted

 

$

(0.01)

 

$

(0.01)

 

$

(0.03)

 

$

(0.01)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding 

     – Basic and diluted

 

 

115,000,000 

 

 

115,000,000 

 

 

115,000,000 

 

 

115,000,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

 

F-2

**CHINA SHOUGUAN MINING CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014**

**(Currency expressed in United States Dollars (“US$”))**

**(Unaudited)**

 

 

 

**Nine months ended**

**September 30,**

 

 

**2015**

 

**2014**

**Cash flows from operating activities:**

 

 

 

 

 

 

Net loss

 

$

(3,037,996)

 

$

(1,705,629)  
  
Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

     Depreciation of property, plant and equipment

 

 

377,520 

 

 

285,445     

     Amortization of prepaid mining right

 

 

1,603,784 

 

 

1,609,154     

     Gain on disposal of subsidiary

 

 

- 

 

 

(454,200)     

Changes in operating assets and liabilities:

 

 

 

 

 

 

     Accounts receivable

 

 

257,989 

 

 

(555,975)

     Deposits and prepayments

 

 

(14,588)

 

 

(21,944)

     Accounts payable

 

 

(58,676)

 

 

(113,754)

     Accrued liabilities and other payable

 

 

310,329 

 

 

160,348 

 

 

 

 

 

 

 

Net cash used in operating activities

 

 

(561,638)

 

 

(796,555)

 

 

 

 

 

 

 

**Cash flows from investing activities:**

 

 

 

 

 

 

     Proceed from disposal of a subsidiary

 

 

- 

 

 

4,388,603 

     Purchase of plant and equipment

 

 

(1,350)

 

 

(651,862)

     Payments on mining rental deposits

 

 

(315,897)

 

 

(975,245)

 

 

 

 

 

 

 

Net cash (used in) provided by investing activities

 

 

(317,247)

 

 

2,761,496 

 

 

 

 

 

 

 

**Cash flows from financing activities:**

 

 

 

 

 

 

     Proceeds from short-term bank borrowing

 

 

- 

 

 

3,848,243 

     Repayments of short-term bank borrowing

 

 

(260,817)

 

 

(6,224,048)

     Proceeds from loan payable

 

 

925,500 

 

 

- 

     Repayments of loan payable

 

 

(236,360)

 

 

- 

     Proceeds from loan payable, related party

 

 

1,304,087 

 

 

2,568,145 

     Repayments to loan payable, related party

 

 

(801,299)

 

 

(1,842,191)

     Advance from (repayments to) a related party

 

 

8,103 

 

 

(302,368)

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

 

939,214 

 

 

(1,952,219)

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(5,872)

 

 

22,961 

 

 

 

 

 

 

 

**NET CHANGE IN CASH AND CASH EQUIVALENTS**

 

 

54,457 

 

 

35,683 

 

 

 

 

 

 

 

**CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD**

 

 

113,055 

 

 

248,983 

 

 

 

 

 

 

 

**CASH AND CASH EQUIVALENTS, END OF PERIOD**

 

$

167,512 

 

$

284,666 

 

 

 

 

 

**SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:**

 

 

 

Cash paid for income taxes

 

$

- 

 

$

-   

Cash paid for interest

 

$

200,041 

 

$

89,248  

See accompanying notes to condensed consolidated financial statements

 

F-3

**CHINA SHOUGUAN MINING CORPORATION**

**CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY**

**FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

 

 

 

**Common stock**

 

**Additional**

**paid-in**

 

**Subscription**

 

**Statutory**

 

**Accumulated other comprehensive**

 

**Accumulated**

 

**Total**

**stockholders’**

 

 

**No. of shares**

 

**Amount**

 

**capital**

 

**receivable**

 

**reserve**

 

**income**

 

**deficits**

 

**(deficit) equity**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of January 1, 2015

 

115,000,000

 

$

11,500

 

$

8,899,597

 

$

(718,459)

 

$

308,898 

 

$

432,256

 

$

(7,742,914)

 

$

1,190,878 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

-

 

 

-

 

 

-

 

 

- 

 

 

- 

 

 

36,571

 

 

- 

 

 

36,571 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period

 

-

 

 

-

 

 

-

 

 

- 

 

 

- 

 

 

-

 

 

(3,037,996)

 

 

(3,037,996)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of September 30, 2015

 

115,000,000

 

$

11,500

 

$

8,899,597

 

$

(718,459)

 

$

308,898 

 

$

468,827

 

$

(10,780,910)

 

$

(1,810,547)

 

See accompanying notes to condensed consolidated financial statements.

  

F-4

**CHINA SHOUGUAN MINING CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

**NOTE – 1**

**BASIS OF PRESENTATION**

The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.

In the opinion of management, the consolidated balance sheet as of December 31, 2014 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended September 30, 2015 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2015 or for any future period.

These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2014.

**NOTE – 2**

**ORGANIZATION AND BACKGROUND**

China ShouGuan Mining Corporation (“CHSO” or “the Company”) was incorporated in the State of Nevada on May 4, 2010. 

The Company, through its subsidiaries and variable interest entities, is principally engaged in the project management of gold mining operations in China. In May 2009, the Company commenced its first project, the Cunli Ji Gold Mine which is located in Shandong Province, the People Republic of China (“PRC”). Following May 2011, the Company commenced its second project, the Dayuan Gold Mine which is located in Shandong Province, the PRC.

The details of the Company’s subsidiaries and VIEs are described below:

**Name**

 

**Place of incorporation**

**and kind of**

**legal entity**

 

**Principal activities**

**and place of operation**

**Particulars of issued/**

**registered share**

**capital**

**Effective interest**

**Held**

 

 

 

 

 

 

 

 

 

Bei Sheng Limited (“BSL”)

 

British Virgin Islands, a limited liability company

Investment holding in GWIL and provision of mining technical advice

50,000 issued shares

of US$1 each

 

100%

 

 

 

 

 

 

 

 

 

Golden Wide International Limited (“GWIL”)

 

Hong Kong, a limited liability company

 

100%-investment holding in SBCL

 

10,000 issued shares

of HK$1 each

 

100%

 

 

 

 

 

 

 

 

 

Shoujin Business Consulting (Shenzhen) Limited (“SBCL”)

 

The PRC, a limited liability company

Provision of consulting service in the PRC

 

RMB100,000

 

100%

 

 

 

 

 

 

 

 

 

Shenzhen Shouguan Investment Co., Ltd (“SSIC”) #

 

The PRC, a limited liability company

 

99%-investment holding in JinGuan

 

RMB18,100,000

 

N/A

 

 

 

 

 

 

 

 

 

Yantai Jinguan Investment Limited (“JinGuan”) #

 

The PRC, a limited liability company

 

100%-investment holding in XinGuan

 

RMB5,000,000

 

N/A

 

 

 

 

 

 

 

 

 

DaxinganlingYiguanyuan Mining Investment Company Limited (“DYM”) #

 

The PRC, a limited liability company

 

Mine exploration in Daxinganling

 

RMB4,010,000

 

N/A

#  represents variable interest entity (“VIE”)

F-4

**CHINA SHOUGUAN MINING CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

The Company and its subsidiaries and VIEs are hereinafter collectively referred to as (“the Company”).

**NOTE – 3**

**GOING CONCERN UNCERTAINTIES**

These condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

As of September 30, 2015, the Company suffered the accumulated deficits of $10,780,910 from prior years and suffered from a working capital deficit of $5,894,487. The continuation of the Company as a going concern is dependent upon the continuing financial support from its stockholders or external financing. Management believes the existing stockholders will provide the additional cash to meet with the Company’s obligations as they become due. However, there can be no assurance that the Company will be able to obtain sufficient funds to meet its obligations.

These factors raise substantial doubt about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern.

**NOTE – 4**

**SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying condensed consolidated financial statements and notes.

l

Exploration stage company

Despite the fact that the Company commenced its production in 2009, it is still considered an exploration stage company under the criteria set forth by the Securities and Exchange Commission (“SEC”) since it has not yet demonstrated the existence of proven or probable reserves, defined by *SEC Industry Guide 7* at Cunliji and Dayuan Gold Mines. As a result, and in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for exploration stage companies, all expenditures for exploration and evaluation of the Company’s properties are expensed as incurred until mineralized material is classified as proven or probable reserves. Accordingly, substantially all expenditures for mine development and mill construction have been expensed as incurred. Certain expenditures, such as for rolling stock or other general-purpose equipment, may be capitalized, subject to evaluation for possible impairment of the asset. As of March 31, 2015, none of the mineralized material at Cunliji and Dayuan Gold Mines met the SEC’s definition of proven or probable reserves. The Company expects to remain an exploration stage company for the foreseeable future, even though it has reached commercial production. The Company will not exit the exploration stage unless and until it demonstrates the existence of proven or probable reserves that meet SEC guidelines.

l

Proven or probable reserves

The definition of proven or probable reserves is set forth in *SEC Industry Guide 7.* Proven reserves are reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; (b) grade and/or quality are computed from the results of detailed sampling; and (c) the sites for inspection, sampling and measurement are spaced so closely and the geologic character is so well defined that size, shape, depth and mineral content of reserves are well-established. Probable reserves are reserves for which quantity and grade and/or quality are computed from information similar to that used for proven reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation. In addition, reserves cannot be considered proven or probable until they are supported by a feasibility study, indicating that the reserves have had the requisite geologic, technical and economic work performed and are economically and legally extractable at the time of the reserve determination. As of September 30, 2015, none of the Company’s mineralized resources met the definition of proven or probable reserves.

l

Use of estimates

F-5

**CHINA SHOUGUAN MINING CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates.

l

Basis of consolidation

The condensed consolidated financial statements include the financial statements of CHSO, its subsidiaries and VIEs. All inter-company balances and transactions between the Company and its subsidiaries and VIEs have been eliminated upon consolidation.

The Company has adopted ASC Topic 810-10-5-8, *“Variable Interest Entities”*, which requires a variable interest entity or VIE to be consolidated by a company if that company is subject to a majority of the risk of loss for the VIEs or is entitled to receive a majority of the VIEs’ residual returns.

l

Variable interest entity

The Company's subsidiary, SBCL entered into a series of amended agreements ("VIE agreements") amongst SSIC, JinGuan, DYM and the individual owners of SSIC, JinGuan and DYM and details of the VIE agreements are as follows:

1.

Exclusive Technical Service and Business Consulting Agreement, SBCL has the exclusive right to provide to SSIC, JinGuan and DYM consulting services, including operational management, human resources management, research and development of the technologies related to the operations of SSIC, JinGuan and DYM. SSIC, JinGuan and DYM pays to SBCL annually consulting service fees in an amount equals to all of their revenue for such year. These agreements run for 10 year terms and are subject to automatic renewal for an additional 10 year term provided that no objection is made by both parties on the renewal;

2.

Exclusive Option Agreement, SBCL has the option to purchase SSIC, JinGuan and DYM all assets and ownership at any time;

3.

Equity Pledge Agreement, SSIC, JinGuan and DYM agree to pledge their legal interest to SBCL as a security for the obligations under the Exclusive Technical Service and Business Consulting Agreement;

4.

Proxy Agreement, SSIC, JinGuan and DYM irrevocably grant and entrust SBCL the right to exercise its voting and other stockholder’s right; and

5.

Operating Agreement, SBCL agrees to participate in the operations of SSIC, JinGuan and DYM in different aspects.

With the above agreements, SBCL demonstrates its ability to control SSIC and JinGuan as the primary beneficiaries and the operating results of the VIEs was included in the condensed consolidated financial statements for the three and nine months ended September 30, 2015 and 2014.

l

Cash and cash equivalents

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.

l

Mining rights, exploration and development costs

Costs of mining rights are capitalized upon acquisition.

Subsequent exploration and development costs are expensed as incurred until such time as a feasibility study has been completed which establishes, in compliance with *SEC Industry Guide 7*, that proven and probable reserves exist on the property. After proven and probable reserves have been established, subsequent exploration and development costs are capitalized until such time as a property is placed in-service. Following a property's in-service date, accumulated capitalized acquisition, exploration and development costs are reclassified as Mining Property assets and are subject to amortization on a units-of-production basis when its production begins.

l

Prepaid mining rights

Prepaid mining rights represent certain amount of lease prepayment made for the operation of the mining license of Dayuan Gold Mine and are being amortized using a straight-line basis over its scheduled lease term.

F-6

**CHINA SHOUGUAN MINING CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

The rent expense on prepaid mining rights for the three months ended September 30, 2015 and 2014 was $524,082 and $534,954, respectively.

 

The rent expense on prepaid mining rights for the nine months ended September 30, 2015 and 2014 was $1,603,784 and $1,609,154, respectively.

As of September 30, 2015, the estimated annual amortization of the prepaid mining rights for the next five years and thereafter is as follows: 

Years ending September 30:

 

 

2016

 

$

2,077,497

2017

 

 

2,077,497

2018

 

 

374,061

2019

 

 

31,477

2020

 

 

31,477

Thereafter

 

 

62,954

 

 

 

Total:

 

$

4,654,963

l

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

 

Expected useful life

 

Residual value

Plant and machinery

5-10 years

 

5%

Motor vehicles

5 years

 

5%

Office equipment

3-5 years

 

5%

Expenditure for repairs and maintenance is expensed as incurred. When assets have retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations.

Depreciation expense for the three months ended September 30, 2015 and 2014 were $120,702 and $102,469, respectively.

 

Depreciation expense for the nine months ended September 30, 2015 and 2014 were $377,520 and $285,445, respectively

l

Construction in progress

Construction in progress is stated at cost, which includes the costs of self-constructed assets, including mine development assets during the construction phase. Indirect overhead costs are not included in the cost of self-constructed assets. Construction in progress is not depreciated until such time as the assets are completed and put into operational use. No capitalized interest is incurred during the period of construction. 

l

Impairment of long-lived assets

In accordance with the provisions of ASC Topic 360-10-5, “*Impairment or Disposal of Long-Lived Assets* ”, all long-lived assets held and used by the Company are annually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to estimated future undiscounted cash flows expected to be generated by the asset. Future cash flows are based on estimated quantities of gold and other recoverable metals, expected price of gold and other commodity (considering current and historical prices, price trends and related factors), production levels and cash costs of production, capital and reclamation costs, all based on detailed engineering life-of-mine plans. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets.

F-7

**CHINA SHOUGUAN MINING CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

Numerous factors including, but not limited to, such things as unexpected grade changes, gold recovery problems, shortages of equipment and consumables, equipment failures, and collapse of pit walls, could impact our ability to achieve forecasted production schedules from proven and probable reserves. Additionally, commodity prices, capital expenditure requirements and reclamation costs could differ from the assumptions used in the cash flow models used to assess impairment. The ability to achieve the estimated quantities of recoverable minerals from exploration stage mineral interests involves further risks in addition to those factors applicable to mineral interests where proven and probable reserves have been identified, due to the lower level of confidence that the identified mineralized material can ultimately be mined economically. There has been no impairment charge for the periods presented.

l

Revenue recognition

In accordance with the ASC Topic 605, *“Revenue Recognition”*, the Company recognizes revenue when persuasive evidence of an arrangement exists, transfer of title has occurred or services have been rendered, the selling price is fixed or determinable and collectability is reasonably assured.

(a)

Product sales

The Company derives revenues from the sales of non-refined gold concentrate to smelters, whereas the smelter usually takes 6 days for the production from non-refined gold concentrate to gold bullion. The Company generally recognizes its revenues, net of value-added taxes ("VAT") at the time of gold bullion is produced by the smelter and its selling price is determined by the market value of gold bullion quoted by the Shanghai Gold Exchange.

The Company is subject to VAT which is levied on the standard gold products at the standard rate of 17% on the invoiced value of sales. The Company’s VIE, XinGuan is granted with a preferential tax treatment under the Chinese tax law of the *“Notice from Ministry of Finance and State Tax Bureau in Relation to Exemption of Value Added Tax on Gold Production”* and “*Notice regarding issues on Tax Policy on Gold Transaction*”, whereas gold produced and sold by gold mining and smelting enterprises are exempted from VAT.

(b)

Interest income

Interest income is recognized on a time apportionment basis, taking into account the principal amounts outstanding and the interest rates applicable.

Comprehensive income

ASC Topic 220,*“Comprehensive Income”,* establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying condensed consolidated statement of stockholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.

l

Income taxes

The Company adopts ASC Topic 740, *“Income Taxes”* regarding accounting for uncertainty in income taxes which prescribes the recognition threshold and measurement attributes for financial statement recognition and measurement of tax positions taken or expected to be taken on a tax return. In addition, the guidance requires the determination of whether the benefits of tax positions will be more likely than not sustained upon audit based upon the technical merits of the tax position. For tax positions that are determined to be more likely than not sustained upon audit, a company recognizes the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement in the financial statements. For tax positions that are not determined to be more likely than not sustained upon audit, a company does not recognize any portion of the benefit in the financial statements. The guidance provides for de-recognition, classification, penalties and interest, accounting in interim periods and disclosure.

For the three and nine months ended September 30, 2015 and 2014, the Company did not have any interest and penalties associated with tax positions. As of September 30, 2015, the Company did not have any significant unrecognized uncertain tax positions.

The Company conducts major businesses in the PRC and is subject to tax in this jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the foreign tax authority.

F-8

**CHINA SHOUGUAN MINING CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

l

Net loss per share

The Company calculates net loss per share in accordance with ASC Topic 260,*“Earnings per Share.”* Basic loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

l

Foreign currencies translation

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.

The reporting currency of the Company is the United States Dollars ("US$"). The Company's subsidiary in the PRC maintain its books and records in its local currency, Renminbi Yuan ("RMB"), which is functional currency as being the primary currency of the economic environment in which the entity operates.

In general, for consolidation purposes, assets and liabilities of its subsidiaries and VIEs whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “*Translation of Financial Statement”*, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statement of stockholders’ equity.

Translation of amounts from RMB into US$1 has been made at the following exchange rates for the respective period:

 

 

 

**September 30,**

**2015**

 

**September 30,**

**2014**

Period-end RMB:US$1 exchange rate

 

 

6.3538

 

6.1525

Period average RMB:US$1 exchange rate

 

 

6.1729

 

6.1523

l

Related parties

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

l

Segment reporting

ASC Topic 280, “*Segment Reporting*” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about geographical areas, business segments and major customers in financial statements. For the three and nine months ended September 30, 2015, the Company operates in one reportable operating segment in the PRC.

l

Fair value of financial instruments

The carrying value of the Company’s financial instruments include cash, accounts receivable, amounts due from (to) related parties, deposits and prepayments, accounts payable, amount due to a related party, income tax payable, accrued liabilities and other payable. Fair values were assumed to approximate carrying values for these financial instruments because they are short term in nature and their carrying amounts approximate fair values. The carrying value of the Company’s loans and note payable approximated its fair value based on the current market prices or interest rates for similar debt instruments.

The Company also follows the guidance of ASC Topic 820-10, “*Fair Value Measurements and Disclosures*” ("ASC 820-10"), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: 

F-9

**CHINA SHOUGUAN MINING CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

 

 

*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 

Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. 

l

Recent accounting pronouncements

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” which amended the existing accounting standards for revenue recognition. ASU 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The guidance was effective for fiscal years beginning after December 15, 2016 and for interim periods within those fiscal years. In recent re-deliberations, the FASB approved a one-year deferral of the effective date of this guidance, such that it will be effective on January 1, 2018. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently in the process of evaluating the impact of adoption of the ASU on its condensed consolidated financial statements, but does not expect the impact to be material. 

In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period (Topic 718)”. ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU 2014-12 is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company is evaluating the potential impacts of the new standard on its existing share-based compensation plans, but does not expect the impact to be material. 

In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. ASU 2014-15 addresses management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. This guidance is effective for fiscal years ending after December 15, 2016 and for interim periods within those fiscal years, with early adoption permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its condensed consolidated financial statements, but does not expect the impact to be material. 

In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs (Subtopic 835-30)” which requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts or premiums. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its condensed consolidated financial statements, but does not expect the impact to be material. 

In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory.” Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its condensed consolidated financial statements, but does not expect the impact to be material. 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

F-10

**CHINA SHOUGUAN MINING CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

**NOTE – 5
**LOANS PAYABLE, UNSECURED**

As of September 30, 2015 and December 31, 2014, the Company also held the following short-term and long-term loans payable to third parties:

 

**September 30,**

**2015**

 

**December 31,**

**2014**

 

 

 

 

Loans payable to certain individuals and financial institution in the PRC, unsecured:

 

 

 

 

 

 

 

 

 

 

 

Equivalent to RMB3,000,000 (2014: RMB4,500,000) with interest rate at 2.7% per annum, payable at its maturity, due May 7, 2016

$

472,158 

 

$

735,414 

 

 

 

 

 

 

Equivalent to RMB7,400,000 (2014: RMB 7,400,000) with interest rate at 2.7% per annum, payable at its maturity, due May 7, 2016

 

1,164,657 

 

 

1,209,348 

 

 

 

 

 

 

Equivalent to RMB8,800,000 with interest rate free, payable at its maturity, due June 2016

 

1,384,998 

 

 

- 

 

 

 

 

 

 

Equivalent to RMB2,000,000 with interest rate free, payable at its maturity, due December 31, 2015
 

314,772 

 

 

326,851 

 

 

 

 

 

 

Equivalent to RMB5,000,000 with interest free, payable at its maturity, due December 31, 2015

 

- 

 

 

817,127 

 

 

 

 

 

 

Equivalent to RMB 5,500,000 with interest rate at the bank of China Benchmark Lending Rate, payable at its maturity, due July 17, 2016

 

612,232 

 

 

898,840 

 

 

 

 

 

 

Equivalent to RMB2,850,000 (2014:RMB5,000,000) with interest rate at the bank of China Benchmark Lending Rate, payable at its maturity, due April 24, 2015

 

- 

 

 

817,127 

 

 

 

 

 

 

Equivalent to RMB5,000,00, with interest rate at the bank of China Benchmark Lending Rate, payable at its maturity, due April 26, 2016

 

786,931 

 

 

- 

 

 

 

 

 

 

Equivalent to RMB1,054,850 (2014: RMB501,999) with effective interest rate at 8.97% per annum, payable with monthly principal and interest payments, due February 28, 2017

 

166,019 

 

 

82,039 

 

 

 

 

 

 

Equivalent to RMB436,443 with effective interest rate at 1.75% per month, payable with monthly principal and interest payments, due April 10, 2018

 

68,692 

 

 

- 

 

 

 

 

 

 

Equivalent to RMB640,000 with interest free, payable at its maturity, due March 7, 2016

 

100,726 

 

 

- 

 

 

 

 

 

 

Equivalent to RMB324,709with interest free, payable at its maturity, due March 7, 2016

 

51,105 

 

 

- 

 

 

 

 

 

 

Total current and long-term liabilities

 

5,122,290 

 

 

4,886,746 

Less: long-term portion

 

(105,055)

 

 

(82,039)

 

 

 

 

 

 

Total current liabilities

$

5,017,235 

 

$

4,804,707 

 

 

 

 

 

 

 

F-11

**CHINA SHOUGUAN MINING CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

**NOTE – 6**

**NOTE PAYABLE, RELATED PARTY**

As of September 30, 2015, the note due to Mr. Zhang, the director of the Company, which was unsecured, carried annual interest at Bank of China Benchmark Lending Rate and payable in a monthly installment. The interest expense to a related party amounted $85,229 and $66,479 for the nine months ended September 30, 2015 and 2014, respectively.

**NOTE – 7**

**INCOME TAXES**

For the nine months ended September 30, 2015 and 2014, the local (United States) and foreign components of loss before income taxes were comprised of the following:

 

 

** Nine months ended September 30,**

 

 

**2015**

 

**2014**

Tax jurisdictions from:

 

 

 

– Local

 

$

- 

$

- 

– Foreign

 

 

(3,037,996)

 

(1,705,629)

Loss before income taxes

 

$

(3,037,996)

$

(1,705,629)

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company has subsidiaries that operate in various countries: United States, BVI, Hong Kong and the PRC that are subject to taxes in the jurisdictions in which they operate, as follows:

*United States of America*

The Company is registered in the State of Nevada and is subject to the tax laws of the United States of America.

*British Virgin Island*

Under the current BVI law, Bei Sheng is not subject to tax on its income or profits. 

*Hong Kong*

Golden Wide is subject to Hong Kong Profits Tax, which is charged at the statutory income rate of 16.5% on assessable income. For the nine months ended September 30, 2015 and 2014, Golden Wide suffered from an operating loss of $1,235 and $1,235, respectively. 

*The PRC*

The Company generated its income from its subsidiaries and VIEs operating in the PRC for the nine months ended September 30, 2015 and 2014, which are subject to the Corporate Income Tax Law of the People’s Republic of China (the “New CIT Law”) at a unified income tax rate of 25%. A reconciliation of income tax rate to the effective income tax rate for the nine months ended September 30, 2015 and 2014 is as follows:

 

 

 **Nine months ended September 30,**

 

 

 

**2015**

 

 

**2014**

 

 

 

 

 

 

 

Loss before income taxes 

 

$

(3,023,387) 

 

$

(1,667,008) 

Statutory income tax rate

 

 

25%

 

 

25%

 

 

 

 

 

 

 

Income tax expense at the statutory rate

 

 

(755,847) 

 

 

(416,752) 

Net operating loss not recognized as deferred tax asset

 

 

260,521  

 

 

310,012  

Non-taxable income

 

 

-  

 

 

(296,469) 

Non-deductible items

 

 

495,326  

 

 

403,209  

Income tax expense

 

$

-  

 

$

-  

F-12

**CHINA SHOUGUAN MINING CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

As of September 30, 2015, the Company incurred $2,049,939 of aggregate net operating loss carryforwards available to offset its taxable income for income tax purposes. The Company has provided for a full valuation allowance against the deferred tax assets of $2,049,939 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future. 

**NOTE – 8**

**CONCENTRATIONS OF RISK**

The Company is exposed to the following concentrations of risk:

(a)

Major customers

For the three and nine months ended September 30, 2015, no revenue was generated during the period.

For the three and nine months ended September 30, 2014, there was a single customer who accounted for 100% of the Company’s revenues with $555,957 accounts receivable balance at period-end.

A customer is located in the PRC.

(b)

Major vendors

For the three months ended September 30, 2015, there were no vendors who accounted for 10% or more of the Company’s purchases.

For the nine months ended September 30, 2015, there was a single vendor who accounted for 81% of the Company’s purchase with no accounts payable balance at period-end.

For the three and nine months ended September 30, 2014, the vendors who account for 10% or more of the Company’s purchases and its outstanding balance at period-end date, are presented as follows:

 

 

 

**Three months ended**

**September 30, 2014**

 

**September 30,**

**2014**

Vendor

 

 

**Purchases**

 

**Percentage**

**of purchases**

 

**Accounts**

**payable, trade**

 

 

 

 

 

 

 

 

 

 

Vendor A

 

 

$

343,644

 

100%

 

$

170,743

 

 

 

**Nine months ended**

**September 30, 2014**

 

**September 30,**

**2014**

Vendor

 

 

**Purchases**

 

**Percentage**

**of purchases**

 

**Accounts**

**payable, trade**

 

 

 

 

 

 

 

 

 

 

Vendor A

 

 

$

959,076

 

79%

 

$

170,743

Vendor B

 

 

 

252,228

 

21%

 

 

89,684

 

 

 

 

 

 

 

 

 

 

 

Total:

 

$

1,211,304

 

100%

 

$

260,427

All vendors are located in the PRC.

(c)

Credit risk

Financial instruments that are potentially subject to credit risk consist principally of accounts receivables. The Company believes the concentration of credit risk in its accounts and retention receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from 

F-13

**CHINA SHOUGUAN MINING CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

customers. Credit is extended based on evaluation of a customer's financial condition. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.

(d)

Exchange rate risk

The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in RMB and a significant portion of the assets and liabilities are denominated in RMB. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$ and RMB. If RMB depreciates against US$, the value of RMB revenues and assets as expressed in US$ financial statements will decline. The Company does not hold any derivative or other financial instruments that expose to substantial market risk.

(f)

Economic and political risks

The Company's operations are conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy.

The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation.

(g)

Mining industry risks

The Company's mining operations are subject to extensive national and local governmental regulations in China, which regulations may be revised or expanded at any time. Generally, compliance with these regulations requires the Company to obtain permits issued by government regulatory agencies. Certain permits require periodic renewal or review of their conditions. The Company cannot predict whether it will be able to obtain or renew such permits or whether material changes in permit conditions will be imposed. The inability to obtain or renew permits or the imposition of additional conditions could have a material adverse effect on the Company's ability to develop and operate its mines.

(h)

Risk on changing price in gold

At present, the price of gold in the PRC is generally in line with the price of gold in the international market. There are many factors influencing the price of gold in the international market, including the international economic situation (in particular the economic situation in the US), petroleum prices, fluctuations in the exchange rates of the US$, fluctuations in the stock and other financial investment markets and various political, military, social and economic contingencies. These factors are beyond the control of the Company. Changes in the prices of the gold in the PRC and in the exchange rate of Renminbi as a result of these may adversely affect the operating results of the Company. Under the relevant PRC laws and regulations, hedging activities presently are not permitted in gold tracing in the PRC market. The Company has not been involved in hedging transactions or any alternative measures to manager the potential price risk.

**NOTE – 9**

**COMMITMENTS AND CONTINGENCIES**

The Company is committed under several non-cancelable operating leases for office premises and mining rights with the terms ranging from 1 to 10 years, with fixed monthly rentals or scheduled payments. Total rent expenses (excluding amortization of prepaid mining rights) for the nine months ended September 30, 2015 and 2014 was $75,417 and $88,173, respectively.

As of September 30, 2015, the Company has the aggregate future minimum rental payments due under these non-cancelable operating leases, as follows:

F-14

**CHINA SHOUGUAN MINING CORPORATION**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015**

**(Currency expressed in United States Dollars (“US$”), except for number of shares)**

**(Unaudited)**

 

 

 

**Operating lease commitments**

 

**Office premises**

 

**Mine operating rights**

 

**Total**

Year ending September 30,

 

 

 

 

 

 

 

 

 

2016

 

$

47,837

 

$

-

 

$

47,837

2017

 

 

-

 

 

6,594,479

 

 

6,594,479

 

 

 

 

 

 

 

 

 

 

Total:

 

$

47,837

 

$

6,594,479

 

$

6,642,316

**NOTE – 10**

**SUBSEQUENTEVENTS**

The company evaluated subsequent events through the date the financial statements were issued and filed with this Form10-Q. There were no subsequent events that required recognition or disclosure.

F-15

**Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations**

**INFORMATION REGARDING FORWARD-LOOKING STATEMENTS**

 

This Quarterly Report on Form 10-Q contains forward-looking statements. These statements relate to future events or our future financial performance. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially.

 

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no duty to update any of the forward-looking statements after the date of this report to conform such statements to actual results or to changes in our expectations.

**Available Information**

Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports that we file with the U.S. Securities and Exchange Commission (SEC) are available at the SEC's public reference room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the public reference room by calling the SEC at 1-800-SEC-0330. The SEC also maintains a website at www.sec.gov that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC.

 

**Overview**

 

China ShouGuan Mining Corporation (“ShouGuan”, “we” and the “Company”) was incorporated in the State of Nevada on May 4, 2010. We are a holding company that conducts business operations in Shandong Province in the People’s Republic of China (PRC). On June 23, 2010, we entered into a stock exchange transaction with the shareholders of Bei Sheng Limited (“BSL”), whereby we issued 100,000,000 shares of common stock in exchange for 100% of the ownership interest in BSL, for the purpose of re-domiciling BSL as a Nevada corporation in the United States. These shares were issued as restricted securities under SEC Rule 144. As a result of the share exchange transaction, BSL became our wholly-owned operating subsidiary in the PRC. Unless otherwise indicated, all references to the Company throughout this annual report include the operations of BSL and its subsidiaries and variable interest entities (“VIEs”).

 

We were founded by a number of business professionals and experts in China who specialize in mining technologies, mining resources management and financial and strategic management. Our primary focus is on acquiring existing gold mine in Shandong province of the PRC. These potential targets are mostly run with low productivity because of inadequate funds and primitive technologies. We plan to re-engineer and redevelop these gold mines through the transfer of advanced exploration and mining technologies, capital injection and effective management.

 

Our business model includes sourcing of early stage gold mines with good profit potential, conducting feasibility studies to identify suitable projects, leasing the suitable mining sites and facilities and managing the mining operations on these selected sites, with the goal of acquiring the mine if the operations prove to be satisfactory based on the review criteria set by our experienced management. In addition, we also provide consulting services in areas related to mine exploration and analysis to our clients on a project-by-project basis.

 

Revenues are derived from the sales of gold concentrates, the principal raw material used in gold smelting operation to produce gold. We only take possession of the gold concentrates when they are sold to smelters. At that time, the selling prices are determined from two factors, the amount of gold in the gold concentrates and the price of gold on the date of sale. The amount of gold in the gold concentrates is determined and agreed upon between the Company and the smelters and then the selling price is determined according to the official gold price at the time of sale as indicated by the Shanghai Gold Exchange (http://www.sge.sh), an entity governed by the PRC Government). On the consulting side, revenues are derived on a project-by-project basis and payment is collected as we complete our service as outlined in the scope of each individual project. In order to minimize the effect of fluctuations of gold price and to achieve better economies of scale in operations, the Company decides to focus more on mine exploration.

 

We target to grow proactively through continual sourcing of existing gold mines in the PRC and managing them. These projects will be executed by BSL and its VIEs. Cunli Ji Gold Mine was the first project commenced in May 2009. To ensure all mines are legally and properly operated, all target gold mines are required to have full sets of government-approved licenses before effecting commencement of any business operations.

4

 

On December 28, 2010, the Company’s Form S-1 registration statement (the “Registration Statement”) was declared effective by the SEC, allowing us to sell a total of 1,000,000 shares of our common stock and raise a total of $500,000, which we intend to use to implement our business operations (the “Offering”). The Offering was expired on June 26, 2011 as stated in the Registration Statement and the Board of Directors of the Company has held a special meeting and resolved to extend the offering period for an additional 180 days. On October 30, 2011, the Company consummated the sale to 19 accredited investors of an aggregate of 1,000,000 shares of its common stock, par value $0.0001, at a per share price of $0.201, or $201,000 in the aggregate, pursuant to certain subscription agreements. These shares were subsequently issued on January 12, 2012. This offering was the initial public offering of common stock of China Shouguan Mining Corporation. The Company is now quoting at OTCQB for the symbol CHSO.
 

On May 6, 2011, the Company, through its variable interest entity, Yantai Jinguan Investment Co., Ltd. (“Yantai”), entered into a lease agreement with Longkou Dayuan Gold Mining Co. Ltd., an unrelated third party being the legal owner and holding the mining license of the Dayuan gold mine (the “Lease Property”) regarding Dayuan Gold Mine. Under the agreement, the Company agrees to pay the aggregate rental payments of approximately $20 million for a term of 10 years commencing from April 1, 2011 through April 1, 2021 to obtain the right to manage and operate the Lease Property in the repayment schedule, whereas the Company is committed to pay $12 million equal to 6 years’ rental, no later than September 30, 2011 and the remainder will be paid no later than March 1, 2017. On September 25, 2011, both parties signed a Supplemental Agreement agreed to defer the aforesaid balance of payment of $6 million to March 31, 2012. On January 21, 2013, the payment was agreed to further extend to September 30, 2013 and further to September 30, 2014. At present, the balance payable is around US$500,000 and both parties agreed to extend the payment to September 30, 2015.

 

In July 2013, the Yantai local government informed the Company that the Shandong Province has promulgated a new local regulation. The regulation stated that all underground mines in the territory which has a production of under 40,000 tonnes per year will all be forced to close down before the end of 2015. As such, since Cunli Ji Mine falls within the category, the Company decided to sell the mine for money and to invest in mines in other territories, which includes investing in mine exploration areas, and, acquiring or leasing some tailings environmental protection projects.

 

On February 21, 2014 SSIC acquired 99% shareholdings of Daxinganling Yiguanyuan Mining Investment Company Limited (“DYM”) for a consideration of RMB4,000,000. DYM focuses on mine exploration in the Daxinganling area in the Heilongjiang Province in north-eastern part of China. DYM has signed a Memorandum of Understanding with Daxinganling Guolin Mining Company Limited, a wholly-owned subsidiary of the Daxinganling local government in July 2013, which stated that the two parties would cooperate together to explore the precious metals mines in the Daxinganling area. As of September 30, 2015, no exploratory work or other operating activities have been commenced.

 

On March 31, 2014, the Company signed an agreement with Yantai Jinjian Smelting Technology Limited (85%) and Yantai Jihao Trading Limited (15%), where 100% interests in XinGuan was transferred for a total consideration of approximately $7,300,000 (Equivalent to RMB45 million). It resulted in a profit of RMB9,000,000 for the Company compared with the original acquisition consideration in 2010. 

**Current Operations**

 

*Dayuan Mine*

We do not own the Dayuan Mine. We leased the mine through Jinguan.

On May 6, 2011, we, through our VIE, Yantai Jinguan Investment Co., Ltd. (“Jinguan”), entered into a lease agreement with Longkou Dayuan Gold Mining Co. Ltd., an unrelated third party being the legal owner and holding the mining license of the Dayuan Gold Mine (“Dayuan Mine”) regarding Dayuan Gold Mine. Under the agreement, we own the operating right and income right of the Dayuan Mine and we agreed to pay the aggregate rental payments of approximately $20 million for a term of 10 years commencing from April 1, 2011 through April 1, 2021 to obtain the right to manage and operate Dayuan Gold Mine in the repayment schedule, whereas we are committed to pay an upfront payment of $12 million equal to 6 years’ rental, no later than September 30, 2011 and the remainder will be paid no later than March 1, 2017. On September 25, 2011, both parties signed a Supplemental Agreement agreed to defer the balance of the upfront payment amounted to $6 million to March 31, 2012. On March 30, 2012, the payment was agreed to extend further to September 30, 2012. On January 21, 2013, the payment was agreed to further extend to September 30, 2013 and further to September 30, 2014. At present, the balance payable is around US$500,000 and both parties agreed to extend the payment to September 30, 2015.

The Dayuan Mine has one exploration right and one mining right, which are granted by the Land and Resources Authority of Shandong Province and are unpatented. The concession period of the mining right is from 29 December 2010 to 29 December 2013. The mine is 0.3475 sq, km in area and is deposited in a lode or vein filled with mineral in the rock. 

 

The Dayuan Mine commenced exploratory operation in July 2011. Mineral exploration was temporary halted in the Dayuan Mine during the Chinese New Year holiday in January and February 2014 and hence no gold concentrate was produced in 

5

these two months. In January 2015, the Safety Production Committee of the Longkou city government announced that all mines except coal mines were required to shut down operation during February 11, 2015 to March 5, 2015 for safety examination, technologies upgrade and maintenance. For the nine months ended September 30, 2015, the mineral exploration in the Dayuan Mine was halted again due to further restructuring and maintenance of the mine and there was no gold ore production during the period.  

 

Currently we derive our revenue from the sales of non-refined gold concentrates extracted from Dayuan Mine. Our expenses are mainly amortization of mining rights, the direct costs associated with the operation and overhead expenses such as staff salaries, smelting and extracting fee, depreciation of mining plants and other general administrative expenses.

 

 At the moment, we are formulating an exploration plan and related timetable for the Dayuan mine. So far, there is no detailed plan to conduct exploration on the Dayuan Mine. The exploration programs of the Dayuan mines are currently funded by the internal fund generated from our operations and we continue to look for funding to finance the exploration programs of the mine. 

***Others***

 

On February 21, 2014, SSIC acquired 99% shareholdings of Daxinganling Yiguanyuan Mining Investment Company Limited (“DYM”) for a consideration of RMB4,000,000. DYM focuses on mine exploration in the Daxinganling area in the Heilongjiang Province in north-eastern part of China. DYM has signed a Memorandum of Understanding with Daxinganling Guolin Mining Company Limited, a wholly-owned subsidiary of the Daxinganling local government in July 2013, which stated that the two parties would cooperate together to explore the precious metals mines in the Daxinganling area. As of March 31, 2015, no exploratory work or other operating activities have been commenced.

**Results of Operations**

 

We do not believe there have been any recent trends in production, sales, inventory, or the state of the costs or selling prices of our products since the financial year ending 2009, nor any known trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our net sales or revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition. 

6

The following tables set forth key components of our results of operations for the three months ended September 30, 2015 compared to the same period in 2014. All numbers referenced are in U.S. Dollars:

 

 

**Three months ended**

**September 30,**

**Increase**

**(Decrease)**

**% Increase**

**(% Decrease)**

 

 

**2015**

 

**2014**

 

 

**Revenues, net**

 

**$**

**- **

 

**$**

**554,157 **

**(554,157)**

**(100%) **

 

 

 

 

 

 

 

 

 

**Cost of revenue**

 

 

(848,562)

 

 

(1,017,159)

(168,597)

(17%) 

 

 

 

 

 

 

 

 

 

**Gross loss**

 

 

(848,562)

 

 

(463,002)

385,560 

83%

Operating expenses:

 

 

 

 

 

 

 

 

General and administrative

 

 

(118,227)

 

 

(199,764)

(81,537)

(41%) 

**Loss from operations**

 

 

(966,789)

 

 

(662,766)

304,023 

46%

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

     Interest expense

 

 

(67,215)

 

 

(99,786)

32,571 

(33%) 

     Interest income

 

 

27 

 

 

95 

(68)

(72%) 

     Other income

 

 

- 

 

 

- 

 

 

**Loss before income taxes**

 

 

(1,033,977)

 

 

(762,457)

271,520 

36%

Income tax expenses

 

 

- 

 

 

- 

- 

-  

**NET LOSS**

 

$

(1,033,977)

 

$

(762,457)

271,520 

36%

Other comprehensive income:

 

 

 

 

 

 

 

 

- Foreign currency translation adjustment

 

 

38,132 

 

 

149,157 

(111,025)

(74%) 

**COMPREHENSIVE LOSS**

 

$

(995,845)

 

$

(613,300)

(382,545)

62%

Net loss per share 

– Basic and diluted

 

$

(0.01)

 

$

(0.01)

 

 

Weighted average common shares outstanding

– Basic and diluted

 

 

115,000,000 

 

 

115,000,000 

 

 

7

The following tables set forth key components of our results of operations for the nine months ended September 30, 2015 compared to the same period in 2014. All numbers referenced are in U.S. Dollars:

 

 

**nine months ended September 30,**

 

**Increase**

**% Increase**

 

 

**2015**

 

**2014**

 

**(Decrease)**

**(Decrease)**

**Revenues, net:**

$

- 

$

1,919,715 

 

(1,919,715)

(100%) 

 

 

 

 

 

 

 

 

Cost of revenue

 

(2,446,469)

 

(3,223,204)

 

(776,735)

(24%) 

 

 

 

 

 

 

 

 

Gross loss

 

(2,446,469)

 

(1,303,489)

 

1,142,980 

88%

General and administrative expense

 

(391,586)

 

(637,086)

 

(245,500)

(39%) 

**Loss from operations**

 

(2,838,055)

 

(1,940,575)

 

897,480 

46%

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

Interest expense

 

(200,040)

 

(219,693)

 

19,653 

(9%) 

Interest income

 

99 

 

439 

 

(340)

(77%) 

Other income

 

- 

 

454,200 

 

(454,200)

(100%) 

**Loss before income taxes**

 

(3,037,996)

 

(1,705,629)

 

1,332,367 

78%

Income tax expenses

 

- 

 

- 

 

- 

-  

**NET LOSS**

$

(3,037,996)

$

(1,705,629)

 

1,332,367 

78%

Other comprehensive income:

 

 

 

 

 

 

 

- Foreign currency translation adjustment

 

36,571 

 

(91,807)

 

128,378 

140%

**COMPREHENSIVE LOSS**

$

(3,001,425)

$

(1,797,436)

 

1,203,989 

67%

Net loss per share – Basic and diluted

$

(0.03)

$

(0.01)

 

 

 

 

 

 

 

 

 

 

 

Weighted average common stock outstanding (Basic and diluted)

 

115,000,000 

 

115,000,000 

 

 

 

8

**Revenue**

We commenced gold mineral exploration activity in May 2009 and began selling of gold concentrate in July 2009. Gold concentrate is mainly sold to smelting plants in the Shandong Province, PRC.

For the three months ended September 30, 2015, the mineral exploration in the Dayuan Mine was halted because of mine restructuring and maintenance. There was no gold ore production and hence no revenue was recorded during the period.

For the nine months ended September 30, 2015, the mineral exploration in the Dayuan Mine was halted because of mine restructuring and maintenance. There was no gold ore production and hence no revenue was recorded during the period.

**Cost of Revenue**

Cost of revenue for the three months ended September 30, 2015 and 2014 were $848,562 and $1,017,159 respectively, and consisted primarily of direct materials, direct labor, extracting fees, and other operating overhead. The decrease in cost of revenue was primarily attributable to the decrease in revenue during the period. 
Cost of revenue for the nine months ended September 30, 2015 and 2014 were $2,446,469 and $3,223,204 respectively, and consisted primarily of direct materials, direct labor, extracting fees, and other operating overhead. The decrease in cost of revenue was primarily attributable to the decrease in revenue during the period.

**Gross Loss**

We recorded a gross loss of $848,562 for the three months ended September 30, 2015, an increase of $385,560 or 83%, from the gross loss of $463,002 for the three months ended September 30, 2014. The increase was mainly attributable to temporary cease of operation during the first three quarters in 2015 and hence no revenue was recorded during the period.

 

We recorded a gross loss of $2,446,469 for the nine months ended September 30, 2015, an increase of $1,142,980 or 88%, from the gross loss of $1,303,489 for the nine months ended September 30, 2014. The increase was mainly attributable to temporary cease of operation during the first three quarters in 2015 and hence no revenue was recorded during the period.

**General and Administrative Expenses**

 

General and administrative expenses comprised mainly of salaries and staff welfare expenses, legal and professional fees, entertainment expenses, traveling and hotel accommodation expenses and office expenses. General and administrative expenses for the three months ended September 30, 2015, decreased by $81,537 or 41%, from $199,764 to $118,227 for the same comparable period in 2014.

General and administrative expenses comprised mainly of salaries and staff welfare expenses, legal and professional fees, entertainment expenses, traveling and hotel accommodation expenses and office expenses. General and administrative expenses for the nine months ended September 30, 2015, decreased by $245,500 or 39%, from $637,086 to $391,586 for the same comparable period in 2014.

**Income Tax Expense**

Income tax expenses amounted to Nil for both the three months ended September 30, 2015 and 2014.

 

Income tax expenses amounted to Nil for both the nine months ended September 30, 2015 and 2014.

We have subsidiaries and VIEs that operated in various countries: United States, British Virgin Islands, Hong Kong and the People’s Republic of China that are subject to taxes in the jurisdictions in which they operate, as follows:

 

United States of America

 

We are incorporated in the State of Nevada and are subject to the tax laws of the United States of America. Since no income is derived in the US, we believe that we are not subject to US taxes.

British Virgin Islands

 

9

Under the current BVI law, BSL is not subject to tax on its income or profits. In addition, dividends and capital gains from our investments in the BVI are not subject to income taxes and no withholding tax is imposed on payments of dividends to the Company.

 

Hong Kong

 

GWIL is subject to Hong Kong Profits Tax, which is charged at the statutory income rate of 16.5% on its assessable income.

 

The PRC

 

We have generated all of our income through our subsidiaries and VIEs operating in the PRC for the nine months ended September 30, 2015. All entities in the PRC are subject to the Corporate Income Tax Law of the People’s Republic of China (the “New CIT Law”) at a unified income tax rate of 25%.

 

**Net loss**

 

We recorded a net loss of $1,033,977 for the three months ended September 30, 2015, an increase in loss of $271,520 from a net loss of $762,457 for the three months ended September 30, 2014. The increase in loss was mainly attributable to the decrease in revenue in 2015.

We recorded a net loss of $3,037,996 for the nine months ended September 30, 2015, an increase in loss of $1,332,367 from a net loss of $1,705,629 for the nine months ended September 30, 2014. The increase in loss was mainly attributable to the decrease in revenue in 2015.

**Liquidity and Capital Resources**

 

Our primary liquidity needs are to fund operational expenses, capital expenditures and potential acquisition of gold mining properties in the Shandong province. To date, we have financed our working capital requirements and capital expenditures through internally generated cash and capital contribution from our existing shareholders.

As of September 30, 2015, our current assets were $2,446,819, and our current liabilities were $8,341,306. Cash and cash equivalents totaled $167,512 as of September 30, 2015. Accumulated deficits at September 30, 2015 were $10,780,910.

 

Net cash used in operating activities was $561,638 for the nine months ended September 30, 2015 as compared to net cash used in operating activities of $796,555 for the nine months ended September 30, 2014. Net cash used in operating activities decreased by $234,917 was primarily due to the absence of loss on disposal of subsidiary and the increase in accounts receivable for the nine months ended September 30, 2015. 

 

Net cash used in investing activities amounted to $317,247 for the nine months ended September 30, 2015 as compared to net cash provided by investing activities of $2,761,496 for the nine months ended September 30, 2014. Net cash used in investing activities increased by $3,078,743 was primarily due to the absence of proceed from disposal of a subsidiary.

 

Net cash provided by financing activities amounted to $939,214 for nine months ended September 30, 2015 as compared to net cash used in financing activities of $1,952,219 for the nine months ended September 30, 2014. Net cash provided by financing activities increased by $2,891,433 was primarily due to proceeds from loans payable and the decrease in repayments of short-term bank borrowing.

 

**Off-Balance Sheet Arrangements**

 

We have no off-balance sheet arrangements, financings or other relationships.

 

**Amount Due to a Related Party**

 

As of September 30, 2015, amount due to a related party represented temporary advances made by Mr. Zhang, the director of the Company, which was unsecured, interest-free with no fixed repayment term. Imputed interest is considered insignificant.

 

**Commitments and Contingencies**

 

The Company is committed under several non-cancelable operating leases for office premises and mining rights with the terms ranging from 1 to 10 years, with fixed monthly rentals or scheduled payments. Total rent expenses (excluding amortization of prepaid mining rights) for the nine months ended September 30, 2015 and 2014 was $75,417 and $88,173, respectively.

10

As of September 30, 2015, the Company has the aggregate future minimum rental payments due under these non-cancelable operating leases, as follows:

 

 

**Operating lease commitments**

 

**Office premises**

 

**Mine operating rights**

 

** Total**

Year ending September 30,

 

 

 

 

 

 

 

 

 

2016

 

$

47,837

 

$

-

 

$

47,837

2017

 

 

-

 

 

6,594,479

 

 

6,594,479

 

 

 

 

 

 

 

 

 

 

Total:

 

$

47,837

 

$

6,594,479

 

$

6,642,316

**Subsequent Events**

 

The company evaluated subsequent events through the date the financial statements were issued and filed with this Form10-Q. There were no subsequent events that required recognition or disclosure.

**Item 3.  Quantitative and qualitative disclosures about market risk**

We are exposed to the following concentrations of risk:

 

(a)

Major customers

For the three and nine months ended September 30, 2015, no revenue was generated during the period.

For the three and nine months ended September 30, 2014, there was a single customer who accounted for 100% of the Company’s revenues with $555,957 accounts receivable balance at period-end.

A customer is located in the PRC.

(b)

Major vendors

For the three months ended September 30, 2015, there were no vendors who accounted for 10% or more of the Company’s purchases.

For the nine months ended September 30, 2015, there was a single vendor who accounted for 81% of the Company’s purchase with no accounts payable balance at period-end.

For the three and nine months ended September 30, 2014, the vendors who account for 10% or more of the Company’s purchases and its outstanding balance at period-end date, are presented as follows:

 

 

 

**Three months ended**

**September 30, 2014**

 

**September 30,**

**2014**

  Vendor

 

 

**Purchases**

 

**Percentage**

**of purchases**

 

**Accounts**

**payable, trade**

Vendor A

 

 

$

343,644

 

100%

 

$

170,743

 

 

 

**Nine months ended**

**September 30, 2014**

 

**September 30,**

**2014**

  Vendor

 

 

**Purchases**

 

**Percentage**

**of purchases**

 

**Accounts**

**payable, trade**

  Vendor A

 

 

$

959,076

 

79%

 

$

170,743

  Vendor B

 

 

 

252,228

 

21%

 

 

89,684

 

Total:

 

$

1,211,304

 

100%

 

$

260,427

All vendors are located in the PRC.

(c) Credit risk

11

 

Financial instruments that are potentially subject to credit risk consist principally of accounts receivables. The Company believes the concentration of credit risk in its accounts and retention receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. Credit is extended based on evaluation of a customer's financial condition. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.

 

(d) Exchange rate risk

 

The reporting currency of the Company is US$, to date the majority of the revenues and costs are denominated in RMB and a significant portion of the assets and liabilities are denominated in RMB. As a result, the Company is exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between US$ and RMB. If RMB depreciates against US$, the value of RMB revenues and assets as expressed in US$ financial statements will decline. The Company does not hold any derivative or other financial instruments that expose to substantial market risk.

 

(f) Economic and political risks

 

The Company's operations are conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy.

The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation.

 

(g) Mining industry risks

 

The Company's mining operations are subject to extensive national and local governmental regulations in China, which regulations may be revised or expanded at any time. Generally, compliance with these regulations requires the Company to obtain permits issued by government regulatory agencies. Certain permits require periodic renewal or review of their conditions. The Company cannot predict whether it will be able to obtain or renew such permits or whether material changes in permit conditions will be imposed. The inability to obtain or renew permits or the imposition of additional conditions could have a material adverse effect on the Company's ability to develop and operate its mines.

 ** **

(h) Risk on changing price in gold

 

At present, the price of gold in the PRC is generally in line with the price of gold in the international market. There are many factors influencing the price of gold in the international market, including the international economic situation (in particular the economic situation in the US), petroleum prices, fluctuations in the exchange rates of the US$, fluctuations in the stock and other financial investment markets and various political, military, social and economic contingencies. These factors are beyond the control of the Company. Changes in the prices of the gold in the PRC and in the exchange rate of Renminbi as a result of these may adversely affect the operating results of the Company. Under the relevant PRC laws and regulations, hedging activities presently are not permitted in gold tracing in the PRC market. The Company has not been involved in hedging transactions or any alternative measures to manage the potential price risk. 

 

**Item 4.  Controls and procedures**

***Evaluation of Disclosure Controls and Procedures***

 

In accordance with the rules required by the SEC for information required to be disclosed, in this annual report, the Company’s management evaluated, with the participation of the Company’s Principal Executive Officer and Principal Financial Officer, the effectiveness and the operation of the Company’s disclosure controls and procedures. Based upon their evaluation of these disclosure controls and procedures, Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective for accumulating recording, processing, summarizing and communicating, to the Company’s management, to ensure timely decisions regarding disclosure information needed within the time periods specified in the SEC rules and forms.

 

*Management’s Report on Internal Control over Financial Reporting*

 

12

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Exchange Act Rule 13a - 15(f). Our internal control system was designed to provide reasonable assurance to our management and the Board of Directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Our management assessed the effectiveness of our internal control over financial reporting as of September 30, 2015. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control - Integrated Framework - Guidance for Smaller Public Companies (the COSO criteria). Based on our assessment we believe that, as of September 30, 2015, our internal control over financial reporting is effective based on those criteria.

 

This report does not include an attestation report by our independent registered public accounting firm, regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s independent registered public accounting firm pursuant to temporary rules of the SEC that permits the Company to only provide management’s report in this Form 10-K.

 

*Changes in Internal Control over Financial Reporting*

 

There were no changes in our internal control over financial reporting that occurred during the quarter ended September 30, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**PART II**

**Item 1.  Legal Proceedings
 

None.

**Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds**

None.

  

**Item 3.  Defaults Upon Senior Securities**

None.

**Item 4.  Mine Safety Disclosures**

Not applicable.

**Item 5.  Other Information**

None

**Item 6.  Exhibits
(a) The following listed exhibits are filed as a part of this quarterly report:

 

**Exhibit**

**No.**

 

**Description**

31.1

 

Rule 13a-14(a)/15d-14(a) certification of Principal Executive Officer*

31.2

 

Rule 13a-14(a)/15d-14(a) certification of Principal Accounting Officer*

32.1

 

Certification pursuant to 18 USC, section 1350 of Principal Executive Officer*

32.2

 

Certification pursuant to 18 USC, section 1350 of Principal Accounting Officer*

 

The following exhibits marked with one asterisk have been omitted from this filing, are incorporated herein by this reference and can be found in their entirety in our original Form S-1 registration statement filed on July 2, 2010. The following exhibits marked with two asterisks have been omitted in this filing, are incorporated herein by this reference and can be found in their entirety in our Form S-1/A-1 filed on September 22, 2010. The following exhibits marked with three asterisks have been omitted in this filing, are incorporated herein by this reference and can be found in their entirety in our Form S-1/A-2 filed on October 26, 2010. All documents listed can be found on the SEC website at www.sec.gov under our CIK Number 0001493893.

13

 

**Exhibit No.**

 

**Description**

2

* Share Exchange Agreement

3.1

* Articles of Incorporation

3.2

* Bylaws

4

* Form of Common Stock Certificate

5

* Opinion of Michael M. Kessler, Esq. re: Legality (** Amended Opinion filed with Form S1/A-1 on September 22, 2010)

10.1

* Operating Lease Agreement for Cunli Ji Gold Mine

10.2

* Acquisition Agreement for Cunli Ji Gold Mine

10.3

* Option Agreement to Purchase Equity Interests by and among Shoujin Business Consulting (Shenzhen), Shenzhen ShouGuan Investment Limited, Yantai JinGuan Investment Limited and Penglai XinGuan Investment Limited

10.4

* Equity Pledge Agreement

10.5

* Operating Agreement

10.6

* Exclusive Technical Service and Business Consulting Agreement

10.7

 

* Proxy Agreement

10.9

 

* Office Lease - Yantai, China

10.10

 

* Office Lease - Shenzhen, China

10.11

 

** Master Agreement between Penglai City Gold Mining Holding Co. Limited and Penglai XinGuan Investment Limited

10.12

 

** Construction Project Agreement between Penglai XinGuan Investment Limited and Jinhai Mine Underground Engineering Limited

10.12(a)

 

***Renewed Construction Project Agreement to extend one year term to August 28, 2011

10.13

 

** Gold Concentrate Processing Agreement between XinGuan and Shandong Humon Smelting Co., Ltd.

14

 

* Code of Ethics

21

 

* List of Subsidiaries/Variable Interest Entities of Registrant

23.2

 

* Consent of Michael M. Kessler, Esq. (see Exhibit 5)

**SIGNATURES**

 

Pursuant to the requirements of the Securities Exchange Act of 1933, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 23, 2015.

 

China ShouGuan Mining Corporation , Registrant

 

By: /s/ Feize Zhang

Feize Zhang

Chairman and Principal Executive Officer

Pursuant to the requirements of the Securities Act of 1933, this report has been signed by the following persons in the capacities indicated on November 23, 2015.

 

China ShouGuan Mining Corporation , Registrant

 

By: /s/ Feize Zhang

Feize Zhang

Chairman and Principal Executive Officer

 

By: /s/ Chengqing Tan

Chengqing Tan

Principal Financial Officer

14****** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|