Note 3 - Summary of Significant Accounting Policies	9 Months Ended
Mar. 31, 2020
Notes to Financial Statements
Significant Accounting Policies [Text Block]	3. Summary of Significant Accounting Policies The Company ’s significant accounting policies are described below . Management Estimates. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates . Cash Equivalents. Cash equivalents are considered to be highly liquid securities having an original maturity of 90 days or less at the date of acquisition . Stock-Based Compensation . The Company applies the fair value method of accounting for stock-based compensation. Under this method, compensation cost is measured at the grant date based on the fair value of the award and is recognized over the award vesting period. The Company classifies the benefits of tax deductions in excess of the compensation cost recognized for the options (excess tax benefit) as financing cash flows. The fair value of each option award is estimated as of the date of grant using the Black-Scholes option-pricing model. The fair value of each restricted stock award is equal to the Company’s stock price on the date the award is granted . Income Taxes. The Company follows the liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements and (ii) operating loss and tax credit carry-forwards for tax purposes. Deferred tax assets are reduced by a valuation allowance when, based upon management’s estimates, it is more likely than not that a portion of the deferred tax assets will not be realized in a future period. The Company recognized a full valuation allowance as of March 31, 2020 and June 30, 2019 and has not recognized any tax provision or benefit for any of the periods. The Company reviews its tax positions quarterly for tax uncertainties. The Company did not have any uncertain tax positions as of March 31, 2020 or June 30, 2019. The Tax Cuts and Jobs Act was signed into law on December 22, 2017, and enacts significant changes to U.S. income tax and related laws. Among other things, the Tax Cuts and Jobs Act reduces the top U.S. corporate income tax rate from 35.0% to 21.0%, and makes changes to certain other business-related exclusions, deductions and credits. The Company has assessed the impact of the tax bill on the financial statements as of March 31, 2020. Due to the Company’s full valuation allowance, the changes to the income tax provision as a result of the bill are not expected to have a consolidated financial statement impact. On March 27, 2020, the United States enacted the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"). The CARES Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the United States economy and fund a nationwide effort to curtail the effect of COVID- 19. While the CARES Act provides sweeping tax changes in response to the COVID- 19 pandemic, some of the more significant provisions which are expected to impact the Company’s financial statements include removal of certain limitations on utilization of net operating losses and increasing the loss carryback period for certain losses to five years, as well as amending certain provisions of the previously enacted Tax Cuts and Jobs Act. Due to the recent enactment of the CARES Act, the Company is still evaluating the impact, if any, that the CARES Act will have on its financial position, results of operations or cash flows. Investment in the Joint Venture Company. T he Company’s consolidated financial statements include the investment in the Joint Venture Company which is accounted for under the equity method. The Company has designated one of the three members of the Management Committee and on March 31, 2020 held a 60.0% ownership interest in the Joint Venture Company. Royal Gold currently serves as the Manager of the Joint Venture Company and manages, directs, and controls operations of the Joint Venture Company. The Company recorded its investment at the historical cost of the assets contributed. The cumulative losses of the Joint Venture Company exceed the historical cost of the assets contributed to the Joint Venture Company; therefore the Company’s investment in the Joint Venture Company as of March 31, 2020 and June 30, 2019 is zero. The portion of the cumulative loss that exceeds the Company’s investment will be suspended and recognized against earnings, if any, from the investment in the Joint Venture Company in future periods . Recently Issued Accounting Pronouncements. In February 2016, the Financial Accounting Standards Board “FASB” issued Accounting Standards Update "ASU" 2016 - 02, Leases (Topic 842 ) , which requires recognition of right-of-use assets and lease payment liabilities on the balanc e sheet by lessees for all leases with terms greater than twelve months. Classification of leases as either a finance or operating lease will determine the recognition, measurement and presentation of expenses. ASU 2016 - 02 also requires certain quantitative and qualitative disclosures about leasing arrangements. The Joint Venture Company owns the Tetlin lease and any impact of the new standard related to that lease will be evaluated at the Joint Venture Company level. The new standard was adopted in July 2019. Adopting this standard did not have an impact on the Company's financials. In January 2020, the FASB issued ASU 2020 - 01, Investments—Equity Securities (Topic 321 ), Investments— Equity Method and Joint Ventures (Topic 323 ), and Derivatives and Hedging (Topic 815 ), which clarifies the interaction between the three standards. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company accounts for the Joint Venture Company under the equity method of accounting. We do not anticipate that this update will have a material impact on our financial statements. The Company has evaluated all other recent acco unting pronouncements and believes that none of them will have a significant effect on the Company’s consolidated financial statements .

Summary of Significant Accounting Policies

The Company

’s significant accounting policies are described below

Management Estimates.

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates

Cash Equivalents.

Cash equivalents are considered to be highly liquid securities having an original maturity of

days or less at the date of acquisition

Stock-Based Compensation

. The Company applies the fair value method of accounting for stock-based compensation. Under this method, compensation cost is measured at the grant date based on the fair value of the award and is recognized over the award vesting period. The Company classifies the benefits of tax deductions in excess of the compensation cost recognized for the options (excess tax benefit) as financing cash flows. The fair value of each option award is estimated as of the date of grant using the Black-Scholes option-pricing model. The fair value of each restricted stock award is equal to the Company’s stock price on the date the award is granted

Income Taxes.

The Company follows the liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements and (ii) operating loss and tax credit carry-forwards for tax purposes. Deferred tax assets are reduced by a valuation allowance when, based upon management’s estimates, it is more likely than

not

that a portion of the deferred tax assets will

not

be realized in a future period. The Company recognized a full valuation allowance as of

March 31, 2020

and

June 30, 2019

and has

not

recognized any tax provision or benefit for any of the periods. The Company reviews its tax positions quarterly for tax uncertainties. The Company did

not

have any uncertain tax positions as of

March 31, 2020

June 30, 2019.

The Tax Cuts and Jobs Act was signed into law on

December 22, 2017,

and enacts significant changes to U.S. income tax and related laws. Among other things, the Tax Cuts and Jobs Act reduces the top U.S. corporate income tax rate from

35.0%

21.0%,

and makes changes to certain other business-related exclusions, deductions and credits.

The Company has assessed the impact of the tax bill on the financial statements as of

March 31, 2020.

Due to the Company’s full valuation allowance, the changes to the income tax provision as a result of the bill are

not

expected to have a consolidated financial statement impact.

March 27, 2020,

the United States enacted the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"). The CARES Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the United States economy and fund a nationwide effort to curtail the effect of COVID-

19.

While the CARES Act provides sweeping tax changes in response to the COVID-

pandemic, some of the more significant provisions which are expected to impact the Company’s financial statements include removal of certain limitations on utilization of net operating losses and increasing the loss carryback period for certain losses to

five

years, as well as amending certain provisions of the previously enacted Tax Cuts and Jobs Act. Due to the recent enactment of the CARES Act, the Company is still evaluating the impact, if any, that the CARES Act will have on its financial position, results of operations or cash flows.

Investment in the Joint Venture Company.

he Company’s consolidated financial statements include the investment in the Joint Venture Company which is accounted for under the equity method. The Company has designated

one

of the

three

members of the Management Committee and on March

31,

2020

held a

60.0%

ownership interest in the Joint Venture Company. Royal Gold currently serves as the Manager of the Joint Venture Company and manages, directs, and controls operations of the Joint Venture Company. The Company recorded its investment at the historical cost of the assets contributed. The cumulative losses of the Joint Venture Company exceed the historical cost of the assets contributed to the Joint Venture Company; therefore the Company’s investment in the Joint Venture Company as of

March 31, 2020

and

June 30, 2019

is zero. The portion of the cumulative loss that exceeds the Company’s investment will be suspended and recognized against earnings, if any, from the investment in the Joint Venture Company in future periods

Recently Issued Accounting Pronouncements.

February 2016,

the Financial Accounting Standards Board “FASB” issued Accounting Standards Update "ASU"

2016

02,

Leases (Topic

842

)

, which requires recognition of right-of-use assets and lease payment liabilities on the balanc

e sheet by lessees for all leases with terms greater than

twelve

months. Classification of leases as either a finance or operating lease will determine the recognition, measurement and presentation of expenses. ASU

2016

also requires certain quantitative and qualitative disclosures about leasing arrangements. The Joint Venture Company owns the Tetlin lease and any impact of the new standard related to that lease will be evaluated at the Joint Venture Company level. The new standard was adopted in

July 2019.

Adopting this standard did

not

have an impact on the Company's financials.

January 2020,

the FASB issued ASU

2020

01,

Investments—Equity Securities (Topic

321

), Investments— Equity Method and Joint Ventures (Topic

323

), and Derivatives and Hedging (Topic

815

which clarifies

the interaction between the

three

standards.

For public business entities, the amendments in this update are effective for fiscal years beginning after

December 15, 2020,

and interim periods within those fiscal years. The Company accounts for the Joint Venture Company under the equity method of accounting. We do

not

anticipate that this update will have a material impact on our financial statements.

The Company has evaluated all other recent acco

unting pronouncements and believes that

none

of them will have a significant effect on the Company’s consolidated financial statements