UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): November 7, 2007

General Moly, Inc.
(Exact Name of Registrant as Specified in Its Charter)
 
Delaware
(State or Other Jurisdiction of Incorporation)
 

001-32986
91-0232000
(Commission File Number)
(IRS Employer Identification No.)
   
1726 Cole Blvd., Suite 115, Lakewood, CO
80401
(Address of Principal Executive Offices)
(Zip Code)

(303) 928-8599
(Registrant’s Telephone Number, Including Area Code)
 
Idaho General Mines, Inc.
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

Item 4.02 Non-Reliance on Previously Issued Financial Statements or Related Audit Report or Completed Interim Review

Company management and the Company’s audit committee undertook an internal review of the Company’s financial statements included in the Form 10-KSB for the year ended December 31, 2006 and in the Form 10-QSB for the six months ended June 30, 2007 to, among other things, ensure that its prior financial statements were fairly presented.

As a result of this internal review, Company management and the Company’s audit committee concluded, on November 7, 2007, that, due to material errors principally in its accounting for equity instruments issued to employees and non-employees for the year ended December 31, 2004, the Company’s previously issued financial statements for the years ended December 31, 2006, 2005 and 2004, the interim financial statements for each of the quarters in the years ended December 31, 2006 and the first and second quarters in 2007 (collectively, the “previously issued financial statements”) should no longer be relied upon. Accordingly, Company management concluded that the Company will restate its previously issued financial statements and file an amended Annual Report on Form 10-KSB/A for the year ended December 31, 2006, and amended Quarterly Reports on Form 10-QSB/A for the quarters ended March 31, 2007 and June 30, 2007, as soon as practical.

These errors had no impact on the Company’s cash position and impacted the following captions of the Company’s previously issued financial statements: property research, exploration and development expenses, general and administrative expenses, total assets, current liabilities and shareholders’ equity. At June 30, 2007, the cumulative effect of all changes was an increase in property research, exploration and development expense of $423,000, an increase in general and administration expense of $186,000, a decrease in realized loss on marketable securities of $321,000, and an increase to our shareholders’ equity of $363,000. The specific details of the errors found and the effects on the previously issued financial statements are discussed and summarized below.

Company management determined that the Company’s accounting for certain employee services received in exchange for an award of equity instruments and equity instruments issued to non-employees in exchange for goods and services during the year ended December 31, 2004 was not in compliance with generally accepted accounting principles. Specifically, in the year ended December 31, 2004, the following material errors occurred:

 
·
The Company incorrectly applied the guidance in FASB Statement 123 - Accounting for Stock-Based Compensation, and FASB Statement 123(R) -Share Based Payment in accounting for individual equity awards granted to employees.
 
·
The Company incorrectly applied the guidance in EITF 96-18 - Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Connection with Selling Goods and Services in accounting for equity instruments issued to non-employees in exchange for goods and services.

In addition to the errors discussed above, Company management found certain other errors in previously issued financial statements for each of the periods from January 1, 2004 through June 30, 2007. Company management determined that, while these errors are not material individually or in the aggregate to the financial statements taken as a whole, it will correct the errors in connection with the filing of the restated financial statements discussed above. Specifically, in the previously issued financial statements the following are also being corrected:
 
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·
The Company expensed certain costs incurred related to stock offerings rather then offsetting such costs against the proceeds of the respective offerings.
 
·
The Company failed to accrue for certain obligations in the appropriate period.
 
·
The Company incorrectly allocated a portion of the cash consideration paid for water rights to non-marketable securities and subsequently impaired such securities, rather than allocating this portion of the consideration to the purchase of such water rights.

Company management and the Company’s audit committee have discussed the matters disclosed in this Form 8-K with the Company’s independent registered public accounting firm, PricewaterhouseCoopers LLP.

The impact of these errors on each of the Company’s previously issued financial statements, are set forth in the table below (in thousands except per share amounts).

 
As Originally
Reported
As Restated
Impact of the error
Increase (Decrease)
Income Statement for the year ended December 31, 2004
      
Property research, exploration and development expenses
$1,596
$1,822
$226
General and administrative expenses
812
1,254
442
Net loss
2,337
3,004
668
Basic and fully diluted loss per share
.39
.50
.11
       
Income Statement for the year ended December 31, 2005
      
Property research, exploration and development expenses
$2,397
2,384
(13)
General and administrative expenses
2,128
2,120
(8)
Net loss
4,518
4,498
(20)
Basic and fully diluted loss per share
.31
.31
-
       
Income Statement for the year ended December 31, 2006
      
Property research, exploration and development expenses
$6,021
6,146
125
General and administrative expenses
7,320
7,076
(244)
Realized loss on marketable securities
321
0
(321)
Net loss
12,745
12,305
(440)
Basic and fully diluted loss per share
.34
.33
(.01)
 
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Income Statement for the three months ended March 31, 2007
      
Property research, exploration and development expenses
3,912
3,842
(70)
General and administrative expenses
5,403
5,399
(4)
Net loss
9,147
9,073
(74)
Basic and fully diluted loss per share
.21
.21
-
       
Income Statement for the six months ended June 30, 2007
      
Property research, exploration and development expenses
$10,070
10,155
85
General and administrative expenses
8,936
8,932
(4)
Net loss
18,477
18,558
81
Basic and fully diluted loss per share
.38
.38
-
       
Balance Sheet at January 1, 2005
      
Land and Mining Claims
$481
$874
$393
Total Assets
1,222
1,615
393
Current Liabilities
27
40
13
Additional Paid in Capital
3,822
4,869
1,047
Accumulated Deficit
(2,639)
(3,307)
(668)
Total Stockholders’ Equity
1,195
1,575
380
       
Balance Sheet at December 31, 2005
      
Land and Mining Claims
497
889
393
Total Assets
850
1,243
393
Additional Paid in Capital
7,146
8.214
1,068
Accumulated Deficit
(7,157)
(7,804)
(648)
Total Stockholders’ Equity
34
427
393
       
Balance Sheet at December 31, 2006
      
Land and Mining Claims
7,885
8,598
713
Total Assets
26,391
27,104
713
Accrued Liabilities
970
1,095
125
Additional Paid in Capital
45,221
46,017
796
Accumulated Deficit
(19,902)
(20,109)
(207)
Total Stockholders’ Equity
25,362
25,951
589
 
 
4
 
Balance Sheet at March 31, 2007
      
Land and Mining Claims
12,611
13,324
713
Total Assets
37,999
38,712
713
Additional Paid in Capital
49,676
50,397
721
Accumulated Deficit
29,049
29,182
(133)
Total Stockholders’ Equity
35,012
35,600
588
       
Balance Sheet at June 30, 2007
      
Land and Mining Claims
16,958
17,671
713
Total Assets
46,249
46,962
713
Accrued Liabilities
2,895
3,245
350
Additional Paid in Capital
81,268
81,919
651
Accumulated Deficit
(38,380)
(38,669)
(289)
Total Stockholders’ Equity
42,943
43,306
363

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
     
 
GENERAL MOLY, INC.
(Registrant)
 
 		  
 		  
 
Date: November 14, 2007 By:   /s/ David A. Chaput
 
David A. Chaput
 
Chief Financial Officer

 
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