UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

~~(Mark One)~~

☑

~~QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934~~

~~For the quarterly period ended September 30, 2017~~

☐

~~TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934~~

~~For the transition period _____ to _____~~

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended March 31, 2020
	OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to

Commission ~~file number~~File No. 001-08675

UNITED STATES ANTIMONY CORPORATION

(Exact name of ~~registrant~~Registrant as specified in its ~~charter~~)charter)

Montana		81-0305822
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

~~P.O. Box 643, Thompson Falls, Montana~~	P.O. Box 643, Thompson Falls, Montana	~~59873~~
(Address of principal executive offices)		~~(Zip code)~~

Registrant’s telephone ~~number, including area code:~~number: ~~(406) 827-3523~~(406 )827-3523

~~Indicate by check mark~~Securities registered pursuant to Section 12(g) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.01 par value	UAMY	NYSE American

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 ☑~~Yes ☒ 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 ☑~~Yes ☒ No ☐

~~Indicate by check mark whether the registrant is a shell company as defined by Rule 12b-2 of the Exchange Act. YES ☐ No ☑~~

~~At November 14, 2017, the registrant had outstanding 67,488,153 shares of par value $0.01 common stock.~~

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and ~~“smaller reporting~~“emerging growth company” in Rule 12b-2 of the Exchange ~~Act.~~Act:

Large ~~accelerated filer ☐~~		Accelerated ~~filer~~Filer ☐		~~Non-accelerated filer~~Accelerated Filer ☐		~~Smaller reporting company ☑~~
Non-Accelerated Filer ☐	Small Reporting Company ☒			~~(Do not check if a smaller reporting company)~~		Emerging Growth Company ☐

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

Yes ☐ No ☒

APPLICABLE ONLY TO CORPORATE ISSUERS:

At May 15, 2020, the registrant had outstanding 69,911,436 shares of par value $0.01 common stock.

UNITED STATES ANTIMONY CORPORATION

QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD

ENDED ~~SEPTEMBER 30, 2017~~

~~(UNAUDITED)~~MARCH 31, 2020

TABLE OF CONTENTS

	Page
PART I – FINANCIAL INFORMATION

Item 1: Financial Statements (unaudited)	~~1-12~~1-14

Item 2: Management’s Discussion and Analysis of Results of Operations and Financial Condition	~~12-17~~ 15-17

Item 3: Quantitative and Qualitative Disclosure about Market Risk	17

Item 4: Controls and Procedures	17


PART II – OTHER INFORMATION

Item 1: Legal Proceedings	18

~~PART II – OTHER INFORMATION~~

~~Item 1: Legal Proceedings~~	19

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds	18

Item 3: Defaults upon Senior Securities	18

Item 4: Mine Safety Disclosures	18

Item 5: Other Information	18

Item 6: Exhibits and Reports on Form 8-K	18

SIGNATURE	19

~~Item 3: Defaults upon Senior Securities~~	19

~~Item 4: Mine Safety Disclosures~~	19

~~Item 5: Other Information~~	19

~~Item 6: Exhibits and Reports on Form 8-K~~	19

~~SIGNATURE~~	20

CERTIFICATIONS	20--23

[The balance of this page has been intentionally left blank.]

PART I-FINANCIAL INFORMATION

Item 1. Financial Statements

United States Antimony Corporation and Subsidiaries

Consolidated ~~Balance~~Balance Sheets (Unaudited)

ASSETS			ASSETS
	(Unaudited)		March 31, 2020	December 31, 2019
ASSETS	September 30, 2017	December 31, 2016
Current assets:
Cash and cash equivalents	$27,576	$10,057	$23,068	$115,506
Certificates of deposit	252,298	251,641	254,212	253,552
Accounts receivable, net	496,397	552,119
Accounts receivable			229,692	284,453
Inventories	939,880	855,637	642,893	626,244
Other current assets	23,890	23,101
Total current assets	1,740,041	1,692,555	1,149,865	1,279,755

Properties, plants and equipment, net	15,338,206	15,695,966	12,056,838	12,186,848
Restricted cash for reclamation bonds	63,275	63,274	57,261
Foreign value added tax refund receivable	365,120	276,500
Other assets	32,520	37,703
IVA receivable and other assets			168,028	170,111
Total assets	$17,539,162	$17,765,998	$13,431,992	$13,693,975

LIABILITIES AND STOCKHOLDERS' EQUITY			LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Checks issued and payable	$48,408	$35,682	$73,735	$17,633
Accounts payable	2,199,458	1,797,251	2,304,449	2,328,977
Due to factor	163,737	150,399	17,227	10,880
Accrued payroll, taxes and interest	162,833	213,695	222,653	260,800
Other accrued liabilities	153,273	122,968	357,982	334,208
Payables to related parties	16,322	14,525
Payables to related party			297,799	359,309
Deferred revenue	78,730		32,400
Notes payable to bank	103,026	167,317	199,554	197,066
Income taxes payable (Note 11)	459,510	410,510
Long-term debt, current portion, net of discount	495,134	391,046
Hillgrove advances payable (Note 10)			378,074
Long-term debt, current portion			55,802	56,334
Total current liabilities	3,880,431	3,382,123	3,939,675	3,975,681

Long-term debt, net of discount and current portion	1,282,981	1,472,869
Hillgrove advances payable (Note 8)	1,134,196	1,134,221
Common stock payable to directors for services	131,250	168,750
Long-term debt, net of current portion			66,388	76,762
Hillgrove advances payable (Note 10)			756,147
Stock payable to directors for services			162,500	134,375
Asset retirement obligations and accrued reclamation costs	270,124	265,782	286,522	283,868
Total liabilities	6,698,982	6,423,745	5,211,232	5,226,833
Commitments and contingencies (Note 5 and 11)
Commitments and contingencies (Note 4 and 10)

Stockholders' equity:
Preferred stock $0.01 par value, 10,000,000 shares authorized:
Series A: -0- shares issued and outstanding	-		-
Series B: 750,000 shares issued and outstanding
(liquidation preference $909,375 and $907,500
(liquidation preference $937,500 and $930,000
respectively)	7,500		7,500
Series C: 177,904 shares issued and outstanding
(liquidation preference $97,847)	1,779
(liquidation preference $97,847 both years)			1,779
Series D: 1,751,005 shares issued and outstanding
(liquidation preference $5,014,692 and $4,920,178
(liquidation preference $5,043,622 and $5,002,473
respectively)	17,509		17,509
Common stock, $0.01 par value, 90,000,000 shares authorized;
67,488,153 and 67,066,278 shares issued and outstanding, respectively	674,881	670,662
69,911,436 and 69,661,436 shares issued and outstanding, respectively			699,114	696,614
Additional paid-in capital	36,239,264	36,074,733	37,167,730	37,107,730
Accumulated deficit	(26,100,753)	(25,429,930)	(29,672,872)	(29,363,990)
Total stockholders' equity	10,840,180	11,342,253	8,220,760	8,467,142
Total liabilities and stockholders' equity	$17,539,162	$17,765,998	$13,431,992	$13,693,975

The accompanying notes are an integral part of the consolidated financial statements.

United States Antimony Corporation and Subsidiaries
Consolidated Statements of Operations (Unaudited)

	For the three months ended
	March 31, 2020	March 31, 2019

REVENUES	$1,742,991	$2,456,365

COST OF REVENUES	1,641,814	2,525,418

GROSS PROFIT (LOSS)	101,177	(69,053)

OPERATING EXPENSES:
General and administrative	199,971	205,174
Salaries and benefits	94,969	232,668
Other operating expenses	24,225	76,130
Professional fees	84,958	100,742
TOTAL OPERATING EXPENSES	404,123	614,714

INCOME (LOSS) FROM OPERATIONS	(302,946)	(683,767)

OTHER INCOME (EXPENSE):
Interest income	804	741
Interest expense	(4,748)	(22,488)
Factoring expense	(1,992)	(1,946)
TOTAL OTHER INCOME (EXPENSE)	(5,936)	(23,693)

NET LOSS	(308,882)	(707,460)
Preferred dividends	(12,162)	(12,162)

Net loss available to common stockholders	$(321,044)	$(719,622)

Net income (loss) per share of
common stock:
Basic and diluted	Nil	$(0.01)

Weighted average shares outstanding:
Basic	69,697,150	68,394,204
Diluted	69,697,150	68,394,204

The accompanying notes are an integral part of the consolidated financial statements.

United States Antimony Corporation and Subsidiaries
Consolidated Statement of Changes in Stockholders' Equity (Unaudited)
For the periods ended March 31, 2020 and and March 31, 2019


	Total Preferred Stock		Common Stock		Additional		Total
					Paid	Accumulated	Stockholders'
Quarter ended March 31, 2020	Shares	Amount	Shares	Amount	In Capital	Deficit	Equity

Balances, December 31, 2019	2,678,909	$26,788	69,661,436	$696,614	$37,107,730	$(29,363,990)	$8,467,142

Issuance of common stock upon exercise of warrants (Note 10)			250,000	2,500	60,000		62,500

Net loss						(308,882)	(308,882)
Balances, March 31, 2020	2,678,909	$26,788#	69,911,436	$699,114	$37,167,730	$(29,672,872)	$8,220,760

					Additional		Total
					Paid	Accumulated	Stockholders'
Quarter ended March 31, 2019	Shares	Amount	Shares	Amount	In Capital	Deficit	Equity

Balances, December 31, 2018	2,678,909	$26,788	68,227,171	$682,271	$36,406,874	$(25,691,099)	$11,424,834

Issuance of common stock to chief financial officer			200,000	2,000	134,000		136,000

Net loss						(707,460)	(707,460)
Balances, March 31, 2019	2,678,909	$26,788#	68,427,171	$684,271	$36,540,874	$(26,398,559)	$10,853,374

The accompanying notes are an integral part of the consolidated financial statements.

~~United States Antimony Corporation and Subsidiaries~~

United States Antimony Corporation and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
	For the three months ended
Cash Flows From Operating Activities:	March 31, 2020	March 31, 2019
Net income (loss)	$(308,882)	$(707,460)
Adjustments to reconcile net income (loss) to net cash
provided (used) by operating activities:
Depreciation and amortization	226,281	223,273
Amortization of debt discount	-	18,037
Accretion of asset retirement obligation	2,654	1,537
Common stock issued for services	-	136,000
Common stock payable for directors fees	28,125	31,250
Other, net	(660)	(598)
Change in:
Accounts receivable	54,761	103,205
Inventories	(16,649)	(132,387)
IVA receivable and other assets	2,083	(34,018)
Accounts payable	(24,528)	119,082
Accrued payroll, taxes and interest	(38,147)	103,426
Other accrued liabilities	23,774	24,099
Payables to related party	14,923	28,964
Net cash provided (used) by operating activities	(36,265)	(85,590)

Cash Flows From Investing Activities:
Payment received on note receivable	-	400,000
Purchase of properties, plants and equipment	(96,271)	(312,568)
Net cash provided (used) by investing activities	(96,271)	87,432

Cash Flows From Financing Activities:
Change in checks issued and payable	56,102	(845)
Net borrowing from factor	6,347	(11,084)
Payments on advances from related party	(13,933)	-
Advance from related party, net	-	125,200
Borrowing on notes payable to bank, net	2,488	-
Principal paid on notes payable to bank	-	(70,792)
Principal payments of long-term debt	(10,906)	(57,467)
Net cash provided (used) by financing activities	40,098	(14,988)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS	(92,438)	(13,146)
Cash and cash equivalents and restricted cash at beginning of period	172,767	113,897
Cash and cash equivalents and restricted cash at end of period	$80,329	$100,751

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Noncash investing and financing activities:
Common stock issued for services		$136,000
Payable to related party satisfied with exercise of stock purchase warrant (Note 10)	$62,500

~~Consolidated Statements of Operations (Unaudited)~~

For the three months ended

For the nine months ended

September 30,
2017

September 30,
2016

September 30,
2017

September 30,
2016

REVENUES
$2,369,714
$2,846,699
$7,827,525
$9,166,628





COST OF REVENUES
  2,315,646
  2,888,660
  7,381,020
  8,811,663





GROSS PROFIT (LOSS)
  54,068
  (41,961)
  446,505
  354,965





OPERATING EXPENSES:




General and administrative
  228,185
  309,832
  762,745
  850,255
Professional fees
  53,045
  29,004
  190,965
  252,469
Hillgrove advance - earned credit (Note 8)
  -
  (32,813)
  -
  (109,392)
TOTAL OPERATING EXPENSES
  281,230
  306,023
  953,710
  993,332





INCOME (LOSS) FROM OPERATIONS
  (227,162)
  (347,984)
  (507,205)
  (638,367)





OTHER INCOME (EXPENSE):




Interest income
  19
  19
  857
  1,421
Interest expense
  (25,960)
  (28,343)
  (80,764)
  (57,203)
Foreign exchange gain (loss)
  2,642
  -
  (49,000)
  -
Factoring expense
  (12,104)
  (9,259)
  (34,711)
  (24,694)
TOTAL OTHER INCOME (EXPENSE)
  (35,403)
  (37,583)
  (163,618)
  (80,476)





INCOME (LOSS) BEFORE INCOME TAXES
  (262,565)
  (385,567)
  (670,823)
  (718,843)





Provision for income tax (Note 12)
  -
  (411,490)
  -
  (423,490)





NET INCOME (LOSS)
  (262,565)
  (797,057)
  (670,823)
  (1,142,333)
Preferred dividends
  (12,162)
  (12,162)
  (36,487)
  (36,487)





Net income (loss) available to common stockholders
$(274,727)
$(809,219)
$(707,310)
$(1,178,820)





Net income (loss) per share of common stock:




Basic

NIL

$(0.01)
$(0.01)
$(0.02)
Diluted

NIL

$(0.01)
$(0.01)
$(0.02)





Weighted average shares outstanding:




Basic
  67,488,153
  66,866,278
  67,387,337
  66,687,981
Diluted
  67,488,153
  66,866,278
  67,387,337
  66,687,981

The accompanying notes are an integral part of the consolidated financial statements.

~~United States Antimony Corporation and Subsidiaries~~4

~~Consolidated Statements of Cash Flows (Unaudited)~~

For the nine months ended

September 30,
2017

September 30,
2016

Cash Flows From Operating Activities:

Net income (loss)
$(670,823)
$(1,142,333)
Adjustments to reconcile net income (loss) to net cash


provided (used) by operating activities:


Depreciation and amortization expense
  637,225
  652,375
Hillgrove deferred revenue
  -
  (109,392)
Amortization of loan discount
  70,242
  73,058
Accretion of asset retirement obligation
  4,342
  4,091
Common stock payable for director fees
  131,250
  112,500
Foreign exchange loss
  49,000
  -
Other non-cash items
  (682)

Change in:


Accounts receivable, net
  55,722
  (97,444)
Inventories
  (84,243)
  356,120
Other current assets
  (790)
  70,774
Other assets
  (83,437)
  (14,990)
Accounts payable
  402,207
  26,728
Accrued payroll, taxes and interest
  (50,862)
  4,016
Other accrued liabilities
  30,305
  42,889
Foreign income tax payable
  -
  423,490
Payables to related parties
  1,797
  10,280
Net cash provided by operating activities
  491,253
  412,162



Cash Flows From Investing Activities:


Purchase of properties, plants and equipment
  (279,465)
  (459,969)
Net cash used by investing activities
  (279,465)
  (459,969)



Cash Flows From Financing Activities:


Net proceeds from (payments to) factor
  13,338
  119,111
Checks issued and payable
  12,726
  -
Principal payments on notes payable to bank (see Note 7)
  (64,291)
  (30,672)
Principal payments on long-term debt
  (156,042)
  (130,857)
Net cash provided (used) by financing activities
  (194,269)
  (42,418)



NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
  17,519
  (90,225)
Cash and cash equivalents at beginning of period
  10,057
  133,543
Cash and cash equivalents at end of period
$27,576
$43,318



SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:


Noncash investing and financing activities:


Properties, plants and equipment acquired with long-term debt

$41,648
Common stock payable issued to directors
$168,750
$137,500

~~The accompanying notes are an integral part of the consolidated financial statements.~~

PART I - FINANCIAL INFORMATION, CONTINUED:

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Basis of ~~Presentation:~~Presentation

The unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the three ~~and nine~~ month ~~periods~~period ended ~~September 30, 2017~~March 31, 2020 are not necessarily indicative of the results that may be expected for the full year ending December 31, ~~2017.~~2020.

For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2016.~~

Certain consolidated financial statement amounts for the three and nine month periods ended September 30, 2016, have been reclassified to conform to the 2017 presentation. These reclassifications had no effect on the net income (loss) or cash flows or accumulated deficit as previously reported.2019.

Going Concern Consideration

At ~~September 30, 2017, our~~March 31, 2020, the Company’s consolidated financial statements show ~~that we have a~~ negative working capital of approximately ~~$2.14~~$2.8 million and an accumulated deficit of approximately ~~$26.1~~$29.7 million. ~~In addition, we have~~With the exception of 2018, the Company has incurred losses for the ~~prior three~~past several years. The net income in 2018 was primarily due to non-recurring events which contributed approximately $2.5 million to net income. These factors indicate that there ~~may be~~is substantial doubt regarding ~~our~~the ability to continue as a going concern for the next twelve months.

~~During~~Over the past ~~twelve months,~~several years, the ~~price~~Company has been able to make required principal payments on its debt from cash generated from operations. The abandonment of the mineral properties in Mexico in November 2019 resulted in the removal of approximately $1,500,000 of debt and the related payments which were $86,000 in 2019 and $193,000 in 2018. The Company is confident it can make debt payments when due. During 2019, the Company was successful in raising $404,199 from sale of shares of its common stock to fund capital projects in Mexico.

The continuing losses are principally a result of the Company’s antimony ~~has increased from a low of $3.07 per pound~~operations due to both depressed antimony prices and production costs incurred in Mexico. To improve conditions, the Company plans to continue searching for ~~the third quarter of 2016~~areas to ~~an average price of $4.25 for the third quarter of 2017. We have gross profit and a positive~~reduce these production costs. Management expects improvement in cash flow in 2020 from ~~our U.S. operations at this price. Our operations~~the sale of precious metals extracted from the leach circuit scheduled to come on line in Mexico ~~are still~~ in ~~a transitional phase since~~ the ~~loss~~second half of our raw material supply from Hillgrove of Australia. We are focusing our production at our Wadley mine to increase grade and output, and we have recently seen ore from there assaying 50% antimony. We are also trying new production techniques, and have found that we can process direct shipping ore successfully at our Madero smelter which will result in a reduction in our operating costs in Mexico going forward.2020.

~~We have reduced costs at our Mexico locations, most notably~~There can be no assurance that management plans will alleviate the doubt regarding the Company’s ability to continue as a reduced monthly lease payment of $11,600 for the Wadley mine from $23,200 for June 2016, and we have also reduced the cost for labor at the same mine. We have reduced administrative costs by approximately $81,000 from the prior year third quarter at the corporate level. Our capital outlay should be minimal in the near future; and we completed paying for the Los Juarez mining concessions in 2016 which were a major outlay in prior years.

Our zeolite operations continue to operate profitably and provide cash to our operations. We are aggressively seeking new markets for our zeolite products, and we now have an outside sales staff that is working to obtain new customers and have had some success.

~~We believe that the combination of the above will enable us to stay in operation and meet our financial obligations for~~going concern over the next twelve months, particularly during the current period of market instability related to the COVID-19 pandemic. If the going concern assumption were not appropriate for these financial statements, then adjustments would be necessary to the carrying values of the assets and ~~further.~~liabilities, the reported revenues and expenses, and the balance sheet classifications used.

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)~~, Continued:~~

Developments in Accounting Pronouncements

Accounting Standards Updates Adopted

In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The update removes, modifies and makes additions to the disclosure requirements on fair value measurements. The update was adopted as of January 1, 2020, and its adoption did not have a material impact on the Company’s consolidated financial statements.

Accounting Standards Updates to Become Effective in Future Periods

In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update contains a number of provisions intended to simplify the accounting for income taxes. The update is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Management is evaluating the impact of this update on the Company’s consolidated financial statements.

Income (Loss) Per Common ~~Share:~~Share

Basic earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including warrants to purchase the Company's common stock and convertible preferred stock. ~~Management has determined that the calculation of diluted earnings per share for~~

For the three months ended March 31, 2020 and ~~nine month periods ended September 30, 2017 and June 30, 2016, is not applicable since any additions to outstanding shares related to common stock equivalents would be anti-dilutive.~~

~~As of September 30, 2017 and 2016,~~2019, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:

	September 30, 2017	September 30, 2016	March 31, 2020	March 31, 2019
Warrants	250,000		452,041	250,000
Convertible preferred stock	1,751,005		1,751,005
Total possible dilution	2,001,005		2,203,046	2,001,005

3.4.

~~Inventories:~~Revenue Recognition

Products consist of the following:

●

Antimony: includes antimony oxide, sodium antimonate, antimony trisulfide, and antimony metal

●

Zeolite: includes coarse and fine zeolite crushed in various sizes

●

Precious Metals: includes unrefined and refined gold and silver

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Revenue Recognition, Continued:

Sales of products for the three month periods ended March 31, 2020 and 2019, were as follows:

	Three Months Ended
	March 31,
	2020	2019
Antimony	$1,121,425	$1,705,823
Zeolite	559,360	726,015
Precious metals	62,206	24,527
	$1,742,991	$2,456,365

The following is sales information by geographic area based on the location of customers for the three-month periods ended March 31, 2020 and 2019

	Three Months Ended
	March 31,
	2020	2019
United States	$1,566,237	$2,244,400
Canada	176,754	211,965
	$1,742,991	$2,456,365

The following is sales information by geographic area based on the location of customers for the three month periods ended March 31, 2020 and 2019:

	Three Months Ended
	March 31,
	2020	2019
Antimony	$1,121,425	$1,705,823
Zeolite	559,360	726,015
Precious metals	62,206	24,527
	$1,742,991	$2,456,365

The following is sales information by geographic area based on the location of customers for the three-month periods ended March 31, 2020 and 2019

	Three Months Ended
	March 31,
	2020	2019
United States	$1,566,237	$2,244,400
Canada	176,754	211,965
	$1,742,991	$2,456,365

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Revenue Recognition, Continued:

Sales of products to significant customers were as follows for the three month periods ended March 31, 2020 and 2019:

Sales to Three	For the Period Ended
Largest Customers	March 31, 2020	March 31, 2019
Kohler Corporation	$-	$458,094
GE Chaplin, Inc.	114,291	-
Nyacol Technologies	106,161	-
East Penn Manufacturing	-	157,328
Mexichem Speciality Compounds	413,993	684,011
	$634,445	$1,299,433
% of Total Revenues	36.40%	52.90%

Accounts receivable from largest customers were as follows at March 31, 2020 and December 31, 2019:

Largest
Accounts Receivable	March 31, 2020	December 31, 2019
Nutreco Canada Inc.	$20,452	$21,219
Ralco Mix Products	16,600	-
Lake Shore Gold	-	27,854
Teck North America Inc.	78,869	-
Commerce Industrial Chemical	-	54,684
	$115,921	$103,757
% of Total Receivables	50.47%	36.48%

Our trade accounts receivable balance related to contracts with customers was $229,692 at March 31, 2020 and $284,453 at December 31, 2019. Our products do not involve any warranty agreements and product returns are not typical.

Inventories

Inventories at ~~September 30, 2017~~March 31, 2020 and December 31, ~~2016~~2019 consisted primarily of finished antimony products, antimony metal, antimony ore, and finished zeolite products that are stated at the lower of first-in, first-out cost or estimated net realizable value. Finished antimony products, antimony metal and finished zeolite products costs include raw materials, direct labor and processing facility overhead costs and freight. Inventory at ~~September 30, 2017~~March 31, 2020 and December 31, ~~2016,~~2019, is as follows:

	March 31, 2020	December 31, 2019
Antimony Oxide	$200,780	$204,550
Antimony Concentrates	-	5,654
Antimony Ore	151,841	151,841
Total antimony	352,621	362,045
Zeolite	290,272	264,199
	$642,893	$626,244

September 30,

December 31,

2017

2016

Antimony Metal
$-
$112,300
Antimony Oxide
  452,871
  326,126
Antimony Concentrates
  19,017
  30,815
Antimony Ore
  151,841
  181,815
Total antimony
  623,729
  651,056
Zeolite
  316,151
  204,581

$939,880
$855,637

Antimony oxide inventory consisted of finished product oxide held at the Company's plant in Montana. Antimony concentrates and ore were held primarily at sites in Mexico and are essentially raw material. The Company's zeolite inventory consists of salable zeolite material.

At March 31, 2020 and December 31, 2019, the antimony inventory in Mexico was valued at estimated net realizable value resulting in write-downs of $22,475 and $16,396, respectively.

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)~~, Continued:~~

4.6.

Accounts Receivable and Due to ~~Factor:~~Factor

~~The~~

Accounts Receivble	March 31, 2020	December 31, 2019
Accounts receivable - non factored	$212,465	$273,573
Accounts receivable - factored with recourse	17,227	10,880
Accounts receivable - net	$229,692	$284,453

Factoring fees paid by the Company ~~factors designated trade receivables pursuant to a factoring~~for the three months ended March 31, 2020 and 2019 were $1,992 and $1,946, respectively. For the three months ended March 31, 2020 and 2019, net accounts receivable of approximately $75,000 and $58,000, resepectively were sold under the agreement with LSQ Funding Group L.C., an unrelated factor (the “Factor”). The agreement specifies that eligible trade receivables are factored with recourse. We submit selected trade receivables to the factor, and receive 83% of the face value of the receivable by wire transfer. The Factor withholds 15% as retainage and 2% as a servicing fee. Upon payment by the customer, we receive the remainder of the amount due from the factor. ~~The 2% servicing fee is recorded on the consolidated statement of operations in the period of sale to the factor. John Lawrence, CEO, is a personal guarantor of the amount due to Factor.~~

Trade receivables assigned to the Factor are carried at the original invoice amount less an estimate made for doubtful accounts. Under the terms of the recourse provision, the Company is required to reimburse the Factor, upon demand, for factored receivables that are not paid on time. Accordingly, these receivables are accounted for as a secured financing arrangement and not as a sale of financial assets. The allowance for doubtful accounts is based on management’s regular evaluation of individual customer’s receivables and consideration of a customer’s financial condition and credit history. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. Interest is not charged on past due accounts.

~~We present the receivables, net of allowances, as current assets and we present the amount potentially due to the Factor as a secured financing in current liabilities.~~

Accounts Receivble

September 30,
2017

December 31,
2016

Accounts receivable - non factored
$332,660
$401,720
Accounts receivable - factored with recourse
163,737
150,399
Accounts receivable - net
$496,397
$552,119

5.7.

Commitments and ~~Contingencies:~~Contingencies

In June of 2013, the Company entered into a lease to mine antimony ore from concessions located in the Wadley Mining district in Mexico. The lease calls for a ~~mandatory~~ term of one year, and as of ~~September 30, 2017,~~March 31, 2020, requires payments of $10,000 plus a tax of ~~$1,600~~$1,700, per month. The lease is renewable each year with a 15 day notice to the lessor, and agreement of terms. The next lease renewal is scheduled for renewal in June ~~2018.~~

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

~~United States Antimony Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited), Continued:~~2020.

6.8.

Notes Payable to ~~Bank:~~Bank

At ~~September 30, 2017~~March 31, 2020 and December 31, ~~2016,~~2019, the Company had the following notes payable to bank:

	September 30,	December 31,	March 31,	December 31,
	2017	2016	2020	2019
Promissory note payable to First Security Bank of Missoula,
bearing interest at 3.150%, payable on demand, collateralized
by a lien on Certificate of Deposit	$3,027	$76,350	$99,923	$97,067

Promissory note payable to First Security Bank of Missoula,
bearing interest at 3.150%, payable on demand, collateralized
by a lien on Certificate of Deposit	99,999	90,967	99,631	99,999

Total notes payable to the bank	$103,026	$167,317	$199,554	$197,066

These notes are personally guaranteed by John C. Lawrence the Company’s ~~President~~Chief Executive Officer and Chairman of the Board of Directors. The maximum amount available for borrowing under each note is $99,999.

~~Long – Term Debt:~~

Long-Term debt at September 30, 2017 and December 31, 2016, is as follows:

September 30,

December 31,

2017

2016

Note payable to First Security Bank, bearing interest at 6%;

payable in monthly installments of $917; maturing

September 2018; collateralized by equipment.
$10,660
$18,246
Note payable to Cat Financial Services, bearing interest at 6%;


payable in monthly installments of $1,300; maturing


August 2019; collateralized by equipment.
  30,545
  40,556
Note payable to Wells Fargo Bank, bearing interest at 4%;


payable in monthly installments of $477; maturing


December 2016; collateralized by equipment.
  -
  473
Note payable to De Lage Landen Financial Services,


bearing interest at 3.51%; payable in monthly installments of $655;


maturing September 2019; collateralized by equipment.
  14,567
  20,581
Note payable to De Lage Landen Financial Services,


bearing interest at 3.51%; payable in monthly installments of $655;


maturing December 2019; collateralized by equipment.
  16,985
  22,944
Note payable to Phyllis Rice, bearing interest


at 1%; payable in monthly installments of $2,000; maturing


March 2015; collateralized by equipment.
  14,146
  14,146
Obligation payable for Soyatal Mine, non-interest bearing,


annual payments of $100,000 or $200,000 through 2019, net of discount.
  731,862
  776,319
Obligation payable for Guadalupe Mine, non-interest bearing,


annual payments from $60,000 to $149,078 through 2026, net of discount.
  959,350
  970,651

  1,778,115
  1,863,916
Less current portion
  (495,134)
  (391,046)
Long-term portion
$1,282,981
$1,472,870

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

7.9.

~~Long – Term~~ Debt ~~Continued:~~

Year Ending September 30,

2018
  495,134

2019
  307,810

2020
  215,795

2021
  128,742

2022
  111,467

Thereafter
  519,167


$1,778,115

Long-Term debt at March 31, 2020 and December 31, 2019 is as follows:	March 31,	December 31,
	2020	2019
Note payable to Zeo Inc., non interest bearing,
payable in 11 quarterly installments of $8,300 with a final payment of $8,700;
maturing December 2022; uncollateralized.	$91,700	$100,000
Note payable to Cat Financial Services, bearing interest at 6%;
payable in monthly installments of $778; maturing
December 2022; collateralized by equipment.	24,294	26,250
Note payable to De Lage Landen Financial Services,
bearing interest at 3.51%; payable in monthly installments of $655;
maturing September 2019; collateralized by equipment.	50	700
Note payable to Phyllis Rice, bearing interest
at 1%; payable in monthly installments of $2,000; originally maturing
March 2015; collateralized by equipment.	6,146	6,146
	122,190	133,096
Less current portion	(55,802)	(56,334)
Long-term portion	$66,388	$76,762

At March 31, 2020, principal payments on debt are due as follows:

12 Months Ending March 31,	Principal Payment
2021	55,802
2022	41,803
2023	24,585
	$122,190

8.10.

~~Hillgrove Advances Payable~~Related Party Transactions

~~On November 7, 2014,~~The Company’s President and Chairman, John Lawrence, rents equipment to the Company ~~entered into a loan~~ and ~~processing agreement with Hillgrove Mines Pty Ltd of Australia (Hillgrove) by which Hillgrove will advance~~charges the Company ~~funds~~for lodging and meals provided to ~~be used to expand their smelter in Madero, Mexico,~~consultants, customers and ~~in Thompson Falls, Montana, so~~other parties by an entity that ~~they may process antimony and gold concentrates produced by Hillgrove’s mine in Australia.~~Mr. Lawrence owns. The agreement requires that the Company construct equipment so that it can process approximately 200 metric tons of concentrate initially shipped by Hillgrove, with a provision so that the Company may expand to process more than that. The parties agreed that the equipment will be owned by USAC and USAMSA. The final terms of when the repayment takes place have not yet been agreed on. The agreement called for the Company to sell the final product for Hillgrove, and Hillgrove to have approval rights of the customers for their products. The agreement allows the Company to recover its operating costs as approved by Hillgrove, and to charge a 7.5% processing fee and a 2.0% sales commission. The initial term of the agreement is five years; however, Hillgrove may suspend or terminate the agreement at its discretion. The Company may terminate the agreement and begin using the furnaces for their own production if Hillgrove fails to recommence shipments within 365 days of a suspension notice. At September 30, 2017, the net amount due to ~~Hillgrove~~Mr. Lawrence as of March 31, 2020 and December 31, 2019 was $171,898 and $156,975, respectively. Expenses paid to Mr. Lawrence for ~~advances~~the three month periods ended March 31, 2020 and 2019 were $1,712 and $1,584, respectively

During 2019, Mr. Lawrence, advanced funds to the Company that had a balance at December 31, 2019 of $192,134. During the three month period ended March 31, 2020, the Company paid Mr. Lawrence $74,443 on these advances. A portion of this amount was ~~$1,134,196. As~~in the form of ~~September 30, 2107, repayment~~the exercise of a warrant held by Mr. Lawrence for 250,000 shares of common stock at an exercise price of $0.25 or $62,500. The balance of the advances due to Mr. Lawrence at March 31, 2020 is ~~not expected to occur within~~$117,701.

John C. Gustaven, First Vice-President of the ~~next twelve months so~~Company, has an advance due from the ~~balance is classified as a long term liability.~~Company of $8,200 and $10,200, respectively, at March 31, 2020 and December 31, 2019.

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

~~9. Concentrations of Risk:~~

11.

Stockholder’s Equity

For the Three Months Ended

For the Nine Months Ended

Sales to Three

September 30,

September 30,

September 30,

September 30,

Largest Customers

2017

2016

2017

2016

Ampacet Corporation
$150,234
$-
$-
$-
Mexichem Specialty Compounds Inc.
  909,965
  414,157
  2,466,388
  1,524,253
Kohler Corporation
  512,451
  362,770
  1,458,949
  972,083
East Penn Corporation
  -
  245,514
  512,641
  965,564

$1,572,650
$1,022,441
$4,437,978
$3,461,900
% of Total Revenues
  66%
  36%
  57%
  38%





During the quarters ended March 31, 2020 and March 31, 2019, the Company accrued $28,125 and $31,250, respectively, in directors’ fees payable that will be paid in common stock.

Three Largest
Accounts Receivable

September 30,
2017

September 30,
2016

Kohler Corporation
$169,991
$133,705


Earth Innovations Inc.
  31,522
  33,150


Axens North America, Inc.
  31,237
  -


East Penn Corporation
  -
  135,828



$232,750
$302,683


% of Total Receivables
  47.00%
  58.20%


In January 2019, the Company issued Daniel Parks, the Company’s Chief Financial Officer, 200,000 shares of the Company’s common stock with a fair value of $136,000 to retain his services. As part of the agreement, Mr. Parks’ hours worked and financial compensation has been reduced.

During the quarter ended March 31, 2020, the Company issued 250,000 shares of common stock to its president upon exercise of a warrant. See Note 10.

Warrants

At December 31, 2019, warrants for purchase of 250,000 shares of the Company’s common stock for $0.25 per share were outstanding and have no expiration date. These warrants were owned by the Company’s president. The warrants were exercised in the three month period ended March 31, 2020. See Note 10.

Warrants for purchase of 452,041 shares of the Company’s common stock were sold with shares of common stock in 2019. The warrants have an exercise price of $0.65 per share and expire in 2022. None have been exercised and all are outstanding at March 31, 2020 and December 31,2019.

~~10.~~12.

~~Related Party Transactions:~~Income Taxes

During the three ~~and nine months~~month period ended ~~September 30, 2017~~March 31, 2020 and 2016, the Chairman of the audit committee and compensation committee received $4,500 and $9,000, and $4,500 and $18,000, respectively, for services performed. See Note 12 for shares of common stock issued to directors.

During the three and nine months ended September 30, 2017 and 2016, the Company paid $2,715 and $8,989, and $2,480 and $11,310, respectively, to John Lawrence, President and Chief Executive Officer, as reimbursement for equipment used by the Company.

~~11.~~

~~Income Taxes:~~

~~During the nine months ended September 30, 2017 and the~~ year ended December 31, ~~2016,~~2019, the Company determined that a valuation allowance equal to 100% of any deferred tax asset was appropriate, as management of the Company cannot determine that it is more likely than not the Company will realize the benefit of aits net deferred tax asset. The net effect is that the deferred tax asset ~~as of December 31, 2016, and any deferred tax assets that may have been incurred since then, are~~is fully reserved for at ~~September 30, 2017.~~

March 31, 2020 and December 31, 2019. Management estimates the effective tax rate at 0% for the current year.

In ~~2015,~~early 2019, the Company was notified by the Mexican tax authority (“SAT”) ~~initiated an audit~~began its re-assessment of ~~the~~ USAMSA’s 2013 income tax return. In ~~October 2016, as a result of its audit,~~November 2019, SAT assessed the Company ~~$13.8~~$16.3 million pesos, which was approximately ~~$666,400 in U.S. Dollars (“USD”)~~$696,000 USD as of ~~December~~March 31, 2016. Approximately $285,000 USD of the total assessment is interest and penalties. SAT’s assessment is based on the disallowance of specific costs that the Company deducted on the 2013 USAMSA income tax return. These disallowed costs were incurred by the Company for USAMSA’s business operations. SAT claims that the costs were not deductible or were not supported by appropriate documentation. At September 30, 2017, the assessed amount is $746,000 in U.S dollars.

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

~~United States Antimony Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited), Continued:~~

~~11.~~

~~Income Taxes, Continued:~~

2020.

Management has reviewed the 2019 assessment notice from SAT and believes ~~numerous~~the findings have no merit. The Company has engaged ~~accountants and~~a tax ~~attorneys~~attorney in Mexico to defend its position. An appeal ~~has been filed.~~was filed by the Company in November 2019 suspending SAT from taking immediate action regarding the assessment. The Company posted a guarantee of the amount in March 2020 as is required under the appeal process. Management expects the appeal process to continue through 2020 and into 2021.

At ~~December~~March 31, ~~2016,~~2020, management ~~estimated~~assessed the possible outcomes for this ~~assessment~~tax audit and believes, ~~it will ultimately pay an amount ranging from 30% of the total assessment to the total assessed amount. The Company’s agreement~~based on its discussions with ~~the~~its tax ~~professionals is~~attorney in Mexico, that the ~~professionals~~most likely outcome will ~~receive 30% of the amount of tax relief they are able to achieve.~~

At December 31, 2016, the Company accrued a potential liability of $410,510 USD of which $285,048 was for unpaid income taxes, $75,510 was for interest expense, and $49,952 was for penalties. The amount accrued represents management’s best estimate of the amountbe that will ultimately be paid. The outcome could vary from this estimate. At September 30, 2017, the Company recognized a $49,000 increase due to the change in exchange rate. Fluctuation in exchange rates has an ongoing impact on the amount the Company will ~~pay~~be successful in ~~U.S. dollars.~~its appeal resulting in no tax due. Management determined that no amount should be accrued at March 31, 2020 relating to this potential tax liability. There can be no assurance that the Company’s ultimate liability, if any, will not have a material adverse effect on the Company’s results of operations or financial position.

If an issue addressed during the SAT audit is resolved in a manner inconsistent with management expectations, the Company will adjust its net operating loss carryforward, or accrue ~~any additional~~ penalties, interest, and tax associated with the ~~audit. The Company’s tax professionals in Mexico have reviewed~~assessment.

United States Antimony Corporation and ~~filed tax returns with the SAT for~~Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

13. Hillgrove Advances Payable

On November 7, 2014, ~~2015, and 2016, and have advised~~ the Company ~~that they do~~entered into an advance and concentrate processing agreement with Hillgrove Mines Pty Ltd of Australia (Hillgrove) in which the Company was advanced funds from Hillgrove to build facilities to process Hillgrove antimony concentrate. The Company has not ~~expect~~processed Hillgrove concentrate for the past two years. The agreement requires the Company to ~~have~~pay the advance balance after Hillgrove issues a ~~tax~~stop notice. Payments would begin 90 days after the stop notice issue date and be made in six equal and quarterly installments. The balance of the advance liability ~~for those years relating~~due to ~~similar issues.~~Hillgrove was $1,134,221 at both March 31, 2020 and December 31, 2019. Hillgrove was acquired by Red River Resources LTD (“Red River”) during 2019. Although the Company has not received a stop notice through the date these financial statements were issued, management has determined that one might be forthcoming in 2020. Based on management’s assessment of likelihood and the payment terms of the agreement, $378,074 of the balance is classified as current as of March 31, 2020 and December 31, 2019.

~~12.~~

~~Stockholder’s Equity:~~

~~Issuance of Common Stock for Payable to Board of Directors~~

During the nine months ended September 30, 2017, the Board of Directors was issued a total of 421,875 shares of common stock for $168,750 in directors’ fees that were payable at December 31, 2016. In addition, the Company accrued $131,250 in directors’ fees payable as of September 30, 2017, that will be paid in common stock.

During the nine months ended September 30, 2016, the Board of Directors was issued a total of 550,000 shares of common stock for $137,500 in directors’ fees that were payable at December 31, 2015. In addition, the Company accrued $112,500 in directors’ fees payable as of September 30, 2016, that will be paid in common stock.

~~13.~~14.

Business ~~Segments:~~Segments

The Company is currently organized and managed by four segments, which represent our operating units: United States antimony operations, Mexican antimony operations, precious metals recovery and United States zeolite operations.

The ~~Madero smelter and~~ Puerto Blanco mill and the Madero smelter at the Company’s Mexico operation ~~brings~~bring antimony up to an intermediate or finished stage, which ~~is typically~~may be sold directly or shipped to the United States operation for finishing ~~and sales~~ at the Thompson Falls, Montana plant. The Puerto Blanco mill is the site of our crushing and flotation plant, and a cyanide leach plant which will recover precious metals after the ore goes through the crushing and flotation cycles. A precious metals recovery plant is operated in conjunction with the antimony processing plant at Thompson Falls, ~~Montana.~~Montana, where a 99% precious metals mix will be produced. The ~~Zeolite~~zeolite operation produces ~~Zeolite~~zeolite near Preston, Idaho. Almost all of the sales of products from the United States antimony and ~~Zeolite~~zeolite operations are to customers in the United ~~States.~~States, although the Company does have a sales operation in Canada.

Segment disclosure regarding sales to major customers is located in Note 4.

Properties, plants
and equipment, net:	March 31, 2020	December 31, 2019
Antimony
United States	$1,646,827	$1,631,100
Mexico	8,386,700	8,800,820
Subtotal Antimony	10,033,527	10,431,920
Precious metals	877,446	567,738
Zeolite	1,145,865	1,187,190
Total	$12,056,838	$12,186,848

	For the three months ended
Capital expenditures:	March 31, 2020	March 31, 2019
Antimony
United States	$23,121	$1,345
Mexico	26,765	274,906
Subtotal Antimony	49,886	276,251
Precious Metals	38,521	6,754
Zeolite	7,864	29,563
Total	$96,271	$312,568

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

~~13.~~14.

Business Segments, ~~Continued:~~continued:

At March 31, 2020 and December 31, 2019, the Company had $841,503 and $1,306,579, respectively, of assets that were not yet placed in service and have not yet been depreciatied.

~~Disclosure~~

Segment Operations for the three	Antimony	Antimony	Total	Precious	Bear River
months ended March 31, 2020	USAC	Mexico	Antimony	Metals	Zeolite	Totals

Total revenues	$1,121,425	$-	$1,121,425	$62,206	$559,360	$1,742,991

Depreciation and amortization	7,395	146,098	153,493	23,598	49,190	226,281

Income (loss) from operations	239,352	(719,066)	(479,714)	38,608	138,160	(302,946)

Other income (expense):	(2,915)	-	(2,915)	-	(3,021)	(5,936)

NET INCOME (LOSS)	$236,437	$(719,066)	$(482,629)	$38,608	$135,139	$(308,882)

Segment Operations for the three	Antimony	Antimony	Total	Precious	Bear River
months ended March 31, 2019	USAC	Mexico	Antimony	Metals	Zeolite	Totals

Total revenues	$1,705,823	$-	$1,705,823	$24,527	$726,015	$2,456,365

Depreciation and amortization	10,878	149,083	159,961	17,011	46,301	223,273

Income (loss) from operations	(52,096)	(802,676)	(854,772)	7,516	163,489	(683,767)

Other income (expense):	(1,367)	(18,287)	(19,654)	-	(4,039)	(23,693)

NET INCOME (LOSS)	$(53,463)	$(820,963)	$(874,426)	$7,516	$159,450	$(707,460)

15. Subsequent Events

On April 22, 2020, the Company received a loan of $443,400 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the ~~activity relating~~CARES Act, which was enacted March 27, 2020. The loan, which was in the form of a Note dated April 22, 2020 matures on April 22, 2022 and bears interest at a rate of 1% per annum, payable monthly commencing on November 22, 2020. The Note may be prepaid by the Company at any time prior to ~~our precious metals recovery requires that it~~maturity with no prepayment penalties. Under the terms of the PPP, certain amounts of the loan may be ~~reported~~forgiven if they are used for qualifying expenses as ~~a separate business segment.~~described in the CARES Act. Qualifying expenses include payroll costs, costs used to continue group health care benefits, mortgage payments, rent, and utilities. The ~~prior period comparative information has been reclassified~~Company intends to ~~reflect this change.~~

~~Segment disclosure regarding sales to major customers is located in Note 9.~~

For the three months ended

For the nine months ended

September 30,
2017

September 30,
2016

September 30,
2017

September 30,
2016

Capital expenditures:

Antimony

United States
$22,241
$-
$22,241
$1,040
Mexico
  45,326
  26,130
  121,042
  201,882
Subtotal Antimony
  67,567
  26,130
  143,283
  202,922
Precious Metals
  24,798
  85,804
  84,379
  247,500
Zeolite
  35,856
  61,284
  51,803
  123,075
Total
$128,221
$173,218
$279,465
$573,497

Properties, plants
and equipment, net:

September 30,
2017

December 31,
2016

Antimony

United States
$1,697,360
$1,694,331
Mexico
  11,677,840
  11,984,467
Subtotal Antimony
  13,375,200
  13,678,798
Precious metals
  588,650
  544,615
Zeolite
  1,374,356
  1,472,553
Total
$15,338,206
$15,695,966

Total Assets:

September 30,
2017

December 31,
2016

Antimony


United States
$2,543,350
$2,495,842
Mexico
  12,338,179
  12,681,109
Subtotal Antimony
  14,881,529
  15,176,951
Precious metals
  588,650
  544,615
Zeolite
  2,020,575
  2,044,432
Total
$17,490,754
$17,765,998

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

~~United States Antimony Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited), Continued:~~use the entire loan amount for qualifying expenses.

~~13.~~

~~Business Segments, Continued:~~

Segment Operations for the three

Antimony

Antimony

Precious

months ended September 30, 2017

USA

Mexico

Metals

Zeolite

Totals

Total revenues
$1,796,775
$-
$78,245
$494,694
$2,369,714






Depreciation and amortization
  14,200
  127,675
  15,100
  50,200
  207,175






Income (loss) from operations
  435,497
  (861,683)
  63,145
  135,879
  (227,162)






Other income (expense):
  (11,611)
  (20,772)
  -
  (3,020)
  (35,403)






NET INCOME (LOSS)
$423,886
$(882,455)
$63,145
$132,859
$(262,565)

Segment Operations for the three

Antimony

Antimony

Precious

months ended September 30, 2016

USA

Mexico

Metals

Zeolite

Totals

Total revenues
$2,025,755
$3,557
$240,238
$577,149
$2,846,699






Depreciation and amortization
  20,000
  136,875
  -
  53,400
  210,275






Income (loss) from operations
  723,628
  (1,421,013)
  240,238
  109,163
  (347,984)






Income tax expense
  -
  (411,490)
  -
  -
  (411,490)






Other income (expense):
  (9,406)
  (24,617)
  -
  (3,560)
  (37,583)






NET INCOME (LOSS)
$714,222
$(1,857,120)
$240,238
$105,604
$(797,057)

Segment Operations for the nine

Antimony

Antimony

Precious

months ended September 30, 2017

USA

Mexico

Metals

Zeolite

Totals

Total revenues
$5,842,801
$17,782
$243,822
$1,723,120
$7,827,525






Depreciation and amortization
  42,900
  397,325
  47,000
  150,000
  637,225






Income (loss) from operations
  1,618,156
  (2,680,293)
  196,821
  358,110
  (507,206)






Other income (expense):
  (34,654)
  (119,341)
  -
  (9,622)
  (163,617)






NET INCOME (LOSS)
$1,583,502
$(2,799,634)
$196,821
$348,488
$(670,823)

Segment Operations for the nine

Antimony

Antimony

Precious

months ended September 30, 2016

USA

Mexico

Metals

Zeolite

Totals

Total revenues
$6,621,732
$3,557
$564,581
$1,976,758
$9,166,628






Depreciation and amortization
  60,400
  431,975

  160,000
  652,375






Income (loss) from operations
  2,582,390
  (4,028,767)
  564,581
  243,429
  (638,367)






Income tax expense
  -
  (423,490)
  -
  -
  (423,490)






Other income (expense):
  (23,837)
  (49,122)
  -
  (7,517)
  (80,476)






NET INCOME (LOSS)
$2,558,553
$(4,501,379)
$564,581
$235,912
$(1,142,333)

~~PART~~ I ~~- FINANCIAL INFORMATION, CONTINUED:~~

~~United States Antimony Corporation and Subsidiaries~~

~~Notes to Consolidated Financial Statements (Unaudited), Continued:~~

~~ITEM~~TEM 2. ~~Management’s~~Management’s Discussion and Analysis of Results of Operations and Financial Condition

COVID-19 Coronavirus Pandemic Response and Impact

Following the outbreak of the COVID-19 coronavirus global pandemic ("COVID-19") in early 2020, in March 2020 the U.S. Centers for Disease Control issued guidelines to mitigate the spread and health consequences of COVID-19. The Company implemented changes to its operations and business practices to follow the guidelines and minimize physical interaction, including using technology to allow employees to work from home when possible and altering production procedures and schedules, asset maintenance, and limiting discretionary spending. As long as they are required, the operational practices implemented could have an adverse impact on our operating results due to deferred production and revenues or additional costs. The negative impact of COVID-19 remains uncertain, including on overall business and market conditions. There is uncertainty related to the potential additional impacts COVID-19 could have on our operations and financial results for the year.

General

Certain matters discussed are forward-looking statements that involve risks and uncertainties, including the impact of antimony prices and production volatility, changing market conditions and the regulatory environment and other risks. Actual results may differ materially from those projected. These forward-looking statements represent our judgment as of the date of this filing. We disclaim, however, any intent or obligation to update these forward-looking statements.

Results of Operations by Division

Antimony and Precious Metals

3rd Qtr

3rd Qtr

Nine Months

Nine Months

Combined USA and Mexico

2017

2016

2017

2016

Lbs of Antimony Metal USA
  298,472
  247,505
  1,102,290
  1,027,501
Lbs of Antimony Metal Mexico
  123,919
  411,410
  372,307
  1,277,058
Total Lbs of Antimony Metal Sold
  422,391
  658,915
  1,474,597
  2,304,559
Sales Price/Lb Metal
$4.25
$3.07
$3.97
$2.87
Net income (loss)/Lb Metal
$(0.94)
$(1.37)
$(0.69)
$(0.60)





Gross antimony revenue - net of discount
$1,796,775
$2,025,755
$5,860,583
$6,625,289
Precious metals revenue
  78,244
  240,238
  243,821
  564,581
Production and shipping costs
  (1,759,347)
  (2,135,052)
  (5,360,925)
  (6,135,067)
Mexico non-production costs
  (51,310)
  (156,489)
  (215,762)
  (514,400)
General and administrative - non-production
  (280,801)
  (315,361)
  (935,355)
  (1,060,261)
Other miscellaneous income(loss)
  2,642
  32,813
  (49,000)
  109,392
Net interest and gain on sale of asset
  (24,652)
  (26,200)
  (75,448)
  (51,914)
EBITDA
  (238,449)
  (334,296)
  (532,086)
  (462,380)
Income tax expense
  -
  (411,490)
  -
  (423,490)
Depreciation & amortization
  (156,975)
  (156,875)
  (487,225)
  (492,375)
Net income (loss) - antimony and precious metals
$(395,424)
$(902,661)
$(1,019,311)
$(1,378,245)





Zeolite




Tons sold
  2,671
  3,375
  9,446
  10,690
Sales Price/Ton
$185.21
$171.01
$182.42
$184.92
Net income /Ton
$49.74
$31.29
$36.89
$22.07





Gross zeolite revenue
$494,694
$577,150
$1,723,120
$1,976,759
Production costs, royalties, and shipping costs
  (297,815)
  (386,844)
  (1,167,108)
  (1,509,822)
General and administrative - non-production
  (12,532)
  (29,178)
  (53,065)
  (67,157)
Net interest
  (1,288)
  (2,124)
  (4,459)
  (3,868)
EBITDA
  183,059
  159,004
  498,488
  395,912
Depreciation
  (50,200)
  (53,400)
  (150,000)
  (160,000)
Net income - zeolite
$132,859
$105,604
$348,488
$235,912





Company-wide




Gross revenue
$2,369,713
$2,846,699
$7,827,524
$9,166,628
Production costs, royalties, and shipping costs
  (2,108,472)
  (2,681,941)
  (6,743,795)
  (8,159,288)
General, administrative, and other non-production costs
  (293,333)
  (344,539)
  (988,420)
  (1,127,418)
Other miscellaneous income
  2,642
  32,813
  (49,000)
  109,392
Net interest and gain on sale of asset
  (25,940)
  (28,324)
  (79,907)
  (55,782)
EBITDA
  (55,390)
  (175,292)
  (33,598)
  (66,468)
Income tax expense
  -
  (411,490)
  -
  (423,490)
Depreciation & amortization
  (207,175)
  (210,275)
  (637,225)
  (652,375)
Net income (loss)
$(262,565)
$(797,057)
$(670,823)
$(1,142,333)

Antimony - Combined USA	1st Quarter	1st Quarter
and Mexico	2020	2019
Lbs of Antimony Metal USA	166,908	233,596
Lbs of Antimony Metal Mexico:	128,545	209,552
Total Lbs of Antimony Metal Sold	295,453	443,148
Average Sales Price/Lb Metal	$3.06	$3.85
Net loss/Lb Metal	$(1.63)	$(1.97)

Gross antimony revenue - net of discount	$902,746	$1,705,823
Tri-sulfide revenue	218,679	-
Total revenue	$1,121,425	$1,705,823

Cost of sales-domestic	(533,289)	(1,179,804)
Cost of sales-Mexico	(684,061)	(784,160)
Operating expenses	(383,789)	(596,631)
Non-operating expenses	(2,915)	(19,654)
	(1,604,054)	(2,580,249)

Net loss - antimony	(482,629)	(874,426)
Depreciation,& amortization	153,493	159,961
EBITDA - antimony	$(329,136)	$(714,465)

Precious Metals
Ounces sold
Gold	15	6
Silver	5,048	1,724

Gross precious metals revenue	$62,206	$24,527
Production costs, royalties, and shipping costs	(23,598)	(17,011)
Net income - precious metals	38,608	7,516
Depreciation	23,598	17,011
EBITDA - precious metals	$62,206	$24,527

Zeolite
Tons sold	2,809	3,841
Average Sales Price/Ton	$199.13	$189.02
Net income (Loss)/Ton	$48.11	$41.51

Gross zeolite revenue	$559,360	$726,015
Cost of sales	(400,866)	(544,443)
Operating expenses	(20,334)	(18,083)
Non-operating expenses	(3,021)	(4,039)
Net income - zeolite	135,139	159,450
Depreciation	49,190	46,301
EBITDA - zeolite	$184,329	$205,751

Company-wide
Gross revenue	$1,742,991	$2,456,365
Production costs	(1,641,814)	(2,525,418)
Operating expenses	(404,123)	(614,714)
Non-operating expenses	(5,936)	(23,693)
Net income (loss)	(308,882)	(707,460)
Depreciation,& amortization	226,281	223,273
EBITDA	$(82,601)	$(484,187)

PART I - FINANCIAL INFORMATION, CONTINUED:

ITEM 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:

The Mexico non-production costs for the three and nine months ending September 30, 2017, are primarily due to holding costs from inactivity at the Los Juarez, Guadalupe, and Soyatal mines and the Puerto Blanco mill. The loss of production at the Madero smelter from transitioning to Mexican raw material due to the closing of the Hillgrove mine in Australia and the subsequent loss of Hillgrove raw material contributed to non-production costs during the nine months ending September 30, 2017.

Company-Wide

For the ~~third~~first quarter of ~~2017,~~2020, we recognized a net loss of ~~$262,565~~$308,882 on sales of ~~$2,369,713,~~$1,742,991, compared to a net loss of ~~$797,057~~$707,460 in the third quarter of 2016 on sales of $2,846,699. This is a decrease in the loss for the period of 67%, and is significant progress in a corporate turnaround. For the nine month period ending September 30, 2017, we incurred a net loss of $670,823 on sales of $7,827,525, compared to a net loss of $1,142,333 for the same period in 2016, a decrease of 41%. The loss in the third quarter of 2017 and the nine months then ended was primarily due to the loss of raw material from Hillgrove Mines of Australia. We also recognized approximately $124,732 of settlement costs related to our precious metals production during the first quarter of ~~2017, and we incurred a foreign exchange~~2019, on sales of $2,456,365. In addition to normal operating costs, the loss ~~of $49,000 through nine months related to our Mexican tax liability. Hillgrove has given us permission to use~~in the ~~furnaces financed by them and that were dedicated to processing Hillgrove concentrates.~~

~~Depreciation and amortization for the quarter and nine months ending September 30, 2017, was $207,175 and $637,225, respectively.~~

~~The loss for the third~~first quarter of ~~2017 included $51,310~~2020 was significantly impacted by supply constrictions and the decrease in ~~non-production costs in Mexico (holding costs~~the market price for ~~non-producing Mexican properties), compared to $156,489 for the same period in 2016.~~antimony.

For the ~~third~~first quarter of ~~2017,~~2020, EBITDA was a negative ~~$55,390,~~$82,601 compared to a negative ~~EBITDA of $175,292~~$484,187 for the same period of ~~2016.~~2019.

Net non-cash expense items totaled $260,185 for the first quarter of 2020 and included $226,281 for depreciation and amortization, $31,250 for director compensation and $2,654 for other items.

Net non-cash expense items totaled $410,347 for 2019 and included $223,273 for depreciation and amortization, $18,037 for amortization of debt discount, $28,125 for director compensation, $136,000 for stock issued for employment, and $1,787 for other items.

For the ~~third~~first quarter of ~~2017, the~~2020, general and administrative expenses were ~~$228,185~~$199,971 compared to ~~$309,832~~$205,174 for the same period of ~~2016.~~2019.

Antimony

~~We began~~For the mining and processing of ore from our own Mexican mines during Q1of 2017. Producing from our own Mexican mines will allow the Company to benefit from 100% of the price increases rather than a processing fee and a small percent of the price increases.

~~The sale~~three months ended March 31, 2020, we sold 295,453 pounds of antimony ~~during Q3 2017 was 422,391 pounds~~ compared to ~~658,915 pounds during the same period in 2016.~~

~~The sale of antimony during the first nine months of 2017 was 1,474,597 pounds compared to sales of 2,304,559~~443,148 pounds for the three months ended March 31, 2019. The raw material received from our North American supplier decreased by approximately 67,000 pounds for the three months ended March 31, 2020, compared to the same ~~period~~quarter for 2019. We had a decrease in raw material of ~~2016.~~

approximately 81,000 pounds from Mexico for the first quarter of 2020 compared to the same quarter for 2019. The decrease in Mexican raw material was primarily a result of utilizing available cash to finish the Puerto Blanco precious metals plant.

The average sales price of antimony during ~~Q3 2017~~the three months ended March 31, 2020 was ~~$4.25~~$3.06 per pound compared to ~~$3.07~~$3.85 during the same period in ~~2016, an increase of 38%.~~

~~The average sale price of antimony during the first nine months of 2017 was $3.97 compared to $2.87 for the same period of 2016, an increase of 38%.~~

~~The decrease in production was offset by higher sales prices and better margins on production from our own mined ore.~~

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

~~ITEM 2. Management’s Discussion and Analysis of Results of Operations and Financial, continued:~~

The metallurgical problems with the Los Juarez ore have been solved, and we are processing the ore presently in inventory. As soon as we are permitted, we will complete construction of our leach circuit at the Puerto Blanco mill.

At the Wadley mine, production is being increased with more miners. The use of pneumatic hammers is planned in lieu of explosives. Wadley is our main producer of Mexican ore with some 90 men underground. The tonnage and grade is being increased, and some of the ore contains up to 50 percent antimony.

~~Powder magazines are being built at the Soyatal mine. We will use the Los Juarez explosives license to mine direct shipping ore for smelter feed at Madero.~~

~~The access road to Guadalupe is being repaired to re-start production.~~

A 400 ton mill test of Los Juarez ore has indicated the necessity of a cyanide leach circuit for the mill tailings. With the leach circuit, the estimated gross value of the ore will be approximately $125.00 at current precious metal prices.

~~Production changes at the Madero smelter have cut the costs and increased recovery.~~2019.

Precious Metals

The caustic leach of flotation concentrates from Los Juarez ~~was~~has been successful, and ~~400 metric tons were run~~the cyanide leach plant at Puerto Blanco is on schedule to start the pilot production of Los Juarez gold, silver, and antimony during the ~~second~~third quarter of ~~2017 that indicate that a cyanide leach circuit is necessary~~2020.

For the three months ended March 31, 2020, income for precious metals from North American sources was $62,206, compared to ~~increase~~$24,527 for the ~~recoveries~~same period of 2019.

The estimated recovery of precious metals ~~from mill tailings.~~per metric ton, after the caustic leach and cyanide leach circuits, is as follows:

Precious Metals Sales

Year to

Silver/Gold

For the Year Ended

Date

Montana

2014

2015

2016

2017

Ounces Gold Shipped (Au)
  64.77
  89.12
  108.10
  88.62
Ounces Silver Shipped (Ag)
  29,480.22
  30,420.75
  38,123.46
  22,107.93
Revenues
$461,083
$491,426
$556,650
$352,165
Mexico




Ounces Gold Shipped (Au)




Ounces Silver Shipped (Ag)




Revenues




Australian - Hillgrove




Ounces Gold Shipped (Au)


  496.65
  79.54
Revenues - Gross


$597,309
$81,779
Revenues to Hillgrove


  (481,088)
  (190,122)
Revenues to USAC


$116,221
$(108,343)





Total Revenues
$461,083
$491,426
$672,871
$243,822

Schedule of Los Juarez recovery values	Assay	Recovery	Value	Value/Mt
	0.035 opmt	90%	$1700/oz	$54.00
	3.27 opmt	90%	$15.00/oz	$44.00
	0.652%	70%	3.05/lb	$30.68
Total				$128.68

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~Current and prior years’ revenue from precious metals is as follows:

~~ITEM 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:~~

Precious Metal Sales Silver/Gold	For the three months ended March 31,
Montana	2020	2019
Ounces Gold Shipped (Au)	14.91	6.45
Ounces Silver Shipped (Ag)	5,047.66	1,724.40
Total Revenues	$62,206	$24,527

Bear River Zeolite (BRZ)

~~During Q3 2017,~~For the three months ended March 31, 2020, BRZ sold ~~2,671~~2,809 tons of zeolite compared to ~~3,375~~3,841 tons in the same period of ~~2016,~~2019, down ~~704~~1,032 tons ~~(20%~~(27%). ~~The decrease in tonnage was due to required maintenance.~~

WeBRZ realized net income of $135,139 after depreciation of $49,190 in the first quarter of 2020, compared to a net income of ~~$132,859 from zeolite sales in Q3~~$159,450 after depreciation of ~~2017,~~$46,301 for the same quarter of 2019.

BRZ realized an EBITDA for the three months ended March 31, 2020 of $184,329, compared to ~~$105,604 for~~$205,571for the same period in 2016. The increase in the profit from our zeolite operations was $27,255 (25%). The increase in profit was attributable to better plant efficiency. We realized net income of $348,488 from zeolite sales during the first nine months of 2017, compared to $235,912 for the same period in 2016. The increase in the profit from our zeolite operations was $112,576 (48%) and was attributable to better plant efficiency.2019.

We ~~realized an EBITDA from~~are anticipating continued growth in all areas of zeolite sales for Q3 2017 of $183,059, compared to $159,004 for the same period in 2016, an increase of $24,055 (15%). We realized an EBITDA from zeolite sales for the nine months ended September 30, 2017 of $498,488, compared to $395,912 for the same period in 2016, an increase of $102,576 (26%).

Our new sales program for zeolite products has two field representatives and a research person that prepares sales brochures and literature. At this time this effort is adding new customers. Increased production at our zeolite plant will enable us to provide timely product deliveries to our customers.sales.

Financial Position

Financial Condition and Liquidity			March 31, 2020	December 31, 2019
	September 30, 2017	December 31, 2016
Current Assets	$1,740,041	$1,692,555
Current assets			$1,149,865	$1,279,755
Current liabilities	( 3,880,431)	( 3,382,123)	(3,939,675)	(3,975,681)
Net Working Capital	$(2,140,390)	$(1,689,568)	$(2,789,810)	$(2,695,926)

			For the Three Months Ended
	September 30, 2017	September 30, 2016	March 31, 2020	March 31, 2019
Cash provided (used) by operations	$491,253	$412,162	$(36,265)	$(85,590)
Cash provided (used) by investing:
Cash used for capital outlay	( 279,465)	( 459,969)	(96,271)	(312,568)
Payment received on note receivable			-	400,000
Cash provided (used) by financing:
Net proceeds from (payments) to factor	13,338	119,111
Payment of notes payable to bank	(64,291)	(30,672)
Net payments (to) from factor			6,347	(11,084)
Payments on notes payable to bank			-	(70,792)
Proceeds from notes payable to bank			2,488	-
Principal paid on long-term debt			(10,906)	(57,467)
Advances from related party			-	125,200
Payments on advances from related party			(13,933)	-
Checks issued and payable	12,726		56,102	(845)
Principal paid on long-term debt	( 156,042)	( 130,857)
Net change in cash	$17,519	$(90,225)
Net change in cash and restricted cash			$(92,438)	$(13,146)

Our net working capital ~~at September 30, 2017, has~~ decreased by approximately ~~$451,000~~$94,000 from December 31, ~~2016.~~2019. Our cash and cash equivalents decreased by approximately $92,000 during the same period. The decrease in our net working capital was ~~primarily~~mostly due to ~~an increase~~the decrease in ~~various categories~~the price of ~~liabilities, and expenditures of~~antimony. We spent approximately ~~$280,000~~$96,000 for capital ~~outlay.~~items, and our long term debt decreased by approximately $11,000. We have estimated commitments ~~of $50,000~~ for construction and improvements of less than $100,000 to finish building and installing the precious metals leach circuits. We believe that with our current cash balance, along with the future cash flow from operations and operating agreements, we have adequate liquid assets to meet these commitments and service our debt for the next twelve months. We have lines of credit of ~~$202,000~~$199,998 which have been drawn down by ~~$103,026~~$199,554 at ~~September 30, 2017. We have a foreign value added tax refund receivable in Mexico of $365,120 at September 30, 2017. We believe that this refund will be adequate to offset~~March 31, 2020.

At March 31, 2020, the ~~amount ultimately paid on the Mexican tax assessment (see Note 11 of the~~Company’s consolidated financial statements ~~in Item 1).~~

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

~~ITEM 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:~~

~~Going Concern Consideration~~

~~At September 30, 2017, our financial statements~~ show ~~that we have a~~ negative working capital of approximately ~~$2.14~~$2.8 million and an accumulated deficit of approximately ~~$26.1~~$29.7 million. ~~In addition, we have~~With the exception of 2018, the Company has incurred losses for the ~~prior three~~past several years. The net income in 2018 was primarily due to non-recurring events which contributed approximately $2.5 million to net income. These factors indicate that there ~~may be~~is substantial doubt regarding ~~our~~the ability to continue as a going concern for the next twelve months.

~~ITEM~~ITEM 3.Quantitative and Qualitative Disclosure about Market Risk

None

~~ITEM~~ITEM 4. ~~Controls~~Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management, as appropriate, to allow timely decisions regarding required disclosure. Our chief financial officer conducted an evaluation of the effectiveness of the Company's disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)) as of ~~September 30, 2017.~~March 31, 2020. It was determined that there were material weaknesses affecting our disclosure controls and procedures and, as a result of those weaknesses, our disclosure controls and procedures were not effective as of ~~September 30, 2017.~~March 31, 2020. These material weaknesses are as follows:

●

Inadequate design of internal control over the preparation of the financial statements and financial reporting processes;

●

Inadequate monitoring of internal controls over significant accounts and processes including controls associated with domestic and Mexican subsidiary operations and the period-end financial reporting process; and

●

The absence of proper segregation of duties within significant processes and ineffective controls over management oversight, including antifraud programs and controls.

We are aware of these material weaknesses and will develop procedures to ensure that independent review of material transactions is performed. The chief financial officer will develop internal control measures to mitigate the lack of inadequate documentation of controls and the monitoring of internal controls over significant accounts and processes including controls associated with the period-ending reporting processes, and to mitigate the segregation of duties within significant accounts and processes and the absence of controls over management oversight, including antifraud programs and controls.

We plan to consult with independent experts when complex transactions are entered into.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no significant changes made to internal controls over financial reporting for the quarter ended ~~September 30, 2017~~.March 31, 2020.

~~PART~~PART II - OTHER INFORMATION

~~Item~~

Item 1. ~~LEGAL~~

LEGAL PROCEEDINGS

None

~~Item~~

Item 2. ~~UNREGISTERED~~

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

~~Item~~

Item 3. ~~DEFAULTS~~

DEFAULTS UPON SENIOR SECURITIES

The registrant has no outstanding senior securities.

~~Item~~

Item 4. ~~MINE~~

MINE SAFETY DISCLOSURES

The information concerning mine safety violations or other regulatory matters required by Section 1503 (a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report.

~~Item~~

Item 5. ~~OTHER~~

OTHER INFORMATION

None

~~Item~~

Item 6. ~~EXHIBITS~~

EXHIBITS AND REPORTS ON FORM 8-K

Certifications

~~Certifications Pursuant to the Sarbanes-Oxley Act~~

Certifications Pursuant to the Sarbanes-Oxley Act
Reports on Form 8-K None

~~SIGNATURES~~SIGNATURES

Pursuant to the requirements of Section 13 or 15(b) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

~~UNITED STATES ANTIMONY CORPORATION~~

~~(Registrant)~~

	UNITED STATES ANTIMONY CORPORATION (Registrant)

Date: May 15, 2020	By:	/s/ John C. Lawrence
		John C. Lawrence
		Director and President (Principal Executive)

Date: May 15, 2020	By:	/s/ ~~John C. Lawrence~~ ~~Date:~~ ~~November 14, 2017~~ ~~John C. Lawrence, Director and President~~ ~~(Principal Executive)~~ ~~By:~~ ~~/s/ Daniel L. Parks~~ ~~Date:~~ ~~November 14, 2017~~ Daniel L. Parks
		Daniel L. Parks
		Chief Financial Officer

2019

	For the three months ended		For the nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016

REVENUES	$2,369,714	$2,846,699	$7,827,525	$9,166,628

COST OF REVENUES	2,315,646	2,888,660	7,381,020	8,811,663

GROSS PROFIT (LOSS)	54,068	(41,961)	446,505	354,965

OPERATING EXPENSES:
General and administrative	228,185	309,832	762,745	850,255
Professional fees	53,045	29,004	190,965	252,469
Hillgrove advance - earned credit (Note 8)	-	(32,813)	-	(109,392)
TOTAL OPERATING EXPENSES	281,230	306,023	953,710	993,332

INCOME (LOSS) FROM OPERATIONS	(227,162)	(347,984)	(507,205)	(638,367)

OTHER INCOME (EXPENSE):
Interest income	19	19	857	1,421
Interest expense	(25,960)	(28,343)	(80,764)	(57,203)
Foreign exchange gain (loss)	2,642	-	(49,000)	-
Factoring expense	(12,104)	(9,259)	(34,711)	(24,694)
TOTAL OTHER INCOME (EXPENSE)	(35,403)	(37,583)	(163,618)	(80,476)

INCOME (LOSS) BEFORE INCOME TAXES	(262,565)	(385,567)	(670,823)	(718,843)

Provision for income tax (Note 12)	-	(411,490)	-	(423,490)

NET INCOME (LOSS)	(262,565)	(797,057)	(670,823)	(1,142,333)
Preferred dividends	(12,162)	(12,162)	(36,487)	(36,487)

Net income (loss) available to common stockholders	$(274,727)	$(809,219)	$(707,310)	$(1,178,820)

Net income (loss) per share of common stock:
Basic	NIL	$(0.01)	$(0.01)	$(0.02)
Diluted	NIL	$(0.01)	$(0.01)	$(0.02)

Weighted average shares outstanding:
Basic	67,488,153	66,866,278	67,387,337	66,687,981
Diluted	67,488,153	66,866,278	67,387,337	66,687,981

Year Ending September 30,
2018	495,134
2019	307,810
2020	215,795
2021	128,742
2022	111,467
Thereafter	519,167
	$1,778,115


Three Largest Accounts Receivable	September 30, 2017	September 30, 2016
Kohler Corporation	$169,991	$133,705
Earth Innovations Inc.	31,522	33,150
Axens North America, Inc.	31,237	-
East Penn Corporation	-	135,828
	$232,750	$302,683
% of Total Receivables	47.00%	58.20%

Properties, plants and equipment, net:	September 30, 2017	December 31, 2016
Antimony
United States	$1,697,360	$1,694,331
Mexico	11,677,840	11,984,467
Subtotal Antimony	13,375,200	13,678,798
Precious metals	588,650	544,615
Zeolite	1,374,356	1,472,553
Total	$15,338,206	$15,695,966

Total Assets:	September 30, 2017	December 31, 2016
Antimony
United States	$2,543,350	$2,495,842
Mexico	12,338,179	12,681,109
Subtotal Antimony	14,881,529	15,176,951
Precious metals	588,650	544,615
Zeolite	2,020,575	2,044,432
Total	$17,490,754	$17,765,998

Segment Operations for the nine	Antimony	Antimony	Precious
months ended September 30, 2017	USA	Mexico	Metals	Zeolite	Totals

Total revenues	$5,842,801	$17,782	$243,822	$1,723,120	$7,827,525

Depreciation and amortization	42,900	397,325	47,000	150,000	637,225

Income (loss) from operations	1,618,156	(2,680,293)	196,821	358,110	(507,206)

Other income (expense):	(34,654)	(119,341)	-	(9,622)	(163,617)

NET INCOME (LOSS)	$1,583,502	$(2,799,634)	$196,821	$348,488	$(670,823)

Results of Operations by Division

Antimony and Precious Metals	3rd Qtr	3rd Qtr	Nine Months	Nine Months
Combined USA and Mexico	2017	2016	2017	2016
Lbs of Antimony Metal USA	298,472	247,505	1,102,290	1,027,501
Lbs of Antimony Metal Mexico	123,919	411,410	372,307	1,277,058
Total Lbs of Antimony Metal Sold	422,391	658,915	1,474,597	2,304,559
Sales Price/Lb Metal	$4.25	$3.07	$3.97	$2.87
Net income (loss)/Lb Metal	$(0.94)	$(1.37)	$(0.69)	$(0.60)

Gross antimony revenue - net of discount	$1,796,775	$2,025,755	$5,860,583	$6,625,289
Precious metals revenue	78,244	240,238	243,821	564,581
Production and shipping costs	(1,759,347)	(2,135,052)	(5,360,925)	(6,135,067)
Mexico non-production costs	(51,310)	(156,489)	(215,762)	(514,400)
General and administrative - non-production	(280,801)	(315,361)	(935,355)	(1,060,261)
Other miscellaneous income(loss)	2,642	32,813	(49,000)	109,392
Net interest and gain on sale of asset	(24,652)	(26,200)	(75,448)	(51,914)
EBITDA	(238,449)	(334,296)	(532,086)	(462,380)
Income tax expense	-	(411,490)	-	(423,490)
Depreciation & amortization	(156,975)	(156,875)	(487,225)	(492,375)
Net income (loss) - antimony and precious metals	$(395,424)	$(902,661)	$(1,019,311)	$(1,378,245)

Zeolite
Tons sold	2,671	3,375	9,446	10,690
Sales Price/Ton	$185.21	$171.01	$182.42	$184.92
Net income /Ton	$49.74	$31.29	$36.89	$22.07

Gross zeolite revenue	$494,694	$577,150	$1,723,120	$1,976,759
Production costs, royalties, and shipping costs	(297,815)	(386,844)	(1,167,108)	(1,509,822)
General and administrative - non-production	(12,532)	(29,178)	(53,065)	(67,157)
Net interest	(1,288)	(2,124)	(4,459)	(3,868)
EBITDA	183,059	159,004	498,488	395,912
Depreciation	(50,200)	(53,400)	(150,000)	(160,000)
Net income - zeolite	$132,859	$105,604	$348,488	$235,912

Company-wide
Gross revenue	$2,369,713	$2,846,699	$7,827,524	$9,166,628
Production costs, royalties, and shipping costs	(2,108,472)	(2,681,941)	(6,743,795)	(8,159,288)
General, administrative, and other non-production costs	(293,333)	(344,539)	(988,420)	(1,127,418)
Other miscellaneous income	2,642	32,813	(49,000)	109,392
Net interest and gain on sale of asset	(25,940)	(28,324)	(79,907)	(55,782)
EBITDA	(55,390)	(175,292)	(33,598)	(66,468)
Income tax expense	-	(411,490)	-	(423,490)
Depreciation & amortization	(207,175)	(210,275)	(637,225)	(652,375)
Net income (loss)	$(262,565)	$(797,057)	$(670,823)	$(1,142,333)

Precious Metals Sales				Year to
Silver/Gold	For the Year Ended			Date
Montana	2014	2015	2016	2017
Ounces Gold Shipped (Au)	64.77	89.12	108.10	88.62
Ounces Silver Shipped (Ag)	29,480.22	30,420.75	38,123.46	22,107.93
Revenues	$461,083	$491,426	$556,650	$352,165
Mexico
Ounces Gold Shipped (Au)
Ounces Silver Shipped (Ag)
Revenues
Australian - Hillgrove
Ounces Gold Shipped (Au)			496.65	79.54
Revenues - Gross			$597,309	$81,779
Revenues to Hillgrove			(481,088)	(190,122)
Revenues to USAC			$116,221	$(108,343)

Total Revenues	$461,083	$491,426	$672,871	$243,822