UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ Quarterly Report Pursuant to Section 13 Or 15(d) Of The Securities Exchange Act of 1934

For the quarterly period ended ~~June~~September 30, 2022

☐ Transition Report Under Section 13 Or 15(d) Of The Securities Exchange Act of 1934

For the transition period ________ to ________

COMMISSION FILE NUMBER 001-08675

UNITED STATES ANTIMONY CORPORATION

(Exact name of small business issuer as specified in its charter)

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

P.O. Box 643 Thompson Falls, MT				59873
(Address of principal executive office)				(Postal Code)

(406) 827-3523

(Issuer’s telephone number)

~~(406) 827-3523~~

~~(Issuer’s telephone number)~~

Title of Each Class

Trading

Symbol

Name of Each Exchange

on Which Registered

Common Stock, ~~$0.01~~$0.001 par value

UAMY

~~UAMY~~

NYSE American

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

Indicate by checkmark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post filed). Yes ☒ No ☐

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “Accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act (Check one):

Large Accelerated Filer	☐	Accelerated Filer	☐
~~Non-accelerated~~Non-Accelerated Filer	☒	Smaller Reporting Company	☒
Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~August 16,~~November 14, 2022, there were ~~106,240,361~~106,373,341 shares of registrant’s common stock, $0.01 par value, issued and outstanding.

Contents

Page 21 of 3233

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	June 30, 2022			December 31, 2021			September 30, 2022			December 31 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	8,312,469		$	21,363,048		$	7,658,810		$	21,363,048
Certificates of deposit		259,210			259,210			259,210			259,210
Accounts receivable		1,604,660			891,314			1,450,314			891,314
Prepaid expenses		60,916			0
Inventories (NOTE 5)		590,204			1,055,420
Investments (NOTE 11)		13,299,393			0
Inventories (Note 6)								827,958			1,055,420
Investments (Note 14)								12,973,553			-
Prepaid expenses and other current assets (Note 4)								187,937			-
Total current assets		24,126,852			23,568,992			23,357,782			23,568,992
Properties, plants and equipment, net (NOTE 6)		11,242,721			11,133,733
Properties, plants and equipment, net (Note 7)								11,209,160			11,133,733
Restricted cash for reclamation bonds		57,281			57,281			57,283			57,281
IVA receivable and other assets		329,163			242,721			847,768			242,721
Total assets	$	35,756,017		$	35,002,727		$	35,471,993		$	35,002,727
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	679,597		$	1,385,752		$	462,261		$	1,385,752
Payable to related parties		4,084			0
Accrued liabilities		685,918			621,873			622,403			621,873
Long-term debt, current portion (NOTE 8)		91,347			13,230
Accrued liabilities – directors and related parties								102,248			-
Long-term debt, current portion (Note 9)								92,738			13,230
Total current liabilities		1,460,946			2,020,855			1,279,650			2,020,855

Long-term debt, net of current portion (NOTE 8)		265,636			201,920
Long-term debt, net of current portion (Note 9)								241,932			201,920
Stock payable to directors for services		187,500			112,500			-			112,500
Asset retirement obligations and accrued reclamation costs (NOTE 7)		325,657			298,649
Asset retirement obligations and accrued reclamation costs (Note 8)								328,834			298,649
Total liabilities		2,239,739			2,633,924			1,850,416			2,633,924
COMMITMENTS AND CONTINGENCIES (NOTE 9)
COMMITMENTS AND CONTINGENCIES (Note 10 and 11)
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value; 10,000,000 shares authorized:
Series A: 0 shares issued and outstanding		0			0			-			-
Series B: 750,000 shares issued and outstanding (liquidation preference $956,250 and $952,500, respectively)		7,500			7,500
Series B: 750,000 shares issued and outstanding (liquidation preference $958,125 and $952,500, respectively)								7,500			7,500
Series C: 177,904 shares issued and outstanding (liquidation preference $97,847 both periods)		1,779			1,779			1,779			1,779
Series D: 1,692,672 shares issued and outstanding (liquidation preference $4,979,632 both periods)		16,926			16,926			16,926			16,926
Common stock, $0.001 par value; 300,000,000 shares authorized; 106,240,361 shares issued and outstanding		1,062,402			1,062,402
Common stock, $0.001 par value; 300,000,000 shares authorized; 106,373,341 and 106,240,361 shares issued and outstanding								1,062,535			1,062,402
Additional paid-in capital		63,991,459			63,991,459			64,053,827			63,991,459
Accumulated deficit		(31,563,788	)		(32,711,263	)		(31,520,990	)		(32,711,263	)
Total stockholders’ equity		33,516,278			32,368,803			33,621,577			32,368,803
Total liabilities and stockholders’ equity	$	35,756,017		$	35,002,727		$	35,471,993		$	35,002,727

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

Page 2 of 33

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three months ended September 30,						Nine months ended September 30,
	2022			2021			2022			2021
REVENUE	$	2,463,984		$	2,051,713		$	9,624,611		$	5,580,562
COST OF REVENUE		2,033,066			1,950,504			7,339,499			5,070,798
GROSS PROFIT		430,918			101,209			2,285,112			509,764
OPERATING EXPENSES
General and administrative		108,538			112,744			489,810			572,905
Salaries and benefits		76,811			72,200			222,858			226,137
Other operating and exploration expenses		91,405			-			109,365			184,037
Legal and professional fees		93,678			28,227			263,682			212,563
TOTAL OPERATING EXPENSES		370,432			213,171			1,085,715			1,195,642
INCOME (LOSS) FROM OPERATIONS		60,486			(111,962	)		1,199,397			(685,878	)
OTHER INCOME (EXPENSE)
Interest expense		(4,207	)		(590	)		(10,270	)		(3,725	)
Interest and investment income		15,064			13,320			54,770			35,202
Change in fair value of investments		(25,840	)		-			(119,298	)		-
Trademark and licensing income		4,899			-			65,674			-
Gain on forgiveness – CARES Act debt		-			-			-			443,400
Gain on settlement of Hillgrove advance		-			-			-			113,422
TOTAL OTHER INCOME (EXPENSE)		(10,084	)		12,730			(9,124	)		588,299
NET INCOME (LOSS)		50,402			(99,232	)		1,190,273			(97,579	)
Preferred dividends		(11,819	)		(12,162	)		(35,458	)		(36,487	)
Net income (loss) available to common stockholders		38,583			(111,394	)		1,154,815			(134,066	)
Net income (loss) per share of common stock
Basic and diluted	$	Nil		$	Nil		$	0.01		$	Nil
Weighted average shares outstanding:
Basic		106,293,842			106,117,844			106,258,384			101,642,048
Diluted		106,293,842			106,117,844			106,258,384			101,642,048

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

Page 3 of 3233

Table of Contents

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF ~~OPERATIONS~~CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

For the three and nine months ended September 30, 2022 and 2021

Three months ended June 30,

Six months ended June 30,

2022

2021

2022

2021

REVENUE

$ 3,587,925

$ 2,275,562

$ 7,168,231

$ 3,528,849

COST OF REVENUE

2,865,515

2,079,164

5,306,433

3,120,294

GROSS PROFIT

722,410

196,398

1,861,798

408,555

OPERATING EXPENSES

General and administrative

220,591

290,111

381,272

460,161

Salaries and benefits

72,912

77,278

146,047

153,937

Other operating expenses

14,045

0

17,960

184,037

Legal and professional fees

47,927

61,199

170,004

184,336

TOTAL OPERATING EXPENSES

355,475

428,588

715,283

982,471

INCOME (LOSS) FROM OPERATIONS

366,935

(232,190 )

1,146,515

(573,916 )
OTHER INCOME (EXPENSE)

Interest expense

(3,081 )

(880 )

(6,063 )

(3,135 )
Interest and investment income

30,052

13,389

39,706

21,882

Change in fair value of investments

(93,458 )

0

(93,458 )

0

Trademark and licensing income

60,775

0

60,775

Gain on forgiveness – CARES Act debt

0

443,400

0

443,400

Gain on settlement of Hillgrove advance

0

113,422

0

113,422

TOTAL OTHER INCOME (EXPENSE)

(5,712)

569,331

960

575,569

NET INCOME

361,223

337,141

1,147,475

1,653

Preferred dividends

(11,819 )

(12,162 )

(23,639 )

(24,325 )
Net income available to common stockholders

349,404

324,979

1,123,836

(22,672 )
Net income per share of common stock

Basic and diluted

$
Nil

$
Nil

$ 0.01

$
Nil

Weighted average shares outstanding:

Basic

106,240,361

106,315,419

106,240,361

99,513,378

Diluted

106,240,361

108,696,704

106,240,361

99,513,378

	Total Preferred Stock				Common Stock
	Shares		Amount		Shares		Amount		Additional Paid-in Capital			Accumulated Deficit			Total Stockholders’ Equity
BALANCE, December 31, 2020		2,678,909	$	26,788		75,949,757	$	759,496	$	39,050,899		$	(32,650,794	)	$	7,186,389
Common shares issued for cash		-		-		26,290,000		262,900		24,734,100			-			24,997,000
Common stock issuance costs		-		-		-		-		(1,654,820	)		-			(1,654,820	)
Common stock issued for exercise of warrants		-		-		3,723,810		37,238		1,726,381			-			1,763,619
Net loss		-		-		-		-		-			(335,488	)		(335,488	)
BALANCE, March 31, 2021		2,678,909	$	26,788		105,963,567	$	1,059,634	$	63,856,560		$	(32,986,282	)	$	31,956,700
Common stock issued for exercise of warrants		-		-		41,667		417		26,667			-			27,084
Net income		-		-		-		-		-			337,141			337,141
BALANCE, June 30, 2021		2,678,909	$	26,788		106,005,234	$	1,060,051	$	63,883,227		$	(32,649,141	)	$	32,320,925
Issuance of common stock for directors fees (Note 13)		-		-		112,610		1,126		108,874			-			110,000
Net loss		-		-		-		-		-			(99,232	)		(99,232	)
Balances, September 30, 2021		2,678,909	$	26,788		106,117,844	$	1,061,177		63,992,101			(32,748,373	)		32,331,693

BALANCE, December 31, 2021		2,620,576	$	26,205		106,240,361	$	1,062,402	$	63,991,459		$	(32,711,263	)	$	32,368,803
Net income		-		-		-		-		-			786,252			786,252
BALANCE, March 31, 2022		2,620,576	$	26,205		106,240,361	$	1,062,402	$	63,991,459		$	(31,925,011	)	$	33,155,055
Net income		-		-		-		-		-			353,619			353,619
BALANCE, June 30, 2022		2,620,576	$	26,205		106,240,361	$	1,062,402	$	63,991,459		$	(31,571,392	)	$	33,508,674
Issuance of common stock for directors fees (Note 13)		-		-		132,980		133		62,368			-			62,501
Net income		-		-		-		-		-			50,402			50,402
BALANCE, September 30, 2022		2,620,576	$	26,205		106,373,341	$	1,062,535	$	64,053,827		$	(31,520,990	)	$	33,621,577

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

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~~UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES~~

~~CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)~~

~~For the three and six months ended June 30, 2022 and 2021~~UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Total Preferred Stock

Common Stock

Additional

Accumulated

Total
Stockholders’

Shares

Amount

Shares

Amount

Paid in Capital

Deficit

Equity

BALANCE, December 31, 2020

2,678,909

$ 26,788

75,949,757

$ 759,496

$ 39,050,899

$ (32,650,794 )

$ 7,186,389

Common shares issued for cash

-

0

26,290,000

262,900

24,734,100

0

24,997,000

Common stock issuance costs

-

0

-

0

(1,654,820 )

0

(1,654,820 )
Common stock issued for exercise of warrants

-

0

3,723,810

37,238

1,726,381

0

1,763,619

Net loss

-

0

-

0

0

(335,488 )

(335,488 )
BALANCE, March 31, 2021

2,678,909

$ 26,788

105,963,567

$ 1,059,634

$ 63,856,560

$ (32,986,282 )

$ 31,956,700

Common stock issued for exercise of warrants

-

0

41,667

417

26,667

0

27,084

Net income

-

0

-

0

0

337,141

337,141

BALANCE, June 30, 2021

2,678,909

$ 26,788

106,005,234

$ 1,060,051

$ 63,883,227

$ (32,649,141 )

$ 32,320,925

BALANCE, December 31, 2021

2,620,576

$ 26,205

106,240,361

$ 1,062,402

$ 63,991,459

$ (32,711,263 )

$ 32,368,803

Net income

-

0

-

0

0

786,252

786,252

BALANCE, March 31, 2022

2,620,576

$ 26,205

106,240,361

$ 1,062,402

$ 63,991,459

$ (31,925,011 )

$ 33,155,055

Net income

-

0

-

0

0

361,223

361,223

BALANCE, June 30, 2022

2,620,576

$ 26,205

106,240,361

$ 1,062,402

$ 63,991,459

$ (31,563,788 )

$ 33,516,278

	Nine months ended September 30,
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	1,190,273		$	(97,579	)
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Depreciation and amortization		693,990			665,604
Accretion of asset retirement obligation		14,589			5,197
Common stock payable for directors fees		-			84,375
Gain on settlement of Hillgrove advance		-			(113,422	)
Gain on forgiveness of Cares Act debt		-			(443,400	)
Write down of inventory to net realizable value		409,919			-
Change in fair value of investments		119,298			-
Changes in operating assets and liabilities:
Accounts receivable		(559,000	)		(484,093	)
Inventories		(182,457	)		(83,743	)
Prepaid expenses and other current assets		(187,937	)		-
IVA receivable and other assets		(605,047	)		(30,612	)
Accounts payable		(923,490	)		(624,028	)
Accrued liabilities		530			(64,417	)
Export tax assessment payable		-			(1,120,730	)
Accrued liabilities – directors and related parties		52,248			(171,016	)
Net cash provided (used) by operating activities		22,916			(2,477,864	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from redemption of certificates of deposit		-			210,184
Purchase of investments		(13,500,000	)		-
Proceeds from sales of investments		407,149
Purchase of properties, plants and equipment		(592,221	)		(616,479	)
Net cash used by investing activities		(13,685,072	)		(406,295	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in checks issued and payable		-			(86,685	)
Payments on advances from related party		-			(56,416	)
Proceeds from issuance of common stock, net of issuance costs		-			23,342,180
Proceeds from exercise of warrants		-			1,790,703
Payments on Hillgrove advances payable		-			(1,020,799	)
Principal paid on notes payable to bank		-			(100,000	)
Principal payments of long-term debt		(42,080	)		(86,426	)
Net cash provided (used) by financing activities		(42,080	)		23,782,557
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		(13,704,236	)		20,898,398
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD		21,420,329			722,377
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	$	7,716,093		$	21,620,775

NON-CASH FINANCING AND INVESTING ACTIVITIES:
Equipment purchased with note payable	$	161,600		$	-
Issuance of common stock for directors fees		62,501			110,000

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.

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~~UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES~~

~~CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)~~

Six months ended June 30,

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$ 1,147,475

$ 1,653

Adjustments to reconcile net income to net cash used by operating activities:

Depreciation and amortization

451,207

442,408

Accretion of asset retirement obligation

11,412

1,732

Common stock payable for directors fees

75,000

56,250

Gain on settlement of Hillgrove advance

0

(113,422 )
Gain on forgiveness of Cares Act debt

0

(443,400 )
Write down of inventory to net realizable value

136,836

66,054

Change in fair value of investments

93,458

0

Changes in operating assets and liabilities:

Accounts receivable

(713,346 )

(362,681
)
Inventories

328,380

17,448

Prepaid expenses

(60,916 )

0

IVA receivable and other assets

(86,442 )

(15,402 )
Accounts payable

(706,155 )

(519,570 )
Accrued liabilities

64,045

(92,927 )
Export tax assessment payable

0

(1,120,730 )
Payable to related parties

4,084

(154,022 )
Net cash provided (used) by operating activities

745,038

(2,236,609 )
CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from redemption of certificates of deposit

0

210,184

Purchase of investments

(13,789,772 )

0

Proceeds from sales of investments

396,921

0

Purchase of properties, plants and equipment

(382,999 )

(115,127
)
Net cash provided (used) by investing activities

(13,775,850 )

95,057
CASH FLOWS FROM FINANCING ACTIVITIES:

Change in checks issued and payable

0

(86,685
)
Payments on advances from related party

0

(56,416
)
Proceeds from issuance of common stock, net of issuance costs

0

23,342,180
Proceeds from exercise of warrants

0

1,790,703

Payments on Hillgrove advances payable

0

(1,020,799
)
Principal paid on notes payable to bank

0

(100,000
)
Principal payments of long-term debt

(19,767
)

(27,926
)
Net cash provided (used) by financing activities

(19,767 )

23,841,057
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

(13,050,579 )

21,699,505

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD

21,420,329

722,377

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

$ 8,369,750

$ 22,421,882

NON-CASH FINANCING AND INVESTING ACTIVITIES:

Equipment purchased with note payable

$ 161,600

$ 0

Common stock payable to directors

0

130,483

Payable to related party satisfied with exercise of stock purchase warrants

0

62,500

~~The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.~~

~~Page 6 of 32~~

~~Table of Contents~~

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

~~June~~September 30, 2022

NOTE 1 - NATURE OF OPERATIONS

AGAU Mines, Inc., predecessor of United States Antimony Corporation (“USAC” or “the Company”), was incorporated in June 1968 as a Delaware corporation to mine gold and silver. USAC was incorporated in Montana in January 1970 to mine and produce antimony products. In June 1973, AGAU Mines, Inc. was merged into USAC. In December 1983, the Company suspended its antimony mining operations when it became possible to purchase antimony raw materials more economically from foreign sources. The principal business of the Company has been the production and sale of antimony products.

During 2000, the Company formed a 75% owned subsidiary, Bear River Zeolite Company (“BRZ”), to mine and market zeolite and zeolite products from a mineral deposit in southeastern Idaho. In 2001, an operating plant was constructed at the zeolite site and zeolite production and sales commenced. During 2002, the Company acquired the remaining 25% of BRZ and continued to produce and sell zeolite products.

During 2005, the Company formed a 100% owned subsidiary, Antimonio de Mexico S.A. de C.V. (“AM”), to explore and develop potential antimony properties in Mexico.

During 2006, the Company acquired 100% ownership in United States Antimony, Mexico S.A. de C.V. (“USAMSA”), which became a wholly-owned subsidiary of the Company.

In 2018, the Company acquired 100% ownership in Stibnite Holding Company US Inc. (previously Lanxess Holding Company US Inc.), Antimony Mining and Milling US LLC (previously Lanxess Laurel US LLC), a Delaware limited liability company and Lanxess Laurel de Mexico, S.A. de C.V (“Lanxess Laurel Mexico”), a Mexico corporation, both of which became a wholly-owned subsidiary of the Company.

In its operations in Montana, the Company produces antimony oxide, antimony metal, and precious metals. Antimony oxide is a fine, white powder that is used primarily in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper. Antimony oxide is also used as a color fastener in paint, as a catalyst for production of polyester resins for fibers and film, as a catalyst for production of polyethylene pthalate in plastic bottles, as a phosphorescent agent in fluorescent light bulbs, and as an opacifier for porcelains. The Company also sells antimony metal for use in bearings, storage batteries and ordnance.

In its operations in Idaho, the Company produces zeolite, a group of industrial minerals used in a variety of purposes including soil amendment and fertilizer. Zeolite is also used for water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation and other miscellaneous applications.

NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of ~~June~~September 30, 2022, and its results of operations for the three and ~~six~~nine months ended ~~June~~September 30, 2022, and 2021, and cash flows for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021. The condensed consolidated balance sheet at December 31, 2021, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. Operating results for the three and ~~six month~~nine-month periods ended ~~June~~September 30, 2022, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022.

These unaudited interim financial statements have been prepared by management in accordance with generally accepted accounting principles used in the United States of America (“U.S. GAAP”). These unaudited interim financial statements should be read in conjunction with the annual audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission on March 31, 2022.

This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to U.S. GAAP and have been consistently applied in the preparation of the financial statements.

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

~~June~~September 30, 2022

Reclassifications

Certain reclassifications have been made to conform prior periods’ amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity and cash flows as previously reported.

COVID -19

The Company’s operations and business have experienced disruption due to the unprecedented conditions surrounding the COVID-19 pandemic spreading throughout the United States and elsewhere, causing disruptions to the Company’s business operations and management. These disruptions are most evident in the Company’s ability to retain and house employees and properly manage them while maintaining proper social distancing and with delays in obtaining materials and supplies.

The effects of the continued outbreak of COVID-19 and related government responses could also include extended disruptions to supply chains and capital markets, reduced availability of contractors and a prolonged reduction in economic activity. These effects could have a variety of adverse impacts on the Company, including its ability to conduct operations.

The Company has taken steps to mitigate the potential risks to suppliers and employees posed by the spread of COVID-19, including work from home policies where appropriate. The Company will continue to monitor developments affecting both its workforce and contractors, and will take additional precautions as necessary. The ultimate impact of COVID-19 depends on factors beyond management’s knowledge or control, including its duration and third-party actions to contain its spread and mitigate its public health effects. Therefore, the Company cannot estimate the potential future impact to its financial position, results of operations and cash flows, but the impacts could be material.

Investments

The Company determines the appropriate classification of investments at the time of acquisition and re-evaluates such determinations at each reporting date. Equity securities that have a readily determinable fair value are carried at fair value determined using Level 1 fair value measurement inputs with the change in fair value recognized as unrealized gain (loss) in the consolidated statement of operations each reporting period. Gains and losses on the sale of securities are recognized on a specific identification basis.

New Accounting Pronouncements

Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”) that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

NOTE 3– EARNINGS PER SHARE

Basic Earnings Per Share (“EPS”) is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants.

At ~~June~~September 30, 2022 and 2021, 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:

	June 30, 2022		June 30, 2021		September 30, 2022		September 30, 2021
Warrants		12,489,922		2,471,089		12,346,215		12,489,922
Convertible preferred stock		1,692,672		1,751,005		1,692,672		1,751,005
TOTAL POSSIBLE DILUTIVE SHARES		14,182,594		4,222,094		14,038,887		14,240,927

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

~~June~~September 30, 2022

NOTE 4 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

On August 17, 2022, the Company executed a Management and Consultancy Services Agreement (the ‘Consultancy Agreement”) whereby a contractor was engaged to render professional services consisting of management and consultancy for the acquisition of surface rights and other technical services near San Guadalupe, Mexico. The parties agreed to total consideration of $1,035,025 plus associated Value Added Tax (“VAT”).

The Company paid $450,000 plus VAT upon execution of the Consultancy Agreement and will pay fifty (50) monthly installments of $11,700 plus VAT. The $450,000 initial installment will be amortized over the fifty (50) month term of the agreement and recognized as expense under “Other operating expenses and exploration”.

Prepaid expenses and other current assets at September 30, 2022 and December 31, 2021 are as follows:

	September 30, 2022			December 31, 2021
Prepaid insurance	$	40,611			-
Prepaid consulting and management fees		432,000			-
Prepaid exploration expense		10,670			-
Other current assets		28,656			-
		511,937			-
Less long-term portion		(324,000	)		-
Prepaid and other current assets	$	187,937			-

The long-term portion of prepaid and other current assets of $324,000 is included in “IVA refund and other assets” on the condensed consolidated balance sheet.

NOTE 5 – 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

Sales of products for the three-months ended ~~June~~September 30, 2022 and 2021 were as follows:

	For the three months ended				For the three months ended
	June 30, 2022		June 30, 2021		September 30, 2022		September 30, 2021
Antimony	$	2,472,081	$	1,428,939	$	1,671,301	$	1,284,969
Zeolite		1,020,391		716,428		792,683		693,008
Precious metals		95,453		130,195		-		73,736
TOTAL REVENUE BY PRODUCT	$	3,587,925	$	2,275,562	$	2,463,984	$	2,051,713

Sales of products for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021 were as follows:

	For the six months ended				For the nine months ended
	June 30, 2022		June 30, 2021		September 30, 2022		September 30, 2021
Antimony	$	5,301,011	$	2,086,046	$	6,972,312	$	3,371,015
Zeolite		1,694,433		1,236,375		2,487,116		1,929,383
Precious metals		172,787		206,428		165,183		280,164
TOTAL REVENUE BY PRODUCT	$	7,168,231	$	3,528,849	$	9,624,611	$	5,580,562

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For the three and six months ended June 30, 2022, the Company also received royalties related to a trademark and licensing agreement in its antimony business segment. For the three and six months ended June 30, 2022, trademark and licensing income of $60,775 is included in other income in the antimony business segment (Note 12). For the three and six months ended June 30, 2021, trademark and licensing income was $Nil.

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 2022

The Company’s trade accounts receivable balance related to contracts with customers was ~~$1,604,660~~$1,450,314 at ~~June~~September 30, 2022 and $891,314 at December 31, 2021. The Company’s products do not involve any warranty agreements and product returns are not typical.

For the three and nine months ended September 30, 2022, the Company also received royalties related to a trademark and licensing agreement in its antimony business segment and is recognized under “Other Income”. For the three months ended September 30, 2022 and 2021, royalty income of $4,899 and $Nil, respectively was recognized. For the nine months ended September 30, 2022 and 2021, royalty income of $65,674 and $Nil, respectively was recognized

NOTE 5–6– INVENTORIES

Inventories at ~~June~~September 30, 2022 and December 31, 2021 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. Inventories at ~~June~~September 30, 2022 and December 31, 2021 are as follows:

June 30,
2022

December 31,
2021

Antimony Metal

$ 128,591

$ 234,461

Antimony Oxide

278,134

439,086

Antimony Ore Concentrates

28,392

119,046

Total antimony

435,117

792,593

Zeolite

155,087

262,827

TOTAL INVENTORIES

$ 590,204

$ 1,055,420

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	September 30, 2022		December 31, 2021
Antimony Metal	$	83,031	$	234,461
Antimony Oxide		323,483		439,086
Antimony Ore Concentrates		246,938		119,046
Total antimony		653,452		792,593
Zeolite		174,506		262,827
TOTAL INVENTORIES	$	827,958	$	1,055,420

~~UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~

~~June 30, 2022~~

~~Inventories~~As of September 30, 2022 and December 31, 2021, inventories are valued at cost except for the portion related to Mexican operations which are valued at net realizable value because the production costs of the Mexican inventory were greater than the amount the Company expected to receive on the sale of the pounds of antimony contained in inventory. The adjustment to inventory ~~which is included in cost of revenue on the statements of operations~~for net realizable value was ~~$136,836~~$409,919 and ~~$66,054~~$Nil for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, respectively.

Antimony oxide and metal inventory consisted of finished product held at the Company’s plants in Montana and Mexico. Antimony concentrates and ore were held primarily at sites in Mexico. The Company’s zeolite inventory consists of saleable zeolite ~~material.~~material in Idaho.

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 2022

NOTE 67 – PROPERTIES, PLANTS AND EQUIPMENT

The major components of the Company’s properties, plants and equipment by segment at ~~June~~September 30, 2022 and December 31, 2021 are shown below:

	Antimony Segment						Zeolite Segment			Precious Metals						Antimony Segment						Zeolite Segment			Precious Metals
June 30, 2022	USAC			USAMSA			BRZ			Segment			TOTAL
September 30, 2022																USAC			USAMSA			BRZ			Segment			TOTAL
Plant and equipment	$	1,759,271		$	9,197,870		$	4,051,016		$	1,347,912		$	16,356,069		$	1,760,926		$	9,249,429		$	4,051,016		$	1,347,912		$	16,409,283
Buildings		243,248			590,128			801,764			0			1,635,140			243,248			870,534			1,142,251			-			2,256,033
Land and other																	2,431,387			2,756,037			16,753			-			5,204,177
Construction in progress		0			280,406			332,629			0			613,035			-			-			48,149			-			48,149
Land and other		2,431,387			2,656,037			16,753			0			5,104,177
		4,433,906			12,724,441			5,202,162			1,347,912			23,708,421			4,435,561			12,876,000			5,258,169			1,347,912			23,917,642
Accumulated depreciation		(2,747,396	)		(5,904,748	)		(3,318,286	)		(495,270	)		(12,465,700	)		(2,757,658	)		(6,058,986	)		(3,368,895	)		(522,943	)		(12,708,482	)
	$	1,686,510		$	6,819,693		$	1,883,876		$	852,642		$	11,242,721		$	1,677,903		$	6,817,014		$	1,889,274		$	824,969		$	11,209,160

	Antimony Segment						Zeolite Segment			Precious Metals						Antimony Segment						Zeolite Segment			Precious Metals
December 31, 2021	USAC			USAMSA			BRZ			Segment			TOTAL			USAC			USAMSA			BRZ			Segment			TOTAL
Plant and equipment	$	1,684,977		$	8,905,899		$	3,853,056		$	1,330,394		$	15,774,326		$	1,684,977		$	8,905,899		$	3,853,056		$	1,330,394		$	15,774,326
Buildings		243,248			870,534			801,764			0			1,915,546			243,248			870,534			801,764			-			1,915,546
Land and other																	2,431,387			2,640,441			16,753			-			5,088,581
Construction in progress		0			280,406			184,972			0			465,378			-			280,406			184,972			-			465,378
Land and other		2,431,387			2,640,441			16,753			0			5,088,581
	$	4,359,612		$	12,697,280		$	4,856,545		$	1,330,394		$	23,243,831		$	4,359,612		$	12,697,280		$	4,856,545		$	1,330,394		$	23,243,831
Accumulated depreciation		(2,732,809	)		(5,622,555	)		(3,314,658	)		(440,076	)		(12,110,098	)		(2,732,809	)		(5,622,555	)		(3,314,658	)		(440,076	)		(12,110,098	)
	$	1,626,803		$	7,074,725		$	1,541,887		$	890,318		$	11,133,733		$	1,626,803		$	7,074,725		$	1,541,887		$	890,318		$	11,133,733

At ~~June~~September 30, 2022 and December 31, 2021, the Company had ~~$613,035~~$328,555 and $665,175, respectively, of assets that were not yet placed in service and have not yet been depreciated.

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~~UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~

~~June 30, 2022~~

NOTE 78 – ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS

Changes in the asset retirement obligation for the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021 are as follows:

	Three months ended June 30,				Three months ended September 30,
	2022		2021		2022		2021
Asset retirement obligation, beginning of period	$	192,881	$	184,219	$	218,157	$	187,683
Change in estimate of asset retirement obligation		15,596		0
Accretion expense		9,680		1,732		3,177		1,733
Asset retirement obligation, end of period	$	218,157	$	185,951	$	221,334	$	189,416

	Six months ended June 30,				Nine months ended September 30,
	2022		2021		2022		2021
Asset retirement obligation, beginning of period	$	191,149	$	184,219	$	191,149	$	184,219
Change in estimate of asset retirement obligation		15,596		0		15,596		-
Accretion expense		11,412		1,732		14,589		5,197
Asset retirement obligation, end of period	$	218,157	$	185,951	$	221,334	$	189,416

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 2022

The Company’s total asset retirement obligation and accrued reclamation costs of ~~$325,657~~$328,834 and $298,649, at ~~June~~September 30, 2022 and December 31, 2021, respectively, includes reclamation obligations for the Idaho and Montana operations of $107,500.

NOTE 89 – DEBT

Long term debt at ~~June~~September 30, 2022 and December 31, 2021 is as follows:

	June 30, 2022			December 31, 2021			September 30, 2022			December 31, 2021
Promissory note payable to First Security Bank of Missoula, bearing interest at 2.25%, payable in 59 monthly installments of $1,409 with a final payment of $152,726 maturing November 9, 2026; collateralized by a lien on Certificate of Deposit	$	208,046		$	215,150
Promissory note payable to First Security Bank of Missoula, earing interest at 2.25%, payable in 59 monthly installments of $1,409 with a final payment of $152,726 maturing November 9, 2026; collateralized by a lien on Certificate of Deposit							$	204,992		$	215,150
Installment contract payable to Caterpillar Financial Services, bearing interest at 6.65%, payable in 24 monthly installments of $7,210 maturing April 28, 2024; collateralized by 2007 Caterpillar 740 articulated truck		148,937			0			129,678			-
		356,983			215,150			334,670			215,150
Less current portion		(91,347	)		(13,230	)		(92,738	)		(13,230	)
Long term portion	$	265,636		$	201,920		$	241,932		$	201,920

At ~~June~~September 30, 2022, principal payments on debt are due as follows:

Twelve months ending June 30,	Principal payment
Twelve months ending September 30,			Principal payment
2023	$	91,347	$	92,738
2024		82,573		62,065
2025		12,925		12,998
2026		13,219		13,294
2027		156,919		153,575
	$	356,983	$	334,670

NOTE 10 – INCOME AND OTHER TAXES

Mexican Tax Assessment

In 2015, the Mexican tax authority (“SAT”) initiated an audit of the USAMSA’s 2013 income tax return. In October 2016, as a result of its audit, SAT assessed the Company $13.8 million pesos, which was approximately $666,400 in U.S. Dollars (“USD”) as of December 31, 2016. SAT’s assessment was based on the disallowance of specific costs that the Company deducted on the 2013 USAMSA income tax return. The assessment was settled in 2018 with no assessment against the Company.

In early 2019, the Company was notified that SAT re-opened its assessment of USAMSA’s 2013 income tax return and, in November 2019, SAT assessed the Company $16.3 million pesos, which was approximately $795,000 USD as of December 31, 2021.

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

~~June~~September 30, 2022

Management reviewed the 2019 assessment notice from SAT and, similar to the earlier assessment, believes the findings have no merit. An appeal 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. In August 2020, the Company filed a lawsuit against SAT for resolution of the process and, in December 2020, filed closing arguments.

During the three months ended September 30, 2022, the Mexican court ruled against the Company in the above matter. The Company has appealed the ruling. As of September 30, 2022, the updated SAT assessment was approximately $21.3 million pesos, which was approximately $1.1 million USD for $285,000 of unpaid income taxes and $815,000 of interest and penalties.

As of September 30, 2022, management assessed the possible outcomes for this tax audit and believes, based on discussions with its tax attorney in Mexico, that the most likely outcome will be that the Company will be successful in its appeal resulting in no tax due. Management determined that no amount should be accrued at September 30, 2022 or December 31, 2021 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 record changes to tax attributes, recognize penalties in general and administrative expense, interest will be recorded as interest expense and record the tax expense associated with the assessment.

NOTE 911 – COMMITMENTS AND CONTINGENCIES

The Company follows U.S. GAAP guidance in determining its accrual and disclosures with respect to loss contingencies, and evaluate such accruals and contingencies for each reporting period. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.

From time to time, the Company is assessed fines and penalties by the Mine Safety and Health Administration (“MSHA”). Using appropriate regulatory channels, management may contest these proposed assessments. At ~~June~~September 30, 2022 and December 31, 2021, the Company had accrued liabilities of ~~$1,270~~$Nil and $Nil, respectively, relating to such assessments.

The Company pays various royalties on the sale of zeolite products. On a combined basis, royalties vary from 8%-13%. During the three months ended ~~June~~September 30, 2022 and 2021, the Company incurred royalty expense of ~~$85,870~~$78,140 and ~~$69,437,~~$64,212, respectively. During the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, the Company incurred royalty expense of ~~$147,900~~$226,040 and ~~$131,567~~$195,779 respectively. Royalty expense is included in cost of goods sold on the condensed consolidated statement of operations.

At ~~June~~September 30, 2022 and December 31, 2021, the Company had accrued royalties payable of ~~$409,887~~$426,211 and $346,242 respectively, which is included in accrued liabilities on the condensed consolidated balance sheets. The Company is currently in negotiations with certain royalty holders to modify the terms of the agreements.

On August 8, 2022, the Company executed a preliminary Purchase Option Agreement (the ‘agreement”) with SB Wadley SA de CV (“Wadley”) whereby the Company leases, with an option to acquire, mining claims located in Mexico known as the Wadley Property. Under the agreement, the Company will pay Wadley eight monthly installments of $11,600 for the right to mine and conduct geological and resource studies as due diligence and exploration on the Wadley Property. At the end of the eight months, should the Company choose to exercise the option following due diligence and assessment of geological and resource studies, the Company will pay Wadley $2,230,000 and seven annual payments of $1,160,000.

NOTE 1012 – RELATED PARTY TRANSACTIONS

The Company compensates directors for their contributions to the management of the Company.

During the three months ended September 30, 2022 and September 30, 2021, the Company expensed $31,250 and $28,125, respectively, in directors’ fees.

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 2022

During the nine months ended September 30, 2022 and September 30, 2021, the Company expensed $106,250 and $84,375, respectively in directors’ fees.

At September 30, 2022 and December 31, 2022, accrued fees due to directors was $93,750 and $112,500, respectively, which are included in “accrued liabilities – directors and related parties” on the Company’s condensed consolidated balance sheets

During the three and nine months ended September 30, 2022, the Company paid accrued directors fees of $62,500 in cash and $62,501 in common stock (Note 13).

NOTE 13 – STOCKHOLDERS’ EQUITY

During the ~~six~~nine months ended June 30, 2021, the Company sold shares of its common stock in two separate transactions: on February 3, 2021, 15,300,000 shares were sold at $0.70 for gross proceeds of $10,710,000; and on February 18, 2021, 10,990,000 shares were sold at $1.30 for gross proceeds of $14,287,000. A total of $1,654,820 of issuance costs were incurred on these sales.

During the ~~six~~nine months ended ~~June~~September 30, ~~2021,~~ the Company issued 3,765,477 shares of common stock and received $1,790,703 in cash from the exercise of warrants.

~~During the three months ended June 30,~~On August 24, 2022, ~~and June 30, 2021,~~ the Company expensed $46,875 and $28,125, respectively, in directors’ fees payable that are anticipated to be paid in common stock. During the six months ended June 30, 2022 and June 30, 2021, the Company expensed $75,000 and $28,125, respectively in directors’ fees payable

~~At June 30, 2022 and December 31, 2021, the accrued balance of stock payable to directors fees for services was $187,500 and $112,500, respectively.~~

~~The Company~~ issued no132,980 shares of common stock ~~during~~in lieu of cash in consideration of fees for Board of Directors accrued through December 31, 2021. The number of shares issued was based on the ~~three or six months ended June 30, 2022. During~~amount of fees due of $62,501 divided by the ~~three and six months ended June 30, 2022, no warrants were exercised.~~market price of the Company’s common shares on the date of issuance.

Common stock warrants

In February 2021, concurrent with sale of common stock, the Company issued warrants to purchase 7,650,000 shares of common stock at an exercise price of $0.85 per share. The warrants are initially exercisable six months following issuance and expire five and one-half years from the issuance date. In connection with the February 2021 sales of common stock, the Company also issued 1,606,500 warrants with an exercise price of $0.85 and 804,000 warrants with an exercise price of $0.46 as commission to the placement agent. There were no warrants exercised during the three or ~~six~~nine months ended ~~June~~September 30, 2022.

The Company issued no warrants to purchase common stock during the three or ~~six~~nine months ended ~~June~~September 30, 2022.

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~~UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~

~~June 30, 2022~~

The following is a summary of the Company’s warrants to purchase shares of common stock activity:

	Number of warrants			Exercise prices		Number of warrants			Exercise prices
Balance outstanding at December 31, 2020		6,194,899		$	0.65		6,194,899		$	0.65
Issued		10,060,500		$0.46 - $0.85			10,060,500		$0.46 - $0.85
Exercised		(3,765,477	)	$0.46 - $0.65			(3,765,477	)	$0.46 - $0.65
Balance outstanding at December 31, 2021 and June 30, 2022		12,489,922		$	0.75
Balance outstanding at December 31, 2021							12,489,922		$	0.75
Expired							(143,707	)	$	0.65
Balance outstanding at September 30, 2022							12,346,215		$	0.75

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 2022

The composition of the Company’s warrants outstanding at ~~June~~September 30, 2022 is as follows:

Number of warrants

Exercise Price

Expiration Date

Remaining life (years)

143,707

$ 0.65

8/12/2022

0.12

2,285,715

0.46

7/31/2025

3.09

804,000

0.46

1/27/2026

3.58

7,650,000

0.85

8/3/2026

4.10

1,606,500

0.85

2/1/2026

3.59

12,489,922

Number of warrants		Weighted Average Exercise Price		Expiration Date	Weighted Average Remaining life (years)
	2,285,715	$	0.46	7/31/2025		2.84
	804,000		0.46	1/27/2026		3.33
	7,650,000		0.85	8/3/2026		3.84
	1,606,500		0.85	2/1/2026		3.34
	12,346,215	$	0.75		$	3.56	^(a)

NOTE 1114 – INVESTMENTS

In April 2022, the Company opened an investment account composed primarily of fixed income mutual funds and U.S. Treasury bonds which are measured using Level 1 fair value inputs that are based on ~~quoted~~quote prices in active markets.

For the three ~~and six~~ months ended ~~June~~September 30, 2022, the Company recognized ~~$93,458~~$25,840 in the change in fair value of investments on the condensed consolidated statement of operations. For the nine months ended September 30, 2022, the Company recognized a change in fair value of investments of $119,298 on the condensed consolidated statement of operations.

As of ~~June~~September 30, 2022, the cost and fair value of the investment portion of the account was ~~$13,492,655~~$13,061,469 and ~~$13,431,774,~~$12,973,553, respectively.

As of ~~June~~September 30, 2022, the cash and cash equivalent portion of the account was ~~$132,380,~~$442,097 which is included in cash and cash equivalents on the condensed consolidated balance sheet.

NOTE 1215 – BUSINESS SEGEMENTS

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.

~~Page 13 of 32~~

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~~UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~

~~June 30, 2022~~

The Puerto Blanco mill and the Madero smelter at the Company’s Mexico operation bring antimony up to an intermediate or finished stage, which may be sold directly or shipped to the United States operation for finishing at the Thompson Falls, Montana plant. The Puerto Blanco mill in Mexico 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, where a 99% precious metals mix will be produced. The zeolite operation produces zeolite near Preston, Idaho. Almost all of the sales of products from the United States antimony and zeolite operations are to customers in the United States, although the Company does have a sales operation in Canada.

For the three months ended June 30,

For the six months ended June 30,

Capital expenditures

2022

2021

2022

2021

Antimony

United States

$ 51,927

$ 0

$ 80,277

$ 0

Mexico

10,724

4,872

11,565

9,744

Subtotal antimony

62,651

4,872

91,842

9,744

Precious metals

9,138

18,921

17,518

37,347

Zeolite

299,865

68,036

435,239

68,036

Total

$ 371,654

$ 91,829

$
544,599

$ 115,127

Total Assets:

June 30,
2022

December 31,
2021

Antimony

United States

$ 24,552,558

$ 24,130,348

Mexico

7,446,054

7,771,515

Subtotal antimony

31,998,612

31,901,863

Precious metals

United States

183,713

107,464

Mexico

668,929

782,854

Subtotal precious metals

852,642

890,318

Zeolite

2,904,763

2,210,546

TOTAL

$ 35,756,017

$ 35,002,727

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

~~June~~September 30, 2022

Segment operations for the three months ended June 30, 2022

Antimony - USA

Antimony -Mexico

Total antimony

Precious Metals

Zeolite

Total

Total revenues

$ 1,644,259

$ 827,822

$ 2,472,081

$ 95,453

$ 1,020,391

$ 3,587,925

Depreciation and amortization

$ 11,101

$ 143,736

$ 154,837

$ 27,674

$ 48,546

$ 231,057

Income from operations

$ 120,636

$ 24,396

$ 145,032

$ 67,779

$ 154,124

$ 366,935

Other income (expense)

(3,975)

0

(3,975)

0

(1,737)

(5,712)
NET INCOME

$ 116,661

$ 24,396

$ 141,057

$ 67,779

$ 152,387

$ 361,223

	For the three months ended September 30,				For the nine months ended September 30,
Capital expenditures	2022		2021		2022		2021
Antimony
United States	$	1,655	$	4,060	$	81,931	$	4,060
Mexico		151,559		4,872		163,125		14,616
Subtotal antimony		153,214		8,932		245,056		18,676
Precious metals		-		17,607		17,518		54,954
Zeolite		56,008		474,812		491,247		542,849
Total	$	209,222	$	501,351	$	753,821	$	616,479

Total Assets:	September 30, 2022		December 31, 2021
Antimony
United States	$	23,737,803	$	24,130,348
Mexico		8,147,147		7,771,515
Subtotal antimony		31,884,950		31,901,863
Precious metals
United States		177,859		107,464
Mexico		647,110		782,854
Subtotal precious metals		824,969		890,318
Zeolite		2,762,074		2,210,546
TOTAL	$	35,471,993	$	35,002,727

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

~~June~~September 30, 2022

Segment operations for the three months ended June 30, 2021	Antimony - USA		Antimony -Mexico			Total antimony			Precious Metals		Zeolite			Total
Segment operations for the three months ended September 30, 2022																	Antimony - USA			Antimony -Mexico			Total antimony			Precious Metals			Zeolite			Total
Total revenues	$	1,428,939	$	0		$	1,428,939		$	130,195	$	716,428		$	2,275,562		$	1,671,301		$	-		$	1,671,301		$	-		$	792,683		$	2,463,984
Depreciation and amortization	$	7,893	$	144,999		$	152,892		$	28,226	$	38,826		$	219,944		$	10,262		$	154,238		$	164,500		$	27,673		$	50,610		$	242,783
Income (loss) from operations	$	99,642	$	(575,363	)	$	(475,721	)	$	101,969	$	141,562		$	(232,190	)	$	802,817		$	(817,746	)	$	(14,929	)	$	(27,673	)	$	103,088		$	60,486
Other income (expense)		456,725		113,422			570,147			0		(816	)		569,331			(7,058	)		-			(7,058	)		-			(3,026	)		(10,084	)
NET LOSS	$	556,367	$	(461,941	)	$	94,426		$	101,969	$	140,746		$	337,141
NET INCOME (LOSS)																	$	795,759		$	(817,746	)	$	(21,987	)	$	(27,673	)	$	100,062		$	50,402

Segment operations for the six months ended June 30, 2022

Antimony - USA

Antimony -Mexico

Total antimony

Precious Metals

Zeolite

Total

Total revenues

$ 4,473,189

$ 827,822

$ 5,301,011

$ 172,787

$ 1,694,433

$ 7,168,231

Depreciation and amortization

$ 20,570

$ 282,193

$ 302,763

$ 55,194

$ 93,250

$ 451,207

Income (loss) from operations

$ 1,512,148

$ (659,641 )

$ 852,507

$ 117,593

$ 176,415

$ 1,146,515

Other income (expense)

3,335

0

3,335

0

(2,375 )

960
NET INCOME (LOSS)

$ 1,515,483

$ (659,641 )

$ 855,842

$ 117,593

$ 174,040

$ 1,147,475

Segment operations for the six months ended June 30, 2021

Antimony - USA

Antimony -Mexico

Total antimony

Precious Metals

Zeolite

Total

Total revenues

$ 2,086,046

$ 0

$ 2,086,046

$ 206,428

$ 1,236,375

$ 3,528,849

Depreciation and amortization

$ 15,784

$ 289,951

$ 305,735

$ 55,830

$ 80,843

$ 442,408

Income (loss) from operations

$ (119,027 )

$ (813,931 )

$ (932,958 )

$ 150,598

$ 208,444

$ (573,916 )
Other income (expense)

463,360

113,422

576,782

0

(1,213 )

575,569

NET INCOME (LOSS)

$ 344,333

$ (700,509 )

$ (356,176 )

$ 150,598

$ 207,231

$ 1,653

~~NOTE 13 – SUBSEQUENT EVENTS~~

On August 8, 2022, the Company executed a Purchase Option Agreement (the ‘agreement”) with SB Wadley SA de CV (“Wadley”) whereby the Company leases, with an option to acquire, mining claims located in Mexico known as the Wadley Property. Under the agreement, the Company will pay Wadley eight monthly installments of $11,600 for the right to mine and conduct geological and resource studies on the Wadley Property. At the end of the eight months, should the Company choose to exercise the option following due diligence and assessment of geological and resource studies, the Company will pay Wadley $2,230,000 and seven annual payments of $1,160,000.

Segment operations for the three months ended September 30, 2021	Antimony - USA		Antimony -Mexico			Total antimony			Precious Metals		Zeolite			Total
Total revenues	$	1,284,969	$	-		$	1,284,969		$	73,736	$	693,008		$	2,051,713
Depreciation and amortization	$	8,032	$	145,027		$	153,059		$	28,361	$	41,776		$	223,196
Income (loss) from operations	$	528,750	$	(673,739	)	$	(144,989	)	$	45,375	$	(12,348	)	$	(111,962	)
Other income (expense)		13,249		-			13,249			-		(519	)		12,730
NET INCOME (LOSS)	$	541,999	$	(673,739	)	$	(131,740	)	$	45,375	$	(12,867	)	$	(99,232	)

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 2022

Segment operations for the nine months ended September 30, 2022	Antimony - USA			Antimony -Mexico			Total antimony			Precious Metals		Zeolite			Total
Total revenues	$	6,144,490		$	827,822		$	6,972,312		$	165,183	$	2,487,116		$	9,624,611
Depreciation and amortization	$	30,832		$	436,431		$	467,263		$	82,867	$	143,860		$	693,990
Income (loss) from operations	$	2,314,965		$	(1,477,387	)	$	837,578		$	82,316	$	279,503		$	1,199,397
Other income (expense)		(3,723	)		-			(3,723	)		-		(5,401	)		(9,124	)
NET INCOME (LOSS)	$	2,311,242		$	(1,477,387	)	$	833,855		$	82,316	$	274,102		$	1,190,273

Segment operations for the nine months ended September 30, 2021	Antimony - USA		Antimony -Mexico			Total antimony			Precious Metals		Zeolite			Total
Total revenues	$	3,371,015	$	-		$	3,371,015		$	280,164	$	1,929,383		$	5,580,562
Depreciation and amortization	$	23,816	$	434,978		$	458,794		$	84,191	$	122,619		$	665,604
Income (loss) from operations	$	409,723	$	(1,487,670	)	$	(1,077,947	)	$	195,973	$	196,096		$	(685,878	)
Other income (expense)		476,609		113,422			590,031			-		(1,732	)		588,299
NET INCOME (LOSS)	$	886,332	$	(1,374,248	)	$	(487,916	)	$	195,973	$	194,364		$	(97,579	)

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF ~~OPERATION.~~OPERATION.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report and the exhibits attached hereto contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

Any statement that expresses or involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates”, or “intends”, or states that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation:

	·	Risks related to the Company’s properties being in the exploration stage;
	·	Risks related to the mineral operations being subject to government regulation;
	·	Risks related to environmental concerns;
	·	Risks related to the Company’s ability to obtain additional capital to develop the Company’s resources, if any;
	·	Risks related to mineral exploration and development activities;
	·	Risks related to mineral estimates;
	·	Risks related to the Company’s insurance coverage for operating risks;
	·	Risks related to the fluctuation of prices for precious and base metals, such as gold, silver and copper;
	·	Risks related to the competitive industry of mineral exploration;
	·	Risks related to the title and rights in the Company’s mineral properties;
	·	Risks related to the possible dilution of the Company’s common stock from additional financing activities;
	·	Risks related to potential conflicts of interest with the Company’s management;
	·	Risks related to the Company’s shares of common stock;

This list is not exhaustive of the factors that may affect the Company’s forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further under the sections titled “Risk Factors”, “Description of Business” and “Management’s Discussion and Analysis and Plan of Operation” of this Quarterly Report. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. United States Antimony Corporation disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as required by law. The Company advises readers to carefully review the reports and documents filed from time to time with the Securities and Exchange Commission (the “SEC”), particularly the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

United States Antimony Corporation qualifies all forward-looking statements contained in this Quarterly Report by the foregoing cautionary statement.

Certain statements contained in this Quarterly Report on Form 10-Q constitute “forward-looking statements.” These statements, identified by words such as “plan,” “anticipate,” “believe,” “estimate,” “should,” “expect,” and similar expressions include the Company’s expectations and objectives regarding its future financial position, operating results and business strategy. These statements reflect the current views of management with respect to future events and are subject to risks, uncertainties and other factors that may cause actual results, performance or achievements, or industry results, to be materially different from those described in the forward-looking statements. Such risks and uncertainties include those set forth under the caption “Management’s Discussion and Analysis or Plan of Operation” and elsewhere in this Quarterly Report.

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As used in this Quarterly Report, the terms “we,” “us,” “our,” “United State Antimony Corporation,”, “US Antinomy “and the “Company”, mean United States Antimony Corporation, unless otherwise indicated. All dollar amounts in this Quarterly Report are expressed in U.S. dollars, unless otherwise indicated.

~~Page 17 of 32~~

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Management’s Discussion and Analysis is intended to be read in conjunction with the Company’s condensed consolidated financial statements and the integral notes (“Notes”) thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ~~ended~~ending December 31, 2021. The following statements may be forward-looking in nature and actual results may differ materially.

Reports to Security Holders

The Registrant does not issue annual or quarterly reports to security holders other than the annual Form 10-K and quarterly Forms 10-Q as electronically filed with the SEC. Electronically filed reports may be accessed at www.sec.gov

DESCRIPTION OF BUSINESS

History

United States Antimony Corporation, or USAC, was incorporated in Montana in January 1970 to mine and produce antimony products. In December 1983, we suspended antimony mining operations but continued to produce antimony products from domestic and foreign sources. In April 1998, we formed United States Antimony SA de CV or USAMSA, to mine and smelt antimony in Mexico. Bear River Zeolite Company, or BRZ, was incorporated in 2000, and it is mining and producing zeolite in southeastern Idaho. On August 19, 2005, USAC formed Antimonio de Mexico, S. A. de C. V. to explore and develop antimony and silver deposits in Mexico. Our principal business is the production and sale of antimony, silver, gold, and zeolite products. On May 16, 2012, we started trading on the NYSE MKT (now NYSE AMERICAN) under the symbol UAMY.

Antimony Division

Our antimony smelter and precious metals plant is located in the Burns Mining District of Sanders County, Montana, approximately 15 miles west of Thompson Falls, MT. We hold 2 patented mill sites where the plant is located. We have no “proven reserves” or “probable reserves” of ~~antimony.~~antimony, as these terms are defined by the Securities and Exchange Commission’s Regulation S-K Subpart 1300. Environmental restrictions preclude mining at this site.

Mining was suspended in December 1983, because antimony could be purchased more economically from foreign sources.

For 2021, and since 1983, we relied on foreign sources for raw materials, and there are risks of interruption in procurement from these sources and/or volatile changes in world market prices for these materials that are not controllable by us. We have sources of antimony in Mexico but we are still depending on foreign companies for raw material in the future. We expect to receive raw materials from our owned and leased properties for 2022 and later years. We continue working with suppliers in North America, Central America, and South America.

We currently own 100% of the common stock, equipment, and the leases on real property of United States Antimony, Mexico S.A. de C.V. or “USAMSA”, which was formed in April 1998. We currently own 100% of the stock in Antimony de Mexico SA de CV (ADM) which owns the San Miguel concession of the Los Juarez property. USAMSA has two divisions, (1) the Madero smelter in Coahuila, (2) the Puerto Blanco flotation mill and oxide circuit in Guanajuato. ADM possesses the Los Juarez mineral deposit.

In our existing operations in Montana, we produce antimony oxide, antimony metal, and precious metals. Antimony oxide is a fine, white powder that is used primarily in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper. Antimony oxide is also used as a color fastener in paint, as a catalyst for production of polyester resins for fibers and film, as a catalyst for production of polyethylene pthalate in plastic bottles, as a phosphorescent agent in fluorescent light bulbs, and as an opacifier for porcelains. We also sell antimony metal for use in bearings, storage batteries and ordnance.

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We estimate (but have not independently confirmed) that our present share of the domestic market and international market for antimony oxide products is approximately 4% and less than 1%, respectively. We are the only significant U.S. producer of antimony products, while China supplies 92% of the world antimony demand. We believe we are competitive both domestically and world-wide due to the following:

	·	We have a reputation for quality products delivered on a timely basis.

	·	We have the only two operating, permitted, antimony smelters in North and Central America.

	·	We are the only domestic producer of antimony products.

	·	We can ship on short notice to domestic customers.

	·	We are vertically integrated, with raw materials from our own mines, mills, and smelter in Mexico, along with the raw materials from exclusive supply agreements we have with numerous ore and raw material suppliers.

	·	Our smelter in Coahuila is the largest operating antimony smelter in Mexico or the United States with a current maximum capacity of about 32,600 pounds of feed per day and permitting for 50% to 70% expansion.

Zeolite Division

We own 100% of Bear River Zeolite Company, (BRZ, an Idaho corporation) that was incorporated on June 1, 2000. BRZ has a lease with Webster Farm, L.L.C. that entitles BRZ to surface mine and process zeolite on property located near Preston, Idaho, in exchange for a royalty payment. In 2010 the royalty ~~payment~~ was adjusted to $10 per ton sold. The current minimum annual royalty is $60,000. In addition, BRZ has more zeolite on U.S. Bureau of Land Management land. The Company pays various royalties on the sale of zeolite products. William Raymond and Nancy Couse are paid a royalty that varies from $1 to $5 per ton. On a combined basis, royalties vary from 8%-13% of sales. Shortly after inception BRZ constructed a processing plant on the property which improved its productive capacity. Ground-breaking for an additional warehouse to store additional inventory and a shop to service equipment started in 2021 and the warehouse and shop ~~are expected to be~~was completed ~~by mid-2022.~~in the three months ended September 30, 2022. A vertical-shaft-impactor crusher was replaced by a hammer mill for crushing line number 1 in 2021 for increased production rate. A replacement jaw crusher was installed and put into service in 2021. The new jaw crusher was further improved with a variable-speed apron feeder in late 2021 and subsequent and substantial improvements have been made to the jaw crusher in 2022. In 2021, the Company purchased a house in Preston Idaho for the express purpose of housing workers for its zeolite operation.

We have no reserves nor resources of ~~zeolite.~~zeolite, as these terms are defined by the Securities and Exchange Commission’s Regulation S-K Subpart 1300.

“Zeolite” refers to a group of industrial minerals that consist of hydrated aluminosilicates that hold cations such as calcium, sodium, ammonium, various heavy metals, and potassium in their crystal lattice. Water is loosely held in cavities in the lattice. BRZ zeolite is regarded as one of the best zeolites in the world due to its high CEC of approximately 180-220 meq/100 gr., its hardness and high clinoptilolite content, its absence of clay minerals, and its low sodium content. BRZ’s zeolite deposits’ characteristics which make the mineral useful for a variety of purposes including:

	☐	Soil Amendment and Fertilizer. Zeolite has been successfully used to fertilize golf courses, sports fields, parks and common areas, and high value agricultural crops

	☐	Water Filtration. Zeolite is used for particulate, heavy metal and ammonium removal in swimming pools, municipal water systems, fisheries, fish farms, and aquariums.

	☐	Sewage Treatment. Zeolite is used in sewage treatment plants to remove nitrogen and as a carrier for microorganisms.

	☐	Nuclear Waste and Other Environmental Cleanup. Zeolite has shown a strong ability to selectively remove strontium, cesium, radium, uranium, and various other radioactive isotopes from solution. Zeolite can also be used for the cleanup of soluble metals such as mercury, chromium, copper, lead, zinc, arsenic, molybdenum, nickel, cobalt, antimony, calcium, silver and uranium.

	☐	Odor Control. A major cause of odor around cattle, hog, and poultry feed lots is the generation of the ammonium in urea and manure. The ability of zeolite to absorb ammonium prevents the formation of ammonia gas, which disperses the odor.


~~Page 19 of 32~~

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	☐	Gas Separation. Zeolite has been used for some time to separate gases, to re-oxygenate downstream water from sewage plants, smelters, pulp and paper plants, and fish ponds and tanks, and to remove carbon dioxide, sulfur dioxide and hydrogen sulfide from methane generators as organic waste, sanitary landfills, municipal sewage systems, animal waste treatment facilities, and is excellent in pressure swing apparatuses.

	☐	Animal Nutrition. According to other research, feeding up to 2% zeolite increases growth rates, decreases conversion rates, and prevents scours. BRZ does not make these claims.

	☐	Miscellaneous Uses. Other uses include catalysts, petroleum refining, concrete, solar energy and heat exchange, desiccants, pellet binding, horse and kitty litter, floor cleaner and carriers for insecticides, pesticides and herbicides.

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SELECTED FINANCIAL DATA.

Statement of Operations Information:

	For the three months ended June 30,						For the six months ended June 30,					For the three months ended September 30,						For the nine months ended September 30,
	2022			2021			2022		2021			2022			2021			2022			2021
Revenues	$	3,587,925		$	2,275,562		$	7,168,231	$	3,528,849		$	2,463,984		$	2,051,713		$	9,624,611		$	5,580,562
Costs of revenues		2,865,515			2,079,164			5,306,433		3,120,294			2,033,066			1,950,504			7,339,499			5,070,798
Gross profit		722,410			196,398			1,861,798		408,555			430.918			101,209			2,285,112			509,764
Total operating expenses		355,475			428,588			715,283		982,471			370,432			213,171			1,085,715			1,195,642
Income (loss) from operations		366,935			(232,190	)		1,146,515		(573,916	)		60,486			(111,962	)		1,199,397			(685,878	)
Other income (expense)		(5,712	)		569,331			960		575,569			(10,084	)		12,730			(9,124	)		588,299
NET INCOME	$	361,223		$	337,141		$	1,147,475	$	1,653

NET INCOME (LOSS)												$	50,402		$	(99,232	)	$	1,190,273		$	(97,579	)
Weighted average shares of common stock (basic)		106,240,361			106,315,419			106,240,361		99,513,378			106,293,842			106,117,844			106,258,384			101,642,048
Weighted average shares of common stock (diluted)		106,240,361			108,696,704			106,240,361		99,513,378			106,293,842			106,117,844			106,258,384			101,642,048

Balance Sheet Information:

	June 30, 2022			December 31, 2021			September 30, 2022			December 31, 2021
Working capital	$	22,665,906		$	21,548,137		$	22,078,132		$	21,548,137
Total assets		35,756,017			35,002,727			35,471,993			35,002,727
Accumulated deficit		(31,563,788	)		(32,711,263	)		(31,520,990	)		(32,711,263	)
Stockholders’ equity		33,516,278			32,368,803			33,621,577			32,368,803

Page 2021 of 3233

Table of Contents

Operational and financial performance

Antimony

Financial and operational metrics of antimony for the three months ended September 30, 2022 and 2021 are as follows:

	Three months ended September 30,
Antimony - Combined USA and Mexico	2022		2021		$ Change			Pct Change
Total revenue – sales of antimony	$	1,671,301	$	1,284,969	$	386,332			30.1	%
Gross profit - antimony		329,233		44,714		284,519			636.3	%
Total lbs of antimony metal sold		176,872		306,045		(129,173	)	(42.2		%)
Average sales price/lb metal		9.45		4.20		5.25			125.1	%
Average cost/lb metal		7.59		4.05		3.54			87.2	%
Average gross profit/lb metal		1.86		0.15		1.72			1,174.0	%

Financial and operational metrics of antimony for the nine months ended September 30, 2022 and 2021 was as follows:

	Nine months ended September 30,
Antimony - Combined USA and Mexico	2022		2021		$ Change		Pct Change
Total revenue -antimony	$	6,972,312	$	3,371,015	$	3,601,297		106.8	%
Gross profit - antimony		1,875,569		69,959		1,805,610		2,581.0	%
Total lbs of antimony metal sold		973,350		827,131		146,219		17.7	%
Average sales price/lb metal		7.16		4.08		3.09		75.8	%
Average cost/lb metal		5.24		3.99		1.25		31.2	%
Average gross profit/lb metal		1.93		0.08		1.84		2,178.2	%

During the three months ended September 30, 2022, the average sales price for antimony increased $5.25 per pound compared to the three months ended September 30, 2021. Gross profit per pound increased $1.72 per pound over the three months ended September 30, 2021.

The Company experienced a decrease in production in Q3 due to a temporary decrease in feed for two reasons. First, there was a scheduled shut-down by our North American supplier that was followed by equipment failure at their facility. In addition to this, the supplier reported having difficulties with labor supply in Q3. Second, the decrease in supply corresponded with less sourcing in Mexico during the negotiation phase regarding our purchase option agreement. The same thing that led to a meeting with the owners of the Wadley mine culminating in a purchase option agreement resulted in a bottleneck during this period, namely, the insistence that all purchased ore was done without invoicing and paid for in cash-an arrangement unacceptable to US Antimony.

Both of these problems have been corrected and we now have a record number of tons of ore at our smelter in Madero and are receiving the predicted number of tons of feed from our North American supplier. However, there is a delay between the purchase of raw material and the processing and sale product and this delay has affected Q3 and will affect Q4. The Company has recently received a ton of material for testing to produce antimony metal or oxide. Preliminary results of this test-work are very encouraging. This supplier has about 100 short tons of this material and our processing of it could result in a mutually beneficial arrangement. During the decrease of supply the Company supplemented its feed in Montana from material processed at its smelter in Mexico.

During the nine months ended September 30, 2022, the average sales price for antimony increased $3.09 per pound compared to the nine months ended September 30, 2021. Gross profit per pound increased $1.93 per pound over the three months ended September 30, 2021.

Page 22 of 33

Table of Contents

Zeolite

Financial and operational performance of zeolite for the three months ended September 30, 2022 and 2021 was as follows:

	Three months ended September 30,
Zeolite	2022		2021		$ Change			Pct Change
Total revenue - zeolite	$	792,683	$	693,008		99,675			14.4	%
Gross profit - zeolite		129,358		11,120		118,238			1,063.3	%
Tons of zeolite sold		3,264		3,045		219			7.2	%
Average sales price/ton		242.86		227.59		15.27			6.7	%
Average cost/ton		203.22		223.94		(20.71	)		(9.2	)%
Average gross profit/ton		39.63		3.65		35.98			985.2	%

Financial and operational performance of zeolite for the nine months ended September 30, 2022 and 2021 was as follows:

	Nine months ended September 30,
Zeolite	2022		2021		$ Change		Pct Change
Total revenue - zeolite	$	2,487,116	$	1,929,383		557,733		28.9	%
Gross profit - zeolite		327,227		243,832		83,395		34.2	%
Tons of zeolite sold		10,336		8,823		1,513		17.1	%
Average sales price/ton		240.63		218.68		21.95		10.0	%
Average cost/ton		208.97		191.04		17.93		9.4	%
Average gross profit/ton		31.66		27.64		4.02		14.6	%

Sales volume of zeolite for the three months ended September 30, 2022 increased 219 tons over the three months ended September 30, 2021. Average sales price per ton increased $15.27 for the same comparable period. Sales volume of zeolite for the nine months ended September 30, 2022 increased 1,513 tons over the nine months ended September 30, 2021. Average sales price per ton increased $21.95 for the nine months ended September 30, 2022 over the comparable nine month period ending September 30, 2021.

The Company continues making significant improvements to its infrastructure at the Preston Facility. We have purchased a newer dozer with dual ripper attachment (Caterpiller D8K) to aid in the mining as it is clear that our best method of mining is to rip and use blasting to supplement and not vice-versa. Our old D8 is shot and was costing more to repair than it was worth. We have hired a new supervisor and mechanic, Richard Lyon, who is a certified MSHA person and has been doing a spectacular job at the plant and in locating quality rolling stock to replace our aging fleet of equipment for both the mine and the mill. We have purchased a 2,000-gallon water truck for road dust control in the summer months. The shop building is finally complete along with a new 50’ x 100’ warehouse . A new method of dust control is being implemented for testing first in our crusher room based on the pressurization of the room. Depending on its success, the Company plans to implement the same system around all dust-sensitive areas. The Company has located and is in the process of purchasing an excavator for the purpose of loading and removal of ripped or blasted rock and for general use at the mine. A new road serving a new level was completed by our chief miner in q3, Allan Boot. The Company placed a down-payment on a salt-shed for the storage of ore above the jaw crusher and plans to purchase and have built many more to increase our tonnage during the fall and winter months via the elimination of the use of tarps for keeping our stockpiles dry.

Page 23 of 33

Table of Contents

~~Operational and financial performance~~

~~Antimony~~

~~Financial and operational metrics of antimony for the three months ended June 30, 2022 and 2021 are as follows:~~

Three months ended June 30,

Pct. Increase

Antimony - Combined USA and Mexico

2022

2021

$ Change

(Decrease)

Total revenue -antimony

$ 2,472,081

$ 1,428,939

$ 1,043,142

73.0 %
Gross profit - antimony

490,559

(62,222 )

552,781

(888.4 )%
Total lbs of antimony metal sold

363,128

339,117

24,011

7.1 %
Average sales price/lb metal

6.81

4.21

2.59

61.6 %
Average cost/lb metal

5.46

4.40

1.06

24.1 %
Average gross profit/lb metal

1.35

(0.18 )

1.53

(836.3 )%

~~Financial and operational metrics of antimony for the six months ended June 30, 2022 and 2021 was as follows:~~

Six months ended June 30,

Pct Increase

Antimony - Combined USA and Mexico

2022

2021

$ Change

(Decrease)

Total revenue -antimony

$ 5,301,011

$ 2,086,046

$ 3,214,965

154.1 %
Gross profit - antimony

1,546,336

25,245

1,521,091

6,025.3 %
Total lbs of antimony metal sold

796,478

521,086

275,392

52.8 %
Average sales price/lb metal

6.66

4.00

2.65

66.3 %
Average cost/lb metal

4.71

3.95

0.76

19.2 %
Average gross profit/lb metal

1.94

0.05

1.89

3,907.4 %

During the three months ended June 30, 2022, the average sales price for antimony increased $2.60 per pound compared to the three months ended June 30, 2021. Gross profit per pound increased $1.53 per pound over the three months ended June 30, 2021.

During the six months ended June 30, 2022, the average sales price for antimony increased $2.66 per pound compared to the six months ended June 30, 2021. Gross profit per pound increased $1.89 per pound over the three months ended June 30, 2021.

~~Page 21 of 32~~

~~Table of Contents~~

~~Zeolite~~

~~Financial and operational performance of zeolite for the three months ended June 30, 2022 and 2021 was as follows:~~

Three months ended June 30,

Pct Increase

Zeolite

2022

2021

$ Change

(Decrease)

Total revenue - zeolite

$ 1,020,391

$ 716,428

303,963

42.4 %
Gross profit - zeolite

164,072

156,651

7,421

4.7 %
Tons of zeolite sold

4,046

3,035

1,011

33.3 %
Average sales price/ton

252.20

236.06

16.14

6.8 %
Average cost/ton

211.65

184.44

27.21

14.8 %
Average gross profit/ton

40.55

51.61

(11.06 )

(21.4
%)

~~Financial and operational performance of zeolite for the six months ended June 30, 2022 and 2021 was as follows:~~

Six months ended June 30,

Pct. Increase

Zeolite

2022

2021

$ Change

(Decrease)

Total revenue - zeolite

$ 1,694,433

$ 1,236,375

458,058

37.0 %
Gross profit - zeolite

197,869

232,712

(34,843 )

(15.0
%)
Tons of zeolite sold

7,072

5,778

1,294

22.4 %
Average sales price/ton

239.60

213.98

25.62

12.0 %
Average cost/ton

211.62

173.70

37.92

21.8 %
Average gross profit/ton

27.98

40.28

(12.30 )

(30.5
%)

Sales volume of zeolite for the three months ended June 30, 2022 increased 1,011 tons over the three months ended June 30, 2021. Average sales price per ton increased $16.14 for the same comparable period. Sales volume of zeolite for the six months ended June 30, 2022 increased 1,294 tons over the six months ended June 30, 2021. Average sales price per ton increased $25.62 for the six months ended June 30, 2022 over the comparable six month period ending June 30, 2021.

Construction of the new 50’x100’ warehouse (for additional storage of product) and the 40’x60’ shop (for servicing equipment) continued. The structures are substantially complete as of the date of this report and will be put into service in the third quarter of 2022.

~~During the three and six months ended June 30, 2022, the Company purchased a Cat 740 haul truck to replace aging equipment. The Company also took delivery on a Cat 992 during the same period.~~

~~Page 22 of 32~~

~~Table of Contents~~

Precious Metals

Financial and operational performance of precious metals for the three months ended ~~June~~September 30, 2022 and 2021 was as follows:

	Three months ended June 30,										Three months ended September 30,
Precious metals	2022		2021		$ Change			Pct Change			2022			2021		$ Change			Pct Change
Total revenue - precious metals	$	95,453	$	130,195	$	(34,742	)		(26.7	)%	$	-		$	73,736	$	(73,736	)	(100.0%)
Gross profit precious metals		67,779		101,969		(34,190	)		(33.5	)%		(27,673	)		45,375		(73,048	)	(161.0%)
Ounces sold - gold		11.06		14.74		(3.68	)		(24.9	)%		-			12.00		(12.0	)	(100.0%)
Ounces sold - silver		3,319		6,254		(2,935	)		(46.9	)%		-			5,638		(5,638	)	(100.0%)

Financial and operational performance of precious metals for the three months ended ~~June~~September 30, 2022 and 2021 was as follows:

Six months ended June 30,

Precious metals

2022

2021

$ Change

Pct Change

Total revenue - precious metals

172,787

206,428

(33,641 )

(16.3 )%
Gross profit precious metals

117,593

150,598

(33,005 )

(21.9 )%
Ounces sold-gold

21.35

22.00

(0.65 )

(3.0 )%
Ounces sold-silver

8,175

9,608

(1,433 )

(14.9 )%

~~Page 23 of 32~~

~~Table of Contents~~

	Nine months ended September 30,
Precious metals	2022		2021		$ Change			Pct Change
Total revenue - precious metals		165,183		280,164		(114,981	)	(41.0%)
Gross profit precious metals		82,316		195,973		(113,657	)	(58.0%)
Ounces sold - gold		21.35		34.00		(12.65	)	(37.2%)
Ounces sold - silver		8,175		15,246		(7,071	)	(46.4%)

EARNINGS BEFORE INTEREST TAX DEPRECIATION AND AMORTIZATION

The Company utilizes Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”), a non-GAAP financial measurement which approximates free cash flow.

Our company-wide Earnings Before Interest Taxes Depreciation Amortization (“EBITDA”) was ~~$595,360~~$297,392 for the three months ended ~~June~~September 30, 2022, compared to EBITDA of ~~$557,965~~$123,964 for the three months ended ~~June~~September 30, 2021. The primary driver of the ~~June~~September 30, 2021 EBITDA was a one-time non-recurring gain on forgiveness of CARES Act funds on a loan received in 2020 during the global pandemic and subsequent federal government economic stimulus program.

Income from operations improved from a company-wide loss of ~~$232,190~~$111,962 for the three months ended ~~June~~September 30, 2021 to income from operations of ~~$366,935~~$60,486 for the three months ended ~~June~~September 30, 2022. ~~As a percentage of sales, income from operations improve from a negative 10.2% in 2021 to 11.7% in 2022 for the three-month period.~~ Primary drivers include continued strong market prices for antimony and ~~zeolite combined with relatively stable prices for cost of goods sold during the period.~~zeolite.

~~EBIDTA schedules by business segment~~Our company-wide Earnings Before Interest Taxes Depreciation Amortization (“EBITDA”) was $1,894,533 for the nine months ended September 30, 2022, compared to EBITDA of $571,160 for the nine months ended September 30, 2021. Increase in gross revenue of $4,044,049 and increased gross profit of 1,775,348 were the primary drivers behind the EBITDA results in 2022.

Income from operations improved from a company-wide loss of $111,962 for the three months ended ~~June 30, 2022 and June~~September 30, 2021 ~~is presented as follows.~~to income from operations of $60,486 for the three months ended September 30, 2022. Primary drivers include continued strong market prices for antimony and zeolite.

Antimony - Combined USA and Mexico

Three months ended June 30, 2022

Three months ended June 30, 2021

$ Change

Change as a %
of Revenue

Gross antimony revenue

$ 2,472,081

100.0 %

$ 1,428,939

100.0 %

$ 1,043,142

0.0 %
Cost of sales

(1,981,522 )

(80.2 )%

(1,491,161 )

(104.4 )%

(490,361 )

24.2 %
Gross profit

490,559

19.8 %

(62,222 )

(4.4 )%

552,781

24.2 %
Operating expenses

(345,527 )

(14.0 )%

(413,499 )

(28.9 )%

67,972

15.0 %
Income (loss) from operations

145,032

5.9 %

(475,721 )

(33.3 )%

620,753

39.2 %
Non-operating income (expense)

(3,975 )

(2.6 )%

570,147

39.9 %

(574,122 )

(40.1 )%
Net income - antimony

141,057

5.7 %

94,426

6.6 %

46,631

(0.9 )%
Interest expense

1,343

0.1 %

38

0.0 %

1,305

0.1 %
Depreciation and amortization

154,837

6.3 %

152,892

10.7 %

1,945

(4.4 )%
EBITDA - antimony

$ 297,237

12.0 %

$ 247,356

17.3 %

$ 49,881

(5.3 )%
Zeolite

Three months ended June 30, 2022

Three months ended June 30, 2021

$ Change

Change as a %
of Revenue

Gross zeolite revenue

$ 1,020,391

100.0 %

$ 716,428

100.0 %

$ 303,963

0.0 %
Cost of sales

(856,319 )

(83.9 )%

(559,777 )

(78.1 )%

(296,542 )

(5.8 )%
Gross profit - zeolite

164,072

16.1 %

156,651

21.9 %

7,421

(5.8 )%
Operating expenses

(9,948 )

(1.0 )%

(15,089 )

(2.1 )%

5,141

1.1 %
Income (loss) from operations

154,124

15.1 %

141,562

19.8 %

12,562

(4.7 )%
Non-operating expenses

(1,737 )

(0.2 )%

(816 )

(0.1 )%

(921 )

(0.1 )%
Net income - zeolite

152,387

14.9 %

140,746

19.6 %

11,641

(4.7 )%
Interest expense

1,738

0.2 %

842

0.1 %

896

0.1 %
Depreciation and amortization

48,546

4.8 %

38,826

5.4 %

9,720

(0.7 )%
EBITDA - zeolite

$ 202,671

19.9 %

$ 180,414

25.2 %

$ 22,257

(5.3 )%

Page 24 of 32
~~Table of Contents~~
Precious Metals

Three months ended June 30, 2022

Three months ended June 30, 2021

$ Change

Change as a %
of Revenue

Gross precious metals revenue

95,453

100.0 %

130,195

100.0 %

(34,742 )

0.0 %
Production costs

(27,674 )

(29.0 )%

(28,226 )

(21.7 )%

552

(7.3 )%
Gross profit

67,779

71.0 %

101,969

78.3 %

(34,190 )

(7.3 )%
Operating expenses

-

0.0 %

-

0.0 %

-

0.0 %
Income from operations

67,779

71.0 %

101,969

78.3 %

(34,190 )

(7.3 )%
Non-operating income

-

0.0 %

-

0.0 %

-

0.0 %
Net income - antimony

67,779

71.0 %

101,969

78.3 %

(34,190 )

(7.3 )%
Interest expense

-

0.0 %

-

0.0 %

-

0.0 %
Depreciation and amortization

27,674

29.0 %

28,226

21.7 %

(552 )

7.3 %
EBITDA - precious metals

95,453

100.0 %

130,195

100.0 %

(34,742 )

0.0 %
Company-wide

Three months ended June 30, 2022

Three months ended June 30, 2021

Change

Change as a % of Revenue

Gross revenue

3,587,925

100.0 %

2,275,562

100.0 %

1,312,363

0.0 %
Cost of sales

(2,865,515 )

(79.9 )%

(2,079,164 )

(91.4 )%

(786,351 )

11.5 %
Gross profit

722,410

20.1 %

196,398

8.6 %

526,012

11.5 %
Operating expenses

(355,475 )

(9.7 )%

(428,588 )

(18.8 )%

73,113

8.9 %
Income (loss) from operations

366,935

10.2 %

(232,190 )

(10.2 )%

599,125

18.6

Non-operating income (expense)

(5,712 )

(0.2 )%

569,331

25.0 %

(575,043

(25.2 )%
Net income (loss)

361,223

10.1 %

337,141

14.8 %

24,082

(4.7 )%
Interest expense

3,081

0.1 %

880

0.0 %

2,201

0.0 %
Depreciation and amortization

231,057

6.4 %

219,944

9.7 %

11,113

(3.2 )%
EBITDA

595,360

16.6 %

557,965

24.5 %

37,395

(7.9 )%
~~Page 25 of 32~~33
Table of Contents

EBIDTA schedules by business segment for the ~~six~~three months ended ~~June~~September 30, 2022 and ~~June~~September 30, 2021 is presented as follows.

Antimony - Combined USA and Mexico

Six months ended June 30, 2022

Six months ended June 30, 2021

$ Change

Change as a %
of Revenue

Gross antimony revenue

$ 5,301,011

100.0 %

$ 2,086,046

100.0 %

$ 3,214,965

0.0 %
Cost of sales

(3,754,675 )

(70.8 )%

(2,060,801 )

(98.8 )%

(1,693,874 )

28.0 %
Gross profit

1,546,336

29.2 %

25,245

1.2 %

1,521,091

28.0 %
Operating expenses

(693,829 )

(13.1 )%

(958,203 )

(45.9 )%

264,374

32.8 %
Income (loss) from operations

852,507

16.1 %

(932,958 )

(44.7 )%

1,785,465

60.8 %
Non-operating income (expense)

3,335 )

(0.1 )%

576,782

27.6 %

(573,447 )

(27.6 )%
Net income (loss) - antimony

855,843

16.1 %

(356,176 )

(17.1 )%

1,212,018

33.2 %
Interest expense

3,688

0.1 %

1,565

0.1 %

2,123

(0.0 )%
Depreciation and amortization

302,763

5.7 %

305,735

14.7 %

(2,972 )

(8.9 )%
EBITDA - antimony

$ 1,162,294

21.9 %

$ (48,876 )

(2.3 )%

$ 1,211,169

24.3 %
Antimony – Combined USA and Mexico

Three months ended September 30, 2022

Three months ended September 30, 2021

$ Change

% Change

Gross antimony revenue

$ 1,671,301

$ 1,284,969

$ 386,332

30.1 %
Cost of sales

(1,342,068 )

(1,240,255 )

(101,813 )

8.2 %
Gross profit – antimony

329,233

44,714

284,519

636.3 %
Operating expenses

(344,162 )

(189,703 )

(154,459 )

81.4 %
Income from operations

(14,929 )

(144,989 )

130,060

(89.7
%)
Non-operating expenses

(7,058 )

13,249

(20,307 )

(153.3
%)
Net income (loss) – antimony

(21,987 )

(131,740 )

109,753

(83.3
%)
Interest expense

1,181

-

1,181

N/A

Depreciation and amortization

164,500

153,059

11,441

7.5 %
EBITDA – antimony

$ 143,694

$ 21,319

$ 122,375

574.0 %

Zeolite

Six months ended June 30, 2022

Six months ended June 30, 2021

$ Change

Change as a %
of Revenue

Three months ended September 30, 2022

Three months ended September 30, 2021

$ Change

% Change

Gross zeolite revenue

$ 1,694,433

100.0 %

$ 1,236,375

100.0 %

$ 458,058

0.0 %

$ 792,683

$ 693,008

$ 99,675

14.4 %
Cost of sales

(1,496,564 )

(88.3 )%

(1,003,663 )

(81.2 )%

(492,901 )

(7.1 )%

(663,325 )

(681,888 )

18,563

(2.7
%)
Gross profit - zeolite

197,869

11.7 %

232,712

18.8 %

(34,843 )

(7.1 )%
Gross profit – zeolite

129,358

11,120

118,238

1,063.3 %
Operating expenses

(21,454 )

(1.3 )%

(24,268 )

(2.0 )%

2,814

0.7 %

(26,270 )

(23,468 )

(2,802 )

11.9 %
Income from operations

176,415

10.4 %

208,444

16.9 %

(32,029 )

(6.4 )%

103,088

(12,348 )

115,436

(934.9
%)
Non-operating expenses

(2,375 )

(0.1 )%

(1,213 )

(0.1 )%

(1,162 )

(0.0 )%

(3,026 )

(519 )

(2,507 )

483.0 %
Net income - zeolite

174,040

10.3 %

207,231

16.8 %

(33,191 )

(6.5 )%
Net income – zeolite

100,062

(12,867 )

112,929

(877.7
%)
Interest expense

2,375

0.1 %

1,570

0.1 %

805

0.0 %

3,026

-

3,026

N/A

Depreciation and amortization

93,250

5.5 %

80,843

6.5 %

12,407

(1.0 )%

50,610

41,776

8,834

21.1 %
EBITDA - zeolite

$ 269,665

15.9 %

$ 289,644

23.4 %

$ (19,979 )

(7.5 )%
EBITDA – zeolite

$ 153,698

$ 28,909

$ 124,789

431.7 %

Page 2625 of 3233
Table of Contents

Precious Metals

Six months ended June 30, 2022

Six months ended June 30, 2021

$ Change

Change as a %
of Revenue

Three months ended September 30, 2022

Three months ended September 30, 2021

$ Change

% Change

Gross precious metals revenue

$ 172,787

100.0 %

$ 206,428

100.0 %

$ (33,641 )

0.0 %
Gross revenue precious metals

$ -

$ 73,736

$ (73,736 )

(100.0%)

Cost of sales

(55,194 )

(31.9 )%

(55,830 )

(27.0 )%

636

(4.9 )%

(27,673 )

(28,361 )

688

(2.4%)

Gross profit - precious metals

117,593

68.1 %

150,598

73.0 %

(33,005 )

(4.9 )%
Gross profit – precious metals

(27,673 )

45,375

(73,048 )

(161.0%)

Operating expenses

-

0.0 %

-

0.0 %

-

0.0 %

-

-

-

N/A

Income from operations

117,593

68.1 %

150,598

73.0 %

(33,005 )

(4.9 )%

(27,673 )

45,375

(73,048 )

(161.0%)

Non-operating expenses

-

0.0 %

-

0.0 %

-

0.0 %

-

-

-

N/A

Net income - precious metals

117,593

68.1 %

150,598

73.0 %

(33,005 )

(4.9 )%
Net income – precious metals

(27,673 )

45,375

(73,048 )

(161.0%)

Interest expense

-

0.0 %

-

0.0 %

-

0.0 %

-

-

-

N/A

Depreciation and amortization

55,194

31.9 %

55,830

27.0 %

(636 )

4.9 %

27,673

28,361

(688 )

(2.4%)

EBITDA - precious metals

$ 172,787

100.0 %

$ 206,428

100.0 %

$ (33,641 )

0.0 %
EBITDA – precious metals

$ -

$ 73,736

$ (73,736 )

(100.0%)

Company-wide

Six months ended June 30, 2022

Six months ended June 30, 2021

Change

Change as a %
of Revenue

Three months ended September 30, 2022

Three months ended September 30, 2021

$ Change

% Change

Gross revenue

$ 7,168,231

100.0 %

$ 3,528,849

100.0 %

$ 3,639,382

0.0 %

$ 2,463,984

$ 2,051,713

$ 412,271

20.1 %
Cost of sales

(5,306,433 )

(74.0 )%

(3,120,294 )

(88.4 )%

(2,186,139

14.4 %

(2,033,066 )

(1,950,504 )

(82,562 )

4.2 %
Gross profit

1,861,798

26.0 %

408,555

11.6 %

1,453,243

14.4 %
Gross profit – precious metals

430,918

101,209

329,709

325.8 %
Operating expenses

(715,283 )

(10.0 )%

(982,471 )

(27.8 )%

267,188

17.9 %

(370,432 )

(213,171 )

(157,261 )

73.8 %
Income (loss) from operations

1,146,515

16.0 %

(573,916 )

(16.3 )%

1,720,431

32.3 %
Income from operations

60,486

(111,962 )

172,448

(154.0
%)
Non-operating income (expense)

960

(0.0 )%

575,569

16.3 %

(574,609 )

(16.3 )%

(10,084 )

12,730

(22,814 )

(179.2
%)
Net income

1,147,475

16.0 %

1,653

0.0 %

1,145,822

16.0 %
Net income (loss)

50,402

(99,232 )

149,634

(150.8
%)
Interest expense

6,063

0.1 %

3,135

0.1 %

2,928

(0.0 )%

4,207

-

4,207

N/A

Depreciation and amortization

451,207

6.3 %

442,408

12.5 %

8,799

(6.2 )%

242,783

223,196

19,587

8.8 %
EBITDA

$ 1,604,745

22.4 %

$ 447,196

12.7 %

$ 1,157,549

9.7 %
EBITDA – Company-wide

$ 297,392

$ 123,964

$ 173,428

139.9 %
Page 26 of 33
Table of Contents
EBIDTA schedules by business segment for the nine months ended September 30, 2022 and September 30, 2021 is presented as follows.
Antimony – Combined USA and Mexico

Nine months ended September 30, 2022

Nine months ended September 30, 2021

$ Change

% Change

Gross antimony revenue

$ 6,972,312

$ 3,371,015

$ 3,601,297

106.8 %
Cost of sales

(5,096,743 )

(3,301,056 )

(1,795,687 )

54.4 %
Gross profit – antimony

1,875,569

69,959

1,805,610

2,581.0 %
Operating expenses

(1,037,991 )

(1,147,906 )

109,915

(9.6
%)
Income from operations

837,578

(1,077,947 )

1,915,525

(177.7
%)
Non-operating expenses

(3,723 )

590,031

(593,754 )

(100.6
%)
Net income (loss) – antimony

833,855

(487,916 )

1,321,771

(270.9
%)
Interest expense

4,869

1,565

3,304

211.1 %
Depreciation and amortization

467,263

458,794

8,469

1.8 %
EBITDA – antimony

$ 1,305,987

$ (27,557 )

$ 1,333,544

(4,839.2%)

Zeolite

Nine months ended September 30, 2022

Nine months ended September 30, 2021

$ Change

% Change

Gross zeolite revenue

$ 2,487,116

$ 1,929,383

$ 557,733

28.9 %
Cost of sales

(2,159,889 )

(1,685,551 )

(474,338 )

28.1 %
Gross profit – zeolite

327,227

243,832

83,395

34.2 %
Operating expenses

(47,724 )

(47,736 )

12

(0.0
%)
Income from operations

279,503

196,096

83,407

42.5 %
Non-operating expenses

(5,401 )

(1,732 )

(3,669 )

211.8 %
Net income – zeolite

274,102

194,364

79,738

41.0 %
Interest expense

5,401

1,570

3,831

244.0 %
Depreciation and amortization

143,860

122,619

21,241

17.3 %
EBITDA – zeolite

$ 423,363

$ 318,553

$ 104,810

32.9 %
Precious Metals

Nine months ended September 30, 2022

Nine months ended September 30, 2021

$ Change

% Change

Gross revenue precious metals

$ 165,183

$ 280,164

$ (114,981 )

(41.0%)

Cost of sales

(82,867 )

(84,191 )

1,324

(1.6%)

Gross profit – precious metals

82,316

195,973

(113,657 )

(58.0%)

Operating expenses

-

-

-

N/A

Income from operations

82,316

195,973

(113,657 )

(58.0%)

Non-operating expenses

-

-

-

N/A

Net income – precious metals

82,316

195,973

(113,657 )

(58.0%)

Interest expense

-

-

-

N/A

Depreciation and amortization

82,867

84,191

(1,324 )

(1.6%)

EBITDA – precious metals

$ 165,183

$ 280,164

$ (114,981 )

(41.0%)

Page 27 of 3233
Table of Contents
Company-wide

Nine months ended September 30, 2022

Nine months ended September 30, 2021

$ Change

% Change

Gross revenue

$ 9,624,611

$ 5,580,562

$ 4,044,049

72.5 %
Cost of sales

(7,339,499 )

(5,070,798 )

(2,268,701 )

44.7 %
Gross profit – precious metals

2,285,112

509,764

1,775,348

348.3 %
Operating expenses

(1,085,715 )

(1,195,642 )

109,927

(9.2
%)
Income from operations

1,199,397

(685,878 )

1,885,275

(274.9
%)
Non-operating income (expense)

(9,124 )

588,299

(597,423 )

(101.6
%)
Net income (loss)

1,190,273

(97,579 )

1,287,852

(1,319.8
%)
Interest expense

10,270

3,135

7,135

227.6 %
Depreciation and amortization

693,990

665,604

28,386

4.3 %
EBITDA – Company-wide

$ 1,894,533

$ 571,160

$ 1,323,373

231.7 %
Page 28 of 33
Table of Contents

LIQUIDITY AND FINANCIAL CONDITION

WORKING CAPITAL

June 30,
2022

December 31,
2021

September 30,
2022

December 31,
2021

Current assets

$ 24,126,852

$ 23,568,992

$ 23,357,782

$ 23,568,992

Current liabilities

(1,460,946 )

(2,020,855 )

(1,279,650 )

(2,020,855 )
Working capital

$ 22,665,906

$ 21,548,137

$ 22,078,132

$ 21,548,137

For the six months ended

For the nine months ended

CASH FLOWS

June 30,
2022

June 30,
2021

September 30,
2022

September 30,
2021

Cash flow provided (used) by operating activities

$ 745,038

$ (2,236,609 )

$ 22,916

$ (2,477,864 )
Cash flow used by investing activities

(13,775,850 )

95,057

(13,685,072 )

(406,295 )
Cash flow provided (used) by financing activities

(19,767 )

23,841,057

(42,080 )

23,782,557

Net change in cash during period

$
(13,050,579
)

$ 21,699,505

$ (13,704,236 )

$ 20,898,398

As of ~~June~~September 30, 2022, the Company had cash and cash equivalents of hand of ~~$8,369,750~~$7,716,093 which consisted of ~~$8,312,469~~$7,658,810 in money market funds and deposit accounts along with ~~$57,281~~$57,283 of restricted cash.

Net cash provided by operating activities was ~~$745,038~~$22,916 for the ~~six-month~~nine-month period ending ~~June~~September 30, 2022, compared with cash used by operating activities of ~~$2,236,609~~$2,477,864 during the ~~six-month~~nine-month period ended ~~June 20,~~September 30, 2021. The ~~$2,981,647~~$2,500,780 change in cash from operating activities is attributable to ~~a decrease in existing inventories coupled with continuing~~ongoing strong revenue from antinomy sales which have more than doubled in the current year.

Net cash used by investing activities of ~~$13,775,850~~$13,685,072 included the purchase of a caterpillar for the Bear River Zeolite operation and ongoing construction of a new warehouse in Preston, ID. The Company also invested $13,500,000 in a ~~managed investment account,~~bond fund due, seeking to improve its return on investment versus maintaining deposits in a low-interest bearing money market account. The ~~managed investment account~~fund invests in primarily US Treasury Bonds and other fixed income funds.

Cash flow used by financing activities for the ~~six~~nine months ended ~~June~~September 30, 2022 was ~~$19,767~~$42,080 compared to a cash flow provided by financing activities of ~~$23,841,057~~$23,782,557 for the ~~six~~nine months ended ~~June~~September 30, 2021. In 2021, the Company raised ~~$25,132,883~~$23,342,180 from the issuance of common stock and warrants and $1,790,703 from the exercise of warrants by existing shareholders. This capital raise and warrant exercise was not recurring during the ~~six~~nine months ended ~~June~~September 30, 2022.

For the year ending December 31, 2022, we are planning to use funds acquired from the two stock offerings raised in 2021 to make significant improvements to our operations at Madero, Puerto Blanco, Bear River Zeolite, and Thompson Falls facilities with the goal of increasing production and decreasing costs.
In the past, the Company has been successful in raising required capital from sale of common stock.  As a result of planned operations and potential equity sales and potential debt borrowings, management believes cash flows from operations and existing cash and investments are sufficient to conduct planned operations and meet contractual obligations for the next 12 months.

OFF-BALANCE SHEET ARRANGEMENTS

The Company has no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to its stockholders.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company does not hold any derivative instruments and does not engage in any hedging activities.

~~Page 28 of 32~~
~~Table of Contents~~
ITEM 4. CONTROLS AND PROCEDURES

Conclusions of Management Regarding Effectiveness of Disclosure Controls and Procedures
Page 29 of 33
Table of Contents

At the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of the Company’s management, including the President and Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), of the effectiveness of the design and operations of the Company’s disclosure controls and procedures (as defined in Rule 13a – 15(e) and Rule 15d – 15(e) under the Exchange Act). Based on that evaluation, the PEO and the PFO have concluded that as of the end of the period covered by this report, the Company’s disclosure controls and procedures were not effective as it was determined that there were material weaknesses affecting our disclosure controls and procedures.

Management of the Company believes that these material weaknesses are due to the small size of the Company’s accounting staff. The small size of the Company’s accounting staff may prevent adequate controls in the future, such as segregation of duties, due to the cost/benefit of such remediation. To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of external legal and accounting professionals. As the Company grows, management expects to increase the number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.

Changes in Internal Control over Financial Reporting

There have been no changes during the quarter ended ~~June~~September 30, 2022 in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

Page 2930 of 3233
Table of Contents

PART II - OTHER INFORMATION
ITEM 1. LEGAL ~~PROCEEDINGS.~~PROCEEDINGS.
United States Antimony Corporation is not a party to any material legal proceedings, and, to Management’s knowledge, no such proceedings are threatened or contemplated. No director, officer or affiliate of United States Antimony Corporation and no owner of record or beneficial owner of more than 5% of the Company’s securities or any associate of any such director, officer or security holder is a party adverse to United States Antimony Corporation or has a material interest adverse to United States Antimony Corporation in reference to pending litigation.

ITEM 1A. RISK FACTORS.

There have been no material changes from the risk factors as previously disclosed in the Company’s Form 10-K for the year ended December 31, 2021 which was filed with the SEC on March 31, 2022.

ITEM 2. RECENT SALES OF UNREGISTERED ~~SECURITIES.~~SECURITIES
.
For the three months ended ~~June~~September 30, 2022, the Company sold no common stock.

During the three months ended ~~June~~September 30, 2022, neither the Company nor any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act) purchased any shares of our Common Stock, the only class of the Company’s equity securities registered pursuant to section 12 of the Exchange Act at the date of this filing.

ITEM 3. DEFAULTS UPON SENIOR ~~SECURITIES.~~SECURITIES.

None

ITEM 4. MINE SAFETY DISCOSURES.

Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities. 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 5. OTHER INFORMATION.

None

Page 3031 of 3233
Table of Contents

ITEM 6. EXHIBITS.

Exhibit No.
Description
31.1

Rule 15d-14(a) Certification by Principal Executive Officer
31.2

Rule 15d-14(a) Certification by Principal Financial Officer
32.1

Section 1350 Certification of Principal Executive Officer
32.2

Section 1350 Certification of Principal Financial Officer
95

Mine Safety Disclosure
101.INS

Inline XBRL Instance Document.
101.SCH

Inline XBRL Taxonomy Extension Schema Document.
101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

In accordance with Rule 402 of Regulation S-T, the XBRL information included in Exhibit 101 to this Form 10-Q shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Page 3132 of 3233
Table of Contents

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 thereunto duly authorized.

UNITED STATES ANTIMONY CORPORATION

Date: ~~August 16,~~November 14, 2022
By:
/s/ Russell Lawrence

Russell Lawrence

(Principal Executive Officer, President and Director)

Date: ~~August 16,~~November 14, 2022
By:
/s/ Kelly J. Stopher

Kelly J. Stopher

(Principal Accounting Officer)

Page 3233 of 33

PART I - ~~FINANCIAL INFORMATION~~		FINANCIAL INFORMATION		3
ITEM 1.		FINANCIAL STATEMENTS			3
ITEM 2.		MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF ~~OPERATION.~~OPERATION			1719
ITEM 3.		QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			28
~~ITEM 4.~~	~~CONTROLS AND PROCEDURES~~			29
~~PART II - OTHER INFORMATION~~				30
~~ITEM 1.~~	~~LEGAL PROCEEDINGS.~~			30
~~ITEM 1A.~~	~~RISK FACTORS.~~			30
~~ITEM 2.~~	~~RECENT SALES OF UNREGISTERED SECURITIES.~~			30
~~ITEM 3.~~	~~DEFAULTS UPON SENIOR SECURITIES.~~			30
ITEM 4.	~~MINE SAFETY DISCOSURES.~~	CONTROLS AND PROCEDURES		30
~~ITEM 5.~~	~~OTHER INFORMATION.~~PART II -		OTHER INFORMATION	30	31
ITEM 1.		LEGAL PROCEEDINGS		31
ITEM 1A.		RISK FACTORS		31
ITEM 2.		RECENT SALES OF UNREGISTERED SECURITIES		31
ITEM 3.		DEFAULTS UPON SENIOR SECURITIES		31
ITEM 4.		MINE SAFETY DISCOSURES		31
ITEM 5.		OTHER INFORMATION		31
ITEM 6.		~~EXHIBITS.~~EXHIBITS			3132