UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
| | Three months ended June 30, | | Six months ended June 30, | | | For the three months ended | | | | 2022 | | | 2021 | | | 2022 | | | 2021 | | | March 31, 2023 | | | March 31, 2022 | | REVENUE | | $ | 3,587,925 | | $ | 2,275,562 | | $ | 7,168,231 | | $ | 3,528,849 | | | $ | 2,210,844 | | $ | 3,580,306 | | COST OF REVENUE | | | 2,865,515 | | | | 2,079,164 | | | | 5,306,433 | | | | 3,120,294 | | | | 2,746,263 | | | | 2,440,918 | | GROSS PROFIT | | | 722,410 | | | | 196,398 | | | | 1,861,798 | | | | 408,555 | | | OPERATING EXPENSES | | | | | | | | | | | GROSS PROFIT (LOSS) | | | | (535,419 | ) | | | 1,139,388 | | OPERATING EXPENSES: | | | | | | | General and administrative | | 220,591 | | 290,111 | | 381,272 | | 460,161 | | | 155,594 | | 160,681 | | Salaries and benefits | | 72,912 | | 77,278 | | 146,047 | | 153,937 | | | 127,692 | | 73,135 | | Other operating expenses | | 14,045 | | 0 | | 17,960 | | 184,037 | | | 108,345 | | 3,915 | | Legal and professional fees | | | 47,927 | | | | 61,199 | | | | 170,004 | | | | 184,336 | | | Professional fees | | | | 84,806 | | | | 122,077 | | TOTAL OPERATING EXPENSES | | | 355,475 | | | | 428,588 | | | | 715,283 | | | | 982,471 | | | | 476,437 | | | | 359,808 | | INCOME (LOSS) FROM OPERATIONS | | | 366,935 | | | | (232,190 | ) | | | 1,146,515 | | | | (573,916 | ) | | (1,011,856 | ) | | 779,580 | | OTHER INCOME (EXPENSE) | | | | | | | | | | | | | | | Interest expense | | (3,081 | ) | | (880 | ) | | (6,063 | ) | | (3,135 | ) | | Interest and investment income | | 30,052 | | 13,389 | | 39,706 | | 21,882 | | | 122,372 | | 9,654 | | Change in fair value of investments | | (93,458 | ) | | 0 | | (93,458 | ) | | 0 | | | Trademark and licensing income | | 60,775 | | 0 | | 60,775 | | | | | 7,525 | | - | | Gain on forgiveness – CARES Act debt | | 0 | | 443,400 | | 0 | | 443,400 | | | Gain on settlement of Hillgrove advance | | | 0 | | | | 113,422 | | | | 0 | | | | 113,422 | | | Other miscellaneous income (expense) | | | | 74,975 | | | | (2,982 | ) | TOTAL OTHER INCOME (EXPENSE) | | | (5,712) | | | | 569,331 | | | | 960 | | | | 575,569 | | | | 204,872 | | | | 6,672 | | NET INCOME | | 361,223 | | 337,141 | | 1,147,475 | | 1,653 | | | NET INCOME (LOSS) | | | (806,984 | ) | | 786,252 | | Preferred dividends | | | (11,819 | ) | | | (12,162 | ) | | | (23,639 | ) | | | (24,325 | ) | | | (1,875 | ) | | | (11,819 | ) | Net income available to common stockholders | | | 349,404 | | | | 324,979 | | | | 1,123,836 | | | | (22,672 | ) | | Net income per share of common stock | | | | | | | | | | | Net income (loss) available to common stockholders | | | $ | (808,859 | ) | | $ | 774,432 | | Net income (loss) per share of common stock: | | | | | | | Basic and diluted | | $ | Nil | | | $ | Nil | | | $ | 0.01 | | | $ | Nil | | | $ | (0.01 | ) | | $ | 0.01 | | Weighted average shares outstanding: | | | | | | | | | | | | | | | Basic | | | 106,240,361 | | | | 106,315,419 | | | | 106,240,361 | | | | 99,513,378 | | | | 107,260,472 | | | | 106,240,361 | | Diluted | | | 106,240,361 | | | | 108,696,704 | | | | 106,240,361 | | | | 99,513,378 | | | | 107,260,472 | | | | 106,389,761 | |
The accompanying notes are an integral part of these condensed consolidated unaudited financial statements. UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) For the three and six months ended June 30,March 31, 2023 and 2022 and 2021 |
| | 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 | |
| | Preferred Stock | | | Common Stock | | | Additional Paid in | | | Shares To Be Returned To | | | Accumulated | | | Total Stockholders’ | | | | Shares | | | Amount | | | Shares | | | Amount | | | Capital | | | Treasury | | | Deficit | | | Equity | | 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 (loss) | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | BALANCE, December 31, 2022 | | | 2,620,576 | | | $ | 26,205 | | | | 106,373,341 | | | $ | 1,063,732 | | | $ | 64,052,630 | | | $ | (202,980) | | | $ | (33,070,332 | ) | | $ | 31,869,255 | | Share buyback and retirement | | | - | | | | - | | | | (418,696 | ) | | | (4,187 | ) | | | (198,793 | ) | | | 202,980 | | | | - | | | | - | | Conversion of Preferred Series D to Common Stock | | | (1,692,672 | ) | | | (16,926 | ) | | | 1,692,672 | | | | 16,927 | | | | (1 | ) | | | - | | | | - | | | | - | | Net income (loss) | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | (806,984 | ) | | | (806,984 | ) | BALANCE, March 31, 2023 | | | 927,904 | | | $ | 9,279 | | | | 107,647,317 | | | $ | 1,076,472 | | | $ | 63,853,836 | | | | - | | | $ | (33,877,316 | ) | | $ | 31,062,271 | |
The accompanying notes are an integral part of these condensed consolidated unaudited financial statements. 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 | |
| | For the three months ended | | | | March 31, 2023 | | | March 31, 2022 | | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | Net income (loss) | | $ | (806,984 | ) | | $ | 786,252 | | Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | | | | | | | | | Depreciation and amortization | | | 224,241 | | | | 220,150 | | Accretion of asset retirement obligation | | | 3,368 | | | | 1,732 | | Common stock payable for directors fees | | | - | | | | 28,125 | | Write-down of inventory to net realizable value | | | 246,792 | | | | - | | Changes in operating assets and liabilities: | | | | | | | | | Accounts receivable | | | (919,819 | ) | | | (584,539 | ) | Inventories | | | (481,940 | ) | | | 28,440 | | Prepaid expenses and other current assets | | | (141,852 | ) | | | - | | IVA receivable and other assets | | | (173,275 | ) | | | (41,023 | ) | Accounts payable | | | 206,849 | | | | (278,178 | ) | Accrued liabilities | | | (31,727 | ) | | | 2,944 | | Accrued liabilities – directors and related parties | | | 19,746 | | | | - | | Royalties payable | | | (419,191 | ) | | | - | | Net cash provided (used) by operating activities | | | (2,273,792 | ) | | | 163,903 | | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | Purchase of properties, plants and equipment | | | (614,770 | ) | | | (188,541 | ) | Net cash used by investing activities | | | (614,770 | ) | | | (188,541 | ) | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | Principal payments of long-term debt | | | (23,022 | ) | | | (4,057 | ) | Dividends paid | | | (787,730 | ) | | | - | | Net cash used by financing activities | | | (810,752 | ) | | | (4,057 | ) | NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | | | (3,699,314 | ) | | | (28,695 | ) | CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | | | 19,117,666 | | | | 21,420,329 | | CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | | $ | 15,418,352 | | | $ | 21,391,634 | | NON-CASH FINANCING AND INVESTING ACTIVITIES: | | | | | | | | | Share retirement | | $ | 202,980 | | | $ | - | | Conversion of Preferred Series D to Common Stock | | $ | 16,927 | | | $ | - | |
The accompanying notes are an integral part of these condensed consolidated unaudited financial statements. UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2022March 31, 2023
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NOTE 1 - NATURE OF OPERATIONS AGAU Mines, Inc., predecessor of United States Antimony Corporation and its subsidiaries in the U.S. and Mexico (“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“Company”) sell processed 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 zeoliteprecious metals products from a mineral deposit in southeastern Idaho. In 2001, an operating plant was constructed at the zeolite siteU.S. and zeolite productionabroad. The Company processes antimony ore in the U.S. 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 producesprimarily into antimony oxide and antimony metal at its facilities in Mexico and precious metals. AntimonyMontana. Our 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 usedpaper, 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 sellsbulbs. Our antimony metal for useis used in bearings, storage batteries, and ordnance.
In its operations in Idaho, the Company producesmines and processes zeolite, a group of industrial minerals used in a variety of purposes including soil amendment and fertilizer. Zeolite is also used forfertilizer, water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, animal nutrition, 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 30, 2022,March 31, 2023, and its results of operations for the three and six months ended June 30, 2022, and 2021, and cash flows for the sixthree months ended June 30, 2022March 31, 2023 and 2021.2022. The condensed consolidated balance sheet atas of December 31, 2021,2022, 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 periods ended June 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, 20212022 filed with the Securities and Exchange Commission on March 31, 2022.July 18, 2023. 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. UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Reclassifications Certain reclassifications have been made to conform prior periods’period 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.
NewRecent Accounting Pronouncements
Management does not believe that any recently issued but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements. Recently Adopted Accounting standards that have been issued or proposed byPronouncements: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.2016-13, ”Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The Company adopted the ASU on January 1, 2023 and determined that do not require adoption until a future date are not expected to have ait had no material impact on the Company’s unaudited condensed consolidated financial statements upon adoption.and disclosures. UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31, 2023 |
NOTE 3–3 – 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 convertible preferred stock, stock options, and warrants. For the three months ended March 31, 2022, the calculation of diluted income per common share included 149,400 warrants to purchase one share of common stock. At June 30,March 31, 2023 and 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 arewere as follows: | | June 30, 2022 | | | June 30, 2021 | | Warrants | | | 12,489,922 | | | | 2,471,089 | | Convertible preferred stock | | | 1,692,672 | | | | 1,751,005 | | TOTAL POSSIBLE DILUTIVE SHARES | | | 14,182,594 | | | | 4,222,094 | |
UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| | March 31, 2023 | | | March 31, 2022 | | Warrants | | | 12,346,215 | | | | 9,400,207 | | Convertible preferred stock | | | - | | | | 1,692,672 | | TOTAL POSSIBLE DILUTIVE SHARES | | | 12,346,215 | | | | 11,092,879 | |
NOTE 4 – 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-monthsthree months ended June 30,March 31, 2023 and 2022 and 2021 were as follows: | | For the three months ended | | | | June 30, 2022 | | | June 30, 2021 | | Antimony | | $ | 2,472,081 | | | $ | 1,428,939 | | Zeolite | | | 1,020,391 | | | | 716,428 | | Precious metals | | | 95,453 | | | | 130,195 | | TOTAL REVENUE BY PRODUCT | | $ | 3,587,925 | | | $ | 2,275,562 | |
Sales of products for the six months ended June 30, 2022 and 2021 were as follows:
| | For the six months ended | | | | June 30, 2022 | | | June 30, 2021 | | Antimony | | $ | 5,301,011 | | | $ | 2,086,046 | | Zeolite | | | 1,694,433 | | | | 1,236,375 | | Precious metals | | | 172,787 | | | | 206,428 | | TOTAL REVENUE BY PRODUCT | | $ | 7,168,231 | | | $ | 3,528,849 | |
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.
| | For the three months ended | | | | March 31, 2023 | | | March 31, 2022 | | Antimony | | $ | 1,612,639 | | | $ | 2,828,930 | | Zeolite | | | 482,093 | | | | 674,042 | | Precious metals | | | 116,112 | | | | 77,334 | | TOTAL REVENUE | | $ | 2,210,844 | | | $ | 3,580,306 | |
The Company’s trade accounts receivable balance related to contracts with customers was $1,604,660$1,704,276 at June 30, 2022March 31, 2023 and $891,314$784,457 at December 31, 2021.2022. The Company’s allowance for doubtful accounts related to trade accounts receivables was $50,000 at March 31, 2023 and $31,440 at December 31, 2022. The Company’s products do not involve any warranty agreements and product returns are not typical. UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31, 2023 |
NOTE 5– INVENTORIES Inventories at June 30, 2022March 31, 2023 and December 31, 20212022 consisted primarily of finished antimony products, antimony metal, antimony oxide, and antimony ore, and finished zeolite products thatproducts. Inventories are stated at the lower of first-in, first-out cost or estimated net realizable value. Finished antimony products, antimony metal and oxide, and finished zeolite products costs include raw materials, direct labor, and processing facility overhead costs and freight. Inventories at June 30, 2022March 31, 2023 and December 31, 2021 are2022 were 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 | |
| | March 31, 2023 | | | December 31, 2022 | | Antimony Metal | | $ | 221,137 | | | $ | 142,230 | | Antimony Oxide | | | 303,167 | | | | 509,643 | | Antimony Ore and Concentrates | | | 762,378 | | | | 545,373 | | Total antimony | | | 1,286,682 | | | | 1,197,246 | | Zeolite | | | 323,534 | | | | 177,822 | | TOTAL INVENTORIES | | $ | 1,610,216 | | | $ | 1,375,068 | |
UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Inventories areAt March 31, 2023 and December 31, 2022, inventories were valued at cost, except for the portion of inventory related to Mexican operations which arewas 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 operationsfor net realizable value was $136,836$246,792 and $66,054$Nil for the sixthree months ended June 30,March 31, 2023 and 2022, and 2021, respectively.
Antimony oxide and metal inventory consisted of finished product held at the Company’s plants in Montana and Mexico. Antimony concentratesore and oreconcentrates were held primarily at sites in Mexico. The Company’s zeolite inventory consistsconsisted of saleable zeolite material.material at the Company’s plant in Idaho. NOTE 6 – PROPERTIES, PLANTS AND EQUIPMENT The major components of the Company’s properties, plants and equipment by segment at June 30, 2022March 31, 2023 and December 31, 2021 are shown below:2022 were as follows: | | Antimony Segment | | Zeolite Segment | | | Precious Metals | | | | | Antimony Segment | | Zeolite Segment | | Precious Metals | | | | June 30, 2022 | | USAC | | | USAMSA | | BRZ | | | Segment | | | TOTAL | | | March 31, 2023 | | | USAC | | | USAMSA | | | BRZ | | | Segment | | | TOTAL | | Plant and equipment | | $ | 1,759,271 | | $ | 9,197,870 | | $ | 4,051,016 | | $ | 1,347,912 | | $ | 16,356,069 | | | $ | 1,764,475 | | $ | 9,454,833 | | $ | 5,216,880 | | $ | 1,347,912 | | $ | 17,784,100 | | Buildings | | 243,248 | | 590,128 | | 801,764 | | 0 | | 1,635,140 | | | 243,248 | | 870,534 | | 1,047,023 | | - | | 2,160,805 | | Land and other | | | 2,431,387 | | 2,826,037 | | 16,753 | | - | | 5,274,177 | | Construction in progress | | 0 | | 280,406 | | 332,629 | | 0 | | 613,035 | | | | - | | | | - | | | | 447,525 | | | | - | | | | 447,525 | | 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 | | | Total | | | 4,439,110 | | 13,151,404 | | 6,728,181 | | 1,347,912 | | 25,666,607 | | Accumulated depreciation | | | (2,747,396 | ) | | | (5,904,748 | ) | | | (3,318,286 | ) | | | (495,270 | ) | | | (12,465,700 | ) | | | (2,776,083 | ) | | | (6,349,548 | ) | | | (3,444,034 | ) | | | (578,289 | ) | | | (13,147,954 | ) | | | $ | 1,686,510 | | | $ | 6,819,693 | | | $ | 1,883,876 | | | $ | 852,642 | | | $ | 11,242,721 | | | Properties, Plants, and Equipment, Net | | | $ | 1,663,027 | | | $ | 6,801,856 | | | $ | 3,284,147 | | | $ | 769,623 | | | $ | 12,518,653 | |
| | Antimony Segment | | | Zeolite Segment | | | Precious Metals | | | | | December 31, 2021 | | USAC | | | USAMSA | | | BRZ | | | Segment | | | TOTAL | | Plant and equipment | | $ | 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 | | Construction in progress | | | 0 | | | | 280,406 | | | | 184,972 | | | | 0 | | | | 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 | | Accumulated depreciation | | | (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 | |
At June 30, 2022 and December 31, 2021, the Company had $613,035 and $665,175, respectively, of assets that were not yet placed in service and have not yet been depreciated.
| | Antimony Segment | | | Zeolite Segment | | | Precious Metals | | | | | December 31, 2022 | | USAC | | | USAMSA | | | BRZ | | | Segment | | | TOTAL | | Plant and equipment | | $ | 1,760,926 | | | $ | 9,090,860 | | | $ | 4,996,216 | | | $ | 1,347,912 | | | $ | 17,195,914 | | Buildings | | | 243,248 | | | | 870,534 | | | | 1,047,023 | | | | - | | | | 2,160,805 | | Land and other | | | 2,431,387 | | | | 2,796,037 | | | | 16,753 | | | | - | | | | 5,244,177 | | Construction in progress | | | - | | | | 280,406 | | | | 170,535 | | | | - | | | | 450,941 | | Total | | | 4,435,561 | | | | 13,037,837 | | | | 6,230,527 | | | | 1,347,912 | | | | 25,051,837 | | Accumulated depreciation | | | (2,767,803 | ) | | | (6,212,433 | ) | | | (3,392,861 | ) | | | (550,616 | ) | | | (12,923,713 | ) | Properties, Plants, and Equipment, Net | | $ | 1,667,758 | | | $ | 6,825,404 | | | $ | 2,837,666 | | | $ | 797,296 | | | $ | 12,128,124 | |
UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2022March 31, 2023
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NOTE 7 – ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS
Changes in the asset retirement obligation for the three and six months ended June 30, 2022 and 2021 are as follows:
| | Three months ended June 30, | | | | 2022 | | | 2021 | | Asset retirement obligation, beginning of period | | $ | 192,881 | | | $ | 184,219 | | Change in estimate of asset retirement obligation | | | 15,596 | | | | 0 | | Accretion expense | | | 9,680 | | | | 1,732 | | Asset retirement obligation, end of period | | $ | 218,157 | | | $ | 185,951 | |
| | Six months ended June 30, | | | | 2022 | | | 2021 | | Asset retirement obligation, beginning of period | | $ | 191,149 | | | $ | 184,219 | | Change in estimate of asset retirement obligation | | | 15,596 | | | | 0 | | Accretion expense | | | 11,412 | | | | 1,732 | | Asset retirement obligation, end of period | | $ | 218,157 | | | $ | 185,951 | |
The Company’s total asset retirement obligation and accrued reclamation costs of $325,657 and $298,649, at June 30, 2022At March 31, 2023 and December 31, 2021,2022, the Company had $1,132,474 and $1,117,041, respectively, includes reclamation obligations for the Idahoof assets that were not yet placed in service and Montana operations of $107,500.were not yet depreciated.
NOTE 87 – DEBT Long term debt at June 30, 2022March 31, 2023 and December 31, 2021 is2022 was as follows: | | June 30, 2022 | | | December 31, 2021 | | | March 31, 2023 | | | December 31, 2022 | | 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 | | | $ | 198,795 | | $ | 201,908 | | 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 | | | | 90,188 | | | | 110,097 | | | | 356,983 | | 215,150 | | | Less current portion | | | (91,347 | ) | | | (13,230 | ) | | Long term portion | | $ | 265,636 | | | $ | 201,920 | | | Total debt | | | 288,983 | | 312,005 | | Less current portion of debt | | | | (95,573 | ) | | | (94,150 | ) | Long term portion of debt | | | $ | 193,410 | | | $ | 217,855 | |
At June 30, 2022,March 31, 2023, principal payments on debt arewere due as follows: Twelve months ending June 30, | | Principal payment | | 2023 | | $ | 91,347 | | 2024 | | | 82,573 | | 2025 | | | 12,925 | | 2026 | | | 13,219 | | 2027 | | | 156,919 | | | | $ | 356,983 | |
UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Twelve months ending March 31, | | Principal payment | | 2024 | | $ | 95,573 | | 2025 | | | 20,021 | | 2026 | | | 13,144 | | 2027 | | | 160,245 | | | | $ | 288,983 | |
NOTE 98 – COMMITMENTS AND CONTINGENCIES The Company follows U.S. GAAP guidance in determining its accrualaccruals and disclosures with respect to loss contingencies and evaluateevaluates 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 liabilityloss 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 30, 2022March 31, 2023 and December 31, 2021,2022, the Company had no accrued liabilities of $1,270 and $Nil, respectively, relating to such assessments. The Company pays various royalties on the sale of zeolite products. On a combined basis, royalties generally vary fromaround 8%-13% to 13%. During the three months ended June 30, 2022 and 2021, the Company incurred royalty expense of $85,870 and $69,437, respectively. During the six months ended June 30, 2022 and 2021, the Company incurred royalty expense of $147,900 and $131,567 respectively. Royalty expense is included in cost of goods sold on the condensed consolidated statement of operations. At June 30, 2022March 31, 2023 and December 31, 2021,2022, the Company had accrued royalties payable of $409,887$15,884 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. NOTE 10 – STOCKHOLDERS’ EQUITY
During the six 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 months ended June 30, 2021, the Company issued 3,765,477 shares of common stock and received $1,790,703 in cash from the exercise of warrants.
$435,075, respectively. During the three months ended June 30, 2022 and June 30, 2021,March 31, 2023, 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 no shares of common stock during the three or six months ended June 30, 2022. During the three and six months ended June 30, 2022, no warrants were exercised.
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 commissiona royalty obligation related to the placement agent. There were no warrants exercised during the three or six months ended June 30, 2022.
The Company issued no warrantstime period from 2016 to purchase common stock during the three or six months ended June 30, 2022.2022 after finalizing its estimates.
UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2022March 31, 2023
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The following is a summary of the Company’s warrants to purchase shares of common stock activity:
| | Number of warrants | | | Exercise prices | | Balance outstanding at December 31, 2020 | | | 6,194,899 | | | $ | 0.65 | | Issued | | | 10,060,500 | | | $0.46 - $0.85 | | Exercised | | | (3,765,477 | ) | | $0.46 - $0.65 | | Balance outstanding at December 31, 2021 and June 30, 2022 | | | 12,489,922 | | | $ | 0.75 | |
The composition of the Company’s warrants outstanding at June 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 | | | | | | | | | | | |
NOTE 11 – INVESTMENTS
In April 2022, the Company opened an investment account composed of U.S. Treasury bonds which are measured using Level 1 fair value inputs that are based on quoted prices in active markets.
For the three and six months ended June 30, 2022, the Company recognized $93,458 in the change in fair value of investments on the condensed consolidated statement of operations. As of June 30, 2022, the cost and fair value of the investment portion of the account was $13,492,655 and $13,431,774, respectively.
As of June 30, 2022, the cash and cash equivalent portion of the account was $132,380, which is included in cash and cash equivalents on the condensed consolidated balance sheet.
NOTE 12 – 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.
UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
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 | |
UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
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 | |
UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Segment operations for the three months ended June 30, 2021 | | 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 | | Depreciation and amortization | | $ | 7,893 | | | $ | 144,999 | | | $ | 152,892 | | | $ | 28,226 | | | $ | 38,826 | | | $ | 219,944 | | Income (loss) from operations | | $ | 99,642 | | | $ | (575,363 | ) | | $ | (475,721 | ) | | $ | 101,969 | | | $ | 141,562 | | | $ | (232,190 | ) | Other income (expense) | | | 456,725 | | | | 113,422 | | | | 570,147 | | | | 0 | | | | (816 | ) | | | 569,331 | | NET LOSS | | $ | 556,367 | | | $ | (461,941 | ) | | $ | 94,426 | | | $ | 101,969 | | | $ | 140,746 | | | $ | 337,141 | |
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 preliminary Purchase Option Agreement (the ‘agreement”“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,Agreement, the Company will pay Wadley eight monthly installments of $11,600$10,000 plus VAT 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,such eight-month period, should the Company choose to exercise theits option to acquire 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. The due diligence period under the Agreement has been extended to October 15, 2023. As of March 31, 2023 and December 31, 2022, the Company had capitalized $70,000 and $40,000, respectively, of payments to Wadley. 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. 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 year ended December 31, 2022, the Mexican court ruled against the Company in the above matter. The Company appealed the ruling, which is still pending. As of March 31, 2023, the updated SAT assessment was approximately $30.2 million pesos, which was approximately $1,674,000 USD for $907,000 of unpaid income taxes and $767,000 of interest and penalties. 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 March 31, 2023 or December 31, 2022 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 9 – STOCKHOLDERS’ EQUITY On January 25, 2023, the holders of 1,692,672 shares of Series D Preferred stock converted the preferred shares and the Company issued 1,692,672 shares of common stock. The Company also paid the holders $787,730 for dividends payable as declared on November 28, 2022. 1,590,672 shares of the 1,692,672 shares of Series D Preferred stock that were converted and $740,261 of the $787,730 of dividends paid related to the estate of John Lawrence, who was a prior President and Chairman of the Company. On January 26, 2023, in conjunction with its share repurchase plan, the Company returned to treasury and cancelled 418,696 of its common shares which were repurchased prior to December 31, 2022 for $202,980. UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31, 2023 |
Common stock warrants No warrants were issued or exercised during the three months ended March 31, 2023 and 2022. The following summarizes warrant activity: | | Number of warrants | | | Exercise prices | | Balance outstanding at December 31, 2022 and March 31, 2023 | | | 12,346,215 | | | $ | 0.75 | |
The composition of the Company’s warrants outstanding at March 31, 2023 was as follows: Number of warrants | | | Exercise Price | | | Expiration Date | | Remaining life in years | | | 2,285,715 | | | $ | 0.46 | | | 7/31/2025 | | | 2.34 | | | 804,000 | | | $ | 0.46 | | | 1/27/2026 | | | 2.83 | | | 7,650,000 | | | $ | 0.85 | | | 8/3/2026 | | | 3.35 | | | 1,606,500 | | | $ | 0.85 | | | 2/1/2026 | | | 2.84 | | | 12,346,215 | | | | | | | | | | | |
NOTE 10 – BUSINESS SEGEMENTS The Company is organized and managed with four business segments, which represent our operating units: United States antimony operations, Mexican antimony operations, precious metals recovery and United States zeolite operations. 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 to customers in the United States or shipped to the United States operation for finishing at the Company’s plant near Thompson Falls, MT. The Puerto Blanco mill in Mexico is the site of our crushing and flotation plant, and a cyanide leach plant which recovers 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, MT, where a 99% precious metals mix is produced. The zeolite operation produces zeolite near Preston, Idaho. Almost all the sales of products from the United States antimony and zeolite operations are to customers in the United States. Sales to foreign countries are primarily to customers in Canada. Total Assets: | | March 31, 2023 | | | December 31, 2022 | | Antimony | | | | | | | United States | | $ | 18,807,438 | | | $ | 21,636,386 | | Mexico | | | 8,818,420 | | | | 8,484,131 | | Subtotal antimony | | | 27,625,858 | | | | 30,120,517 | | Precious metals | | | | | | | | | United States | | | 211,754 | | | | 172,004 | | Mexico | | | 603,473 | | | | 625,292 | | Subtotal precious metals | | | 815,227 | | | | 797,296 | | Zeolite | | | 4,420,674 | | | | 3,782,637 | | TOTAL | | $ | 32,861,759 | | | $ | 34,700,450 | |
UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31, 2023 |
| | For the three months ended | | Capital expenditures: | | March 31, 2023 | | | March 31, 2022 | | Antimony | | | | | | | United States | | $ | 3,550 | | | $ | 28,350 | | Mexico | | | 113,568 | | | | 16,437 | | Subtotal antimony | | | 117,118 | | | | 44,787 | | Precious metals | | | - | | | | 8,380 | | Zeolite | | | 497,652 | | | | 135,374 | | TOTAL | | $ | 614,770 | | | $ | 188,541 | |
Segment operations for the three months ended March 31, 2023 | | Antimony - USA | | | Antimony -Mexico | | | Total antimony | | | Precious Metals | | | Zeolite | | | Total | | Total revenues | | $ | 1,612,639 | | | $ | - | | | $ | 1,612,639 | | | $ | 116,112 | | | $ | 482,093 | | | $ | 2,210,844 | | Depreciation and amortization | | | 8,280 | | | | 137,114 | | | | 145,394 | | | | 27,673 | | | | 51,174 | | | | 224,241 | | Income (loss) from operations | | $ | 62,072 | | | $ | (1,097,762 | ) | | $ | (1,035,690 | ) | | $ | 88,439 | | | $ | (64,605 | ) | | $ | (1,011,856 | ) | Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | 204,872 | | Net income (loss) | | | | | | | | | | | | | | | | | | | | | | $ | (806,984 | ) |
Segment operations for the three months ended March 31, 2022 | | Antimony - USA | | | Antimony -Mexico | | | Total antimony | | | Precious Metals | | | Zeolite | | | Total | | Total revenues | | $ | 2,828,930 | | | $ | - | | | $ | 2,828,930 | | | $ | 77,334 | | | $ | 674,042 | | | $ | 3,580,306 | | Depreciation and amortization | | | 9,469 | | | | 138,457 | | | | 147,926 | | | | 27,520 | | | | 44,704 | | | | 220,150 | | Income (loss) from operations | | $ | 1,391,512 | | | $ | (684,037 | ) | | $ | 707,475 | | | $ | 49,814 | | | $ | 22,291 | | | $ | 779,580 | | Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | 6,672 | | Net income (loss) | | | | | | | | | | | | | | | | | | | | | | $ | 786,252 | |
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF 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:limitation risks related to: | · | Risks related to theThe Company’s properties being in the exploration stage; | | · | Risks related to theThe mineral operations being subject to government regulation; | | · | Risks related to environmental concerns; | | ·
| Risks related to theThe Company’s ability to obtain additional capital to develop the Company’s resources, if any; | | · | Risks related to mineralMineral exploration and development activities; | | · | Risks related to mineralMineral estimates; | | · | Risks related to theThe Company’s insurance coverage for operating risks; | | · | Risks related to theThe fluctuation of prices for precious and base metals, such as gold silver and copper;silver; | | · | Risks related to theThe competitive industry of mineral exploration; | | · | Risks related to theThe title and rights in the Company’s mineral properties; | | · | Risks related to theEnvironmental hazards; | | · | 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;Metallurgical and other processing problems; | | · | Risks relatedUnexpected geological formations; | | · | Global economic and political conditions; | | · | Staffing in remote locations; | | · | Changes in product costing; | | · | Inflation on operational costs and profitability; | | · | Competitive technology positions and operating interruptions (including, but not limited to, labor disputes, leaks, fires, flooding, landslides, power outages, explosions, unscheduled downtime, transportation interruptions, war and terrorist activities); | | · | Global pandemics or civil unrest; | | · | Mexican labor and cartel issues regarding safety and organized control over our properties; | | · | The possible dilution of the Company’s sharescommon stock from additional financing activities; | | · | Potential conflicts of interest with the Company’s management; and | | · | The Company’s common stock;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. ShouldIf 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. | Page 14 of 23 | 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 “andAntimony,” “USAC,” 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. 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 endedending December 31, 2021.2022. 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, wethe Company suspended antimony ore mining operations in the U.S. but continued to produce antimony products from domestic andusing foreign sources.sources of antimony ore. In April 1998, wethe Company formed United States Antimony Mexico SA de CV or USAMSA,(“USAMSA”) to mine and smelt antimony in Mexico. Bear River ZeoliteMexico, and, in August 2005, the 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. (“ADM”) to explore and develop antimony and silver deposits in Mexico. The Company formed Bear River Zeolite Company (“BRZ”) in 2000 for the purpose of mining and producing zeolite in southeastern Idaho. Our principal business is the production and sale of antimony, silver, gold, and zeolite products. OnIn May 16, 2012, weour shares of common stock started trading on the NYSE MKT (now NYSE AMERICAN) under the symbol UAMY. Although we extract minerals from the Los Juarez, Mexico antimony property and the Bear River, Idaho zeolite property that we later process and sell, each of our mining properties is classified under Regulation S-K Item 1300 as an exploration stage property and the Company is classified as an exploration stage issuer because we have not prepared a technical report summary for any of our properties making a determination that the property contains proven mineral reserves or probable mineral reserves. Antimony Division Our antimony smelter and precious metals plant is located in theThe Burns Mining District of Sanders County, Montana,MT, which is approximately 15 miles west of Thompson Falls, MT.MT, is the location of one of our antimony smelters and precious metals plants. We hold 2 patented mill sitesclaims, meaning owned claims, where the plant is located. We have no “proven reserves” or “probable reserves” of antimony. EnvironmentalMining was suspended at this site in December 1983, because antimony ore could be purchased more economically from foreign sources; currently, environmental restrictions preclude mining at this site.
Mining was suspended in DecemberSince 1983, because antimony could be purchased more economically from foreign sources.
For 2021, and since 1983, we have relied on foreign sources for raw materials,antimony ore, 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 dependingalso depend on foreign companies for raw material in the future.antimony ore. We expect to continue to receive raw materialsantimony from our owned and leased properties for 2022in Mexico and later years. We continue working withfrom foreign suppliers in North America,Canada, Mexico, and 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. AntimonyOur 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. AntimonyOur 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 sellbulbs. Our antimony metal for useis used in bearings, storage batteries and ordnance. 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-wideworldwide due to the following:following factors: | · | 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 domesticU.S. producer of antimony products. | | | |
| · | We can ship on short notice to domestic customers. | | | | | · | We are vertically integrated, with raw materials from our ownantimony mines, mills, and a smelter in Mexico, along with the raw materials fromour facilities in Montana and exclusive supply agreements we havefor antimony ore with numerous ore and raw materialthird-party suppliers. | | | | | · | Our smelter in Coahuila is the largest operating antimony smelter in Mexico or the United States, with a current maximum processing capacity of aboutapproximately 32,600 pounds of feedantimony ore per day, and permitting for 50%to expand capacity up 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. BRZ has a lease with Zeolite LLC (f/k/a 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 theThe annual royalty payment was adjusted to $10 per ton sold. The currentis the greater of: (1) the minimum annual royalty is $60,000. In addition,of $60,000, adjusted annually for the Consumer Price Index for all Urban Consumers, or (2) $11.00 per ton for the first ten thousand tons, $9.90 per ton for tons in excess of ten thousand up to twenty thousand, and $8.80 per ton for tons in excess of twenty thousand. This Zeolite LLC lease also requires BRZ has more zeoliteto pay $10,000 to the lessor on U.S. BureauMarch 1 of Land Management land. The Companyeach year during the term of the lease which ends March 1, 2025. BRZ also pays variousother 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,In total, royalties vary from 8%-13% to 13% of sales. Shortly after inceptionIn addition, BRZ can surface mine and process zeolite on property owned by the U.S. Bureau of Land Management that is adjacent to the Company’s Preston, Idaho property. Also, given the mining difficulties in the winter season, BRZ constructed a processing plant on the property which improved its productive capacity. Ground-breaking for an additional warehousewarehouses to store additional inventory and a shop to service equipment started in 2021 and the warehouse and shop are expected to be completed by mid-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 mademined zeolite prior to the jaw crusherwinter season to remain in 2022. In 2021,production during 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.winter season.
“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 CECcation exchange capacity (CEC) of approximately 180-220 meq/100 gr. (which predicts plant nutrient availability and retention in soil), its hardness and high clinoptilolite content (which is an effective barrier to prevent problematic radionuclide movement), its absence of clay minerals, and its low sodium content. BRZ’sOur zeolite deposits’ characteristics which make the mineral useful for a variety of purposes including:is used in: | ☐ | Soil Amendment and Fertilizer. Zeolite has been successfully used to fertilize golf courses, sports fields, parks and common areas, and high value agricultural cropscrops. | | | | | ☐ | 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. |
| ☐ | 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 pondsfishponds 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 otherthird-party 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, traction control, ammonia removal from mining waste, and carriers for insecticides, pesticides and herbicides.herbicides. |
SELECTED FINANCIAL DATA.
StatementResults of Operations Information:Operations:
| | For the three months ended June 30, | | For the six months ended June 30, | | | For the three months ended | | | | 2022 | | | 2021 | | | 2022 | | | 2021 | | | March 31, 2023 | | | March 31, 2022 | | Revenues | | $ | 3,587,925 | | $ | 2,275,562 | | $ | 7,168,231 | | $ | 3,528,849 | | | $ | 2,210,844 | | $ | 3,580,306 | | Costs of revenues | | | 2,865,515 | | | | 2,079,164 | | | | 5,306,433 | | | | 3,120,294 | | | Gross profit | | 722,410 | | 196,398 | | 1,861,798 | | 408,555 | | | Cost of revenues | | | | 2,746,263 | | | | 2,440,918 | | Gross profit (loss) | | | (535,419 | ) | | 1,139,388 | | Total operating expenses | | | 355,475 | | | | 428,588 | | | | 715,283 | | | | 982,471 | | | | 476,437 | | | | 359,808 | | Income (loss) from operations | | 366,935 | | (232,190 | ) | | 1,146,515 | | (573,916 | ) | | (1,011,856 | ) | | 779,580 | | Other income (expense) | | | (5,712 | ) | | | 569,331 | | | | 960 | | | | 575,569 | | | | 204,872 | | | | 6,672 | | NET INCOME | | $ | 361,223 | | | $ | 337,141 | | | $ | 1,147,475 | | | $ | 1,653 | | | NET INCOME (LOSS) | | | $ | (806,984 | ) | | $ | 786,252 | | | | | | | | | | | | | | | | | Weighted average shares of common stock (basic) | | | 106,240,361 | | | | 106,315,419 | | | | 106,240,361 | | | | 99,513,378 | | | | 107,260,472 | | | | 106,240,361 | | Weighted average shares of common stock (diluted) | | | 106,240,361 | | | | 108,696,704 | | | | 106,240,361 | | | | 99,513,378 | | | | 107,260,472 | | | | 106,389,761 | | | | | | | | | Income (loss) per share (basic and diluted) | | | $ | (0.01 | ) | | $ | 0.01 | |
Balance Sheet Information: | | June 30, 2022 | | | December 31, 2021 | | Working capital | | $ | 22,665,906 | | | $ | 21,548,137 | | Total assets | | | 35,756,017 | | | | 35,002,727 | | Accumulated deficit | | | (31,563,788 | ) | | | (32,711,263 | ) | Stockholders’ equity | | | 33,516,278 | | | | 32,368,803 | |
| | March 31, 2023 | | | December 31, 2022 | | Working capital | | $ | 18,005,623 | | | $ | 19,397,489 | | Total assets | | | 32,861,759 | | | | 34,700,450 | | Accumulated deficit | | | (33,877,316 | ) | | | (33,070,332 | ) | Stockholders’ equity | | | 31,062,271 | | | | 31,869,255 | |
Operational and financial performance by Segment: Antimony Financial and operational metricsperformance of antimony for the three months ended June 30,March 31, 2023 and 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 | % |
Antimony – combined USA and Mexico | | 2023 | | | 2022 | | Revenue | | $ | 1,612,639 | | | $ | 2,828,930 | | Gross profit (loss) | | $ | (653,285 | ) | | $ | 1,055,777 | | Pounds of antimony sold | | | 343,044 | | | | 433,350 | | Average sales price per pound | | $ | 4.70 | | | $ | 6.53 | | Average cost per pound | | $ | 6.61 | | | $ | 4.09 | | Average gross profit (loss) per pound | | $ | (1.91 | ) | | $ | 2.44 | |
During the three months ended June 30, 2022, the average sales price forMarch 31, 2023, total antimony increased $2.60 per poundrevenue decreased $1,216,291, or 43%, compared to the three months ended June 30, 2021. Gross profitMarch 31, 2022. The decrease was primarily due to the lower sales price per pound, increased $1.53 per pound overwhich was largely in line with the market rates for antimony, coupled with a decrease in the pounds of antimony sold in 2023 compared to 2022. The volume decrease was primarily attributable to antimony ore supply shortages related to a third-party supplier due to the supplier’s machinery and equipment failures during the three months ended June 30, 2021.March 31, 2023. These third-party machinery and equipment failures were fixed during the first quarter of 2023. 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 overfor the three months ended June 30, 2021.March 31, 2023 was lower by $1,709,062 compared to the three months ended March 31, 2022 primarily due to the lower sales price per pound, the decrease in pounds sold, processing of antimony ore with less antimony percentage concentrate, and supplier and labor cost increases in 2023 compared to 2022.
Zeolite Financial and operational performance of zeolite for the three months ended June 30,March 31, 2023 and 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.
Zeolite | | 2023 | | | 2022 | | Revenue | | $ | 482,093 | | | $ | 674,042 | | Gross profit | | $ | 29,427 | | | $ | 33,797 | | Tons of zeolite sold | | | 2,063 | | | | 3,026 | | Average sales price per ton | | $ | 233.69 | | | $ | 222.75 | | Average cost per pound ton | | $ | 219.42 | | | $ | 211.58 | | Average gross profit per ton | | $ | 14.26 | | | $ | 11.17 | |
During the three and six months ended June 30, 2022,March 31, 2023, zeolite revenue decreased $191,949, or 28%, compared to the Company purchasedthree months ended March 31, 2022. The decrease was primarily due to production downtime during approximately two months of the three months ended March 31, 2023 due to a Cat 740 haul trucksignificant equipment failure, which was rectified prior to replace aging equipment.March 31, 2023, partially offset by an increase in the average sales price in 2023 compared to 2022. The Company also took delivery oncone of BRZ’s main cone crusher failed and production was curtailed until a Cat 992 duringnew cone could be sourced, delivered, and installed. The new cone is equipped with performance monitoring features that are expected to enhance our preventive maintenance program, contribute to longer and more reliable run times, and enable a material increase in production. The failure of the same period.original cone curtailed production for approximately two months in the first quarter of 2023 until completion of the new cone acquisition and installation. The curtailment of production resulted in lower revenue. The new cone has operated significantly more reliably since installation was completed and production rates have increased. Precious Metals Financial and operational performance of precious metals for the three months ended June 30,March 31, 2023 and 2022 and 2021 was as follows: | | Three months ended June 30, | | | | | | | | Precious metals | | 2022 | | | 2021 | | | $ Change | | | Pct Change | | Total revenue - precious metals | | $ | 95,453 | | | $ | 130,195 | | | $ | (34,742 | ) | | | (26.7 | )% | Gross profit precious metals | | | 67,779 | | | | 101,969 | | | | (34,190 | ) | | | (33.5 | )% | Ounces sold - gold | | | 11.06 | | | | 14.74 | | | | (3.68 | ) | | | (24.9 | )% | Ounces sold - silver | | | 3,319 | | | | 6,254 | | | | (2,935 | ) | | | (46.9 | )% |
Precious metals | | 2023 | | | 2022 | | Revenue | | $ | 116,112 | | | $ | 77,334 | | Ounces sold – gold | | | 11.22 | | | | 10.29 | | Ounces sold – silver | | | 7,337 | | | | 4,856 | |
FinancialEarnings before Interest, Tax, Depreciation and operationalAmortization (“EBITDA”)
We present EBTIDA, a non-GAAP financial measurement, to supplement other measures of our financial performance. We believe that EBITDA is a useful measure of our operating performance because it eliminates non-cash expenses that do not reflect our underlying business performance. We use this measure to facilitate a comparison of precious metalsour operating performance on a consistent basis from period to period, to analyze the factors and trends affecting our business and to evaluate our performance. We had EBITDA of ($579,056) for the three months ended June 30, 2022 and 2021 was as follows:March 31, 2023, compared to EBITDA of $1,009,384 for the three months ended March 31, 2022. | | 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 | )% |
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 for the three months ended June 30, 2022, compared to EBITDA of $557,965 for the three months ended June 30, 2021. The primary driver of the June 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 for the three months ended June 30, 2021 to income from operations of $366,935 for the three months ended June 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.
EBIDTA schedules by business segment for the three months ended June 30,March 31, 2023 and 2022 and June 30, 2021 is presentedwas as follows. 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 | )% |
Antimony – Combined USA and Mexico | | March 31, 2023 | | | March 31, 2022 | | Revenue | | $ | 1,612,639 | | | | 100.0 | % | | $ | 2,828,930 | | | | 100.0 | % | Cost of sales | | | (2,265,924 | ) | | | (140.5 | )% | | | (1,773,153 | ) | | | (62.7 | )% | Gross profit (loss) | | | (653,285 | ) | | | (40.5 | )% | | | 1,055,777 | | | | 37.3 | % | Operating expenses | | | (382,405 | ) | | | (23.7 | )% | | | (348,302 | ) | | | (12.3 | )% | Non-operating income | | | 204,966 | | | | 12.7 | % | | | 7,310 | | | | 0.3 | % | Net income (loss) | | | (830,724 | ) | | | (51.5 | )% | | | 714,785 | | | | 25.3 | % | Interest expense | | | 1,386 | | | | 0.1 | % | | | 2,345 | | | | 0.1 | % | Depreciation and amortization | | | 145,394 | | | | 9.0 | % | | | 147,926 | | | | 5.2 | % | EBITDA | | $ | (683,944 | ) | | | (42.4 | )% | | $ | 865,055 | | | | 30.6 | % |
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 | )% |
Zeolite | | March 31, 2023 | | | March 31, 2022 | | Revenue | | $ | 482,093 | | | | 100.0 | % | | $ | 674,042 | | | | 100.0 | % | Cost of sales | | | (452,666 | ) | | | (93.9 | )% | | | (640,245 | ) | | | (95.0 | )% | Gross profit | | | 29,427 | | | | 6.1 | % | | | 33,797 | | | | 5.0 | % | Operating expenses | | | (94,032 | ) | | | (19.5 | )% | | | (11,506 | ) | | | (1.7 | )% | Non-operating expense | | | (94 | ) | | | 0.0 | % | | | (638 | ) | | | (0.1 | )% | Net income (loss) | | | (64,699 | ) | | | (13.4 | )% | | | 21,653 | | | | 3.2 | % | Interest expense | | | 2,301 | | | | 0.5 | % | | | 638 | | | | 0.1 | % | Depreciation and amortization | | | 51,174 | | | | 10.6 | % | | | 44,704 | | | | 6.6 | % | EBITDA | | $ | (11,224 | ) | | | (2.3 | )% | | $ | 66,995 | | | | 9.9 | % |
Precious Metals | | March 31, 2023 | | | March 31, 2022 | | Revenue | | $ | 116,112 | | | | 100.0 | % | | $ | 77,334 | | | | 100.0 | % | Cost of sales | | | (27,673 | ) | | | (23.8 | )% | | | (27,520 | ) | | | (35.6 | )% | Net income | | | 88,439 | | | | 76.2 | % | | | 49,814 | | | | 64.4 | % | Depreciation and amortization | | | 27,673 | | | | 23.8 | % | | | 27,520 | | | | 35.6 | % | EBITDA | | $ | 116,112 | | | | 100.0 | % | | $ | 77,334 | | | | 100.0 | % |
Company-wide | | March 31, 2023 | | | March 31, 2022 | | Revenue | | $ | 2,210,844 | | | | 100.0 | % | | $ | 3,580,306 | | | | 100.0 | % | Cost of sales | | | (2,746,263 | ) | | | (124.2 | )% | | | (2,440,918 | ) | | | (68.2 | )% | Gross profit (loss) | | | (535,419 | ) | | | (24.2 | )% | | | 1,139,388 | | | | 31.8 | % | Operating expenses | | | (476,437 | ) | | | (21.6 | )% | | | (359,808 | ) | | | (10.0 | )% | Non-operating income | | | 204,872 | | | | 9.3 | % | | | 6,672 | | | | 0.2 | % | Net income (loss) | | | (806,984 | ) | | | (36.5 | )% | | | 786,252 | | | | 22.0 | % | Interest expense | | | 3,687 | | | | 0.2 | % | | | 2,983 | | | | 0.1 | % | Depreciation and amortization | | | 224,241 | | | | 10.1 | % | | | 220,150 | | | | 6.1 | % | EBITDA | | $ | (579,056 | ) | | | (26.2 | )% | | $ | 1,009,384 | | | | 28.2 | % |
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 | % |
Capital Resources and Liquidity: Working Capital | | March 31, 2023 | | | December 31, 2022 | | Current assets | | $ | 19,214,863 | | | $ | 21,617,359 | | Current liabilities | | | (1,209,240 | ) | | | (2,219,870 | ) | Working capital | | $ | 18,005,623 | | | $ | 19,397,489 | |
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 | )% |
EBIDTA schedules by business segment for the six months ended June 30, 2022 and June 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 | % |
Zeolite | | Six months ended June 30, 2022 | | | Six months ended June 30, 2021 | | | $ Change | | | Change as a % of Revenue | | Gross zeolite revenue | | $ | 1,694,433 | | | | 100.0 | % | | $ | 1,236,375 | | | | 100.0 | % | | $ | 458,058 | | | | 0.0 | % | Cost of sales | | | (1,496,564 | ) | | | (88.3 | )% | | | (1,003,663 | ) | | | (81.2 | )% | | | (492,901 | ) | | | (7.1 | )% | Gross profit - zeolite | | | 197,869 | | | | 11.7 | % | | | 232,712 | | | | 18.8 | % | | | (34,843 | ) | | | (7.1 | )% | Operating expenses | | | (21,454 | ) | | | (1.3 | )% | | | (24,268 | ) | | | (2.0 | )% | | | 2,814 | | | | 0.7 | % | Income from operations | | | 176,415 | | | | 10.4 | % | | | 208,444 | | | | 16.9 | % | | | (32,029 | ) | | | (6.4 | )% | Non-operating expenses | | | (2,375 | ) | | | (0.1 | )% | | | (1,213 | ) | | | (0.1 | )% | | | (1,162 | ) | | | (0.0 | )% | Net income - zeolite | | | 174,040 | | | | 10.3 | % | | | 207,231 | | | | 16.8 | % | | | (33,191 | ) | | | (6.5 | )% | Interest expense | | | 2,375 | | | | 0.1 | % | | | 1,570 | | | | 0.1 | % | | | 805 | | | | 0.0 | % | Depreciation and amortization | | | 93,250 | | | | 5.5 | % | | | 80,843 | | | | 6.5 | % | | | 12,407 | | | | (1.0 | )% | EBITDA - zeolite | | $ | 269,665 | | | | 15.9 | % | | $ | 289,644 | | | | 23.4 | % | | $ | (19,979 | ) | | | (7.5 | )% |
Precious Metals | | Six months ended June 30, 2022 | | | Six months ended June 30, 2021 | | | $ Change | | | Change as a % of Revenue | | Gross precious metals revenue | | $ | 172,787 | | | | 100.0 | % | | $ | 206,428 | | | | 100.0 | % | | $ | (33,641 | ) | | | 0.0 | % | Cost of sales | | | (55,194 | ) | | | (31.9 | )% | | | (55,830 | ) | | | (27.0 | )% | | | 636 | | | | (4.9 | )% | Gross profit - precious metals | | | 117,593 | | | | 68.1 | % | | | 150,598 | | | | 73.0 | % | | | (33,005 | ) | | | (4.9 | )% | Operating expenses | | | - | | | | 0.0 | % | | | - | | | | 0.0 | % | | | - | | | | 0.0 | % | Income from operations | | | 117,593 | | | | 68.1 | % | | | 150,598 | | | | 73.0 | % | | | (33,005 | ) | | | (4.9 | )% | Non-operating expenses | | | - | | | | 0.0 | % | | | - | | | | 0.0 | % | | | - | | | | 0.0 | % | Net income - precious metals | | | 117,593 | | | | 68.1 | % | | | 150,598 | | | | 73.0 | % | | | (33,005 | ) | | | (4.9 | )% | Interest expense | | | - | | | | 0.0 | % | | | - | | | | 0.0 | % | | | - | | | | 0.0 | % | Depreciation and amortization | | | 55,194 | | | | 31.9 | % | | | 55,830 | | | | 27.0 | % | | | (636 | ) | | | 4.9 | % | EBITDA - precious metals | | $ | 172,787 | | | | 100.0 | % | | $ | 206,428 | | | | 100.0 | % | | $ | (33,641 | ) | | | 0.0 | % |
Company-wide | | Six months ended June 30, 2022 | | | Six months ended June 30, 2021 | | | Change | | | Change as a % of Revenue | | Gross revenue | | $ | 7,168,231 | | | | 100.0 | % | | $ | 3,528,849 | | | | 100.0 | % | | $ | 3,639,382 | | | | 0.0 | % | Cost of sales | | | (5,306,433 | ) | | | (74.0 | )% | | | (3,120,294 | ) | | | (88.4 | )% | | | (2,186,139 | | | | 14.4 | % | Gross profit | | | 1,861,798 | | | | 26.0 | % | | | 408,555 | | | | 11.6 | % | | | 1,453,243 | | | | 14.4 | % | Operating expenses | | | (715,283 | ) | | | (10.0 | )% | | | (982,471 | ) | | | (27.8 | )% | | | 267,188 | | | | 17.9 | % | Income (loss) from operations | | | 1,146,515 | | | | 16.0 | % | | | (573,916 | ) | | | (16.3 | )% | | | 1,720,431 | | | | 32.3 | % | Non-operating income (expense) | | | 960 | | | | (0.0 | )% | | | 575,569 | | | | 16.3 | % | | | (574,609 | ) | | | (16.3 | )% | Net income | | | 1,147,475 | | | | 16.0 | % | | | 1,653 | | | | 0.0 | % | | | 1,145,822 | | | | 16.0 | % | Interest expense | | | 6,063 | | | | 0.1 | % | | | 3,135 | | | | 0.1 | % | | | 2,928 | | | | (0.0 | )% | Depreciation and amortization | | | 451,207 | | | | 6.3 | % | | | 442,408 | | | | 12.5 | % | | | 8,799 | | | | (6.2 | )% | EBITDA | | $ | 1,604,745 | | | | 22.4 | % | | $ | 447,196 | | | | 12.7 | % | | $ | 1,157,549 | | | | 9.7 | % |
LIQUIDITY AND FINANCIAL CONDITION
WORKING CAPITAL | | June 30, 2022 | | | December 31, 2021 | | Current assets | | $ | 24,126,852 | | | $ | 23,568,992 | | Current liabilities | | | (1,460,946 | ) | | | (2,020,855 | ) | Working capital | | $ | 22,665,906 | | | $ | 21,548,137 | |
| | For the six months ended | | | For the three months ended | | CASH FLOWS | | June 30, 2022 | | | June 30, 2021 | | | Cash Flows | | | March 31, 2023 | | | March 31, 2022 | | Cash flow provided (used) by operating activities | | $ | 745,038 | | $ | (2,236,609 | ) | | $ | (2,273,792 | ) | | $ | 163,903 | | Cash flow used by investing activities | | (13,775,850 | ) | | 95,057 | | | (614,770 | ) | | (188,541 | ) | Cash flow provided (used) by financing activities | | | (19,767 | ) | | | 23,841,057 | | | | (810,752 | ) | | | (4,057 | ) | Net change in cash during period | | $ | (13,050,579 | ) | | $ | 21,699,505 | | | $ | (3,699,314 | ) | | $ | (28,695 | ) |
As of June 30, 2022,March 31, 2023, the Company had cash and cash equivalents of hand of $8,369,750 which consisted of $8,312,469 in money market funds and deposit accounts along with $57,281 of restricted cash.$15,361,064. NetCash flow used by operating activities was $2,273,792 for the three months ended March 31, 2023, compared to cash flow provided by operating activities was $745,038of $163,903 for the six-month period ending June 30, 2022, compared withthree months ended March 31, 2022. The $2,437,695 decrease in cash used by operating activities of $2,236,609 during the six-month period ended June 20, 2021. The $2,981,647 change in cashflow from operating activities iswas attributable primarily to a decreasean increase in existingaccounts receivable and inventories coupled with continuing strong revenue from antinomy salesand payment of royalties and dividends, partially offset by an increase in accounts payable. The majority of the increase in accounts receivable was due to product shipments towards the end of the first quarter of 2023, which have more than doubled inwere billed by the current year.end of the first quarter of 2023 and collected after the first quarter of 2023.
Net cashCash flow used by investing activities of $13,775,850 included the purchase of a caterpillarincreased by $426,229 to $614,770 for the Bear River Zeolite operation and ongoing constructionthree months ended March 31, 2023, compared to $188,541 for the three months ended March 31, 2022. This increase in the use of a new warehouse in Preston, ID. The Company also invested $13,500,000 in a managed investment account, seekingcash was primarily due to improve its return on investment versus maintaining deposits in a low-interest bearing money market account. The managed investment account invests in primarily US Treasury Bonds and otherincreased purchases of fixed income funds.assets at BRZ.
Cash flow used by financing activities increased by $806,695 to $810,752 for the sixthree months ended June 30, 2022 was $19,767March 31, 2023, compared to a cash flow provided by financing activities of $23,841,057$4,057 for the sixthree months ended June 30, 2021. In 2021,March 31, 2022. This increase in the Company raised $25,132,883 fromuse of cash was primarily due to the issuancepayment of dividends of $787,730 on January 25, 2023 to the holders of 1,692,672 shares of Series D Preferred stock related to the conversion of these shares into common stock and warrants and the exercise of warrants by existing shareholders. This capital raise was not recurring during the six months ended June 30, 2022.stock. For the year ending December 31, 2022, weWe are planning to use our 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.costs and for revenue growth. Also, we plan to continue to review the operations and financial results of each segment to make decisions that benefit the Company overall.
In the past, the Company has been successful in raising required capital from sale of common stock.stock and, to a lesser extent, from debt issuance. As a result of planned operations and potential equity sales and potential debt borrowings, management believes cash flows from operations and existing cash and investmentscash equivalents 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.Not applicable.
ITEM 4. CONTROLS AND PROCEDURES Conclusions of Management Regarding Effectiveness of Disclosure Controls and Procedures 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.procedures related to segregation of accounting duties. 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 legalaccounting and accountinglegal 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 30, 2022March 31, 2023 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. PART II - OTHER INFORMATION
ITEM 1. LEGAL 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, 20212022 which was filed with the SEC on March 31, 2022.July 18, 2023. ITEM 2. RECENT SALES OF UNREGISTERED SECURITIES. ForOn January 25, 2023, the three months ended June 30, 2022,holders of 1,692,672 shares of Series D Preferred stock converted the preferred shares and the Company sold noissued 1,692,672 shares of common stock. The Company also paid the holders $787,730 for dividends payable as declared on November 28, 2022.
During the three months ended June 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. NoneNone.
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.report.
ITEM 5. OTHER INFORMATION. NoneNone.
ITEM 6. EXHIBITS. 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.
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, 2022
| By:
| /s/ Russell Lawrence
| | | | Russell Lawrence
| Date: October 5, 2023 | By: | /s/ John C. Gustavsen | | | | John C. Gustavsen | | | | (Principal Executive Officer President and Director)Chief Executive Officer) | | | | | | Date: August 16, 2022October 5, 2023 | By: | /s/ Kelly J. StopherRichard R. Isaak | | | | Kelly J. StopherRichard R. Isaak
| | | | (Principal Accounting Officer and Chief Financial Officer) | |
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