Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 27, 2019 | Jun. 30, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | Golden Minerals Co | ||
Entity Central Index Key | 1,011,509 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 17.9 | ||
Entity Common Stock, Shares Outstanding | 96,399,391 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 3,293 | $ 3,250 |
Short-term investments | 330 | 238 |
Lease receivables | 481 | 314 |
Inventories, net | 229 | 242 |
Value added tax receivable, net | 14 | 148 |
Prepaid expenses and other assets | 1,188 | 745 |
Total current assets | 5,535 | 4,937 |
Property, plant and equipment, net | 7,109 | 8,140 |
Total assets | 12,644 | 13,077 |
Current liabilities | ||
Accounts payable and other accrued liabilities | 1,702 | 1,556 |
Deferred Revenue, Current | 293 | 293 |
Other current liabilities | 12 | 9 |
Total current liabilities | 2,007 | 1,858 |
Asset retirement and reclamation liabilities | 2,683 | 2,495 |
Deferred Revenue, Noncurrent | 307 | 600 |
Other long term liabilities | 10 | 43 |
Total liabilities | 5,007 | 4,996 |
Commitments and contingencies | ||
Equity | ||
Common stock, $.01 par value, 200,000,000 shares authorized; 95,620,796 and 91,929,709 shares issued and outstanding respectively | 955 | 919 |
Additional paid in capital | 517,806 | 516,284 |
Accumulated deficit | (511,124) | (509,082) |
Accumulated other comprehensive loss | (40) | |
Shareholders' equity | 7,637 | 8,081 |
Total liabilities and equity | $ 12,644 | $ 13,077 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 95,620,796 | 91,929,709 |
Common stock, shares outstanding | 95,620,796 | 91,929,709 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenue: | |||
Oxide plant lease | $ 7,217 | $ 6,691 | |
Total revenue | 7,217 | 6,691 | |
Costs and expenses: | |||
Oxide plant lease costs | (2,289) | (2,189) | |
Exploration expense | (3,909) | (3,091) | |
El Quevar project expense | (1,266) | (822) | |
Velardena shutdown and care and maintenance costs | (1,889) | (1,589) | |
Administrative expense | (3,355) | (3,512) | |
Stock based compensation | (226) | (296) | |
Reclamation expense | (210) | (196) | |
Other operating income, net | 5,138 | 2,093 | |
Depreciation and amortization | (1,171) | (952) | |
Total costs and expenses | (9,177) | (10,554) | |
Income (loss) from operations | (1,960) | (3,863) | |
Other income and (expense): | |||
Interest and other (expense) income, net | 112 | 37 | |
Gain (loss) on foreign currency | (84) | (53) | |
Total other income (loss) | 28 | (16) | |
Income (loss) from operations before income taxes | (1,932) | (3,879) | |
Income tax | (13) | (13) | |
Net income (loss) | (1,945) | (3,892) | |
Comprehensive income (loss), net of tax: | |||
Unrealized gain (loss) on securities | (95) | ||
Comprehensive income (loss), net of tax: | $ (1,945) | $ (3,987) | |
Net income (loss) per common share - basic | |||
Loss (in dollars per share) | $ (0.02) | $ (0.04) | |
Weighted average common stock outstanding - basic (in shares) | [1] | 94,003,165 | 90,468,606 |
[1] | Potentially dilutive shares have not been included because to do so would be anti-dilutive |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive income (loss) | Registered direct purchase agreement | Total |
Increase (Decrease) in Stockholders' Equity | ||||||
Cumulative adjustment related to change in accounting principle | Cumulative Effect Adjustment | ASU 2017-11 Earnings Per Share | $ 19,046 | $ (17,148) | $ 1,898 | |||
Adjusted balance at beginning of period | ASU 2017-11 Earnings Per Share | 514,501 | (505,185) | $ 55 | 10,260 | ||
Balance (ASU 2017-11 Earnings Per Share) at Dec. 31, 2016 | $ 889 | |||||
Balance at Dec. 31, 2016 | $ 889 | 495,455 | (488,037) | 55 | 8,362 | |
Balance (in shares) (ASU 2017-11 Earnings Per Share) at Dec. 31, 2016 | 89,020,041 | |||||
Balance (in shares) at Dec. 31, 2016 | 89,020,041 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Stock compensation accrued and shares issued for vested stock awards | $ 1 | 196 | 197 | |||
Stock compensation accrued and shares issued for vested stock awards (in shares) | 200,000 | |||||
Shares issued under the at-the-market offering agreement, net | $ 10 | 671 | 681 | |||
Shares issued under the at-the-market offering agreement, net (in shares) | 1,024,392 | |||||
Consideration shares sold to Hecla, net | $ 18 | 912 | $ 930 | |||
Consideration shares sold to Hecla, net (in shares) | 1,811,015 | |||||
Cancellation of treasury shares | $ 1 | (1) | ||||
Cancellation of treasury shares (in shares) | (125,739) | (125,739) | ||||
Deemed dividend on warrants | 5 | (5) | ||||
Unrealized loss on marketable equity securities, net of tax | (95) | $ (95) | ||||
Net loss | (3,892) | (3,892) | ||||
Balance (ASU 2017-11 Earnings Per Share) at Dec. 31, 2017 | $ 919 | |||||
Balance at Dec. 31, 2017 | $ 919 | 516,284 | (509,082) | (40) | 8,081 | |
Balance (in shares) (ASU 2017-11 Earnings Per Share) at Dec. 31, 2017 | 91,929,709 | |||||
Balance (in shares) at Dec. 31, 2017 | 91,929,709 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Cumulative adjustment related to change in accounting principle | Cumulative Effect Adjustment | ASU 2017-11 Earnings Per Share | (89) | $ 40 | (49) | |||
Adjusted balance at beginning of period | ASU 2017-11 Earnings Per Share | 516,284 | (509,171) | 8,032 | |||
Stock compensation accrued and shares issued for vested stock awards | $ 4 | 312 | 316 | |||
Stock compensation accrued and shares issued for vested stock awards (in shares) | 537,279 | |||||
Registered direct purchase agreement, net | $ 32 | 1,202 | 1,234 | |||
Registered direct purchase agreement, net (in shares) | 3,153,808 | 0 | ||||
Deemed dividend on warrants | 8 | (8) | ||||
Net loss | (1,945) | (1,945) | ||||
Balance at Dec. 31, 2018 | $ 955 | $ 517,806 | $ (511,124) | $ 7,637 | ||
Balance (in shares) at Dec. 31, 2018 | 95,620,796 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | $ (5,711) | $ (1,630) |
Cash flows from investing activities: | ||
Proceeds from sale of asset | 5,097 | 762 |
Acquisitions of property, plant and equipment | (152) | (81) |
Net cash from investing activities | 4,945 | 681 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net of issuance costs | 809 | 1,611 |
Net cash from financing activities | 809 | 1,611 |
Net increase in cash and cash equivalents | 43 | 662 |
Cash and cash equivalents, beginning of period | 3,250 | 2,588 |
Cash and cash equivalents, end of period | $ 3,293 | $ 3,250 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Nature of Operations | |
Nature of Operations | 1. Nature of Operations The Company is a mining company, holding a 100% interest in the Velardeña and Chicago precious metals mining properties and associated oxide and sulfide processing plants in Mexico (the “Velardeña Properties”). During November 2015 the Company suspended mining and sulfide processing activities at its Velardeña Properties in order to conserve the asset until the Company is able to develop mining and processing plans that at then current prices for silver and gold indicate a sustainable positive operating margin (defined as revenues less costs of sales) or the Company is able to locate, acquire and develop alternative mineral sources that could be economically mined and transported to the Velardeña Properties for processing. The Company has placed the mine and sulfide processing plant on care and maintenance to enable a re-start of either the mine or mill when mining and processing plans and metals prices support a cash positive outlook. The Company incurred approximately $1.9 million and $1.6 million in care and maintenance costs for years ended December 30, 2018 and December 31, 2017, respectively. On an ongoing basis, the Company expects to incur approximately $0.4 million in quarterly care and maintenance costs while mining and processing remain suspended. The Company has retained a core group of employees at the Velardeña Properties, most of whom have been assigned to operate and provide administrative support for the oxide plant, which is leased to a subsidiary of Hecla Mining Company (“Hecla”) and not affected by the shutdown. The retained employees also include an exploration group and an operations and administrative group to continue to advance the Company’s plans in Mexico, oversee corporate compliance activities, and to maintain and safeguard the longer term value of the Velardeña Properties assets. The Velardeña oxide plant began processing material for Hecla in mid-December 2015, and the Company recorded net operating margin under the lease of approximately $4.9 million in 2018. On March 24, 2017, Hecla exercised its right to extend the lease through December 31, 2018. On August 2, 2017, the Company granted Hecla an additional option, to extend the lease for an additional period of up to two years ending no later than December 31, 2020 in exchange for a $1.0 million cash payment and the purchase of $1.0 million, or approximately 1.8 million shares of the Company’s common stock, issued at par at a price of $0.55 per share, based on an undiscounted 30-day volume weighted average stock price (see Note 15). On October 1, 2018, Hecla exercised this option to extend the lease through December 31, 2020. Hecla has the right to terminate the lease with 120 days’ notice. The Company remains focused on evaluating and searching for mining opportunities in North America (including Mexico) with near term prospects of mining, and particularly for properties within reasonable haulage distances of our processing plants at the Velardeña Properties. The Company is also focused on advancing our El Quevar exploration property in Argentina and on advancing selected properties in our portfolio of approximately 12 properties, located primarily in Mexico. The Company is also reviewing strategic opportunities, focusing primarily on development or operating properties in North America, including Mexico. The Company is considered an exploration stage company under the criteria set forth by the SEC as the Company has not yet demonstrated the existence of proven or probable mineral reserves, as defined by SEC Industry Guide 7, at the Velardeña Properties, or any of the Company’s other properties. As a result, and in accordance with GAAP for exploration stage companies, all expenditures for exploration and evaluation of the Company’s properties are expensed as incurred. As such, the Company’s financial statements may not be comparable to the financial statements of mining companies that do have proven and probable mineral reserves. Such companies would typically capitalize certain development costs including infrastructure development and mining activities to access the ore. The capitalized costs would be amortized on a units-of-production basis as reserves are mined. The amortized costs are typically allocated to inventory and eventually to cost of sales as the inventories are sold. As the Company does not have proven and probable reserves, substantially all expenditures at the Company’s Velardeña Properties for mine construction activity, as well as costs associated with the mill facilities, and for items that do not have a readily identifiable market value apart from the mineralized material, have been expensed as incurred. Such costs are charged to cost of metals sold or project expense during the period depending on the nature of the costs. Certain of the costs may be reflected in inventories prior to the sale of the product. The term “mineralized material” as used herein, although permissible under SEC Industry Guide 7, does not indicate “reserves” by SEC standards. The Company cannot be certain that any deposits at the Velardeña Properties or any other exploration property will ever be confirmed or converted into SEC Industry Guide 7 compliant “reserves”. |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2018 | |
Liquidity | |
Liquidity | 2. Liquidity At December 31, 2018, the Company’s aggregate cash and cash equivalents totaled $3.3 million, equal to the $3.3 million in similar assets held at December 31, 2017. The December 31, 2018 balance is due in part from the following expenditures and cash inflows for the year ended December 31, 2018. Expenditures totaled $10.8 million from the following: · $3.9 million in exploration expenditures, including work at the Santa Maria and other properties; · $1.9 million in care and maintenance costs at the Velardeña Properties; · $1.3 million in evaluation activities, care and maintenance and property holding costs at the El Quevar project; · $3.4 million in general and administrative expenses; and · $0.3 million related to an increase in working capital primarily related to the reduction of $0.3 million in deferred income related to the oxide plant lease. The foregoing expenditures were offset by cash inflows of $10.8 million from the following: · $4.9 million of net operating margin received pursuant to the oxide plant lease (defined as oxide plant lease revenue less oxide plant lease costs); · $0.8 million, net of commitment fees and other offering related costs, from the LPC Program; · $4.0 million from the sale of our interests in the Celaya property to Electrum; · $0.7 million from the farm out of certain nonstrategic mineral claims to Santacruz; and · $0.4 million from the sale of two inactive subsidiaries in Mexico. In addition to the $3.3 million cash balance at December 31, 2018, the Company expects to receive approximately $4.6 million in net operating margin from the lease of the oxide plant during the next twelve-month period ending December 31, 2019. In addition, subsequent to December 31, 2018 the Company received approximately $0.2 million from the sale of our common stock under the LPC Program. The Company’s currently budgeted expenditures during the twelve months ending December 31, 2019 are as follows: · Approximately $2.0 million on exploration activities and property holding costs related to our portfolio of exploration properties located primarily in Mexico, including project assessment and evaluation costs relating to Yoquivo and other properties; · Approximately $1.5 million at the Velardeña Properties for care and maintenance; · Approximately $1.2 million at the El Quevar project to fund ongoing exploration and evaluation activities, care and maintenance and property holding costs; and · Approximately $3.1 million on general and administrative costs. If the Company spends the amounts described above, it would end 2019 with a cash balance of approximately zero. However, the Company does not intend to allow its cash balance to drop below acceptable levels. Therefore, during 2019 the Company intends to take appropriate actions, which may include sales of certain of the Company’s nonstrategic exploration assets, reductions to the Company’s currently budgeted level of spending, and/or raising additional equity capital through sales under the ATM Program, LPC Program or otherwise. The actual amount of cash that we receive or the expenditures that the Company incurs during the year ended 2019 and the projected cash balance at December 31, 2019 may vary significantly from the amounts specified above and will depend on a number of factors, including variations from anticipated care and maintenance costs at the Velardeña Properties and costs for continued exploration, project assessment, and development at the Companys’ other exploration properties, including El Quevar. Moreover, revenues from the oxide plant lease may be less than anticipated, which would require further actions on the Company’s part in order to maintain sufficient cash balances at year end. The consolidated financial statements have been prepared on a going concern basis under which an entity is considered to be able to realize its assets and satisfy its liabilities in the normal course of business. However, the Company’s continuing long-term operations are dependent upon its ability to secure sufficient funding and to generate future profitable operations. The underlying value and recoverability of the amounts shown as property, plant and equipment in the Company’s consolidated financial statements are dependent on its ability to generate positive cash flows from operations and to continue to fund exploration and development activities that would lead to profitable mining activities or to generate proceeds from the disposition of property, plant and equipment. There can be no assurance that the Company will be successful in generating future profitable operations or securing additional funding in the future on terms acceptable to the Company or at all. The Company believes the continuing cash flow from the lease of the oxide plant, use of the ATM Program and LPC Program, and the potential for additional asset dispositions make it probable that the Company will have sufficient cash to meet its financial obligations and continue its business strategy beyond one year from the filing of the Company’s consolidated financial statements for the period ended December 31, 2018. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies The Company’s consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of the Company’s consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to mineralized material and related future metals prices that are the basis for future cash flow estimates utilized in impairment calculations; depreciation, depletion and amortization calculations; environmental reclamation and closure obligations; valuation allowances for deferred tax assets and the fair value of financial instruments. The Company based its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ significantly from these estimates under different assumptions or conditions. The policies adopted, considered by management to be significant, are summarized as follows: a. All of the Company’s consolidated subsidiaries are 100% owned and as such the Company does not have a noncontrolling interest in any of its subsidiaries. All intercompany transactions and balances have been eliminated at consolidation. b. Substantially all expenditures and sales are made in U.S. dollars. Accordingly, the Company and its subsidiaries use the U.S. dollar as their functional and reporting currency. c. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. d. Materials and supplies inventories are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight. The Company routinely counts and evaluates its material and supplies to determine the existence of any obsolete stock that is subject to impairment. e. The Company expenses general prospecting costs and the costs of acquiring and exploring unevaluated mineral properties. When a mineral property is determined to have proven and probable reserves, subsequent development costs are capitalized to mineral properties. For acquired mineral properties with proven and probable reserves, the Company capitalizes acquisition costs and subsequent development costs. When mineral properties are developed and operations commence, capitalized costs are charged to operations using the units-of-production method over proven and probable reserves. Upon abandonment or sale of a mineral property, all capitalized costs relating to the specific property are written off in the period abandoned or sold and a gain or loss is recognized in the accompanying Consolidated Statements of Operations and Comprehensive Loss. As discussed in Note 1, the Company is considered an exploration stage company under the criteria set forth by the SEC since it has not yet demonstrated the existence of proven or probable reserves at any of the Company’s properties. As such, during the periods prior to November 2016 when the Company suspended mining and processing activities, the Company expensed costs as incurred related to extraction of mineralized material at the Velardeña Properties. The Company established a cost basis for the mineralized material at the Velardeña Properties as a result of purchase accounting for the Company’s business combination transaction with ECU Silver Mining Inc. (“ECU”) in September 2011, the transaction pursuant to which the Company acquired the Velardeña Properties. Mineral properties acquired in the ECU merger were recorded at estimated fair market value based on valuations performed with the assistance of an independent appraisal firm and a minerals engineering company. Although the Company has not demonstrated the existence of proven and probable reserves, and the Company has not completed a pre-feasibility economic assessment, the Company had established the existence of mineralized material that was used in assigning value to mineral properties for purchase accounting purposes. The subsequent extraction of this mineralized material has provided a reasonable basis for the calculation of units-of-production depreciation for the cost basis in the mineral properties. On a quarterly basis the Company evaluates its exploration properties to determine if they meet the Company’s minimum requirements for continued evaluation. The rights to the properties that do not meet the minimum requirements are relinquished and the carrying values, if any, are written off and reflected in “Other operating income, net” on the accompanying Consolidated Statements of Operations and Comprehensive Loss. f. Buildings are depreciated using the straight–line method over the estimated useful lives of 30 to 40 years or the life of the mine whichever is shorter. Mining equipment and machinery, excluding the plant, are depreciated using the straight-line method over useful lives of three to eight years or the lease period, whichever is shorter. Mineral properties and the plant are depreciated using units of production based on estimated mineralized material. Other furniture and equipment are depreciated using the straight-line method over estimated useful lives of three to five years. As discussed above, the Company does not have any properties with proven or probable reserves. Property, plant and equipment are recorded at cost and per the guidance of ASC 360 the Company assesses the recoverability of its property, plant and equipment, including goodwill, whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If the sum of estimated future net cash flows on an undiscounted basis is less than the carrying amount of the related asset, impairment is considered to exist. The related impairment loss is measured by comparing estimated future net cash flows on a discounted basis or by comparing other market indicators to the carrying amount of the asset. The Company evaluated its remaining long lived assets at December 31, 2017 and 2018, and determined that no impairment was required. g. The Company records asset retirement obligations (“ARO”) in accordance with ASC 410, “Asset Retirement and Environmental Obligations” (“ASC 410”), which establishes a uniform methodology for accounting for estimated reclamation and abandonment costs. According to ASC 410, the fair value of an ARO is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. An offsetting asset retirement cost (“ARC”) is capitalized as part of the carrying value of the assets with which it is associated, and depreciated over the useful life of the asset (see Note 11). The Company prepares estimates of the timing and amount of expected cash flows when an ARO is incurred. The fair value of the ARO is measured by discounting the expected cash flows using a discount rate that reflects the credit adjusted risk-free rate of interest. The Company records the fair value of an ARO when it is incurred and layer adjustments of the ARO are recorded as an adjustment to the corresponding ARC. The ARO is adjusted to reflect the passage of time (accretion cost) calculated by applying the discount rate implicit in the initial fair value measurement to the beginning-of-period carrying amount of the ARO. The Company records accretion costs to expense as incurred. h. The Company recognizes oxide plant lease fees and reimbursements for labor, utility and other costs as "Revenue from Oxide plant lease" in the Consolidated Statements of Operations and Comprehensive Loss following the guidance of ASC 606 regarding "income statement characterization of reimbursements received for "out-of-pocket" expenses incurred" and "reporting revenue gross as a principal versus net as an agent". ASC 606 supports recording as gross revenue fees received for the reimbursement of expenses in situations where the recipient is the primary obligor and has certain discretion in the incurrence of the reimbursable expense. The actual costs incurred for the reimbursed labor, utility and other costs are reported as "Oxide plant lease costs" in the Consolidated Statement of Operations and Comprehensive Loss. The Company recognizes lease fees during the period as fees are earned per the terms of the lease (see Note 16). i Stock based compensation costs are recognized per the guidance of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award (see Note 15). Stock grants are valued at their grant date at fair value which in the case of options requires the use of the Black-Scholes option pricing model. Per ASC 718 the grants may be classified as equity grants or liability grants depending on the terms of the grant. j. Basic income (loss) per share is computed by dividing net income (loss) available to holders of the Company’s Common Stock by the weighted average number of shares of Common Stock outstanding for the period. Diluted income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue Common Stock were exercised or converted into Common Stock. At December 31, 2018 and 2017, all potentially dilutive shares were excluded from the computation of diluted earnings per share because to include them would have been anti-dilutive. k. Comprehensive income (loss) is defined as all changes in equity (deficit), exclusive of transactions with stockholders, such as capital investments. Comprehensive income (loss) includes net income (loss) and changes in certain assets and liabilities that are reported directly in equity. For the year ended December 31, 2017 Comprehensive loss included the change in the market value of available for sale securities and is reported on the Consolidated Statements of Operations and Comprehensive Income (Loss). As the result of a 2018 change in accounting principle, discussed in Note 4, the Company now records the changes in readily determinable fair values of equity investments through net income. Accordingly, no amounts were recorded to Comprehensive Income (Loss) for the year ended December 31, 2018. l. The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes” (“ASC 740”), on a tax jurisdictional basis. The Company files United States and certain other foreign country income tax returns, and pays taxes reasonably determined to be due. The tax rules and regulations in these countries are highly complex and subject to interpretation. The Company’s income tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. The Company classifies income tax related interest and penalties as income tax expense. m. During the first quarter 2018 the Company adopted ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which amended its accounting treatment for the recognition, measurement, presentation and disclosure of certain financial assets. ASU 2016-01 requires equity investments that have a readily determinable fair value to be measured at fair value through net income. Previously, entities would recognize changes in fair value of available-for-sale equity securities in other comprehensive income and would recognize in net income impairment losses that were other-than-temporary. There will no longer be an available-for-sale classification (with changes in fair value reported in other comprehensive income) for equity securities with readily determinable fair values. The Company recognized retrospectively the cumulative effect of initially adopting ASU 2016-01 (see Note 4). During the first quarter 2018 the Company adopted ASU 2016-08, “ Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (“ASU 2016-08”), which clarifies principal versus agent when another party, along with the entity, is involved in providing a good or service to a customer. Topic 606, Revenue from Contracts with Customers, requires an entity to determine whether the nature of its promise is to provide that good or service to the customer (i.e., the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (i.e., the entity is an agent). The adoption of ASU 2016-08 during the first quarter 2018, did not result in a material impact on its consolidated financial position or results of operations or the requirement for retrospective reporting. During the first quarter 2018 the Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) which was issued by the Financial Accounting Standards Board (“FASB”) in May 2014. The Company also adopted ASU No. 2017-05, “Other Income (Subtopic 310-20)” (“ASU 2017-05”), which was issued by the FASB in February 2017 clarifying the scope of Subtopic 610-20, which was originally issued as part of ASU 2014-09. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In addition, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized and the related cash flows. The Company has elected the modified retrospective method of adopting ASU 2014 (see Note 4). In July 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-11, “ Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part 1) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception” (“ASU 2017-11”). Part I relates to the accounting for certain financial instruments with down round features in Subtopic 815-40, which is considered in determining whether an equity-linked financial instrument qualifies for a scope exception from derivative accounting. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced based on the pricing of future equity offerings. An entity still is required to determine whether instruments would be classified as equity under the guidance in Subtopic 815-40 in determining whether they qualify for that scope exception. If they do qualify, freestanding instruments with down round features are no longer classified as liabilities. ASU 2017-11 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted, including in an interim period. The Company early adopted ASU 2017-11 during the interim period ended September 30, 2017 (see Note 4). In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), which simplifies several aspects of the accounting for share-based payment award transactions including accounting for income taxes and classification of excess tax benefits on the statement of cash flows, forfeitures and minimum statutory tax withholding requirements. For the Company, ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of ASU 2016-09 in 2017 did not materially change the Company’s previous accounting methods and therefore did not have a material impact on the Company’s consolidated financial position or results of operation. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes: Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). ASU 2015-17 requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The adoption of ASU 2015-17 in 2017 did not materially change the Company’s previous accounting methods and therefore did not have a material impact on the Company’s consolidated financial position or results of operation. In July 2015, the FASB issued ASU No. 2015-11, “Inventory, Simplifying the Measurement of Inventory” (“ASU 2015‑11”). ASU 2015-11 affects reporting entities that measure inventory using first-in, first-out or average cost. ASU 2015‑11 requires that inventory be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 is effective for annual periods beginning after December 15, 2016. The adoption of ASU 2015-11 in 2017 did not materially change the Company’s previous accounting methods and therefore did not have a material impact on the Company’s consolidated financial position or results of operation. n. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 modifies the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU 2016-13 will be effective for the Company as of January 1, 2020. As the Company’s principle credit risk is related to its Lease Receivables the Company does not expect the adoption of this update to result in a material impact on its consolidated financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”), which will require lessees to recognize a right-of-use asset and a lease liability for all leases with terms greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For a lessor, the accounting applied is largely unchanged from previous guidance. The new rules will be effective for the Company in the first quarter of 2019. The Company does not anticipate early adoption. The Company currently leases administrative offices in the U.S. and in several foreign locations under lease agreements that typically exceed one year. Depending on the number of years remaining under such lease agreements the right-of-use assets and lease liabilities that the Company would record under ASU 2016-2 could be material. In January 2019, the Company extended the office lease at its corporate headquarters in the U.S. Lease payments for base rent and common area maintenance are estimated to be approximately $0.9M from January 2019 through December 2024. |
Change in Accounting Principle
Change in Accounting Principle | 12 Months Ended |
Dec. 31, 2018 | |
Change in Accounting Principle | |
Change in Accounting Principle | 4. Change in Accounting Principle Warrant Liability In July 2017, the FASB issued ASU 2017-11, “ Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part 1) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception” (“ASU 2017-11”). Part I relates to the accounting for certain financial instruments with down round features in Subtopic 815-40, which is considered in determining whether an equity-linked financial instrument qualifies for a scope exception from derivative accounting. In the case where the exception from derivative accounting does not apply, warrants must be accounted for as a liability and recorded at fair value at the date of grant and re-valued at the end of each reporting period. The September 2012 and 2014 warrants (see Note 15) include anti-dilution provisions characterized as down round features and were previously accounted for as liabilities, with the fair value of the warrant liabilities remeasured at each reporting date and the change in liabilities recorded as other non-operating income or loss. The Company had recorded a warrant liability of $1.5 million as of September 30, 2017 and reported a warrant derivative loss of $0.4 million for the nine months ended September 30, 2017 relating to the September 2012 and 2014 warrants prior to the change in accounting principle. In addition, for freestanding equity-classified financial instruments, ASU 2017-11 also requires entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Certain equity transactions following the issuance of the September 2012 and 2014 warrants have triggered anti-dilution clauses in the warrant agreements resulting in additional warrant shares and a reduction to the original strike price of the warrants. ASU 2017-11 prescribes a method to measure the value of a deemed dividend related to a triggering event by computing the difference in fair value between two instruments that have terms consistent with the actual instrument but that do not have a down round feature, where the number of warrant shares and strike price of one instrument corresponds to the actual instrument before the triggering event and the number of warrant shares and strike price of the other instrument corresponds to the actual instrument immediately after the triggering event. Following ASU 2017-11, for periods ending on or prior to December 31, 2016 the Company would have reduced its “ Accumulated deficit ” as reported on its Consolidated Balance Sheets by approximately $0.3 million related to prior triggering events. During the nine-month period ending September 30, 2017 the Company would have reduced its accumulated deficit by approximately $3,000 related to triggering events. During the year ending December 31, 2018 the Company reduced its accumulated deficit by approximately $8,000 related to triggering events. Except for the down round features in the September 2012 and 2014 warrants, the warrants would have been classified in equity under the guidance in Subtopic 815-40 and therefore qualify for the scope exception in ASU 2017-11 . As permitted, the Company elected to adopt the accounting principles prescribed by ASU 2017-11 during the interim period ended September 30, 2017 and recorded a cumulative-effect adjustment stemming from a change in accounting principle in its financial statements measured retrospectively to the beginning of 2017. The cumulative effect adjustment appears at the beginning of 2017 in the Company’s Consolidated Statement of Changes in Equity. The results of operations for the Company for the three months ended March 31, 2017 reflect application of the change in accounting principle from the beginning of 2017. As noted above, the Company had previously reported a warrant derivative gain of $0.4 million during the nine-month period ending September 30, 2017. Because the Company has retroactively applied the change in accounting principle discussed above to the beginning of 2017, the Company is no longer reporting warrant derivative gains or losses for the September 2012 and 2014 warrants beginning in 2017. Other Income Related to the Sale of Exploration Properties During the first quarter 2018 the Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) which was issued by the FASB” in May 2014. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In addition, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized and the related cash flows. The Company has elected the modified retrospective method of initially adopting ASU 2014-09. ASU 2014-09 requires, in certain instances, that transactions covered by ASC Topic 610, “Other Income” (“Topic 610”) follow the recognition, measurement and disclosure guidelines established by ASU 2014-09. The Company generally follows the guidance of Topic 610 with respect to the recognition of income from the farm-out or sale of exploration properties. As of the beginning of 2018, the Company had one open contract impacted by the adoption of ASU 2014-09, involving an option agreement under which Santacruz Silver Mining Ltd. (“Santacruz”) may acquire the Company’s interest in certain nonstrategic mineral claims located in the Zacatecas Mining District, Zacatecas, Mexico (the “Zacatecas Properties”) for a series of payments totaling $1.5 million (Note 9). In applying ASU 2014-09, approximately $49,000 of the income recognized from the Santacruz transaction in the fourth quarter of 2017 would have been recognized in the first quarter of 2018. Accordingly, the Company has recognized retrospectively the cumulative effect of initially adopting ASU 2014-09 by recording a negative adjustment to retained earnings of $49,000 at the beginning of 2018, included in the Company’s Consolidated Statement of Changes in Equity, and recording $49,000 in “ Other operating income, net ” in the accompanying Consolidated Statements of Operations and Comprehensive Loss for the period ended December 31, 2018. See Note 9 for a further description of the contract with Santacruz and the identification of performance obligations and other significant judgments used in applying the guidance of Topic 606 to the contract. Available for Sale Securities During the first quarter 2018 the Company adopted ASU No. 2016-01, which amended its accounting treatment for the recognition, measurement, presentation and disclosure of certain financial assets. ASU 2016-01 requires equity investments that have readily determinable fair values to be measured at fair value through net income. Previously, entities would recognize changes in fair value of available-for-sale equity securities in other comprehensive income and would recognize in net income impairment losses that were other-than-temporary. There will no longer be an available-for-sale classification (with changes in fair value reported in other comprehensive income) for equity securities with readily determinable fair values. At December 31, 2017, the Company had equity securities classified as available-for-sale and reported at fair value of $238,000, with cumulative unrealized losses of $40,000 recorded in “Accumulated other comprehensive loss” on its Consolidated Balance Sheets. The Company has recognized the cumulative effect of initially adopting ASU 2016-01 by recording a negative adjustment to retained earnings and other comprehensive income of $40,000 at the beginning of 2018, included in the Company’s Consolidated Statement of Changes in Equity, and has recorded a gain of approximately $51,000 in “Interest and other income, net” in the accompanying Consolidated Statements of Operations and Comprehensive Loss for the period ended December 31, 2018 . |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-Term Investments | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents and Short-Term Investments | |
Cash and Cash Equivalents and Short-Term Investments | 5. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Short-term investments include investments with maturities greater than three months, but not exceeding 12 months, or highly liquid investments with maturities greater than 12 months that the Company intends to liquidate during the next 12 months for working capital needs. The following tables summarize the Company's short-term investments at December 31, 2018 and 2017: Estimated Carrying December 31, 2018 Cost Fair Value Value (in thousands) Investments: Short-term: Trading securities $ 275 $ 330 $ 330 Total trading securities 275 330 330 Total short term $ 275 $ 330 $ 330 December 31, 2017 Investments: Short-term: Available for sale common stock $ 275 $ 238 $ 238 Total available for sale common stock 275 238 238 Total short term $ 275 $ 238 $ 238 Credit Risk The Company invests substantially all of its excess cash with high credit-quality financial institutions or in U.S. government or debt securities. Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. For cash and equivalents and investments, credit risk represents the carrying amount on the balance sheet. The Company mitigates credit risk for cash and equivalents and investments by placing its funds and investments with high credit-quality financial institutions, limiting the amount of exposure to each of the financial institutions, monitoring the financial condition of the financial institutions and investing only in government and corporate securities rated “investment grade” or better. The Company invests with financial institutions that maintain a net worth of not less than $1 billion and are members in good standing of the Securities Investor Protection Corporation. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expenses and Other Assets | |
Prepaid Expenses and Other Assets | 6. Prepaid expenses and other assets consist of the following: December 31, December 31, 2018 2017 (in thousands) Prepaid insurance $ 358 $ 362 Deferred offering costs 569 137 Recoupable deposits and other 261 246 $ 1,188 $ 745 The deferred offering costs are related to the ATM Program and the LPC Program, discussed in detail in Note 15. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventories, net | |
Inventories | 7. Inventories at the Velardeña Properties were as follows: December 31, December 31, 2018 2017 (in thousands) Material and supplies $ 229 $ $ 229 $ 242 The material and supplies inventory at December 31, 2018 and 2017 are related to the Velardeña Properties and are reduced by a $0.2 million obsolescence reserve. |
Value added tax receivable
Value added tax receivable | 12 Months Ended |
Dec. 31, 2018 | |
Value added tax receivable [Abstract] | |
Value added tax receivable | 8. The Company has recorded value added tax (“VAT”) paid in Mexico and related to the Velardeña Properties as a recoverable asset. Mexico law allows for VAT payments to be recovered from VAT collected from the sale of products or rendering of services. At December 31, 2018, the Company has also recorded approximately $30,000 of VAT receivable as a reduction to VAT payable in Mexico, which appears in “ Accounts payable and other accrued liabilities” on the Consolidated Balance Sheets. During 2017 the Company received refunds of approximately $1.1 million from the government of Argentina for VAT payments made in that country during 2012 and 2013. Because of uncertainties relating to collectability of the taxes the Company had recorded a full valuation allowance against the VAT receivable at the time the taxes were paid. The Company reported the $1.1 million of VAT refunds received during the year ended December 31, 2017 in “Other operating income” on the Consolidated Statements of Operations and Comprehensive Loss. In February 2018, the Company received an additional approximately $138,000 of VAT refunds. At December 31, 2017, the Company reversed $138,000 of the valuation allowance and recorded a VAT receivable of $138,000 with a corresponding gain in “Other operating income” on the Consolidated Statements of Operations and Comprehensive Loss. The Company has remaining Argentina VAT refund claims totaling approximately $0.1 million. The Company cannot predict if or when it will receive these additional VAT refunds and accordingly has recorded a full valuation allowance against the remaining VAT refund claims. The Company has also paid VAT in Mexico as well as other countries, primarily related to exploration projects, which has been charged to expense as incurred because of the uncertainty of recoverability. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | 9. Property, plant and equipment, net The components of property, plant, and equipment, net were as follows: December 31, December 31, 2018 2017 (in thousands) Mineral properties $ 9,353 $ 9,352 Exploration properties 2,518 2,518 Royalty properties 200 200 Buildings 4,278 4,246 Mining equipment and machinery 16,024 15,989 Other furniture and equipment 888 958 Asset retirement cost 866 865 34,127 34,128 Less: Accumulated depreciation and amortization (27,018) (25,988) $ 7,109 $ 8,140 Equipment Related to the Oxide Plant Lease Certain assets of the Company are related to the lease of the Velardeña oxide plant to Hecla (see Note 1). The net book value of the equipment involved in the lease was $0.8 million and $1.2 million for the years ended December 31, 2018 and December 31, 2017, respectively. Minera Indé Equipment Sale In August 2016, the Company sold certain mining equipment consisting of two haul trucks, two scoop trams and a compressor to Minera Indé, an indirect subsidiary of The Sentient Group (“Sentient”), for $687,000 (see Note 22). The equipment sold was excess equipment held at the Company’s Velardeña Properties that the Company did not expect to use. The Company received $69,000 or 10% of the sales price at the closing of the sale, with the remaining $618,000 plus interest on the unpaid balance at an annual rate of 10% due in February 2017. With the approval of a Special Committee of the Company’s Board of Directors, the Company and Minera Indé amended the original equipment sale on March 31, 2017 to include the sale of an additional piece of excess equipment for $185,000 and extend the time for payment relating to the original equipment sale. Upon execution of the amendment the Company received an additional payment of $100,000. The remaining principal and interest balance, plus additional interest on the unpaid balance at an annual rate of 10%, was amended to be due in August 2017. The Company recorded a gain of $105,000 on the sale of the additional equipment, included in “ Other operating income, net ” in the accompanying Consolidated Statements of Operations and Comprehensive Loss, equal to the gross proceeds less the remaining basis in the equipment. On May 2, 2017, the Company received approximately $750,000 from Minera Indé as payment in full for the remaining balance due related to the equipment sale, including interest through that date. Celaya Farm-out In August 2016, the Company, through its wholly owned Mexican subsidiary, entered into an earn-in agreement with a 100% owned Mexican subsidiary of Electrum Group, LLC, a privately owned company (together “Electrum”), related to the Company’s Celaya exploration property in Mexico. The Company received an upfront payment of $0.2 million and Electrum agreed to incur exploration expenditures totaling at least $0.5 million in the first year of the agreement, reduced by certain costs Electrum previously incurred on the property since December 2015 in its ongoing surface exploration program. Electrum initially earned the right to acquire an undivided 60% interest in a joint venture company to be formed to hold the Celaya project by incurring exploration expenditures totaling at least $2.5 million during the initial first three years of the agreement. Electrum would serve as manager of the joint venture. Prior to subsequent amendments to the agreement, the Company would have been allowed to maintain a 40% interest in the Celaya project, following the initial earn-in period, by contributing its pro-rata share of an additional $2.5 million in exploration or development expenditures incurred over a second three-year period. In February 2018, the Company and Electrum amended the Celaya earn-in agreement to permit Electrum to earn, at its option, an incremental 20% interest in the Celaya project in exchange for a payment of $1.0 million. Following the amendment, Electrum could have increased its total interest in the project to 80% by contributing 100% of the $2.5 million of additional expenditures required in the second three-year earn-in period. Following the second earn-in period, and prior to the Company entering into a second and final amendment of the agreement, the Company could have maintained its 20% participating interest, or its interest could ultimately have been converted into a carried 10% net profits interest if the Company elected not to participate as a joint venture owner. In September 2018, the Company and Electrum entered into a second and final amendment of the Celaya earn-in agreement pursuant to which Electrum acquired 100% of the Company’s remaining interest in the Celaya project in exchange for a payment of $3.0 million. The transaction was set out in a definitive Assignment of Rights Agreement (the “Assignment Agreement”) containing customary terms and conditions. The earn-in agreement was terminated upon entry into the Assignment Agreement. The Company has previously expensed all its costs associated with the Celaya property and accordingly recognized gains of $1.0 million from the execution of the first amendment to the agreement and $3.0 million upon execution of the Assignment Agreement, during the year ended December 31, 2018, with the amounts included in “ Other operating income, net ” in the accompanying Consolidated Statements of Operations and Comprehensive Loss. Zacatecas Farm-out In April 2016, the Company entered into an option agreement, which was later amended in February 2018, under which Santacruz Silver Mining Ltd. (“Santacruz”) has acquired the Company’s interest in the Zacatecas Properties for a series of payments totaling approximately $1.5 million through October 2018, including $249,000, $225,000 and $212,000 paid to the Company during the first, second and third quarters of 2018, respectively. The final payment due the Company of $13,000 was received in October 2018. Upon receipt of each cash payment, the agreement imposed a performance obligation on the Company to provide Santacruz an exclusive right to the Zacatecas Properties to conduct exploration activities during the period from receipt of the payment until the next payment due date, with a final obligation, following receipt of the final payment, to formally acknowledge completion of the sale enabling Santacruz to register the title to the properties in their name At December 31, 2018, there were no further performance obligations and the Company had taken all steps necessary for Santacruz to take title to the properties. The Company has previously expensed all its costs associated with the Zacatecas Properties. The Company recognized income, equal to the cash payments made, evenly over the period covered by each payment. The Company recognized approximately $748,000 of income under the agreement during the year ended December 31, 2018, which is included in “ Other operating income, net ” in the accompanying Consolidated Statements of Operations and Comprehensive Loss. . |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Payable and Other Accrued Liabilities | |
Accounts Payable and Other Accrued Liabilities | 10. The Company’s accounts payable and other accrued liabilities consist of the following: December 31, December 31, 2018 2017 (in thousands) Accounts payable and accruals $ 358 $ 310 Accrued employee compensation and benefits 1,344 1,246 $ 1,702 $ 1,556 December 31, 2018 Accounts payable and accruals at December 31, 2018 are primarily related to amounts due to contractors and suppliers in the amounts of $0.2 million related to the Company’s Velardeña Properties and $0.2 million related to exploration and corporate administrative activities. In the case of the Velardeña Properties, approximately $0.1 million is related to a net VAT payable. Accrued employee compensation and benefits at December 31, 2018 consist of $0.2 million of accrued vacation payable and $0.4 million related to withholding taxes and benefits payable. Included in the $1.3 million of accrued employee compensation and benefits is $0.6 million related to activities at the Velardeña Properties and $0.4 million related to the Company’s 2013 Key Employee Long-Term Incentive Plan (the “KELTIP”) (see Note 15). December 31, 2017 Accounts payable and accruals at December 31, 2017 are primarily related to amounts due to contractors and suppliers in the amounts of $0.1 million related to the Company’s Velardeña Properties and $0.2 million related to corporate adminis trative and exploration activities. In the case of the Velardeña Properties, approximately $0.1 million is related to a net VAT payable. Accrued employee compensation and benefits at December 31, 2017 consist of $0.2 million of accrued vacation payable and $0.6 million related to withholding taxes and benefits payable. Included in the $1.2 million of accrued employee compensation and benefits is $0.3 million related to activities at the Velardeña Properties and $0.4 million related to the KELTIP (see Note 15). |
Asset Retirement and Reclamatio
Asset Retirement and Reclamation Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement and Reclamation Liabilities | |
Asset Retirement and Reclamation Liabilities | 11. The Company retained the services of a mining engineering firm to prepare a detailed closure plan for the Velardeña Properties. The plan was completed during the second quarter 2012 and indicated that the Company had an ARO and offsetting ARC of approximately $1.9 million. The estimated $3.5 million ARO and ARC that was recorded at the time of the acquisition of the Velardeña Properties was adjusted accordingly. The Company will continue to accrue additional estimated ARO amounts based on an asset retirement plan as activities requiring future reclamation and remediation occur. During the year ended December 31, 2018 the Company recognized approximately $0.2 million of accretion expense and approximately $2,000 of amortization expense related to the ARC. The following table summarizes activity in the Velardeña Properties ARO: Year Ended December 31, 2018 2017 (in thousands) Beginning balance $ 2,448 $ 2,380 Changes in estimates, and other 2 (128) Accretion expense 210 196 Ending balance $ 2,660 $ 2,448 The decrease in the ARO recorded during the year ended December 31, 2017 is the result of changes in assumptions related to inflation factors and discount rates used in the determination of future cash flows. The ARO set forth on the accompanying Consolidated Balance Sheets at December 31, 2018 and December 31, 2017 includes a nominal amount of reclamation liability related to activities at the El Quevar project in Argentina. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities | |
Other Liabilities | 12. The Company recorded nominal amounts of other current liabilities at December 31, 2018 and December 31, 2017. The amounts are primarily related to the Company’s office lease. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | 13. Financial assets and liabilities and nonfinancial assets and liabilities are measured at fair value on a recurring (annual) basis under a framework of a fair value hierarchy which prioritizes the inputs into valuation techniques used to measure fair value into three broad levels. This hierarchy gives the highest priority to quoted prices (unadjusted) in active markets and the lowest priority to unobservable inputs. Further, financial assets and liabilities should be classified by level in their entirety based upon the lowest level of input that was significant to the fair value measurement. The three levels of the fair value hierarchy per ASC 820 are as follows: Level 1: Unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. Level 2: Quoted prices in inactive markets for identical assets or liabilities, quoted prices for similar assets or liabilities in active markets, or other observable inputs either directly related to the asset or liability or derived principally from corroborated observable market data. Level 3: Unobservable inputs due to the fact that there is little or no market activity. This entails using assumptions in models which estimate what market participants would use in pricing the asset or liability. Recurring Fair Value Measurements The following table summarizes the Company’s financial assets and liabilities measured on a recurring basis at fair value at December 31, 2018 and 2017 by respective level of the fair value hierarchy: Level 1 Level 2 Level 3 Total (in thousands) At December 31, 2018 Assets: Cash and cash equivalents $ 3,293 $ — $ — $ 3,293 Lease receivables 481 — — 481 Short-term investments 330 — — 330 $ 4,104 $ — $ — $ 4,104 At December 31, 2017 Assets: Cash and cash equivalents $ 3,250 $ — $ — $ 3,250 Lease receivables 314 — — 314 Short-term investments 238 — — 238 $ 3,802 $ — $ — $ 3,802 The Company’s cash equivalents, comprised principally of U.S. treasury securities, are classified within Level 1 of the fair value hierarchy. The Company’s trade accounts receivable are classified within Level 1 of the fair value hierarchy and are related to the oxide plant lease per the terms of the lease rates established in the plant lease agreement. The Company’s short-term investments consist of the common stock in Golden Tag and are classified within Level 1 of the fair value hierarchy (see Note 5) At December 31, 2018 and 2017 the Company did not have any financial assets or liabilities classified within Level 2 or Level 3 of the fair value hierarchy. Non-recurring Fair Value Measurements There were no non-recurring fair value measurements at December 31, 2018 or December 31, 2017. The Company assesses the fair value of its long lived assets if circumstances indicate a change in the fair value has occurred. The valuation policies are approved by the Chief Financial Officer who reviews and approves the inputs used in the fair value calculations and the changes in fair value measurements from period to period for reasonableness. Fair value measurements are discussed with the Company’s Chief Executive Officer, as deemed appropriate. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Income Taxes | 14. The Company accounts for income taxes in accordance with the provisions of ASC 740 on a tax jurisdictional basis. The provision for income taxes consists of the following: For the Year Ended December 31, 2018 2017 CURRENT TAXES: (in thousands) United States $ — $ — Other Countries 13 13 $ 13 $ 13 DEFERRED TAXES: United States $ — $ — Other Countries — — $ — $ — Total income tax provision $ 13 $ 13 Income (loss) from operations before income taxes by country consists of the following: For the Year Ended December 31, 2018 2017 (in thousands) United States $ (1,930) $ (7,197) Other Countries (2) 3,318 $ (1,932) $ (3,879) The Company recorded $13,000 and $13,000 of current tax expense for the years ended December 31, 2018 and December 31, 2017, respectively, stemming from taxable income of a subsidiary in Mexico. No deferred taxes were recorded in 2018 or 2017, as any such tax expense or benefit incurred during the year has been offset against a change in the valuation allowance of various deferred tax assets in each country. A reconciliation of the provision for income taxes computed at the statutory rate to the provision for income taxes as shown in the Consolidated Statements of Operations and Comprehensive Loss is summarized below. For Year Ended December 31, 2018 2017 (in thousands) Tax expense (benefit) at US rate of 21% $ (406) $ (1,319) Other adjustments: Rate differential of other jurisdictions 67 (70) Effects of foreign earnings (455) 310 Change in valuation allowance (16,142) 33,975 Provision to tax return true-ups (2,012) (33,720) Exchange rate changes on deferred tax assets 5,891 (8,444) Effect of a change in tax rates — 11,516 Tax loss on sale of subsidiary — (1,693) Inflation adjustment on net operating losses (550) (2,491) Expired net operating losses 13,669 1,931 Other (49) 18 Income tax provision $ 13 $ 13 The components of the deferred tax assets and deferred tax liabilities are as follows: For the year ended December 31, 2018 2017 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 117,665 $ 131,866 Stock-based compensation 593 517 Property, plant and equipment 3,284 4,307 Other 2,809 3,274 124,351 139,964 Less: Valuation allowance (123,652) (139,795) Total deferred tax assets 699 169 Deferred tax liabilities: Property, plant and equipment (699) (169) Total deferred tax liabilities (699) (169) Net deferred tax asset (liability) $ — $ — In accordance with ASC 740, the Company presents deferred tax assets net of its deferred tax liabilities on a tax jurisdictional basis on its Consolidated Balance Sheets. The net deferred tax liability as of December 31, 2018 and December 31, 2017 was zero. At the end of 2017 a new U.S. tax law was enacted, lowering the U.S. corporate tax rate beginning in 2018 to 21% from the top rate of 35%. The tax rate change resulted in a reduction of the Company’s U.S. deferred tax assets by $10.2 million. The Company’s deferred tax assets are currently completely offset by a valuation allowance so the reduction in U.S. deferred tax assets had no impact on the Company’s financial statements for the year ended December 31, 2017. In addition, the new tax law imposed a transition tax on the accumulated earnings and profits of controlled foreign corporations (“CFC’s). None of the Company’s CFCs currently have accumulated earnings and profits and therefore the Company had no transition tax liability. No other provisions of the new tax law had a material impact on the Company’s financial statements for the period ended December 31, 2017. At December 31, 2018 the Company had net operating loss carryforwards in the U.S. and in certain non-U.S. jurisdictions totaling $434.9 million. Of these, $79.8 million is related to the Velardeña Properties in Mexico and expires in future years through 2028, $12.5 million is related to other Mexico exploration activities expiring in future years through 2028, $89.6 million exists in Spain and has no expiration date, and $179.7 million exists in other non-U.S. countries, which will expire in future years through 2035. In the U.S. there are $73.3 million of net operating loss carryforwards which have no expiration. The valuation allowance offsetting the net deferred tax assets of the Company of $123.7 million and $139.8 million at December 31, 2018 and 2017, respectively, relates primarily to the uncertain utilization of certain deferred tax assets, primarily net operating loss carryforwards, in various tax jurisdictions. The Company continually assesses both positive and negative evidence to determine whether it is more likely than not that deferred tax assets can be realized prior to their expiration. The Company, a Delaware corporation, and its subsidiaries file tax returns in the United States and in various foreign jurisdictions. The tax rules and regulations in these countries are highly complex and subject to interpretation. The Company’s tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is less than a more-likely-than-not probability of the position being upheld upon review by the relevant taxing authority. Such positions are deemed to be “unrecognized tax benefits” which require additional disclosure and recognition of a liability within the financial statements. If recognized, none of the unrecognized tax benefits would affect the Company’s effective tax rate. Below is a reconciliation of the beginning and ending amount of gross unrecognized tax benefits, which excludes any estimated penalties and interest on all identified unrecognized tax benefits. The Company’s unrecognized tax benefits as of December 31, 2018 and 2017 are completely offset by net deferred tax benefits and therefore do not appear on the Consolidated Balance Sheet. The Year Ended December 31, 2018 2017 (in thousands) Gross unrecognized tax benefits at beginning of period $ 586 $ 740 Increases for tax positions taken during prior years — — Decreases relating to settlements with taxing authorities — — Reductions due to lapse of statute of limitations (213) (154) Gross unrecognized tax benefits at end of period $ 373 $ 586 Tax years as early as 2012 remain open and are subject to examination in the Company’s principal tax jurisdictions. The Company does not expect a significant change to its net unrecognized tax benefits over the next 12 months. No interest and penalties were recognized in the Consolidated Statement of Operations and Comprehensive Loss for the year ended December 31, 2018 or 2017, and there were no interest and penalties recognized in the statement of financial position as of December 31, 2018 and 2017. The Company classifies income tax related interest and penalties as income tax expense. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity | |
Equity | 15. Registered direct purchase agreement and commitment purchase agreement and registration rights agreement On May 9, 2018 the Company entered into a registered direct purchase agreement (the “Registered Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“LPC”) pursuant to which LPC purchased 3,153,808 shares of the Company’s common stock at a price of $0.4122 per share, the closing price of the Company’s common stock on the NYSE American on May 8, 2018, for an aggregate purchase price of $1.3 million. On May 9, 2018, the Company also entered into a commitment purchase agreement (the “Commitment Purchase Agreement” and together with the Registered Purchase Agreement, the “LPC Program”) and a registration rights agreement (the “Registration Rights Agreement”) with LPC, pursuant to which the Company, at its sole discretion, has the right to sell up to an additional $10.0 million of the Company’s common stock to LPC, subject to certain limitations and conditions contained in the Commitment Purchase Agreement. The Company closed on the Commitment Purchase Agreement in July 2018. On June 7, 2018, pursuant to the terms of the Registration Rights Agreements, the Company filed a registration statement on Form S-1 (File No. 333-225483) (the “Registration Statement”) registering the resale up to 15,222,941 shares of the Company’s common stock to be issued to LPC pursuant to the terms of the Commitment Purchase Agreement. The Registration Statement was declared effective on June 28, 2018. Proceeds from the LPC Program will be used for general corporate purposes, including advancing the exploration program at the Company’s El Quevar property in Argentina. Subject to the terms of the Commitment Purchase Agreement, the Company will control the timing and amount of any future sale of the Company’s common stock to LPC. LPC has no right to require any sales by the Company under the Commitment Purchase Agreement but is obligated to make purchases at the Company’s sole direction, as governed by such agreement. There are no upper limits to the price LPC may be obligated to pay to purchase common stock from the Company and the purchase price of the shares will be based on the prevailing market prices of the Company’s shares at the time of each sale to LPC. LPC has agreed not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company’s shares of common stock. The Company has the right to terminate the Commitment Purchase Agreement at any time, at its discretion, without any cost or penalty. In consideration for LPC’s commitment to purchase shares pursuant to the Commitment Purchase Agreement, the Company paid LPC a commitment fee of $300,000 and incurred an additional approximate $190,000 in stock exchange fees, legal and other associated costs in connection with the LPC Program. The total costs for the LPC Program will be recorded as a reduction to equity as common stock is sold to LPC. As of December 31, 2018, approximately $58,000 of LPC Program costs had been amortized against $1.3 million in proceeds received, resulting in $432,000 of deferred LPC Program costs, recorded in “Prepaid expenses and other assets” on the Consolidated Balance Sheets. As of December 31, 2018, no additional common stock had been sold to LPC under the LPC Program following the initial sale of common stock pursuant to the Registered Purchase Agreement. Subsequent to December 31, 2018 the Company sold an aggregate of approximately 745,000 common shares under the Commitment Purchase Agreement at an average price of $0.31 per common share for total proceeds of approximately $230,000 during the year to date period ended February 27, 2019. Cancellation of Treasury Shares Pursuant to the terms of an agreement between the Company and ECU, relating to the merger of the two companies on September 2, 2011, ECU shareholders had the right to receive 0.05 shares of the Company’s common stock for each share of ECU common stock held. On the sixth anniversary following the merger any unconverted shares expired per the terms of the agreement. Accordingly, during December 2017, ECU shares being held for conversion, representing 125,739 shares of the Company, were returned to treasury and canceled. Consideration Shares On August 2, 2017, the Company granted Hecla an option to extend the oxide plant lease for an additional period of up to two years (see Note 16). As partial consideration for the option Hecla purchased $1.0 million, or approximately 1.8 million shares, of the Company’s common stock (the “Consideration Shares”), issued at a price of $0.55 per share, which was the undiscounted 30-day volume weighted average stock price. The Consideration Shares were offered and sold without registration under the Securities Act of 1933, as amended (the “Act”) in reliance on the exemptions provided by Section 4(a)(2) of the Act and/or Regulation D promulgated thereunder. Under the terms of the Option Agreement (defined in Note 16), the Company agreed to register with the SEC the resale of the Consideration Shares. A resale registration statement with the SEC became effective in September 2017. The $1.0 million received for the Consideration Shares, net of $71,000 in legal and stock exchange issuance fees, has been recorded as equity in the Consolidated Balance Sheets at December 31, 2017. At the Market Offering Agreement In December 2016, the Company entered into an at-the-market offering agreement (as amended from time to time, the “ATM Agreement”) with H. C. Wainwright & Co., LLC (“Wainwright”), under which the Company may, from time to time, issue and sell shares of the Company’s common stock through Wainwright as sales manager in an at-the-market offering under a prospectus supplement for aggregate sales proceeds of up to $5.0 million (the “ATM Program”) or a maximum of 10 million shares. On September 29, 2017, the Company entered into an amendment to the ATM Agreement with Wainwright to reflect a new registration statement on Form S-3 (File No. 333-220461) under which shares of the Company’s common stock may be sold under the ATM Program. On November 23, 2018 the Company entered into a second amendment of the ATM Agreement extending the agreement until the earlier of December 20, 2020, or the date that the ATM Agreement is terminated in accordance with the terms therein. Offers or sales of common shares under the ATM Program will be made only in the United States and no offers or sales of common shares under the ATM Agreement will be made in Canada. The common stock will be distributed at the market prices prevailing at the time of sale. As a result, prices of the common stock sold under the ATM Program may vary as between purchasers and during the period of distribution. The ATM Agreement provides that Wainwright will be entitled to compensation for its services at a commission rate of 2.0% of the gross sales price per share of common stock sold. The Company reimbursed certain legal expenses of Wainwright totaling $50,000 and incurred additional accounting, legal, and regulatory costs of approximately $109,000 in connection with establishing the ATM Program. Such costs have been deferred and will be amortized to equity as sales are completed under the ATM Program. At December 31, 2018 and December 31, 2018, respectively, unamortized costs totaling $136,000 appear on the accompanying Consolidated Balance Sheets as “ Prepaid expense and other assets.” The Company did not sell any stock under the ATM Program during the year ended December 31, 2018. Subsequent to December 31, 2018 the Company sold an aggregate of approximately 34,000 common shares under the Commitment Purchase Agreement at an average price of $0.34 per common share for total proceeds of approximately $11,000 during the year to date period ended February 27, 2019. During the year ended December 31, 2018 the Company incurred approximately $15,000 in additional accounting, legal, and regulatory costs associated with the ATM Program that were included in “ General and administrative costs ” in the Consolidated Statement of Operations and Comprehensive Loss. During the year ended December 31, 2017 the Company sold an aggregate of approximately 1,024,000 common shares under the ATM Program at an average price of $0.70 per common share for gross proceeds of approximately $720,000. The Company paid cash commissions and other nominal transaction fees to Wainwright totaling approximately $16,000 or 2.2% of the gross proceeds and amortized approximately $23,000 of deferred accounting, legal and regulatory costs resulting in a net amount of approximately $682,000 that has been recorded as equity in the Consolidated Balance Sheets. During the year ended December 31, 2017 the Company also incurred approximately $34,000 in additional accounting, legal, and regulatory costs associated with the ATM Program that were included in “ General and administrative costs ” in the Consolidated Statement of Operations and Comprehensive Loss. Equity Incentive Plans Under the Company’s Amended and Restated 2009 Equity Incentive Plan (the “Equity Plan”) awards of the Company’s common stock may be made to officers, directors, employees, consultants and agents of the Company and its subsidiaries. The Company recognizes stock-based compensation costs using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award. The following table summarizes the status of the Company’s restricted stock grants issued under the Equity Plan at December 31, 2018 and 2017 and changes during the years then ended: The Year Ended December 31, 2018 2017 Weighted Weighted Average Grant Average Date Fair Grant Date Number of Value Per Number of Fair Value Restricted Stock Grants Shares Share Shares Per Share Outstanding at beginning of period 203,334 $ 0.55 100,000 $ 0.63 Granted during the period 280,000 0.37 200,000 0.53 Restrictions lifted during the period (143,333) 0.44 (96,666) 0.60 Forfeited during the period — — — — Outstanding at end of period 340,001 $ 0.45 203,334 $ 0.55 During the year ended December 31, 2018 the Company recognized approximately $0.1 million of compensation expense related to the restricted stock grants. The Company expects to recognize additional compensation expense related to these awards of approximately $0.1 million over the next 24 months. During the year ended December 31, 2018, 280,000 shares were granted to six employees, with one third of the grants vesting on the grant date and the remaining shares vesting equally on the first and second anniversaries of the grant date. In addition to the vesting of one third of the shares granted in 2018, restrictions were lifted on 50,000 shares granted to an employee in a prior year. During the year ended December 31, 2017 the Company recognized approximately $0.1 million of compensation expense related to the restricted stock grants. During the year ended December 31, 2017, 200,000 shares were granted to two employees, with 50,000 shares of one grant vesting on the grant date and the remaining shares vesting equally on the first and second anniversaries of the grant date. The remaining grant vests ratably over three years. In addition, during 2017, restrictions were lifted on 46,666 shares granted to three employees in a prior year. The following table summarizes the status of the Company’s stock option grants issued under the Equity Plan at December 31, 2018 and 2017 and changes during the years then ended: The Year Ended December 31, 2018 2017 Weighted Weighted Average Average Exercise Exercise Number of Price Per Number of Price Per Equity Plan Options Shares Share Shares Share Outstanding at beginning of period 40,310 $ 8.05 95,810 $ 8.02 Granted during the period — — — — Forfeited or expired during period (10,000) $ 8.00 (55,500) 8.00 Exercised during period — — — — Outstanding at end of period 30,310 $ 8.06 40,310 $ 8.05 Exercisable at end of period 30,310 $ 8.06 40,310 $ 8.05 Granted and vested 30,310 $ 8.06 40,310 $ 8.05 The Company does not expect to record any additional expense related to these options. Also, pursuant to the Equity Plan, the Company’s Board of Directors adopted the Non-Employee Director’s Deferred Compensation and Equity Award Plan (the “Deferred Compensation Plan”). Pursuant to the Deferred Compensation Plan the non-employee directors receive a portion of their compensation in the form of Restricted Stock Units (“RSUs”) issued under the Equity Plan. The RSUs vest on the first anniversary of the grant and each vested RSU entitles the director to receive one unrestricted share of common stock upon the termination of the director’s board service. The following table summarizes the status of the RSU grants issued under the Deferred Compensation Plan at December 31, 2018 and 2017 and changes during the years then ended: The Year Ended December 31, 2018 2017 Weighted Weighted Average Grant Average Date Fair Grant Date Number of Value Per Number of Fair Value Restricted Stock Units Shares Share Shares Per Share Outstanding at beginning of period 1,887,317 $ 1.16 1,607,317 $ 1.28 Granted during the period 600,000 0.42 280,000 0.48 Restrictions lifted during the period (257,279) 1.44 — — Forfeited during the period — — — — Outstanding at end of period 2,230,038 $ 0.93 1,887,317 $ 1.16 For the years ended December 31, 2018 and 2017 the Company recognized approximately $0.2 million and $0.1 million of compensation expense, respectively related to the RSU grants. During 2018, 100,000 RSUs were granted to each of the six board members. During 2017, 40,000 RSUs were granted to each of the seven board members. Restrictions lifted on 257,279 RSU shares during 2018 relate to the retirement of a member of the Company’s Board of Directors during the year. The Company expects to recognize additional compensation expense related to the RSU grants of less than $0.1 million over the next six months. Key Employee Long-Term Incentive Plan The KELTIP provides for the grant of units (“KELTIP Units”) to certain officers and key employees of the Company, which units will, once vested, entitle such officers and employees to receive an amount, in cash or in Company common stock issued pursuant to the Company’s Equity Plan, measured generally by the price of the Company’s common stock on the settlement date. KELTIP Units are not an actual equity interest in the Company and are solely unfunded and unsecured obligations of the Company that are not transferable and do not provide the holder with any stockholder rights. Payment of the settlement amount of vested KELTIP Units is deferred generally until the earlier of a change of control of the Company or the date the grantee ceases to serve as an officer or employee of the Company. The KELTIP Units are recorded as a liability, included in “ Accounts payable and other accrued liabilities ” in the Consolidated Balance Sheets (Note 10). During the year ended December 31, 2018 the Company awarded 600,000 KELTIP Units to two officers of the Company and recorded approximately $0.3 million of compensation expense, included in “ Stock based compensation ” in the Consolidated Statement of Operations and Comprehensive Loss. At December 31, 2018 the KELTIP Units were marked-to-market and the Company recognized approximately a $0.3 million reduction of compensation expense for the year ended December 31, 2018. At December 31, 2018 1,620,000 KELTIP Units were outstanding. During the year ended December 31, 2017 the Company awarded 435,000 KELTIP Units to two officers of the Company and recorded approximately $0.2 million of compensation expense, included in “ Stock based compensation ” in the Consolidated Statement of Operations and Comprehensive Loss. At December 31, 2017, the KELTIP Units were marked-to-market and the Company recognized approximately a $0.1 million reduction of compensation expense for the year ended December 31, 2017. At December 31, 2017 1,020,000 KELTIP Units were outstanding. Common stock warrants The following table summarizes the status of the Company’s common stock warrants at December 31, 2018 and December 31, 2017, and the changes during the years then ended: The Year Ended December 31, 2018 2017 Weighted Weighted Number of Average Exercise Number of Average Exercise Underlying Price Per Underlying Price Per Common Stock Warrants Shares Share Shares Share Outstanding at beginning of period 11,478,172 $ 0.81 17,578,950 $ 2.17 Granted during period — — — — Dilution adjustment 39,524 0.87 157,302 — Expired during period — — (6,258,080) 4.62 Exercised during period — — — Outstanding at end of period 11,517,696 $ 0.81 11,478,172 $ 0.81 The warrants relate to prior registered offerings and private placements of the Company’s stock. In September 2012, the Company closed on both a registered public offering and concurrent private placement with Sentient in which it sold units, consisting of one share of common stock and a five-year warrant to acquire one half of a share of common stock at an exercise price of $8.42 per share. A total of 3,431,649 warrant shares were issued and became exercisable on March 20, 2013 and expired on September 19, 2017, five years from the date of issuance. In September 2014 the Company closed on both a registered public offering and concurrent private placement with Sentient in which it sold units, consisting of one share of common stock and a five-year warrant to acquire one half of a share of common stock at an exercise price of $1.21 per share. A total of 4,746,000 warrant shares were issued that became exercisable on March 11, 2015 and will expire on September 10, 2019, five years from the date of issuance. In May 2016, the Company issued 8.0 million registered shares of common stock at a purchase price of $0.50 per share in a registered direct offering (the “Offering”) resulting in gross proceeds of $4.0 million. In connection with the Offering, each investor received an unregistered warrant to purchase three ‐ quarters of a share of common stock for each share of common stock purchased. The resulting 6,000,000 warrant shares have an exercise price of $0.75 per share, became exercisable on November 7, 2016 and will expire on November 6, 2021, five years from the initial exercise date. The September 2012 and 2014 warrant agreements contain anti-dilution clauses that could result in a resetting of the warrant exercise price and the number of warrant shares outstanding in the event the Company were to issue additional shares of its common stock in a future transaction at an offering price lower than the current exercise price of the warrants. As a result of the subsequent issuance of the Company’s common stock in separate transactions, including the conversion of the Senior Secured Convertible Note which the Company entered into in October 2015 to borrow $5.0 million from Sentient, the Company’s largest stockholder, the May 2016 Offering and private placement, the ATM Program, the issuance of shares to Hecla in August 2017 and the Registered Purchase Agreement with LPC (discussed above), the exercise price of the 2012 and 2014 warrants has been adjusted downward. As a result of these transactions, the number of shares of common stock issuable upon exercise of the September 2012 warrants, prior to their expiration on September 19, 2017, had increased from the original 3,431,649 shares to 6,258,080 shares (2,826,431 share increase) and the exercise price had been reduced from the original $8.42 per share to $4.62 per share. The number of shares of common stock issuable upon exercise of the September 2014 warrants has increased from the original 4,746,000 shares to 5,517,696 shares (771,696 share increase) and the exercise price has been reduced from the original $1.21 per share to $0.85 per share. The May 2016 warrants are not subject to anti-dilution and the warrants are recorded as equity. The September 2012 warrants expired during 2017, and because of a change in accounting principle, the September 2014 warrants were recorded in equity on the balance sheet at December 31, 2018 and December 31, 2017 (see Note 4). |
Revenue and Related Costs
Revenue and Related Costs | 12 Months Ended |
Dec. 31, 2018 | |
Revenue, Deferred Revenue and Related Costs | |
Revenue and Related Costs | 16. Oxide Plant Lease and Oxide Plant Lease Costs For the year ended December 31, 2018 the Company recorded revenue of approximately $7.2 million and related costs of approximately $2.3 million associated with the lease of the Velardeña Properties oxide plant. The Company recognizes oxide plant fixed and variable lease fees as well as reimbursements for labor, utility and other costs as “ Revenue: Oxide plant lease ” in the Consolidated Statements of Operations and Comprehensive Loss following the guidance of ASC 606 regarding the income statement characterization of reimbursements received for certain expenses incurred by the Company in performing its obligations under the lease and reporting revenue gross as a principal versus net as an agent. ASC 606 supports recording as gross revenue fees received for the reimbursement of expenses in situations where the recipient is the primary obligor and has certain discretion in the incurrence of the reimbursable expense. The actual costs incurred for reimbursed direct labor and utility costs are reported as “ Oxide plant lease costs ” in the Consolidated Statements of Operations and Comprehensive Loss. The Company recognizes lease fees during the period the fees are earned per the terms of the lease. The oxide plant lease revenue includes a minimum fixed fee of $125,000 per month that is not dependent on tonnes processed. The monthly fixed fee remains payable for as long as the lease is in effect. On August 2, 2017, the Company granted Hecla an option to extend the oxide plant lease for an additional period of up to two years ending no later than December 31, 2020 (the “Extension Period”) in exchange for a $1.0 million upfront cash payment and the purchase of $1.0 million, or approximately 1.8 million shares, of the Company’s common stock, issued at par at a price of $0.55 per share, based on an undiscounted 30-day volume weighted average stock price. The option and lease extension were memorialized in (i) an Option Agreement dated August 2, 2017 among the Company and Hecla Mining Company (the “Option Agreement”), and (ii) a Second Amendment to Master Agreement and Lease Agreement dated August 2, 2017 among Minera William S.A. de C.V., an indirect subsidiary of the Company, and Minera Hecla S.A. de C.V., an indirect subsidiary of Hecla Mining Company (the “Second Amendment”). Under the Second Amendment, Hecla had an option to extend the lease to December 31, 2020 by exercising the option no later than October 3, 2018. On October 1, 2018 Hecla exercised the Second Amendment option and extended the lease to December 31, 2020. All of the fixed fees and throughput related charges remain the same as under the original lease. Similar volume limitations apply to any required future tailings expansions, which Hecla will fund, leaving unused at the end of the lease term an agreed amount of capacity in the expanded tailings facility. Pursuant to the Second Amendment, Hecla has the right to terminate the lease during the Extension Period for any reason with 120 days’ notice. Hecla will also have a one-time right of first refusal to continue to lease the plant following a termination notice through December 31, 2020 if the Company decides to use the oxide plant for its own purposes before December 31, 2020. The Company will recognize the $1.0 million of income from granting the option over the expected life of the lease from August 2, 2017 through December 31, 2020 on a straight-line basis, including such income in “ Revenue: Oxide plant lease ” in the Consolidated Statements of Operations and Comprehensive Loss. During the year ended December 31, 2018 the company recognized approximately $0.3 million of amortized income related to the upfront cash payment, included in “ Revenue: Oxide plant lease ” in the Consolidated Statements of Operations and Comprehensive Loss. As of December 31, 2018, the unamortized portion of the lease option totaled approximately $0.6 million recorded as short and long term “ Deferred revenue ” on the Consolidated Balance Sheets. For the year ended December 31, 2017 the Company recorded revenue of approximately $6.7 million and related costs of approximately $2.2 million associated with the lease of the Velardeña Properties oxide plant. . |
Interest and Other Income
Interest and Other Income | 12 Months Ended |
Dec. 31, 2018 | |
Interest and Other Income | |
Interest and Other Income | 17. For the year ended December 31, 2018 the Company recorded approximately $0.1 million of interest and other income, primarily related to mark-to-market gains on short term investments Note 5. For the year ended December 31, 2017 the Company had only a nominal amount of interest and other income, primarily related to interest on amounts receivable from the sale of mining equipment as discussed in Note 9. |
Cash flow information
Cash flow information | 12 Months Ended |
Dec. 31, 2018 | |
Cash flow information | |
Cash Flow Information | 18. The following table reconciles net loss for the period to cash used in operations: Year Ended December 31, 2018 2017 (in thousands) Cash flows from operating activities: Net loss $ (1,945) $ (3,892) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,171 952 Accretion of asset retirement obligation 163 196 Gain on trading securities (92) — Asset write off 13 — Gain on reduction of asset retirement obligation — (56) Gain on sale of assets (5,144) (608) Stock compensation 226 296 Changes in operating assets and liabilities: Increase (decrease) in lease receivable (167) 683 Increase in prepaid expenses and other assets (10) (142) Decrease in inventories 13 3 Decrease (increase) in value added tax recoverable, net 127 (149) (Decrease) increase in deferred revenue (292) 892 Increase (decrease) in reclamation liability 24 (8) Increase in accounts payable and accrued liabilities 236 226 Decrease in deferred leasehold payments (34) (23) Net cash used in operating activities $ (5,711) $ (1,630) The Company did not make any cash payments for interest or income taxes during the years ended December 31, 2018 and 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies | |
Commitments and Contingencies | 19. Leases and Purchase Commitments The Company has non-cancelable operating lease commitments as follows: 2019 2020 2021 2022 2023 Thereafter El Quevar mining concessions (estimated) $ 60 $ 60 $ 60 $ 60 $ 60 $ — Velardeña mining concessions (estimated) $ 80 $ 80 $ 80 $ 80 $ 80 $ — Office space $ 224 $ 157 $ 160 $ 163 $ 166 $ 154 The Company is required to make payments to the Argentine government to maintain its rights to the El Quevar mining concessions. The Company has made such payments totaling approximately $57,000 and $111,000 for the years ended December 31, 2018 and 2017, respectively. The Company is required to pay concession holding fees to the Mexican government to maintain its rights to the Velardeña Properties mining concessions. During the years ended December 31, 2018 and 2017 the Company made such payments totaling approximately $78,000 and $69,000 respectively, and annual payments under its surface right agreement with the local ejido of approximately $33,000. The Company has office leases for its corporate headquarters in Golden, Colorado, as well as for its Velardeña Properties offices in Mexico, and exploration offices in Mexico and Argentina. The lease for the corporate headquarters office space was renegotiated and extended during the first quarter 2019. The new lease reflects an approximately 45% reduction in space and an approximately 45% reduction in cost beginning April 1, 2019. The new lease expires November 30, 2024. Payments associated with the corporate headquarters lease were recorded to rent expense by the Company in the amounts of $237,000 and $226,000 for the years ended December 31, 2018 and 2017, respectively. The Company cannot currently estimate the life of the Velardeña Properties or El Quevar project. The table above assumes that no annual maintenance payments will be made more than five years after December 31, 2018. If the Company continues mining and processing or evaluations of restart at the Velardeña Properties beyond five years, the Company expects that it would make annual maintenance payments of approximately $80,000 per year for the life of the Velardeña mine. If the Company continues to evaluate development opportunities at the El Quevar project, the Company expects that it would make annual maintenance payments of approximately $60,000 per year for the life of the El Quevar mine. Payments associated with other exploration concessions the Company owns are not included because the Company has not completed exploration work on these concessions. Exploration success is historically low and the Company has the right to terminate the payments and release the concessions at any time. Contingencies No loss contingencies were recorded at December 31, 2018 and December 31, 2017. |
Foreign Currency
Foreign Currency | 12 Months Ended |
Dec. 31, 2018 | |
Foreign Currency | |
Foreign Currency | 20. Foreign Currency The Company conducts exploration and mining activities primarily in Mexico and Argentina, and gains and losses on foreign currency transactions are related to those activities. The Company’s functional currency is the U.S. dollar but certain transactions are conducted in the local currencies resulting in foreign currency transaction gains or losses. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Information | |
Segment Information | 21. The Company’s sole activity is the mining, construction and exploration of mineral properties containing precious metals. The Company’s reportable segments are based upon the Company’s revenue producing activities and cash consuming activities. The Company reports two segments, one for its Velardeña Properties in Mexico and the other comprised of non-revenue producing activities including exploration, construction and general and administrative activities. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. The financial information relating to the Company’s segments is as follows: Exploration, El Quevar, Costs Depreciation, Velardeña and Applicable Depletion and Administrative Pre-Tax Capital The Year ended December 31, 2018 Revenue to Sales Amortization Expense (Income)/Loss Total Assets Expenditures (in thousands) Velardeña Properties $ 7,217 $ 2,289 $ 816 $ 2,362 $ (1,320) $ 5,699 $ 79 Corporate, Exploration & Other — — 355 8,057 3,252 6,945 73 $ 7,217 $ 2,289 $ 1,171 $ 10,419 $ 1,932 $ 12,644 $ 152 The Year ended December 31, 2017 Velardeña Properties $ 6,691 $ 2,189 $ 584 $ 2,089 $ (3,330) $ 6,406 $ 79 Corporate, Exploration & Other — — 368 6,925 7,209 6,671 2 $ 6,691 $ 2,189 $ 952 $ 9,014 $ 3,879 $ 13,077 $ 81 All of the revenue for the two years presented was from the Company's Velardeña Properties in Mexico (see Note 16) and was all attributable to the lease of the oxide plant. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions | |
Related Party Transactions | 22. The following sets forth information regarding transactions between the Company (and its subsidiaries) and its officers, directors and significant stockholders. Sale of Equipment: In August 2016, the Company sold certain mining equipment to Minera Indé, an indirect subsidiary of Sentient, for $687,000 (see Note 9), in a transaction approved by the Company’s Audit Committee and Board of Directors. At December 31, 2018, Sentient, through the Sentient executive funds, holds approximately 44% of the Company’s 95.6 million shares of issued and outstanding common stock. The equipment sold was excess equipment held at the Company’s Velardeña Properties that the Company did not expect to use. The Company used a third party consultant with experience in the used mining equipment market in Mexico to determine a fair value. The Company believes the price paid was at least equal to the fair market value of the equipment had it been sold through auction or in the open market. The Company received 10% of the sales price at the closing of the sale in August 2016, with the remainder, plus interest on the unpaid balance at an annual rate of 10%, due in February 2017. With the approval of a Special Committee of the Company’s Board of Directors, the Company and Minera Indé amended the original equipment sale on March 31, 2017 to include the sale of an additional piece of excess equipment for $185,000 and extend the time for payment relating to the original equipment sale. Upon execution of the amendment the Company received an additional payment of $100,000. The remaining principal and interest balance, plus additional interest on the unpaid balance at an annual rate of 10%, was amended to be due in August 2017. The Company recorded a gain of $105,000 on the sale of the additional equipment, included in “ Other operating income ” in the accompanying Consolidated Statements of Operations and Comprehensive Loss, equal to the gross proceeds less the remaining basis in the equipment. On May 2, 2017, the Company received approximately $750,000 from Minera Indé as payment in full for the remaining balance due related to the equipment sale, including interest through that date. Administrative Services: Beginning in August 2016, the Company began providing limited accounting and other administrative services to Minera Indé, an indirect subsidiary of Sentient. The services are provided locally in Mexico by the administrative staff at the Company’s Velardeña Properties. The Company charges Minera Indé $15,000 per month for the services, which provides reimbursement to the Company for its costs incurred plus a small profit margin. Amounts received under the arrangement reduce costs incurred for the care and maintenance of the Velardeña Properties and allows the Company to maintain a larger more experienced staff at the Velardeña Properties to support the oxide plant lease and potential future mining or processing activities. The Company’s Board of Directors and Audit Committee approved the agreement. For the years ended December 31, 2018 and 2017 the Company charged Minera Indé approximately $180,000 for services, offsetting costs that are recorded in “ Velardeña shutdown and care and maintenance ” in the Consolidated Statements of Operations and Comprehensive Loss. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies | |
Basis of accounting | The Company’s consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of the Company’s consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to mineralized material and related future metals prices that are the basis for future cash flow estimates utilized in impairment calculations; depreciation, depletion and amortization calculations; environmental reclamation and closure obligations; valuation allowances for deferred tax assets and the fair value of financial instruments. The Company based its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ significantly from these estimates under different assumptions or conditions. |
Basis of consolidation | a. All of the Company’s consolidated subsidiaries are 100% owned and as such the Company does not have a noncontrolling interest in any of its subsidiaries. All intercompany transactions and balances have been eliminated at consolidation. |
Translation of foreign currencies | b. Substantially all expenditures and sales are made in U.S. dollars. Accordingly, the Company and its subsidiaries use the U.S. dollar as their functional and reporting currency. |
Cash and cash equivalents | c. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Inventories | d. Materials and supplies inventories are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight. The Company routinely counts and evaluates its material and supplies to determine the existence of any obsolete stock that is subject to impairment. |
Mining properties, exploration and development costs | e. The Company expenses general prospecting costs and the costs of acquiring and exploring unevaluated mineral properties. When a mineral property is determined to have proven and probable reserves, subsequent development costs are capitalized to mineral properties. For acquired mineral properties with proven and probable reserves, the Company capitalizes acquisition costs and subsequent development costs. When mineral properties are developed and operations commence, capitalized costs are charged to operations using the units-of-production method over proven and probable reserves. Upon abandonment or sale of a mineral property, all capitalized costs relating to the specific property are written off in the period abandoned or sold and a gain or loss is recognized in the accompanying Consolidated Statements of Operations and Comprehensive Loss. As discussed in Note 1, the Company is considered an exploration stage company under the criteria set forth by the SEC since it has not yet demonstrated the existence of proven or probable reserves at any of the Company’s properties. As such, during the periods prior to November 2016 when the Company suspended mining and processing activities, the Company expensed costs as incurred related to extraction of mineralized material at the Velardeña Properties. The Company established a cost basis for the mineralized material at the Velardeña Properties as a result of purchase accounting for the Company’s business combination transaction with ECU Silver Mining Inc. (“ECU”) in September 2011, the transaction pursuant to which the Company acquired the Velardeña Properties. Mineral properties acquired in the ECU merger were recorded at estimated fair market value based on valuations performed with the assistance of an independent appraisal firm and a minerals engineering company. Although the Company has not demonstrated the existence of proven and probable reserves, and the Company has not completed a pre-feasibility economic assessment, the Company had established the existence of mineralized material that was used in assigning value to mineral properties for purchase accounting purposes. The subsequent extraction of this mineralized material has provided a reasonable basis for the calculation of units-of-production depreciation for the cost basis in the mineral properties. On a quarterly basis the Company evaluates its exploration properties to determine if they meet the Company’s minimum requirements for continued evaluation. The rights to the properties that do not meet the minimum requirements are relinquished and the carrying values, if any, are written off and reflected in “Other operating income, net” on the accompanying Consolidated Statements of Operations and Comprehensive Loss. |
Property, plant and equipment and long lived asset impairment | f. Buildings are depreciated using the straight–line method over the estimated useful lives of 30 to 40 years or the life of the mine whichever is shorter. Mining equipment and machinery, excluding the plant, are depreciated using the straight-line method over useful lives of three to eight years or the lease period, whichever is shorter. Mineral properties and the plant are depreciated using units of production based on estimated mineralized material. Other furniture and equipment are depreciated using the straight-line method over estimated useful lives of three to five years. As discussed above, the Company does not have any properties with proven or probable reserves. Property, plant and equipment are recorded at cost and per the guidance of ASC 360 the Company assesses the recoverability of its property, plant and equipment, including goodwill, whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If the sum of estimated future net cash flows on an undiscounted basis is less than the carrying amount of the related asset, impairment is considered to exist. The related impairment loss is measured by comparing estimated future net cash flows on a discounted basis or by comparing other market indicators to the carrying amount of the asset. The Company evaluated its remaining long lived assets at December 31, 2017 and 2018, and determined that no impairment was required. |
Asset Retirement Obligations | g. The Company records asset retirement obligations (“ARO”) in accordance with ASC 410, “Asset Retirement and Environmental Obligations” (“ASC 410”), which establishes a uniform methodology for accounting for estimated reclamation and abandonment costs. According to ASC 410, the fair value of an ARO is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. An offsetting asset retirement cost (“ARC”) is capitalized as part of the carrying value of the assets with which it is associated, and depreciated over the useful life of the asset (see Note 11). The Company prepares estimates of the timing and amount of expected cash flows when an ARO is incurred. The fair value of the ARO is measured by discounting the expected cash flows using a discount rate that reflects the credit adjusted risk-free rate of interest. The Company records the fair value of an ARO when it is incurred and layer adjustments of the ARO are recorded as an adjustment to the corresponding ARC. The ARO is adjusted to reflect the passage of time (accretion cost) calculated by applying the discount rate implicit in the initial fair value measurement to the beginning-of-period carrying amount of the ARO. The Company records accretion costs to expense as incurred. |
Revenue Recognition | h. The Company recognizes oxide plant lease fees and reimbursements for labor, utility and other costs as "Revenue from Oxide plant lease" in the Consolidated Statements of Operations and Comprehensive Loss following the guidance of ASC 606 regarding "income statement characterization of reimbursements received for "out-of-pocket" expenses incurred" and "reporting revenue gross as a principal versus net as an agent". ASC 606 supports recording as gross revenue fees received for the reimbursement of expenses in situations where the recipient is the primary obligor and has certain discretion in the incurrence of the reimbursable expense. The actual costs incurred for the reimbursed labor, utility and other costs are reported as "Oxide plant lease costs" in the Consolidated Statement of Operations and Comprehensive Loss. The Company recognizes lease fees during the period as fees are earned per the terms of the lease (see Note 16). |
Stock compensation | i Stock based compensation costs are recognized per the guidance of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), using a graded vesting attribution method whereby costs are recognized over the requisite service period for each separately vesting portion of the award (see Note 15). Stock grants are valued at their grant date at fair value which in the case of options requires the use of the Black-Scholes option pricing model. Per ASC 718 the grants may be classified as equity grants or liability grants depending on the terms of the grant. |
Net income (loss) per Share of Common Stock | j. Basic income (loss) per share is computed by dividing net income (loss) available to holders of the Company’s Common Stock by the weighted average number of shares of Common Stock outstanding for the period. Diluted income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue Common Stock were exercised or converted into Common Stock. At December 31, 2018 and 2017, all potentially dilutive shares were excluded from the computation of diluted earnings per share because to include them would have been anti-dilutive. |
Comprehensive Income (Loss) | k. Comprehensive income (loss) is defined as all changes in equity (deficit), exclusive of transactions with stockholders, such as capital investments. Comprehensive income (loss) includes net income (loss) and changes in certain assets and liabilities that are reported directly in equity. For the year ended December 31, 2017 Comprehensive loss included the change in the market value of available for sale securities and is reported on the Consolidated Statements of Operations and Comprehensive Income (Loss). As the result of a 2018 change in accounting principle, discussed in Note 4, the Company now records the changes in readily determinable fair values of equity investments through net income. Accordingly, no amounts were recorded to Comprehensive Income (Loss) for the year ended December 31, 2018. |
Income Taxes | l. The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes” (“ASC 740”), on a tax jurisdictional basis. The Company files United States and certain other foreign country income tax returns, and pays taxes reasonably determined to be due. The tax rules and regulations in these countries are highly complex and subject to interpretation. The Company’s income tax returns are subject to examination by the relevant taxing authorities and in connection with such examinations, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules within the country involved. In accordance with ASC 740, the Company identifies and evaluates uncertain tax positions, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. The Company classifies income tax related interest and penalties as income tax expense. |
Recently Issued Pronouncements | n. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 modifies the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU 2016-13 will be effective for the Company as of January 1, 2020. As the Company’s principle credit risk is related to its Lease Receivables the Company does not expect the adoption of this update to result in a material impact on its consolidated financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”), which will require lessees to recognize a right-of-use asset and a lease liability for all leases with terms greater than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For a lessor, the accounting applied is largely unchanged from previous guidance. The new rules will be effective for the Company in the first quarter of 2019. The Company does not anticipate early adoption. The Company currently leases administrative offices in the U.S. and in several foreign locations under lease agreements that typically exceed one year. Depending on the number of years remaining under such lease agreements the right-of-use assets and lease liabilities that the Company would record under ASU 2016-2 could be material. |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents and Short-Term Investments | |
Schedule of short term-investments | Estimated Carrying December 31, 2018 Cost Fair Value Value (in thousands) Investments: Short-term: Trading securities $ 275 $ 330 $ 330 Total trading securities 275 330 330 Total short term $ 275 $ 330 $ 330 December 31, 2017 Investments: Short-term: Available for sale common stock $ 275 $ 238 $ 238 Total available for sale common stock 275 238 238 Total short term $ 275 $ 238 $ 238 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid Expenses and Other Assets | |
Schedule of prepaid expenses and other current assets | December 31, December 31, 2018 2017 (in thousands) Prepaid insurance $ 358 $ 362 Deferred offering costs 569 137 Recoupable deposits and other 261 246 $ 1,188 $ 745 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventories, net | |
Schedule of inventories at the Velardena Properties | December 31, December 31, 2018 2017 (in thousands) Material and supplies $ 229 $ $ 229 $ 242 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment | |
Schedule of components of property, plant and equipment | December 31, December 31, 2018 2017 (in thousands) Mineral properties $ 9,353 $ 9,352 Exploration properties 2,518 2,518 Royalty properties 200 200 Buildings 4,278 4,246 Mining equipment and machinery 16,024 15,989 Other furniture and equipment 888 958 Asset retirement cost 866 865 34,127 34,128 Less: Accumulated depreciation and amortization (27,018) (25,988) $ 7,109 $ 8,140 |
Accounts Payable and Other Ac_2
Accounts Payable and Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Payable and Other Accrued Liabilities | |
Schedule of accounts payable and other accrued liabilities | December 31, December 31, 2018 2017 (in thousands) Accounts payable and accruals $ 358 $ 310 Accrued employee compensation and benefits 1,344 1,246 $ 1,702 $ 1,556 |
Asset Retirement and Reclamat_2
Asset Retirement and Reclamation Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement and Reclamation Liabilities | |
Summary of activity in the Velardena Properties ARO | Year Ended December 31, 2018 2017 (in thousands) Beginning balance $ 2,448 $ 2,380 Changes in estimates, and other 2 (128) Accretion expense 210 196 Ending balance $ 2,660 $ 2,448 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements | |
Schedule of financial assets and liabilities at fair value by respective level of the fair value hierarchy | Level 1 Level 2 Level 3 Total (in thousands) At December 31, 2018 Assets: Cash and cash equivalents $ 3,293 $ — $ — $ 3,293 Lease receivables 481 — — 481 Short-term investments 330 — — 330 $ 4,104 $ — $ — $ 4,104 At December 31, 2017 Assets: Cash and cash equivalents $ 3,250 $ — $ — $ 3,250 Lease receivables 314 — — 314 Short-term investments 238 — — 238 $ 3,802 $ — $ — $ 3,802 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Schedule of the provision for income taxes | For the Year Ended December 31, 2018 2017 CURRENT TAXES: (in thousands) United States $ — $ — Other Countries 13 13 $ 13 $ 13 DEFERRED TAXES: United States $ — $ — Other Countries — — $ — $ — Total income tax provision $ 13 $ 13 |
Schedule of income (loss) from operations before income taxes by country | For the Year Ended December 31, 2018 2017 (in thousands) United States $ (1,930) $ (7,197) Other Countries (2) 3,318 $ (1,932) $ (3,879) |
Summary of reconciliation of the provision for income taxes computed at the statutory rate to the provision for income taxes | For Year Ended December 31, 2018 2017 (in thousands) Tax expense (benefit) at US rate of 21% $ (406) $ (1,319) Other adjustments: Rate differential of other jurisdictions 67 (70) Effects of foreign earnings (455) 310 Change in valuation allowance (16,142) 33,975 Provision to tax return true-ups (2,012) (33,720) Exchange rate changes on deferred tax assets 5,891 (8,444) Effect of a change in tax rates — 11,516 Tax loss on sale of subsidiary — (1,693) Inflation adjustment on net operating losses (550) (2,491) Expired net operating losses 13,669 1,931 Other (49) 18 Income tax provision $ 13 $ 13 |
Schedule of components of the deferred tax assets and deferred tax liabilities | For the year ended December 31, 2018 2017 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 117,665 $ 131,866 Stock-based compensation 593 517 Property, plant and equipment 3,284 4,307 Other 2,809 3,274 124,351 139,964 Less: Valuation allowance (123,652) (139,795) Total deferred tax assets 699 169 Deferred tax liabilities: Property, plant and equipment (699) (169) Total deferred tax liabilities (699) (169) Net deferred tax asset (liability) $ — $ — |
Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits | The Year Ended December 31, 2018 2017 (in thousands) Gross unrecognized tax benefits at beginning of period $ 586 $ 740 Increases for tax positions taken during prior years — — Decreases relating to settlements with taxing authorities — — Reductions due to lapse of statute of limitations (213) (154) Gross unrecognized tax benefits at end of period $ 373 $ 586 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity | |
Schedule of status of the restricted stock grants issued under the Equity Plan | The Year Ended December 31, 2018 2017 Weighted Weighted Average Grant Average Date Fair Grant Date Number of Value Per Number of Fair Value Restricted Stock Grants Shares Share Shares Per Share Outstanding at beginning of period 203,334 $ 0.55 100,000 $ 0.63 Granted during the period 280,000 0.37 200,000 0.53 Restrictions lifted during the period (143,333) 0.44 (96,666) 0.60 Forfeited during the period — — — — Outstanding at end of period 340,001 $ 0.45 203,334 $ 0.55 |
Schedule of status of the stock option grants issued under the Equity Plan | The Year Ended December 31, 2018 2017 Weighted Weighted Average Average Exercise Exercise Number of Price Per Number of Price Per Equity Plan Options Shares Share Shares Share Outstanding at beginning of period 40,310 $ 8.05 95,810 $ 8.02 Granted during the period — — — — Forfeited or expired during period (10,000) $ 8.00 (55,500) 8.00 Exercised during period — — — — Outstanding at end of period 30,310 $ 8.06 40,310 $ 8.05 Exercisable at end of period 30,310 $ 8.06 40,310 $ 8.05 Granted and vested 30,310 $ 8.06 40,310 $ 8.05 |
Schedule of restricted stock units | The Year Ended December 31, 2018 2017 Weighted Weighted Average Grant Average Date Fair Grant Date Number of Value Per Number of Fair Value Restricted Stock Units Shares Share Shares Per Share Outstanding at beginning of period 1,887,317 $ 1.16 1,607,317 $ 1.28 Granted during the period 600,000 0.42 280,000 0.48 Restrictions lifted during the period (257,279) 1.44 — — Forfeited during the period — — — — Outstanding at end of period 2,230,038 $ 0.93 1,887,317 $ 1.16 |
Summary of the status of the Company's common stock warrants | The Year Ended December 31, 2018 2017 Weighted Weighted Number of Average Exercise Number of Average Exercise Underlying Price Per Underlying Price Per Common Stock Warrants Shares Share Shares Share Outstanding at beginning of period 11,478,172 $ 0.81 17,578,950 $ 2.17 Granted during period — — — — Dilution adjustment 39,524 0.87 157,302 — Expired during period — — (6,258,080) 4.62 Exercised during period — — — Outstanding at end of period 11,517,696 $ 0.81 11,478,172 $ 0.81 |
Cash flow information (Tables)
Cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash flow information | |
Schedule of reconciliation of net loss for the period to cash used in operations | Year Ended December 31, 2018 2017 (in thousands) Cash flows from operating activities: Net loss $ (1,945) $ (3,892) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,171 952 Accretion of asset retirement obligation 163 196 Gain on trading securities (92) — Asset write off 13 — Gain on reduction of asset retirement obligation — (56) Gain on sale of assets (5,144) (608) Stock compensation 226 296 Changes in operating assets and liabilities: Increase (decrease) in lease receivable (167) 683 Increase in prepaid expenses and other assets (10) (142) Decrease in inventories 13 3 Decrease (increase) in value added tax recoverable, net 127 (149) (Decrease) increase in deferred revenue (292) 892 Increase (decrease) in reclamation liability 24 (8) Increase in accounts payable and accrued liabilities 236 226 Decrease in deferred leasehold payments (34) (23) Net cash used in operating activities $ (5,711) $ (1,630) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies | |
Schedule of non-cancellable operating lease commitments | 2019 2020 2021 2022 2023 Thereafter El Quevar mining concessions (estimated) $ 60 $ 60 $ 60 $ 60 $ 60 $ — Velardeña mining concessions (estimated) $ 80 $ 80 $ 80 $ 80 $ 80 $ — Office space $ 224 $ 157 $ 160 $ 163 $ 166 $ 154 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Information | |
Schedule of financial information relating to segments | Exploration, El Quevar, Costs Depreciation, Velardeña and Applicable Depletion and Administrative Pre-Tax Capital The Year ended December 31, 2018 Revenue to Sales Amortization Expense (Income)/Loss Total Assets Expenditures (in thousands) Velardeña Properties $ 7,217 $ 2,289 $ 816 $ 2,362 $ (1,320) $ 5,699 $ 79 Corporate, Exploration & Other — — 355 8,057 3,252 6,945 73 $ 7,217 $ 2,289 $ 1,171 $ 10,419 $ 1,932 $ 12,644 $ 152 The Year ended December 31, 2017 Velardeña Properties $ 6,691 $ 2,189 $ 584 $ 2,089 $ (3,330) $ 6,406 $ 79 Corporate, Exploration & Other — — 368 6,925 7,209 6,671 2 $ 6,691 $ 2,189 $ 952 $ 9,014 $ 3,879 $ 13,077 $ 81 |
Nature of Operations (Details)
Nature of Operations (Details) $ / shares in Units, $ in Thousands, shares in Millions | Aug. 02, 2017USD ($)$ / sharesshares | Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($) |
Shutdown and care and maintenance costs | $ 1,889 | $ 1,589 | |
Number of exploration properties | property | 12 | ||
Hecla | |||
Sale price (in dollars per shares) | $ / shares | $ 0.55 | ||
Volume weighted average stock price period | 30 days | ||
Velardena properties | |||
Interest acquired (as a percent) | 100.00% | ||
Shutdown and care and maintenance costs | $ 1,900 | $ 1,600 | |
Quarterly holding costs expected with suspended operations | 400 | ||
Oxide Plant | |||
Expected lease proceeds | $ 1,000 | 300 | |
Renewal term | 2 years | ||
Proceeds from lease | $ 4,900 | ||
Gross proceeds from common stock sale | $ 1,000 | ||
Common stock issued (in shares) | shares | 1.8 | ||
Sale price (in dollars per shares) | $ / shares | $ 0.55 | ||
Volume weighted average stock price period | 30 days |
Liquidity, Capital Resources an
Liquidity, Capital Resources and Going Concern (Details) - USD ($) $ / shares in Units, shares in Millions | Aug. 02, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | $ 3,293,000 | $ 3,250,000 | $ 2,588,000 | ||
Decrease in cash and cash equivalents | 43,000 | 662,000 | |||
Shutdown and care and maintenance costs | 1,889,000 | 1,589,000 | |||
Exploration expenditures | 3,909,000 | 3,091,000 | |||
General and administrative expenses | 3,355,000 | 3,512,000 | |||
Deferred revenue, current | 293,000 | 293,000 | |||
Proceeds from issuance of common stock, net of issuance costs | 809,000 | 1,611,000 | |||
Net cash provided by (used in) operating activities | (5,711,000) | (1,630,000) | |||
Other exploration and property holding costs | 10,800,000 | ||||
Subsequent Event | |||||
Proceeds from issuance of common stock, net of issuance costs | $ 200,000 | ||||
Forecast | |||||
Net operating margin | $ 4,600,000 | ||||
Hecla | |||||
Sale price (in dollars per shares) | $ 0.55 | ||||
Equity issue costs | 71,000 | ||||
Velardena properties | |||||
Shutdown and care and maintenance costs | 1,900,000 | $ 1,600,000 | |||
Deferred revenue, current | 2,000,000 | ||||
Oxide Plant | |||||
Net operating margin | 4,900,000 | ||||
Registered direct purchase agreement, net (in shares) | 1.8 | ||||
Sale price (in dollars per shares) | $ 0.55 | ||||
Gross proceeds from common stock sale | $ 1,000,000 | ||||
El Quevar Project | |||||
Maintenance and property holding costs | 1,200,000 | ||||
LPC Program | |||||
General and administrative expenses | 3,100,000 | ||||
Other exploration and property holding costs | 800,000 | ||||
Santacruz | |||||
Other exploration and property holding costs | 700,000 | ||||
Other Mexico activities | |||||
Other exploration and property holding costs | 400,000 | ||||
Electrum | |||||
Other exploration and property holding costs | 4,000,000 | ||||
Electrum | Velardena properties | |||||
Shutdown and care and maintenance costs | $ 1,500,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Nature of Operations | ||
Ownership percentage of subsidiaries | 100.00% | |
Impairment of Long-Lived Assets Held-for-use | $ 0 | $ 0 |
Buildings | Minimum | ||
Property, plant and equipment and long-lived asset impairment | ||
Useful life | 30 years | |
Buildings | Maximum | ||
Property, plant and equipment and long-lived asset impairment | ||
Useful life | 40 years | |
Mining equipment and machinery | Minimum | ||
Property, plant and equipment and long-lived asset impairment | ||
Useful life | 3 years | |
Mining equipment and machinery | Maximum | ||
Property, plant and equipment and long-lived asset impairment | ||
Useful life | 8 years | |
Other furniture and equipment | Minimum | ||
Property, plant and equipment and long-lived asset impairment | ||
Useful life | 3 years | |
Other furniture and equipment | Maximum | ||
Property, plant and equipment and long-lived asset impairment | ||
Useful life | 5 years |
Change in Accounting Principle
Change in Accounting Principle (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in Accounting Principle | ||||||
Warrant liability | $ 1,500,000 | |||||
Warrant derivative loss (gain) | 400,000 | |||||
Accumulated Deficit | $ (509,082,000) | $ (511,124,000) | $ (509,082,000) | |||
Gain on sale of assets | 5,144,000 | 608,000 | ||||
Trading securities | 238,000 | 275,000 | 238,000 | |||
Available for sale equity unrealized losses | $ 40,000 | |||||
Retained earnings and other comprehensive income adjustment | 40,000 | |||||
Trading securities gain | 51,000 | |||||
ASU 2017-11 Earnings Per Share | ||||||
Change in Accounting Principle | ||||||
Warrant derivative loss (gain) | $ 3,000 | 8,000 | $ 300,000 | |||
Sale, not discontinued operations | Zacatecas | ||||||
Change in Accounting Principle | ||||||
Total consideration | 1,500,000 | |||||
Gain on sale of assets | 748,000 | |||||
Sale, not discontinued operations | Zacatecas | ASU 2014-09 Revenue from Contracts with Customers | ||||||
Change in Accounting Principle | ||||||
Gain on sale of assets | $ 49,000 | $ 49,000 | ||||
Sale, not discontinued operations | Zacatecas | Cumulative Effect Adjustment | ASU 2014-09 Revenue from Contracts with Customers | ||||||
Change in Accounting Principle | ||||||
Accumulated Deficit | $ 49,000 |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Short-term Investments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investments: | ||
Trading securities gain | $ 51,000 | |
Available for sale equity unrealized losses | $ 40,000 | |
Retained earnings and other comprehensive income adjustment | 40,000 | |
Trading securities, cost | 275,000 | |
Trading securities | 275,000 | 238,000 |
Total short term | 330,000 | 238,000 |
Financial institutions minimum net worth | 1,000,000,000 | |
Trading securities | ||
Investments: | ||
Trading securities, cost | 275,000 | |
Trading securities | 275,000 | |
Equity Securities | ||
Investments: | ||
Total short term, cost | 275,000 | |
Estimated Fair Value. | ||
Investments: | ||
Trading securities | 330,000 | 238,000 |
Estimated Fair Value. | Trading securities | ||
Investments: | ||
Trading securities | 330,000 | |
Total short term | 330,000 | |
Estimated Fair Value. | Equity Securities | ||
Investments: | ||
Total short term, cost | 238,000 | |
Total short term | 238,000 | |
Carrying Value. | ||
Investments: | ||
Trading securities | 330,000 | 238,000 |
Carrying Value. | Trading securities | ||
Investments: | ||
Trading securities | 330,000 | |
Total short term | $ 330,000 | |
Carrying Value. | Equity Securities | ||
Investments: | ||
Total short term, cost | 238,000 | |
Total short term | $ 238,000 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Prepaid Expenses and Other Assets | ||
Prepaid insurance | $ 358 | $ 362 |
Deferred offering costs | 569 | 137 |
Recoupable deposits and other | 261 | 246 |
Prepaid expenses and other assets | $ 1,188 | $ 745 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Material and supplies | $ 229 | $ 242 |
Inventories, net | 229 | 242 |
Velardena properties | ||
Inventory write down | $ 200 | $ 200 |
Value Added Tax Receivable (Det
Value Added Tax Receivable (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Mexico | |||
Value added tax receivable | $ 30,000 | ||
Argentina | |||
Value added tax receivable | $ 100,000 | ||
Proceeds from VAT refunds | $ 138,000 | $ 1,100,000 | |
Other operating income | 1,100,000 | ||
Reversed valuation allowance | $ 138,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 34,127 | $ 34,128 |
Less: Accumulated depreciation & amortization | (27,018) | (25,988) |
Property, plant and equipment, net | 7,109 | 8,140 |
Mineral properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 9,353 | 9,352 |
Exploration properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 2,518 | 2,518 |
Royalty properties | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 200 | 200 |
Buildings | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 4,278 | 4,246 |
Mining equipment and machinery | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 16,024 | 15,989 |
Other furniture and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 888 | 958 |
Asset retirement cost | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 866 | $ 865 |
Property, Plant and Equipment -
Property, Plant and Equipment - Disposals (Details) | May 02, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Feb. 28, 2018USD ($) | Aug. 31, 2016USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) |
Property, plant and equipment | ||||||||||
Property net book value | $ 7,109,000 | $ 8,140,000 | ||||||||
Proceeds from sale of asset | 5,097,000 | 762,000 | ||||||||
Gain on sale of assets | 5,144,000 | 608,000 | ||||||||
Sale, not discontinued operations | Sale of Equipment | ||||||||||
Property, plant and equipment | ||||||||||
Number of haul trucks sold | item | 2 | |||||||||
Number of scoop trams sold | item | 2 | |||||||||
Sale of mining equipments | $ 185,000 | $ 687,000 | ||||||||
Proceeds from sale of asset | $ 750,000 | $ 100,000 | $ 69,000 | |||||||
Sales price received (as a percent) | 10.00% | |||||||||
Related party receivable | $ 618,000 | |||||||||
Interest rate on receivable (as a percent) | 10.00% | 10.00% | ||||||||
Gain on sale of assets | 105,000 | |||||||||
Velardena properties | ||||||||||
Property, plant and equipment | ||||||||||
Property net book value | 800,000 | $ 1,200,000 | ||||||||
Celaya | Sale, not discontinued operations | ||||||||||
Property, plant and equipment | ||||||||||
Proceeds from sale of asset | $ 200,000 | |||||||||
Gain on sale of assets | 1,000,000 | |||||||||
Interest in joint venture (as a percent) | 20.00% | 40.00% | ||||||||
Initial term of agreement | 3 years | |||||||||
Exploration expenditures in second three year of the agreement | $ 2,500,000 | |||||||||
Term of second agreement | 3 years | 3 years | ||||||||
Net profit interest | 10.00% | |||||||||
Celaya | Sale, not discontinued operations | Execution of Assignment Agreement | ||||||||||
Property, plant and equipment | ||||||||||
Gain on sale of assets | $ 3,000,000 | |||||||||
Celaya | Electrum | Sale, not discontinued operations | ||||||||||
Property, plant and equipment | ||||||||||
Earn-in to be received | $ 3,000,000 | $ 1,000,000 | $ 500,000 | |||||||
Interest in joint venture (as a percent) | 100.00% | 80.00% | 60.00% | 100.00% | ||||||
Exploration expenditures in first three year of the agreement | $ 2,500,000 | |||||||||
Additional interest in joint venture (as a percent) | 20.00% | |||||||||
Exploration expenditures in second three year of the agreement | $ 2,500,000 | |||||||||
Contribution from additional expenditures required in the second three-year earn-in period (as a percent) | 100.00% | |||||||||
Zacatecas | Sale, not discontinued operations | ||||||||||
Property, plant and equipment | ||||||||||
Gain on sale of assets | $ 748,000 | |||||||||
Total consideration | $ 1,500,000 | |||||||||
Unearned performance obligation | $ 212,000 | $ 225,000 | $ 249,000 | |||||||
Receivable from sale | $ 13,000 | |||||||||
Expected recognition | $ 212,000 | $ 225,000 | $ 249,000 |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts payable and accruals | $ 358 | $ 310 |
Accrued employee compensation and benefits | 1,344 | 1,246 |
Accounts payable and other accrued liabilities | 1,702 | 1,556 |
Accrued vacation | 200 | 200 |
Withholding taxes and benefits payable | 400 | 600 |
KELTIP | ||
Accrued employee compensation and benefits | 400 | 400 |
Velardena properties | ||
Accounts payable and accruals | 200 | 100 |
Accrued employee compensation and benefits | 600 | 300 |
VAT payable, net | 100 | 100 |
Corporate, Exploration & Other | ||
Accounts payable and accruals | $ 200 | $ 200 |
Asset Retirement Obligation and
Asset Retirement Obligation and Reclamation Liabilities (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2012 | Mar. 31, 2012 | |
Asset retirement and reclamation liabilities | $ 2,495,000 | $ 2,495,000 | ||
Summary of activity in the Velardena Operations ARO | ||||
ARO, Beginning balance | 2,495,000 | |||
Accretion expense | 163,000 | 196,000 | ||
ARO, Ending balance | 2,683,000 | 2,495,000 | ||
Velardena properties | ||||
Asset retirement and reclamation liabilities | 2,448,000 | 2,380,000 | $ 1,900,000 | $ 3,500,000 |
Amortization expense related to the ARC | 2,000 | |||
Summary of activity in the Velardena Operations ARO | ||||
ARO, Beginning balance | 2,448,000 | 2,380,000 | ||
Changes in estimates, and other | 2,000 | (128,000) | ||
Accretion expense | 210,000 | 196,000 | ||
ARO, Ending balance | $ 2,660,000 | $ 2,448,000 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Recurring | ||
Fair value measurements | ||
Cash and cash equivalents | $ 3,293,000 | $ 3,250,000 |
Lease receivable | 481,000 | |
Trade accounts receivable | 314,000 | |
Short-term investments | 330,000 | 238,000 |
Assets | 4,104,000 | 3,802,000 |
Recurring | Level 1 | ||
Fair value measurements | ||
Cash and cash equivalents | 3,293,000 | 3,250,000 |
Lease receivable | 481,000 | |
Trade accounts receivable | 314,000 | |
Short-term investments | 330,000 | 238,000 |
Assets | 4,104,000 | 3,802,000 |
Non-recurring | ||
Fair value Assumptions | ||
Fair value measurements | $ 0 | $ 0 |
Fair value measurements - Level
Fair value measurements - Level 3 (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in level 3 | ||
Fair value adjustments to long lived assets | $ 0 | $ 0 |
Non-recurring | ||
Changes in level 3 | ||
Fair value measurements | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current taxes: | ||
Other Countries | $ 13 | $ 13 |
Total current taxes | 13 | 13 |
Income tax provision | $ 13 | $ 13 |
Income Taxes - Exp (Details)
Income Taxes - Exp (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income (loss) from continuing operations before income taxes | ||
United States | $ (1,930) | $ (7,197) |
Other Countries | (2) | 3,318 |
Income (loss) from operations before income taxes | $ (1,932) | $ (3,879) |
Reconciliation of the provision for income taxes computed at the statutory rate to the provision for income taxes | ||
US rate (as a percent) | 21.00% | 21.00% |
Tax expense (benefit) at US rate of 35% | $ (406) | $ (1,319) |
Other adjustments: | ||
Rate differential of other jurisdictions | 67 | (70) |
Effects of foreign earnings | (455) | 310 |
Change in valuation allowance | (16,142) | 33,975 |
Provision to tax return true-ups | (2,012) | (33,720) |
Exchange rate changes on deferred tax assets | 5,891 | (8,444) |
Effect of a change in tax rates | 11,516 | |
Tax loss on sale of subsidiary | (1,693) | |
Inflation adjustment on net operating losses | (550) | (2,491) |
Expired net operating losses | 13,669 | 1,931 |
Other | (49) | 18 |
Income tax provision | $ 13 | $ 13 |
Income Taxes - Deferred (Detail
Income Taxes - Deferred (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 117,665 | $ 131,866 |
Stock-based compensation | 593 | 517 |
Property, plant and equipment | 3,284 | 4,307 |
Other | 2,809 | 3,274 |
Deferred tax assets, gross | 124,351 | 139,964 |
Less: Valuation allowance | (123,652) | (139,795) |
Total deferred tax assets | 699 | 169 |
Deferred tax liabilities: | ||
Property, plant and equipment | (699) | (169) |
Total deferred tax liabilities | (699) | (169) |
Net deferred tax asset (liability) | $ 0 | $ 0 |
Corporate tax rate | 21.00% | 21.00% |
Reduction of U.S. deferred tax assets due to change in tax rate | $ 10,200 |
Income Taxes - NOL Carryforward
Income Taxes - NOL Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Operating loss carryforwards | ||
Net operating loss carryforwards | $ 434,900 | |
Valuation allowance offsetting the deferred tax assets | 123,652 | $ 139,795 |
SPAIN | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 89,600 | |
Other non-U.S. Countries | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 179,700 | |
US | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 73,300 | |
Velardena properties | Mexico | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 79,800 | |
Other Mexico activities | Mexico | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | $ 12,500 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ||
Gross unrecognized tax benefits at beginning of period | $ 586 | $ 740 |
Reductions due to lapse of statute of limitations | (213) | (154) |
Gross unrecognized tax benefits at end of period | 373 | 586 |
Interest and penalties recognized in the statement of operations | 0 | 0 |
Interest and penalties accrued recognized in the statement of financial position | $ 0 | $ 0 |
Equity - Issue and Conversion (
Equity - Issue and Conversion (Details) - USD ($) | Feb. 27, 2019 | May 09, 2018 | Aug. 02, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 07, 2018 | Sep. 02, 2011 |
Proceeds from issuance of common stock, net of issuance costs | $ 809,000 | $ 1,611,000 | |||||||
Number of shares transferred for each shares | $ 0.05 | ||||||||
Number of shares returned to treasury and canceled | 125,739 | ||||||||
Consideration shares sold to Hecla, net | $ 930,000 | ||||||||
Hecla | |||||||||
Sale price (in dollars per shares) | $ 0.55 | ||||||||
Equity issue costs | 71,000 | ||||||||
Agreement period | 2 years | ||||||||
Consideration shares sold to Hecla, net | $ 1,000,000 | $ 1,000,000 | |||||||
Consideration shares sold to Hecla, net (in shares) | 1,800,000 | ||||||||
Volume weighted average stock price period | 30 days | ||||||||
ATM Agreement | |||||||||
Aggregate value of securities allowed under agreement | $ 5,000,000 | ||||||||
Aggregate securities allowed under agreement (in shares) | 10,000,000 | ||||||||
Common stock issued (in shares) | 0 | 1,024,000 | |||||||
Sale price (in dollars per shares) | $ 0.70 | ||||||||
Gross proceeds from common stock sale | $ 720,000 | ||||||||
Commission payment | $ 16,000 | ||||||||
Commission rate (as a percent) | 2.00% | 2.20% | |||||||
Amortization of deferred cost | $ 23,000 | ||||||||
Proceeds from issuance of common stock, net of issuance costs | 682,000 | ||||||||
Equity issue costs | $ 109,000 | $ 15,000 | 34,000 | ||||||
Unamortized deferred cost | 136,000 | $ 136,000 | |||||||
Legal expenses | $ 50,000 | ||||||||
LPC Program | |||||||||
Commitment fee | 300,000 | ||||||||
Amortization of deferred cost | 58,000 | ||||||||
Equity issue costs | 190,000 | ||||||||
Unamortized deferred cost | $ 432,000 | ||||||||
Registered direct purchase agreement | |||||||||
Common stock issued (in shares) | 3,153,808 | 0 | |||||||
Sale price (in dollars per shares) | $ 0.4122 | ||||||||
Gross proceeds from common stock sale | $ 1,300,000 | ||||||||
Commitment purchase agreement | |||||||||
Aggregate value of securities allowed under agreement | $ 10,000,000 | ||||||||
number of shares registered for resale under the Commitment Purchase Agreement | 15,222,941 | ||||||||
Subsequent Event | |||||||||
Proceeds from issuance of common stock, net of issuance costs | $ 200,000 | ||||||||
Subsequent Event | ATM Agreement | |||||||||
Common stock issued (in shares) | 34,000 | ||||||||
Sale price (in dollars per shares) | $ 0.34 | ||||||||
Equity issue costs | $ 11,000 | ||||||||
Subsequent Event | Commitment purchase agreement | |||||||||
Common stock issued (in shares) | 745,000 | ||||||||
Sale price (in dollars per shares) | $ 0.31 | ||||||||
Gross proceeds from common stock sale | $ 230,000 |
Equity - Non-Option Incentive (
Equity - Non-Option Incentive (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)employeedirector$ / sharesshares | Dec. 31, 2017USD ($)employeedirector$ / sharesshares | |
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Compensation expense | $ | $ 226,000 | $ 296,000 |
Equity Plan | Restricted Stock | ||
Number of Shares - Non-option | ||
Outstanding at beginning of year (in shares) | 203,334 | 100,000 |
Granted during the year (in shares) | 280,000 | 200,000 |
Restrictions lifted during the year (in shares) | (143,333) | (96,666) |
Outstanding at end of year (in shares) | 340,001 | 203,334 |
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 0.55 | $ 0.63 |
Granted during the year (in dollars per share) | $ / shares | 0.37 | 0.53 |
Restrictions lifted during the year (in dollars per share) | $ / shares | 0.44 | 0.60 |
Outstanding at end of year (in dollars per share) | $ / shares | $ 0.45 | $ 0.55 |
Compensation expense | $ | $ 100,000 | $ 100,000 |
Additional compensation expense expected to be recognized | $ | $ 100,000 | |
Period for future recognition of additional compensation expense | 24 months | 3 years |
Restrictions lifted during the year (in shares) | 143,333 | 96,666 |
Equity Plan | Restricted Stock | Employees | ||
Number of Shares - Non-option | ||
Granted during the year (in shares) | 280,000 | 200,000 |
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Number of employees | employee | 6 | |
Equity Plan | Restricted Stock | Officer | ||
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Number of employees | employee | 2 | |
Deferred Compensation Plan | Restricted Stock Units (RSUs) | ||
Number of Shares - Non-option | ||
Outstanding at beginning of year (in shares) | 1,887,317 | 1,607,317 |
Granted during the year (in shares) | 600,000 | 280,000 |
Restrictions lifted during the year (in shares) | (257,279) | |
Outstanding at end of year (in shares) | 2,230,038 | 1,887,317 |
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 1.16 | $ 1.28 |
Granted during the year (in dollars per share) | $ / shares | 0.42 | 0.48 |
Restrictions lifted during the year (in dollars per share) | $ / shares | 1.44 | |
Outstanding at end of year (in dollars per share) | $ / shares | $ 0.93 | $ 1.16 |
Compensation expense | $ | $ 200,000 | $ 100,000 |
Additional compensation expense expected to be recognized | $ | $ 100,000 | $ 40,000 |
Period for future recognition of additional compensation expense | 6 months | |
Number of board members | director | 6 | 7 |
Restrictions lifted during the year (in shares) | 257,279 | |
Deferred Compensation Plan | Restricted Stock Units (RSUs) | Maximum | ||
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Additional compensation expense expected to be recognized | $ | $ 100,000 | |
Deferred Compensation Plan | Restricted Stock Units (RSUs) | Employees | ||
Number of Shares - Non-option | ||
Restrictions lifted during the year (in shares) | (50,000) | (46,666) |
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Number of employees | employee | 3 | |
Restrictions lifted during the year (in shares) | 50,000 | 46,666 |
KELTIP | KELTIP Units | ||
Number of Shares - Non-option | ||
Granted during the year (in shares) | 1,620,000 | 1,020,000 |
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Compensation expense | $ | $ 300,000 | $ 100,000 |
KELTIP | KELTIP Units | Officers | ||
Number of Shares - Non-option | ||
Granted during the year (in shares) | 600,000 | 435,000 |
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Compensation expense | $ | $ 300,000 | $ 200,000 |
Number of employees | employee | 2 | 2 |
Vesting immediately | Equity Plan | Restricted Stock | Employees | ||
Number of Shares - Non-option | ||
Granted during the year (in shares) | 50,000 | |
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Percentage of awards which will vest on each of the first, second and third anniversaries of the grant date | 33.33% | 33.33% |
Vest on first anniversary | Equity Plan | Restricted Stock | Employees | ||
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Percentage of awards which will vest on each of the first, second and third anniversaries of the grant date | 33.33% | 33.33% |
Vest on second anniversary | Equity Plan | Restricted Stock | Employees | ||
Weighted Average Grant Date Fair Value Per Share - Non-option | ||
Percentage of awards which will vest on each of the first, second and third anniversaries of the grant date | 33.34% | 33.34% |
Equity - Option Incentive (Deta
Equity - Option Incentive (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Exercise Price Per Share - Options | ||
Compensation expense | $ 226 | $ 296 |
Employee Stock Option | Equity Plan | ||
Number of Shares - Options | ||
Outstanding at beginning of period (in shares) | 40,310 | 95,810 |
Forfeited or expired during period (in shares) | (10,000) | (55,500) |
Outstanding at end of year (in shares) | 30,310 | 40,310 |
Exercisable at end of period (in shares) | 30,310 | 40,310 |
Granted and vested (in shares) | 30,310 | 40,310 |
Weighted Average Exercise Price Per Share - Options | ||
Outstanding at beginning of year (in dollars per share) | $ 8.05 | $ 8.02 |
Forfeited or expired during year (in dollars per share) | 8 | 8 |
Outstanding at end of year (in dollars per share) | 8.06 | 8.05 |
Exercisable at end of period (in dollars per share) | 8.06 | 8.05 |
Granted and vested (in dollars per share) | $ 8.06 | $ 8.05 |
Equity - Warrants (Details)
Equity - Warrants (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 19, 2017 | May 31, 2016 | Sep. 30, 2014 | Sep. 30, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Oct. 31, 2015 |
Weighted Average Exercise Price Per Share | ||||||||
Warrant liability | $ 1.5 | |||||||
Warrant | ||||||||
Number of Underlying Shares | ||||||||
Outstanding, beginning balance (in shares) | 11,478,172 | 17,578,950 | ||||||
Dilution adjustment (in shares) | 39,524 | 157,302 | ||||||
Expired (in shares) | (6,258,080) | |||||||
Outstanding, end balance (in shares) | 11,517,696 | 11,478,172 | ||||||
Weighted Average Exercise Price Per Share | ||||||||
Outstanding, beginning balance (in dollars per share) | $ 0.81 | $ 2.17 | ||||||
Dilution adjustment (in dollars per share) | 0.87 | |||||||
Expired during period | 4.62 | |||||||
Outstanding, end balance (in dollars per share) | $ 0.81 | $ 0.81 | ||||||
2012 Warrants | ||||||||
Number of Underlying Shares | ||||||||
Outstanding, beginning balance (in shares) | 3,431,649 | |||||||
Dilution adjustment (in shares) | 2,826,431 | |||||||
Outstanding, end balance (in shares) | 6,258,080 | |||||||
Weighted Average Exercise Price Per Share | ||||||||
Outstanding, beginning balance (in dollars per share) | $ 8.42 | |||||||
Outstanding, end balance (in dollars per share) | $ 4.62 | |||||||
Term of warrants | 5 years | |||||||
2014 Warrants | ||||||||
Number of Underlying Shares | ||||||||
Outstanding, beginning balance (in shares) | 4,746,000 | |||||||
Dilution adjustment (in shares) | 771,696 | |||||||
Outstanding, end balance (in shares) | 5,517,696 | |||||||
Weighted Average Exercise Price Per Share | ||||||||
Outstanding, beginning balance (in dollars per share) | $ 1.21 | |||||||
Outstanding, end balance (in dollars per share) | $ 0.85 | |||||||
Sentient | ||||||||
Weighted Average Exercise Price Per Share | ||||||||
Principal amount of loan | $ 5 | |||||||
Sentient | 2012 Warrants | ||||||||
Number of Underlying Shares | ||||||||
Outstanding, beginning balance (in shares) | 3,431,649 | |||||||
Sentient | 2014 Warrants | ||||||||
Number of Underlying Shares | ||||||||
Outstanding, beginning balance (in shares) | 4,746,000 | |||||||
Weighted Average Exercise Price Per Share | ||||||||
Term of warrants | 5 years | |||||||
Registered Offering | ||||||||
Weighted Average Exercise Price Per Share | ||||||||
Sale price (in dollars per shares) | $ 0.50 | |||||||
Common stock issued (in shares) | 8,000,000 | |||||||
Gross proceeds from common stock sale | $ 4 | |||||||
Registered Offering | 2016 Warrants | ||||||||
Number of Underlying Shares | ||||||||
Outstanding, end balance (in shares) | 6,000,000 | |||||||
Weighted Average Exercise Price Per Share | ||||||||
Number of shares of common stock per capital unit (in shares) | 0.75 | |||||||
Term of warrants | 5 years | |||||||
Number of common shares which can be purchased with each warrant | 0.75 |
Revenue, Deferred Revenue and R
Revenue, Deferred Revenue and Related Costs (Details) $ / shares in Units, $ in Thousands, shares in Millions | Aug. 02, 2017USD ($)$ / sharesshares | Aug. 31, 2017item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Oxide plant lease | $ 7,217 | $ 6,691 | ||
Lease related costs | 2,289 | 2,189 | ||
Oxide Plant | ||||
Oxide plant lease | 7,200 | 6,700 | ||
Lease related costs | 2,300 | $ 2,200 | ||
Operating Lease Monthly Fee | 125 | |||
Renewal term | 2 years | |||
Expected lease proceeds | $ 1,000 | 300 | ||
Gross proceeds from common stock sale | $ 1,000 | |||
Common stock issued (in shares) | shares | 1.8 | |||
Sale price (in dollars per shares) | $ / shares | $ 0.55 | |||
Volume weighted average stock price period | 30 days | |||
Termination notice period | 120 days | |||
Number of rights of first refusal | item | 1 | |||
Deferred revenue | $ 600 |
Interest and Other Income (Deta
Interest and Other Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investment [Line Items] | ||
Interest and other (expense) income, net | $ 112 | $ 37 |
Golden Tag | ||
Investment [Line Items] | ||
Interest and other (expense) income, net | $ 100 |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (1,945) | $ (3,892) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,171 | 952 |
Accretion of asset retirement obligation | 163 | 196 |
Gain on trading securities | (92) | |
Asset write off | 13 | |
Gain on reduction of asset retirement obligation | (56) | |
Gain on sale of assets | (5,144) | (608) |
Stock compensation | 226 | 296 |
Changes in operating assets and liabilities: | ||
Increase (decrease) in trade accounts receivable | (167) | 683 |
Decrease in prepaid expenses and other assets | (10) | (142) |
Increase in inventories | 13 | 3 |
Decrease (increase) in value added tax recoverable, net | 127 | (149) |
Increase (Decrease) in Deferred Revenue | (292) | 892 |
Decrease in reclamation liability | 24 | (8) |
Increase (decrease) in accounts payable and accrued liabilities | 236 | 226 |
Decrease in deferred leasehold payments | (34) | (23) |
Net cash used in operating activities | $ (5,711) | $ (1,630) |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | Apr. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Contingencies | |||
Loss contingency | $ 0 | ||
Velardena properties | |||
Leases and Purchase Commitments | |||
2,019 | 80,000 | ||
2,020 | 80,000 | ||
2,021 | 80,000 | ||
2,022 | 80,000 | ||
2,023 | 80,000 | ||
Thereafter | 80,000 | ||
Lease payments | 78,000 | $ 69,000 | |
Surface right agreement with local ejido | |||
Leases and Purchase Commitments | |||
Lease payments | 33,000 | ||
El Quevar Project | |||
Leases and Purchase Commitments | |||
2,019 | 60,000 | ||
2,020 | 60,000 | ||
2,021 | 60,000 | ||
2,022 | 60,000 | ||
2,023 | 60,000 | ||
Thereafter | 60,000 | ||
Lease payments | 57,000 | 111,000 | |
Office space | |||
Leases and Purchase Commitments | |||
2,019 | 224,000 | ||
2,020 | 157,000 | ||
2,021 | 160,000 | ||
2,022 | 163,000 | ||
2,023 | 166,000 | ||
Thereafter | 154,000 | ||
Lease payments | $ 237,000 | $ 226,000 | |
Reduction in space (as a percent) | 45.00% | ||
Reduction in cost (as a percent) | 45.00% |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)segmentitem | Dec. 31, 2017USD ($) | |
Segment Information | ||
Number of reportable segments | item | 2 | |
Revenue | $ 7,217 | $ 6,691 |
Mineral Extraction Processing and Marketing Costs | 2,289 | 2,189 |
Depreciation, depletion and amortization | 1,171 | 952 |
Exploration, El Quevar, Velardena and Administrative Expense | 10,419 | 9,014 |
Pre-tax (gain) loss | 1,932 | 3,879 |
Total Assets | 12,644 | 13,077 |
Capital Expenditures | $ 152 | 81 |
Velardena properties | ||
Segment Information | ||
Number of reportable segments | segment | 1 | |
Revenue | $ 7,217 | 6,691 |
Mineral Extraction Processing and Marketing Costs | 2,289 | 2,189 |
Depreciation, depletion and amortization | 816 | 584 |
Exploration, El Quevar, Velardena and Administrative Expense | 2,362 | 2,089 |
Pre-tax (gain) loss | (1,320) | (3,330) |
Total Assets | 5,699 | 6,406 |
Capital Expenditures | 79 | 79 |
Corporate, Exploration & Other | ||
Segment Information | ||
Depreciation, depletion and amortization | 355 | 368 |
Exploration, El Quevar, Velardena and Administrative Expense | 8,057 | 6,925 |
Pre-tax (gain) loss | 3,252 | 7,209 |
Total Assets | 6,945 | 6,671 |
Capital Expenditures | $ 73 | $ 2 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | May 02, 2017 | Mar. 31, 2017 | Aug. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 |
Related Party Transaction | ||||||
Common stock, shares issued | 95,620,796 | 91,929,709 | 95,620,796 | |||
Proceeds from sale of assets | $ 5,097,000 | $ 762,000 | ||||
Gain on sale of assets | $ 5,144,000 | 608,000 | ||||
Sentient | ||||||
Related Party Transaction | ||||||
Ownership (as a percent) | 44.00% | 44.00% | ||||
Minera Inde | ||||||
Related Party Transaction | ||||||
Monthly charges received | $ 15,000 | |||||
Received amount | $ 180,000 | |||||
Sale, not discontinued operations | Sale of Equipment | ||||||
Related Party Transaction | ||||||
Sale of mining equipments | $ 185,000 | $ 687,000 | ||||
Sales price received (as a percent) | 10.00% | |||||
Interest rate on receivable (as a percent) | 10.00% | 10.00% | ||||
Proceeds from sale of assets | $ 750,000 | $ 100,000 | ||||
Gain on sale of assets | 105,000 | |||||
Sale, not discontinued operations | Sale of Equipment | ||||||
Related Party Transaction | ||||||
Sale of mining equipments | $ 185,000 | $ 687,000 | ||||
Sales price received (as a percent) | 10.00% | |||||
Interest rate on receivable (as a percent) | 10.00% | 10.00% | ||||
Related party receivable | $ 618,000 | |||||
Proceeds from sale of assets | $ 750,000 | $ 100,000 | $ 69,000 | |||
Gain on sale of assets | $ 105,000 |