Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 09, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-13627 | |
Entity Registrant Name | Golden Minerals Co | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-4413382 | |
Entity Address, Address Line One | 350 INDIANA STREET, SUITE 650 | |
Entity Address, City or Town | GOLDEN | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80401 | |
City Area Code | 303 | |
Local Phone Number | 839-5060 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | AUMN | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,084,680 | |
Entity Central Index Key | 0001011509 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | |
Current assets | |||
Cash and cash equivalents (Note 5) | $ 1,583,000 | $ 3,972,000 | |
Short-term investments (Note 5) | 11,000 | 20,000 | |
Inventories, net (Note 7) | 305,000 | 1,371,000 | |
Value added tax receivable, net (Note 8) | 3,144,000 | 1,465,000 | |
Prepaid expenses and other assets (Note 6) | 897,000 | 1,142,000 | |
Total current assets | 5,940,000 | 7,970,000 | |
Property, plant and equipment, net (Note 9) | 5,958,000 | 6,416,000 | |
Investments (Note 5) | 265,000 | 225,000 | |
Other long-term assets (Note 10) | 141,000 | 333,000 | |
Total assets | 12,304,000 | 14,944,000 | |
Current liabilities | |||
Accounts payable and other accrued liabilities (Note 11) | 5,036,000 | 3,716,000 | |
Other current liabilities (Note 13) | 563,000 | 633,000 | |
Total current liabilities | 5,599,000 | 4,349,000 | |
Asset retirement and reclamation liabilities (Note 12) | 4,142,000 | 3,993,000 | |
Other long-term liabilities (Note 13) | 40,000 | 122,000 | |
Total liabilities | 9,781,000 | 8,464,000 | |
Commitments and contingencies (Note 20) | |||
Equity (Note 16) | |||
Common stock, $.01 par value, 28,000,000 shares authorized; 8,573,252 and 6,836,735 shares issued and outstanding, respectively | [1] | 86,000 | 68,000 |
Additional paid-in capital | 548,328,000 | 544,372,000 | |
Accumulated deficit | (545,891,000) | (537,960,000) | |
Shareholders' equity | 2,523,000 | 6,480,000 | |
Total liabilities and equity | $ 12,304,000 | $ 14,944,000 | |
[1] (1) Reflects the one-for- 25 reverse stock split that became effective June 9, 2023. Refer to Note 1, “Basis of Preparation of Financial Statements and Nature of Operations.” |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) | Sep. 30, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 28,000,000 | 28,000,000 |
Common stock, shares issued | 8,573,252 | 6,836,735 |
Common stock, shares outstanding | 8,573,252 | 6,836,735 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Revenue: | |||||
Sale of metals | $ 2,512,000 | $ 5,268,000 | $ 11,702,000 | $ 18,700,000 | |
Total revenue | 2,512,000 | 5,268,000 | 11,702,000 | 18,700,000 | |
Costs and expenses: | |||||
Cost of metals sold (exclusive of depreciation shown below) (Note 17) | (3,320,000) | (4,374,000) | (11,225,000) | (13,335,000) | |
Exploration expense | (726,000) | (2,376,000) | (2,898,000) | (7,038,000) | |
El Quevar project expense | (118,000) | (154,000) | (435,000) | (448,000) | |
Velardea care and maintenance costs | (310,000) | (370,000) | (905,000) | (843,000) | |
Administrative expense | (1,111,000) | (918,000) | (3,658,000) | (3,466,000) | |
Stock-based compensation | (92,000) | (194,000) | (324,000) | (543,000) | |
Reclamation expense | (74,000) | (71,000) | (222,000) | (211,000) | |
Other operating income, net | 456,000 | 384,000 | 560,000 | 1,274,000 | |
Depreciation and amortization | (148,000) | (89,000) | (380,000) | (241,000) | |
Total costs and expenses | (5,443,000) | (8,162,000) | (19,487,000) | (24,851,000) | |
Loss from operations | (2,931,000) | (2,894,000) | (7,785,000) | (6,151,000) | |
Other income (expense): | |||||
Interest and other income (expense), net (Note 18) | 18,000 | (3,000) | 13,000 | (17,000) | |
(Loss) gain on foreign currency transactions | (14,000) | 154,000 | 91,000 | 252,000 | |
Litigation settlement (Note 20) | (250,000) | (250,000) | |||
Total other income (expense) | (246,000) | 151,000 | (146,000) | 235,000 | |
Loss from operations before income taxes | (3,177,000) | (2,743,000) | (7,931,000) | (5,916,000) | |
Income taxes (Note 15) | 46,000 | 90,000 | |||
Net loss | $ (3,177,000) | $ (2,697,000) | $ (7,931,000) | $ (5,826,000) | |
Net loss per common share - basic | |||||
Net loss per common share - basic | [1] | $ (0.38) | $ (0.40) | $ (1.06) | $ (0.88) |
Weighted-average shares outstanding - basic | [2] | 8,378,001 | 6,714,635 | 7,466,444 | 6,632,541 |
[1] (1) Reflects the one-for- 25 reverse stock split that became effective June 9, 2023. Refer to Note 1, “Basis of Preparation of Financial Statements and Nature of Operations.” (2) Potentially dilutive shares have not been included for loss periods because to do so would be anti-dilutive. Potentially dilutive shares at September 30, 2023, consist of 408,545 equivalent shares related to stock compensation and 1,819,742 equivalent shares related to warrants outstanding. Potentially dilutive shares at September 30, 2022, consist of 440,209 equivalent shares related to stock compensation and 392,154 equivalent shares related to warrants outstanding. See Note 16 for a discussion of stock-based compensation and warrants. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) | 9 Months Ended | |
Sep. 30, 2023 shares | Sep. 30, 2022 shares | |
Employee Stock Option | ||
Dilutive shares | 408,545 | 440,209 |
Warrant | ||
Dilutive shares | 1,819,742 | 392,154 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows used in operating activities: | |||
Net cash used in operating activities (Note 19) | $ (6,557) | $ (6,401) | |
Cash flows from (used in) investing activities: | |||
Proceeds from sale of assets | 514 | 125 | |
Investment in Golden Gryphon Explorations Inc. | (40) | (225) | |
Acquisitions of property, plant and equipment | $ (19) | (46) | |
Net cash from (used in) investing activities | 474 | (146) | |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock, net of issuance costs | 3,694 | 1,050 | |
Common stock shares relinquished to pay taxes | (228) | ||
Net cash from financing activities | 3,694 | 822 | |
Net decrease in cash and cash equivalents | (2,389) | (5,725) | |
Cash and cash equivalents, beginning of period | 3,972 | 12,229 | |
Cash and cash equivalents, end of period | $ 6,504 | $ 1,583 | $ 6,504 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Scenario, Previously Reported Common Stock | Scenario, Previously Reported Additional Paid-in Capital | Scenario, Previously Reported Accumulated Deficit | Scenario, Previously Reported | Revision of Prior Period Error Correction Adjustment Accumulated Deficit | Revision of Prior Period Error Correction Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Adjustment related to correction of immaterial error (Note 4) | $ (93) | $ (93) | |||||||||||
Balance at Dec. 31, 2021 | $ 65 | [1] | $ 542,081 | $ (527,961) | $ 14,185 | $ 65 | [1] | $ 542,081 | $ (528,054) | $ 14,092 | |||
Balance (in shares) at Dec. 31, 2021 | [1] | 6,538,566 | 6,538,566 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Stock compensation accrued (Note 16) | 149 | 149 | |||||||||||
KELTIP shares issued net of shares relinquished to cover withholding taxes (Note 16) | $ 1 | [1] | (230) | (229) | |||||||||
KELTIP shares issued net of shares relinquished to cover withholding taxes (Note 16) (in shares) | [1] | 44,935 | |||||||||||
Net loss | (316) | (316) | |||||||||||
Balance at Mar. 31, 2022 | $ 66 | [1] | 542,000 | (528,370) | 13,696 | ||||||||
Balance (in shares) at Mar. 31, 2022 | [1] | 6,583,501 | |||||||||||
Balance at Dec. 31, 2021 | $ 65 | [1] | $ 542,081 | $ (527,961) | $ 14,185 | $ 65 | [1] | 542,081 | (528,054) | 14,092 | |||
Balance (in shares) at Dec. 31, 2021 | [1] | 6,538,566 | 6,538,566 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net loss | (5,826) | ||||||||||||
Balance at Sep. 30, 2022 | $ 67 | [1] | 543,443 | (533,880) | 9,630 | ||||||||
Balance (in shares) at Sep. 30, 2022 | [1] | 6,725,501 | |||||||||||
Balance at Mar. 31, 2022 | $ 66 | [1] | 542,000 | (528,370) | 13,696 | ||||||||
Balance (in shares) at Mar. 31, 2022 | [1] | 6,583,501 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Stock compensation accrued and restricted stock awards granted (Note 16) | 200 | 200 | |||||||||||
Stock compensation accrued and restricted stock awards granted (Note 16) (in shares) | [1] | 20,000 | |||||||||||
Warrants exercised (Note 16) | $ 1 | [1] | 1,049 | 1,050 | |||||||||
Warrants exercised (Note 16) (in shares) | [1] | 120,000 | |||||||||||
Net loss | (2,813) | (2,813) | |||||||||||
Balance at Jun. 30, 2022 | $ 67 | [1] | 543,249 | (531,183) | 12,133 | ||||||||
Balance (in shares) at Jun. 30, 2022 | [1] | 6,723,501 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Stock compensation accrued and restricted stock awards granted (Note 16) | 194 | 194 | |||||||||||
Stock compensation accrued and restricted stock awards granted (Note 16) (in shares) | [1] | 2,000 | |||||||||||
Net loss | (2,697) | (2,697) | |||||||||||
Balance at Sep. 30, 2022 | $ 67 | [1] | 543,443 | (533,880) | 9,630 | ||||||||
Balance (in shares) at Sep. 30, 2022 | [1] | 6,725,501 | |||||||||||
Balance at Dec. 31, 2022 | $ 68 | [1] | 544,372 | (537,960) | 6,480 | ||||||||
Balance (in shares) at Dec. 31, 2022 | [1] | 6,836,735 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Stock compensation accrued (Note 16) | 189 | 189 | |||||||||||
Shares issued under the at-the-market offering agreement, net (Note 16) | $ 1 | [1] | 677 | 678 | |||||||||
Shares issued under the at-the-market offering agreement, net (Note 16) (in shares) | [1] | 109,999 | |||||||||||
Net loss | (3,266) | (3,266) | |||||||||||
Balance at Mar. 31, 2023 | $ 69 | [1] | 545,238 | (541,226) | 4,081 | ||||||||
Balance (in shares) at Mar. 31, 2023 | [1] | 6,946,734 | |||||||||||
Balance at Dec. 31, 2022 | $ 68 | [1] | 544,372 | (537,960) | 6,480 | ||||||||
Balance (in shares) at Dec. 31, 2022 | [1] | 6,836,735 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net loss | (7,931) | ||||||||||||
Balance at Sep. 30, 2023 | $ 86 | [1] | 548,328 | (545,891) | 2,523 | ||||||||
Balance (in shares) at Sep. 30, 2023 | [1] | 8,573,252 | |||||||||||
Balance at Mar. 31, 2023 | $ 69 | [1] | 545,238 | (541,226) | 4,081 | ||||||||
Balance (in shares) at Mar. 31, 2023 | [1] | 6,946,734 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Stock compensation accrued (Note 16) | 43 | 43 | |||||||||||
Shares issued under the at-the-market offering agreement, net (Note 16) | $ 2 | [1] | 1,115 | 1,117 | |||||||||
Shares issued under the at-the-market offering agreement, net (Note 16) (in shares) | [1] | 198,931 | |||||||||||
Offering and private placement transaction (Note 16) | $ 8 | [1] | 1,847 | 1,855 | |||||||||
Offering and private placement transaction (Note 16) (in shares) | [1] | 790,000 | |||||||||||
Net loss | (1,488) | (1,488) | |||||||||||
Balance at Jun. 30, 2023 | $ 79 | [1] | 548,243 | (542,714) | 5,608 | ||||||||
Balance (in shares) at Jun. 30, 2023 | [1] | 7,935,665 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Stock compensation accrued (Note 16) | 92 | 92 | |||||||||||
Warrants exercised (Note 16) | $ 7 | [1] | (7) | ||||||||||
Warrants exercised (Note 16) (in shares) | [1] | 637,587 | |||||||||||
Net loss | (3,177) | (3,177) | |||||||||||
Balance at Sep. 30, 2023 | $ 86 | [1] | $ 548,328 | $ (545,891) | $ 2,523 | ||||||||
Balance (in shares) at Sep. 30, 2023 | [1] | 8,573,252 | |||||||||||
[1] (1) Reflects the one-for- 25 reverse stock split that became effective June 9, 2023. Refer to Note 1, “Basis of Preparation of Financial Statements and Nature of Operations.” |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) | Jun. 09, 2023 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) | |
Reverse stock split | 0.04 |
Basis of Preparation of Financi
Basis of Preparation of Financial Statements and Nature of Operations | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Preparation of Financial Statements and Nature of Operations | |
Basis of Preparation of Financial Statements and Nature of Operations | 1. Basis of Preparation of Financial Statements and ature of Operations Golden Minerals Company (the “Company”, “we” “our” or “us”), a Delaware corporation, has prepared these unaudited interim condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). The interim condensed consolidated financial statements do not include all disclosures required by GAAP for annual financial statements, but in the opinion of management, include all adjustments necessary for a fair presentation. Certain prior period amounts may have been reclassified to conform to current classifications. Interim results are not necessarily indicative of results for a full year; accordingly, these interim condensed consolidated financial statements should be read in conjunction with the annual financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and filed with the SEC on March 22, 2023 (the “2022 Annual Report”). The Company is a mining company, holding a 100% interest in the Rodeo property in Durango State, Mexico (the “Rodeo Property”), a 100% interest in the Velardeña and Chicago precious metals mining properties and associated oxide and sulfide processing plants in the state of Durango, Mexico (the “Velardeña Properties”), a 100% interest in the El Quevar advanced exploration property in the province of Salta, Argentina, which is subject to the terms of the “Earn-in Agreement” (see Note 9), and a diversified portfolio of precious metals and other mineral exploration properties located primarily in or near historical precious metals producing regions of Mexico, Argentina and Nevada. The Rodeo Property, the Velardeña Properties, the Yoquivo property and the El Quevar advanced exploration property are the Company’s only material properties. We concluded mining operations at the Rodeo Property in June 2023, and we are engaged in planning for a restart of the Velardeña mine. We continue to evaluate and search for mining opportunities in North America (including Mexico) with near-term prospects of mining, and particularly for properties within reasonable haulage distances of our Velardeña Properties. We are also focused on advancing our Yoquivo exploration property in Mexico, and through the Earn-In Agreement with Barrick, our El Quevar advanced exploration property in Argentina. We are holding an additional portfolio of approximately 12 properties, located in Mexico, Nevada and Argentina for sale or advancement when possible. The Company is considered an exploration stage issuer under the criteria set forth by the SEC under Subpart 1300 of Regulation S-K (“S-K 1300”) as the Company has not yet demonstrated the existence of mineral reserves at any of the Company’s 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 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 mineral reserves, substantially all expenditures at the Company’s Rodeo Property and the Velardeña Properties for mine construction activity, as well as operating 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 costs may be reflected in inventories prior to the sale of the product. The Company cannot be certain that any deposits at any of its properties will ever be confirmed or converted into S-K 1300 compliant “reserves.” Reverse Stock Split On May 26, 2023, the Company’s Board of Directors approved a reverse stock split (the “Reverse Stock Split”) of the Company’s common stock, par value $0.01 per share, at a ratio of one-for- 25 As a result of the Reverse Stock Split, each 25 In addition, proportionate adjustments were made to the number of shares issuable upon the exercise or vesting of all outstanding warrants and restricted stock units, resulting in a proportional decrease in the number of shares of common stock reserved for issuance upon exercise or vesting of such warrants and restricted stock units and the number of shares of common stock then reserved for issuance under the Company’s equity compensation plans, including the Company’s 2023 Equity Incentive Plan, which was reduced proportionately. Accordingly, all share and per share data (including share and per share information related to share-based compensation and outstanding warrants), number of shares outstanding and other common stock equivalents for the periods presented in the accompanying interim condensed consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the Reverse Stock Split. |
Liquidity, Capital Resources an
Liquidity, Capital Resources and Going Concern | 9 Months Ended |
Sep. 30, 2023 | |
Liquidity, Capital Resources and Going Concern | |
Liquidity, Capital Resources and Going Concern | 2. Liquidity, Capital Resources and Going Concern We do not currently have sufficient resources to meet our expected cash needs during the twelve months ended September 30, 2024. At September 30, 2023, we had current assets of approximately $5.9 million, including cash and cash equivalents of approximately $1.6 million. On the same date, we had accounts payable and other current liabilities of approximately $5.6 million. Because we have ceased mining at the Rodeo mine, our only near-term opportunity to generate cash flow from mining to support continued operations is the Velardeña mine. We will require further sources of capital. In order to commence and maintain production at Velardeña, we expect that we will need approximately $3.0 to $3.5 million in capital inflows over the first five months of production. In addition, in order to satisfy the Company’s projected general, administrative, exploration and other expenses through September 30, 2024, we will need approximately $4.0 to $5.0 million in additional capital inflows. Assuming that we are successful in restarting production and that we meet our production objectives at the Velardeña Properties, cash flow from Velardeña is expected to be positive by the end of the second quarter of 2024. These additional capital inflows may take the form of asset sales (such as the one described below), equity financing activities (including the November 2023 Offering described below see Note 20 and Note 23), debt financing, production-based financing (such as streaming or royalty financing), collection of our outstanding VAT receivable, or otherwise. We have previously announced the execution of a non-binding letter of intent for the sale of our Santa Maria property for a total consideration consisting of (i) initial cash proceeds of $1.5 million (plus an additional $0.24 million in VAT payment that we would retain) and (ii) a 1.5% net smelter return royalty on the Santa Maria concession up to a cap of $1.0 million (which may be purchased by the potential buyer from us for $0.5 million at any time prior to the commencement of commercial production on the Santa Maria property). If that transaction is consummated, the funds would likely be received in November 2023 or later. We have also held discussions with various financing parties with regard to equity and/or debt financing as well as streaming or royalty arrangements involving future production at Velardeña. As of September 30, 2023, we had value-added-tax (“VAT”) receivable in Mexico of approximately $3.1 million. Although we believe it is likely we will receive some material portion of this receivable early in the first quarter of 2024, there is no certainty as to the timing and amount of such payment. The interim condensed 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, as noted above, our continuing long-term operations will be dependent upon our ability to secure sufficient funding to generate future profitable operations. The underlying value and recoverability of the amounts shown as property, plant and equipment in our interim condensed consolidated financial statements are dependent on our ability to continue to generate positive cash flows from operations and to continue to fund general administrative, and exploration activities that would lead to additional profitable mining and processing activities or to generate proceeds from the disposition of property, plant and equipment. The ability of the Company to maintain a positive cash balance for a period of twelve months beyond the filing date of this Quarterly Report on Form 10-Q is dependent upon its ability to generate sufficient cash flow from operations, collect VAT accounts receivable from the Mexican government, reduce expenses, sell non-core assets, and raise sufficient funds through equity or external sources. These material uncertainties cast significant doubt on the Company’s ability to continue as a going concern. Therefore, the Company cannot conclude that substantial doubt does not exist as to the Company’s ability to continue as a going concern for the twelve months following the filing date of this Quarterly Report on Form 10-Q. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or liabilities which might be necessary should the Company not continue as a going concern. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | 3. New Accounting Pronouncements The Company does not believe that any recently issued, but not yet effective accounting standards, when adopted, will have a material effect on the accompanying interim condensed consolidated financial statements. |
Correction of Immaterial Error
Correction of Immaterial Error | 9 Months Ended |
Sep. 30, 2023 | |
Correction of Immaterial Error | |
Correction of Immaterial Error | 4. Correction of Immaterial Error In the first quarter of 2022, the Company became aware that at December 31, 2021, it had failed to properly record a royalty tax payable in Mexico related to its Rodeo operations. The effect of correcting this error was to reduce beginning retained earnings by $93,000 at January 1, 2022, as reflected in the accompanying Condensed Consolidated Statements of Changes in Equity. The Company evaluated the materiality of the error described above from a qualitative and quantitative perspective. Based on such evaluation, the Company concluded that while the accumulation of the error was significant to the three months ended March 31, 2022, the correction would not be material to results of operations for the period ended December 31, 2021, nor did it have an effect on the trend of financial results, taking into account the requirements of SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”). |
Cash and Cash Equivalents and I
Cash and Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents and Investments | |
Cash and Cash Equivalents and Investments | 5. Cash and Cash Equivalents and Investments Cash and Cash Equivalents Of the $1.6 million reported as “Cash and cash equivalents” on the Condensed Consolidated Balance Sheet at September 30, 2023, the Company had approximately $153,000 that was unavailable for use due to a court order freezing the bank accounts of one of the Company’s subsidiaries in Mexico related to a lawsuit, as further described in Note 20 and Note 23. The restrictions imposed on the subsidiary’s bank accounts did not impact the Company’s ability to operate the Rodeo mine, which is held through a different Mexico subsidiary, and does not impact the Company’s ability to continue with plans for a Velardeña mine restart or move forward with any of the Company’s other exploration programs in Mexico. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Short-Term Investments 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: Estimated Carrying September 30, 2023 Cost Fair Value Value (in Short-term investments: Trading securities $ 59 $ 11 $ 11 Total trading securities 59 11 11 Total short-term investments $ 59 $ 11 $ 11 December 31, 2022 Short-term investments: Trading securities $ 59 $ 20 $ 20 Total trading securities 59 20 20 Total short-term investments $ 59 $ 20 $ 20 Investment in Fabled The short-term investments at September 30, 2023, and December 31, 2022 consist of 200,000 common shares of Fabled Silver Gold Corp. (“Fabled”) and 20,000 common shares of Fabled Copper Corp. Fabled is a junior mining company that entered into an option agreement with the Company to acquire the Company’s option to earn a 100% interest in the Santa Maria mining claims located in Chihuahua, Mexico (see Note 9). The common shares were issued to the Company as partial consideration per the terms of the option agreement. The Fabled Copper Corp. shares were received in a spin-off of assets from Fabled that occurred on December 21, 2020, to which all existing shareholders of Fabled were entitled. Long-Term Investments Investments in equity securities are generally measured at fair value. Gains and losses for equity securities resulting from changes in fair value are recognized in current earnings. If an equity security does not have a readily determinable fair value, the Company may elect to measure the security at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer. At the end of each reporting period, the Company reassesses whether an equity investment security without a readily determinable fair value qualifies to be measured at cost less impairment, considers whether impairment indicators exist to evaluate if an equity investment security is impaired and, if so, records an impairment loss. Investment in Golden Gryphon Explorations Inc. Long-term investments at September 30, 2023 consist of approximately 1,650,880 shares of Golden Gryphon Explorations Inc. (“GGE”). In 2019, the Company entered into an earn-in agreement with GGE for the Sand Canyon project located in northwestern Nevada. In August 2022, pursuant to the second amendment to the earn-in agreement by which the earn-in period was extended an additional year, the Company purchased approximately 1,500,000 shares of GGE’s common stock for an aggregate purchase price of $225,000. On August 29, 2023, the Company purchased an additional 150,880 shares of GGE’s common stock for an aggregate purchase price of $40,000. For a description of the earn-in agreement with GGE, see “ Exploration Properties—Sand Canyon The GGE investment is accounted for at cost less impairment pursuant to ASC topic 321 as there is no ready market for the shares and it is recorded as non-current investments on the Condensed Consolidated Balance Sheets. The Company concluded it was impractical to estimate fair value due to the absence of a public market for the stock. The Company identified no events or changes in circumstances that might have had a significant adverse effect on the carrying value of the investment and have therefore not recorded any impairment against the asset. 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 no less than $1 billion and are members in good standing with the Securities Investor Protection Corporation. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 9 Months Ended |
Sep. 30, 2023 | |
Prepaid Expenses and Other Assets | |
Prepaid Expenses and Other Assets | 6. Prepaid Expenses and Other Assets Prepaid expenses and other current assets consist of the following: September 30, December 31, 2023 2022 (in thousands) Prepaid insurance $ 228 $ 488 Current portion of deferred offering costs — 45 Recoupable deposits and other 669 609 $ 897 $ 1,142 The current portion of deferred offering costs is associated with the ATM Agreement (see Note 16). Recoupable deposits and other at September 30, 2023 and December 31, 2022 includes a receivable from Barrick for reimbursement of costs of approximately $95,000 and $196,000, respectively, related to the Earn-in Agreement (see Note 9). |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventories | |
Inventories | 7. Inventories Inventories at the Velardeña Properties were as follows: September 30, December 31, 2023 2022 (in thousands) Doré inventory $ 39 $ 230 In-process inventory — 572 Material and supplies, net 266 569 $ 305 $ 1,371 Doré and in-process inventories, recorded at book value, include approximately $2,000 and $28,000 of capitalized depreciation and amortization at September 30, 2023 and December 31, 2022, respectively. Doré inventory at September 30, 2023 consists of 21 payable ounces of gold and 58 payable ounces of silver. Doré inventory at December 31, 2022 consists of 157 payable ounces of gold and 652 payable ounces of silver. The materials and supplies inventories are primarily related to the Velardeña operation and are reduced by a $0.3 million obsolescence reserve at September 30, 2023 and December 31, 2022. |
Value Added Tax Receivable, Net
Value Added Tax Receivable, Net | 9 Months Ended |
Sep. 30, 2023 | |
Value Added Tax Receivable, Net | |
Value Added Tax Receivable, Net | 8. Value Added Tax Receivable, Net At September 30, 2023, the Company recorded a net VAT paid in Mexico of $3.1 million related to the Velardeña Properties and the Rodeo operation, as a recoverable asset, which appears in “Value added tax receivable, net” on the Condensed Consolidated Balance Sheets. Mexico law allows for certain VAT payments to be recovered through ongoing applications for refunds. The Company expects that the current amounts receivable will be recovered within a one-year period. At September 30, 2023, the Company recorded approximately $1.2 million of VAT payable as a reduction to the VAT receivable in Mexico. At December 31, 2022, the Company had recorded approximately $1.5 million of VAT receivable. The Company has also paid VAT in 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, Net | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment, Net | |
Property, Plant and Equipment, Net | 9. Property, Plant and Equipment, Net September 30, December 31, 2023 2022 (in thousands) Mineral properties $ 9,353 $ 9,353 Exploration properties 2,418 2,418 Royalty properties 200 200 Buildings 3,805 3,808 Mining equipment and machinery 16,321 17,127 Other furniture and equipment 1,377 1,355 Asset retirement cost 1,158 1,157 34,632 35,418 Less: Accumulated depreciation and amortization (28,674) (29,002) $ 5,958 $ 6,416 For the nine months ended September 30, 2023 and 2022, the Company recognized approximately $380,000 and $241,000, respectively, of depreciation and amortization expense. For the three months ended September 30, 2023 and 2022, the Company recognized approximately $148,000 and $89,000, respectively, of depreciation and amortization expense. El Quevar Earn-In Agreement On April 9, 2020, we entered into an earn-in agreement with Barrick (the “Earn-In Agreement”), pursuant to which Barrick has acquired an option to earn a 70% interest in the Company’s El Quevar project located in the Salta Province of Argentina. As of December 31, 2021, Barrick had met the $1 million in work expenditures that would permit them to withdraw from the Earn-in Agreement. At September 30, 2023, Barrick has continued with exploration activities at El Quevar, per the terms of the Earn-in Agreement. Sale of Santa Maria Property On December 4, 2020, the Company and Fabled entered into an option agreement (the “Option Agreement”) under which Fabled would have acquired a 100% interest in the Santa Maria property by paying $4.5 million in cash over a period of several years. The Company recorded a $1.5 million payment it received from Fabled in December 2021 to “ Deferred revenue On December 19, 2022, the Option Agreement was amended to reschedule the remaining $2.0 million payment into eight quarterly payments of $250,000 from January 31, 2023 through September 30, 2024. Fabled failed to make the payment due on January 31, 2023. In February 2023, the Company issued a notice of default under the Option Agreement to Fabled and the property has reverted to the Company as allowed under the terms of the Agreement. The carrying value of Santa Maria as of September 30, 2023, and December 31, 2022, is zero. |
Other Long-Term Assets
Other Long-Term Assets | 9 Months Ended |
Sep. 30, 2023 | |
Other Long-Term Assets | |
Other Long-Term Assets | 10. Other Long-Term Assets Other long-term assets consist of right of use assets and at September 30, 2023 include approximately $141,000 related to certain office leases. The right of use assets at December 31, 2022 include approximately $263,000 related to certain office leases and $70,000 related to a mining equipment lease at our Rodeo Property. In December 2020, the Company’s wholly owned subsidiary, Minera de Cordilleras S. de R.L. de C.V., entered into an agreement with Triturados del Guadiana, S.A. de C.V. (“Trigusa”), whereby Trigusa has carried out mining activities at the Rodeo Property. Per the terms of the mining agreement, Trigusa provided services for the 27-month period beginning in December 2020 and ending on March 31, 2023. The Company determined that the mining agreement contained an embedded lease, relating to the mining equipment provided by Trigusa, per the guidance of ASU 2016-02 and Topic 842. The Company did not elect the practical expedient permitting the combination of lease and non-lease components of the mining agreement. The Company recorded a right of use asset and a lease liability Lease liabilities are included in “Other liabilities,” short term and long term (see Note 13), in the Company’s Condensed Consolidated Balance Sheets at September 30, 2023 and December 31, 2022. |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Payable and Other Accrued Liabilities | |
Accounts Payable and Other Accrued Liabilities | 11. Accounts Payable and Other Accrued Liabilities The Company’s accounts payable and other accrued liabilities consist of the following: September 30, December 31, 2023 2022 (in thousands) Accounts payable and accruals $ 3,396 $ 2,213 Accrued employee compensation and benefits 1,615 1,478 Income taxes payable (Note 15) 25 25 $ 5,036 $ 3,716 September 30, 2023 Accounts payable and accruals at September 30, 2023, are primarily related to amounts due to contractors and suppliers in the amounts of $2.2 million related to the Company’s Velardeña Properties and the Rodeo Property and $1.2 million related to corporate administrative and exploration activities. Accrued employee compensation and benefits at September 30, 2023, consist of $0.4 million of accrued vacation payable and $1.2 million related to withholding taxes and benefits payable. Included in the $1.6 million of accrued employee compensation and benefits is $1.4 million related to activities at the Velardeña Properties and the Rodeo Property. December 31, 2022 Accounts payable and accruals at December 31, 2022, are primarily related to amounts due to contractors and suppliers in the amounts of $1.8 million related to the Company’s Velardeña Properties and the Rodeo Property and $0.4 million related to corporate administrative and exploration activities. Accrued employee compensation and benefits at December 31, 2022, consist of $0.4 million of accrued vacation payable and $1.1 million related to withholding taxes and benefits payable. Included in the $1.5 million of accrued employee compensation and benefits is $1.2 million related to activities at the Velardeña Properties and the Rodeo Property. |
Asset Retirement and Reclamatio
Asset Retirement and Reclamation Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Asset Retirement and Reclamation Liabilities | |
Asset Retirement and Reclamation Liabilities | 12. Asset Retirement and Reclamation Liabilities In 2012, the Company retained the services of a mining engineering firm to prepare a detailed closure plan for reclamation activity at the Velardeña Properties. The plan was completed during the second quarter of 2012 and indicated that the Company had an asset retirement obligation (“ARO”) and offsetting asset retirement cost (“ARC”) of approximately $1.9 million. The original ARC had been fully amortized or written off by the end of December 31, 2015. The ARO has been adjusted since 2012 for changes in assumptions related to inflation factors and the timing of future expenditures used in the determination of future cash flows, which previously contemplated that reclamation activities could begin as early as 2023 following the completion of mining at the Rodeo Property. In the fourth quarter of 2021, due to the operating success at Rodeo and the potential of a restart of operations at the Velardeña mine based on recent technical studies at the time and an updated preliminary economic assessment (“PEA”) that would further delay the start of any reclamation activity, the Company retained the services of an environmental consultant to review the closure plan to determine the appropriateness of the scope and cost estimates used in the calculation of the ARO. The consultant confirmed the adequacy of the scope of the closure plan and provided certain adjustments to cost estimates. In addition, the timing for the incurrence of reclamation activity was extended approximately seven years to 2030 to take into account the likelihood of a restart of operations at the Velardeña mine that would further delay the start of any reclamation activity. In late 2022, the Company determined that the restart of the Velardeña Properties would be deferred one year, which would in turn defer the beginning of the reclamation activity assumption by one year to 2031. The Company will continue to accrue additional estimated ARO amounts based on the closure plan and as activities requiring future reclamation and remediation occur. The following table presents the asset retirement and reclamation liabilities as of September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 (in thousands) Current asset retirement and reclamation liabilities $ 50 $ — Non-current asset retirement and reclamation liabilities 4,142 3,993 $ 4,192 $ 3,993 Current asset retirement and reclamation liabilities is included in “Other Current Liabilities” (see Note 13). The following table presents the changes in the Company’s asset retirement and reclamation liabilities for the nine months ended September 30, 2023 and 2022: Nine Months Ended September 30, 2023 2022 (in thousands) Balance at January 1, $ 3,993 $ 3,569 Changes in estimates, and other (23) 25 Accretion expense 222 211 Balance at September 30, $ 4,192 $ 3,805 The change in estimate of the ARO recorded is due to a combination of changes in assumptions related to the timing of future expenditures, the change in inflation assumptions, and the change in the discount rate. |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities | |
Other Liabilities | 13. Other Liabilities Other Current Liabilities September 30, December 31, 2023 2022 (in thousands) Premium financing $ 138 $ 406 Office lease liability 125 164 Mining equipment lease liability — 63 Litigation contingency accrual 250 — Current asset retirement and reclamation liabilities 50 — $ 563 $ 633 The premium financing at September 30, 2023 and December 31, 2022, consists of the remaining balance, plus accrued interest, related to premiums payable for the Company’s directors and officers insurance and general liability insurance. In November 2022, the Company financed approximately $445,000 of its directors and officers insurance premium which is payable in eleven equal payments at an interest rate of 7.0% per annum. In May 2023, the Company financed approximately $147,000 of its general liability insurance premium which is payable in eleven equal payments at an interest rate of 8.3% per annum. The office lease liability is related to lease liabilities for office space at the Company’s principal headquarters in Golden, Colorado and in Mexico and Argentina (see Note 10). The mining equipment lease liability is related to equipment used by the contract miner at our Rodeo Property (see Note 10). The litigation contingency accrual is related to the Unifin lawsuit (see Note 20 and Note 23). The current asset retirement and reclamation liabilities is related to the ARO (see Note 12). Other Long-Term Liabilities Other long-term liabilities of approximately $40,000 for the period ended September 30, 2023, are primarily related to lease liabilities for office space at the Company’s principal headquarters in Golden, Colorado and in Mexico and Argentina (see Note 10). Other long-term liabilities of approximately $122,000 for the period ended December 31, 2022, are primarily related to lease liabilities for office space at the Company’s principal headquarters in Golden, Colorado and in Mexico and Argentina (see Note 10). |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | 14. Fair Value Measurements Financial assets and liabilities and nonfinancial assets and liabilities are measured at fair value on a recurring 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 Topic 820 are as follows: Level 1: Level 2: Level 3: The following table summarizes the Company’s financial assets and liabilities measured on a recurring basis at fair value by respective level of the fair value hierarchy: Level 1 Level 2 Level 3 Total (in thousands) At September 30, 2023 Assets: Cash and cash equivalents $ 1,583 $ — $ — $ 1,583 Short-term investments 11 — — 11 $ 1,594 $ — $ — $ 1,594 At December 31, 2022 Assets: Cash and cash equivalents $ 3,972 $ — $ — $ 3,972 Short-term investments 20 — — 20 $ 3,992 $ — $ — $ 3,992 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 short-term investments consist of 200,000 shares of common stock of Fabled and 20,000 shares of Fabled Copper Corp. and are classified within Level 1 of the fair value hierarchy (see Note 5). At September 30, 2023 and December 31, 2022, 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 The Company recorded a change in estimate to its ARO as of September 30, 2023, of approximately $23,000 (see Note 12), reflecting a change in the fair value of the ARO primarily as the result of changes in assumptions related to the amount and timing of future expenditures used in the determination of future cash flows, following the guidance of ASC Topic 410. The fair value analysis was performed internally by the Company. The valuation falls within Level 3 of the fair value hierarchy. No other non-recurring fair value adjustments to liabilities or long-lived assets were recorded during the nine months ended September 30, 2023 and 2022. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes | |
Income Taxes | 15. Income Taxes The Company accounts for income taxes in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”), on a tax jurisdictional basis. In accordance with ASC 740, the interim provision for taxes was calculated by using the estimated annual effective tax rate applied to the year-to-date income or losses on a jurisdictional basis. Although the Company has generated ordinary losses on a year-to-date basis, the Company has projected taxable income by year end in certain tax jurisdictions, for which an annual effective tax rate has been calculated. For the nine months ended September 30, 2023, the Company recognized less than $1,000 of income tax expense. In accordance with ASC 740, the Company presents deferred tax assets net of its deferred tax liabilities on a tax jurisdictional basis on its Condensed Consolidated Balance Sheets. As of September 30, 2023 and December 31, 2022, the Company had no deferred tax assets and no deferred tax liability on the Condensed Consolidated Balance Sheets due to a valuation allowance offsetting the net deferred tax assets of the Company. 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 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 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. The Company had no unrecognized tax benefits at September 30, 2023 or December 31, 2022. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity | |
Equity | 16. Equity On May 26, 2023, the Company’s Board of Directors approved a reverse stock split of the common stock, par value $0.01 per share, of the Company at a ratio of one-for -25 June 2023 Offering and Private Placement Transaction On June 26, 2023, the Company entered into a Securities Purchase Agreement with certain institutional investors providing for the issuance and sale by the Company in a registered direct offering (the “June 2023 Offering”) of an aggregate of 790,000 shares of the Company’s common stock at a purchase price of $1.45 per share and pre-funded warrants exercisable for up to 637,587 shares of the Company’s common stock (the “Pre-Funded Warrants”) at a purchase price of $1.4499 per June 2023 Pre-Funded Warrant. The June 2023 Pre-Funded Warrants were sold, in lieu of shares of the Company’s common stock, to such institutional investors whose purchase of shares of Company’s common stock in the June 2023 Offering would otherwise result in such institutional investors, together with their respective affiliates and certain related parties, beneficially owning more than 9.99% of the Company’s outstanding common stock immediately following the consummation of the June 2023 Offering. Each June 2023 Pre-Funded Warrant represents the right to purchase one share of the Company’s common stock at an exercise price of $0.0001 per share. The June 2023 Pre-Funded Warrants were exercisable immediately and could be exercised at any time until the June 2023 Pre-Funded Warrants are exercised in full. In a concurrent private placement (the “June 2023 Private Placement” and, together with the June 2023 Offering, the “June 2023 Transactions”), the Company agreed to issue warrants to purchase up to 1,427,587 shares of The Company’s common stock at an exercise price of $1.90 (the “June 2023 Warrants”). Each June 2023 Warrant is exercisable six months from the date of issuance and has a term expiring five years after such initial exercise date. The aggregate gross proceeds from the June 2023 Transactions were approximately $2.1 million, before deducting fees and offering expenses. The net proceeds of the June 2023 Offering were recorded in equity and appear as a separate line item in the Condensed Consolidated Statements of Changes in Equity. Total costs for the June 2023 Offering were approximately $215,000, including listing fees, legal and other costs, and the placement agent fee of 6% of aggregate gross proceeds. All such costs were recorded as a reduction to “Additional paid in capital” on the Condensed Consolidated Balance Sheets. 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. On December 11, 2020, the Company entered into a third amendment of the ATM Agreement further extending the agreement so that it will remain in full force and effect until such time as the ATM Agreement is terminated in accordance with certain other terms therein or upon mutual agreement by the parties, and to reflect a new Registration Statement on Form S-3 (No. 333-249218). On March 29, 2023, the Company filed a Prospectus Supplement increasing the total amount available to be sold under the ATM to $10.0 million in addition to the amounts previously sold. On June 28, 2023, the Company filed another Prospectus Supplement decreasing the total amount available to be sold under the ATM to $3.0 million, not including the amounts previously sold. Under the ATM, the common stock is 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 between purchasers and during the period of distribution. Further, on March 29, 2023, the Company entered into a fourth amendment of the ATM Agreement which provides that Wainwright will be entitled to compensation for its services at a commission rate of up to 3.0% of the gross sales price per share of common stock sold under the ATM Agreement. During the nine months ended September 30, 2023, the Company sold an aggregate of 308,930 shares of common stock under the ATM Program at an average price of $6.19 per share of common stock for net proceeds, after commissions and fees, of approximately $1,839,000. Approximately $45,000 of deferred ATM Program costs were amortized during the nine months ended September 30, 2023. The remaining balance of the deferred ATM Program costs, recorded in “Prepaid expenses and other assets” on the Condensed Consolidated Balance Sheet (see Note 6), is zero at September 30, 2023. During the nine months ended September 30, 2022, the Company did not sell shares of common stock under the ATM Program. At September 30, 2022, there was a remaining balance of $70,000 of deferred ATM Program costs, recorded in “Prepaid expenses and other assets” on the Condensed Consolidated Balance Sheets. As of September 30, 2023, there was approximately $3.0 million remaining available for issuance under the ATM Program based on a prospectus supplement filed with SEC on June 28, 2023. On October 1, 2023, the 2020 Registration Statement on Form S-3 expired. Equity Incentive Plans Under the Company’s Amended and Restated 2009 Equity Incentive Plan (the “2009 Plan”) awards of the Company’s common stock may be made to officers, directors, employees, consultants and agents of the Company and its subsidiaries. On May 26, 2023, the stockholders of the Company voted to approve the Company’s 2023 Equity Incentive Plan (the “2023 Plan”) to replace the 2009 Plan. Under the 2023 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 2023 Plan provides for, among other things, (i) a reserve of 360,000 shares (on a reverse stock split-adjusted basis) of common stock of the Company that may be issued pursuant to awards under the 2023 Plan and (ii) a term that expires on February 23, 2033. Permitted awards under the 2023 Plan include options, stock appreciation rights, restricted stock, restricted stock units, performance stock units, and other cash and stock-based awards. The principal terms of the 2023 Plan are described in the Company’s definitive proxy statement for the Annual Meeting of the Company’s stockholders, filed with the SEC on April 6, 2023. 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. Following the adoption of the 2023 Plan, no further awards may be made under the 2009 Plan. Restricted Stock Grants The following table summarizes the status and activity of the Company’s restricted stock grants at September 30, 2023, and the changes during the nine months then ended: Weighted Average Grant Date Number of Fair Value Restricted Stock Grants Shares Per Share Outstanding at beginning of period 19,800 $ 10.95 Granted during the period — — Restrictions lifted during the period (12,933) 11.97 Forfeited during the period — — Outstanding at end of period 6,867 $ 9.02 As of September 30, 2023, no restricted stock grants had been made under the 2023 Plan. For the nine months ended September 30, 2023 and 2022, the Company recognized approximately $76,000 and $163,000, respectively, of stock compensation expense related to the restricted stock grants. For the three months ended September 30, 2023 and 2022, the Company recognized approximately $20,000 and $37,000, respectively, of stock compensation expense related to the restricted stock grants. Restricted Stock Units The 2009 Plan permitted the Company to issue Restricted Stock Units (“RSUs”), which entitle each recipient to receive one unrestricted share of common stock upon termination of the recipient’s employment or board service. Also, pursuant to the 2009 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, non-employee directors, and employees as allowed by the 2009 Plan, receive a portion of their compensation in the form of RSUs issued under the 2009 Plan. The RSUs generally vest on the first anniversary of the grant. The 2023 Plan permits the Company to issue RSUs, which entitle each recipient to receive one unrestricted share of common stock upon termination of the recipient’s employment or board service. The following table summarizes the status and activity of the Company’s RSUs at September 30, 2023, and the changes during the nine months then ended: Weighted Average Grant Date Number of Fair Value Restricted Stock Units Shares Per Share Outstanding at beginning of period 232,409 $ 15.06 Granted during the period 40,000 1.62 Restrictions lifted during the period — — Forfeited during the period — — Outstanding at end of period 272,409 $ 13.09 During the nine months ended September 30, 2023, the Company granted 40,000 RSUs to an officer of the Company under the 2023 Plan. For the nine months ended September 30, 2023 and 2022, the Company recognized approximately $270,000 and $244,000, respectively, of stock compensation expense related to the RSUs. For the three months ended September 30, 2023 and 2022, the Company recognized approximately $58,000 and $73,000, respectively, of stock compensation expense related to the RSUs. Key Employee Long-Term Incentive Plan The Company’s 2013 Key Employee Long-Term Incentive Plan (the “KELTIP”) provided 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 (such method of settlement at the sole discretion of the Board of Directors) issued pursuant to the 2009 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 Company intends to settle all the KELTIP Units in common stock of the Company, an option that the Board of Directors holds in its sole discretion so long as sufficient shares remain available under the 2009 Plan. As a result, all outstanding KELTIP Units are recorded in equity at September 30, 2023 and December 31, 2022. For the three months ended September 30, 2023, the Company recognized approximately $14,000 of stock compensation expense related to the KELTIP grants. For the nine months ended September 30, 2023, the Company recognized approximately $21,000 of stock compensation income related to the grants due to KELTIP Units being forfeited upon departure of an officer of the Company. There were 168,000 and 188,000 KELTIP Units outstanding at September 30, 2023 and December 31, 2022, respectively. However, under the 2023 Plan the Company discontinued the KELTIP and will no longer issue KELTIP Units. For the three and nine months ended September 30, 2022, the Company recognized approximately $39,000 and $136,000, respectively, of stock compensation expense related to the KELTIP units. Common Stock Warrants The following table summarizes the status of the Company’s common stock warrants at December 31, 2022, and September 30, 2023, and the changes during the nine months then ended: Weighted Number of Average Underlying Exercise Price Common Stock Warrants Shares Per Share Outstanding at December 31, 2022 392,155 $ 8.58 Granted during period June 2023 pre-funded warrants 637,587 0.0001 June 2023 warrants 1,427,587 1.90 Exercised during period — — June 2023 pre-funded warrants (637,587) 0.0001 Expired during period — — Outstanding at September 30, 2023 1,819,742 $ 3.19 The warrants relate to prior registered offerings and private placements of the Company’s stock. All outstanding warrants are recorded in equity at September 30, 2023 and December 31, 2022, following the guidance established by ASC Topic 815-40. The Company’s warrants allow for potential settlement in cash if certain extraordinary events are effected by the Company, including a 50% or greater change of control in the Company’s common stock. Since those events have been deemed to be within the Company’s control, the Company continues to apply equity treatment for these warrants. |
Sale of Metals and Related Cost
Sale of Metals and Related Costs | 9 Months Ended |
Sep. 30, 2023 | |
Sale of Metals and Related Costs | |
Sale of Metals and Related Costs | 17. Sale of Metals and Related Costs Revenue from Gold and Silver in Doré During the nine months ended September 30, 2023, the Company recorded revenue of approximately $9.7 million and related costs of approximately $11.0 million related to gold and silver contained in doré bars related to the Rodeo operation. The gold and silver contained in the doré bars were sold to one customer, a metals refinery located in the United States. Under the terms of the Company’s agreement with its customer, title passes and revenue is recognized by the Company when the contractual performance obligations of the parties are completed, generally at the time a provisional or final payment is made. A provisional payment for approximately 95% of the contained gold and silver is made generally within 10 During the nine months ended September 30, 2022, the Company sold gold and silver contained in doré bars related to the Rodeo operation and recorded revenue of approximately $18.7 million and related costs of approximately $13.3 million. Costs related to the sale of metal products include direct and indirect costs incurred to mine, process and market the products. Revenue from Concentrate Sales In April 2023, the Company began to sell three different concentrates containing various amounts of gold, silver, lead and zinc produced from material processed from the Velardeña mine which had been stockpiled from test mining performed in 2022 as part of the studies undertaken in connection with the potential restart of the Velardeña Properties. During the nine months ended September 30, 2023, the Company recorded revenue of $1.5 million from the combined sales of these concentrates and related costs of $0.2 million. The concentrate was sold to one customer, a metal trader in Mexico. Under the terms of the Company’s agreement with its customer, title passes and revenue is recognized by the Company when the contractual performance obligations of the parties are completed, generally at the time a provisional or final payment is made. A provisional payment for approximately 90% of the contained gold, silver, lead and zinc is made generally within 10-12 days after the product is shipped and customary sales documents are completed. A final payment is made within approximately 60 days following the date of shipment when final assays and refinery charges are agreed upon by the parties. A price for the gold and silver sold is set, based on average market prices, one month following the delivery of concentrate to the buyer. Refining and transport costs, deducted from the final payments made, are treated as third-party agent costs incurred by the Company in performing its obligations under the agreement with its customer after the transfer of control on provisional sales and are therefore netted against revenue on an accrual basis. There were no concentrate sales during the nine months ended September 30, 2022. Revenue from Slag Sales During the nine months ended September 30, 2023, the Company recorded revenue of $0.5 million and related costs of zero related to the gold and silver contained in the slag from the Rodeo Property. The slag was sold to one customer, a metals refinery located in the United States. Under the terms of the Company’s agreement with its customer, title passes and revenue is recognized by the Company when the contractual performance obligations of the parties are completed which occurs at the time a final payment is made. Final payment is made 30 working days after the settlement of assays for 95% of the contained gold and 90% of the contained silver. The price for the gold and silver sold is set on the first trading day following the day of the settlement assay. Refining costs are deducted from the final payments made, are treated as third-party agent costs incurred by the Company in performing its obligations under the agreement with its customer and are therefore netted against revenue. There were no slag sales during the nine months ended September 30, 2022. |
Interest and Other Income (Expe
Interest and Other Income (Expense), Net | 9 Months Ended |
Sep. 30, 2023 | |
Interest and Other Income (Expense), Net | |
Interest and Other Income (Expense), Net | 18. Interest and Other Income (Expense), Net For the three and nine months ended September 30, 2023 and 2022, the Company recognized a nominal amount of Interest and other income (expense), net. |
Cash Flow Information
Cash Flow Information | 9 Months Ended |
Sep. 30, 2023 | |
Cash Flow Information | |
Cash Flow Information | 19. Cash Flow Information The following table reconciles net loss for the period to cash used in operations: Nine Months Ended September 30, 2023 2022 (in thousands) Cash flows (used in) from operating activities: Net loss $ (7,931) $ (5,826) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 380 241 Accretion of asset retirement obligation 222 211 Loss on trading securities 9 32 Gain on sale of assets (436) (125) Stock-based compensation 324 543 Litigation settlement 250 — Changes in operating assets and liabilities from continuing operations: Decrease (increase) in inventories, net 1,066 (150) Increase in value added tax receivable, net (1,679) (480) Decrease (increase) in prepaid expenses and other assets 201 (37) Decrease in other long-term assets 192 104 Increase in accounts payable and other accrued liabilities 1,320 835 Decrease in deferred revenue — (1,125) Decrease in other current liabilities (320) (445) (Decrease) increase in reclamation liability (73) 25 Decrease in other long-term liabilities (82) (204) Net cash used in operating activities $ (6,557) $ (6,401) The following table sets forth supplemental cash flow information and non-cash transactions: Nine Months Ended September 30, 2023 2022 (in thousands) Supplemental disclosure: Interest paid $ 17 $ 6 Income taxes paid $ — $ 413 Supplemental disclosure of non-cash transactions: Deferred equity offering costs amortized $ 45 $ — |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 20. Commitments and Contingencies During April 2021, the Company became aware of a lawsuit in Mexico against one of the Company’s Mexican subsidiaries, Minera William, S.A. de C.V. (“Minera William”). The plaintiff in the matter is Unifin Financiera, S.A.B de C.V. (“Unifin”). The lawsuit was assigned to the Fifth Specialized Commercial District Court. In November 2022, the Company was formally served with the complaint in connection with the lawsuit and in December 2022 the Company filed its answer to the complaint. Unifin is alleging that a representative of Minera William signed certain documents in July 2011 purporting to bind Minera William as a guarantor of payment obligations owed by a third party to Unifin in connection with that third party’s acquisition of certain drilling equipment. At the time the documentation was allegedly signed, Minera William was a subsidiary of ECU Silver Mining prior to the Company’s acquisition of ECU in September 2011. As a preemptive measure, Unifin has obtained a preliminary court order freezing Minera William’s bank accounts in Mexico, which has limited the Company’s and Minera William’s ability to access approximately US$153,000 according to current currency exchange rates. Notwithstanding this action, the restrictions imposed on Minera William’s bank accounts do not impact the Company’s ability to operate the Rodeo mine, which is held through a different Mexico subsidiary. Likewise, the action does not impact the Company’s ability to continue with the Company’s evaluation plans for a potential Velardeña mine restart or move forward with any of the Company’s other exploration programs in Mexico. However, because the Velardeña mine and one processing plant are held by Minera William, any adverse outcome to the action may have a material impact on our ability to restart production at Velardeña. Unifin is seeking recovery for as much as US$12.5 million. The Company believes there is no basis for this claim. A preliminary hearing was initially scheduled to take place in April 2023 but was rescheduled to June 2023. In June 2023 Minera William and Unifin agreed to pursue discussions to settle the matter and the Court agreed to suspend trial to allow Minera William and Unifin to negotiate a settlement agreement. Subsequent to September 30, 2023, tentative terms were reached to settle the dispute in exchange for a payment by the Company of 0.25 million, although no definitive settlement agreement has yet been executed. An accrued liability has been recorded for $0.25 million as of September 30, 2023 (see Note 13 and Note 23). The Company also has certain purchase and lease commitments as set forth in the Company’s 2022 Annual Report. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Information | |
Segment Information | 21. Segment Information The Company’s sole activity is the mining, construction and exploration of mineral properties containing precious metals. The Company’s reportable segments are based on the Company’s revenue-producing activities and cash-consuming activities. The Company reports two segments, one for its revenue-producing activities in Mexico, which includes both the Velardeña Properties and the Rodeo Property, 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 Costs Depreciation, Quevar, Velardeña Three Months Ended Applicable Depletion and and Administrative Capital September 30, 2023 Revenue to Sales Amortization Expense Pre-Tax Loss Total Assets Expenditures Mexico Operations $ 2,512 $ 3,347 $ 145 $ 753 $ 1,896 $ — Corporate, Exploration and Other — — 3 1,485 1,281 — Consolidated $ 2,512 $ 3,347 $ 148 $ 2,238 $ 3,177 $ — Nine Months Ended September 30, 2023 Mexico Operations $ 11,702 $ 11,225 $ 368 $ 2,907 $ 3,041 $ 7,727 $ Corporate, Exploration and Other — — 12 4,989 4,890 4,577 Consolidated $ 11,702 $ 11,225 $ 380 $ 7,896 $ 7,931 $ 12,304 $ — Three Months Ended September 30, 2022 Mexico Operations $ 5,268 $ 4,374 $ 77 $ 1,878 $ 1,097 $ 17 Corporate, Exploration and Other — — 12 1,940 1,646 2 Consolidated $ 5,268 $ 4,374 $ 89 $ 3,818 $ 2,743 $ 19 Nine Months Ended September 30, 2022 Mexico Operations $ 18,700 $ 13,335 $ 204 $ 5,815 $ 14 $ 9,084 $ 43 Corporate, Exploration and Other — — 37 5,980 5,902 9,465 3 Consolidated $ 18,700 $ 13,335 $ 241 $ 11,795 $ 5,916 $ 18,549 $ 46 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions | |
Related Party Transactions | 22. Related Party Transactions The following sets forth information regarding transactions between the Company (and its subsidiaries) and its officers, directors and significant stockholders. Administrative Services, Lease of Equipment: Beginning in August 2016, the Company began providing limited accounting and other administrative services to Minera Indé, an indirect subsidiary of The Sentient Group (“Sentient”). Sentient, through the Sentient executive funds, holds approximately 18% of the Company’s 8.6 million shares of issued and outstanding Exploration expense |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events | |
Subsequent Events | 23. Subsequent Events Unifin Litigation On October 27, 2023 the Company was informed that Unifin has expressed its willingness to settle the dispute with the Company in exchange for a payment by the Company of $0.25 million although no definitive settlement agreement has yet been executed. The Company expects to use $153,000 in cash that has been frozen in the Minera William bank account as partial payment of the settlement amount (see Note 5). An accrued liability has been recorded for $0.25 million as of September 30, 2023 (see Note 13 and Note 20). November 2023 Offering On November 6, 2023, the Company entered into a Securities Purchase Agreement with certain purchasers providing for the issuance and sale by the Company pursuant to a Registration Statement on Form S-1 (No. 333-274403) (the “November 2023 Offering”) of an aggregate of 4,712,488 shares of the Company’s common stock, $0.01 par value per share, at a purchase price of $0.70 per share; (ii) pre-funded warrants to purchase 1,287,512 shares of the Company’s common stock (the “November 2023 Pre-Funded Warrants”) at a purchase price of $0.0001 per November 2023 Pre-Funded Warrant; (iii) Series A warrants to purchase 6,000,000 shares of the Company’s common stock (the “November 2023 Series A Warrants”) at a purchase price of $0.70 per November 2023 Series A Warrants; (iv) Series B warrants to purchase 3,000,000 shares of the Company’s common stock (the “November 2023 Series B Warrants” at a purchase price of $0.70 per November 2023 Series B Warrants. The November 2023 Pre-Funded Warrants are exercisable immediately and could be exercised at any time until the November 2023 Pre-Funded Warrants are exercised in full. The November 2023 Series A Warrants are exercisable immediately and will expire five years from the date of issuance. The November 2023 Series B Warrants are exercisable immediately and will expire 18 months from the date of issuance. The aggregate gross proceeds from the November 2023 Offering was $4.2 million, before deducting fees and offering expenses . |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | The Company does not believe that any recently issued, but not yet effective accounting standards, when adopted, will have a material effect on the accompanying interim condensed consolidated financial statements. |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents and Investments | |
Schedule of short term-investments | Estimated Carrying September 30, 2023 Cost Fair Value Value (in Short-term investments: Trading securities $ 59 $ 11 $ 11 Total trading securities 59 11 11 Total short-term investments $ 59 $ 11 $ 11 December 31, 2022 Short-term investments: Trading securities $ 59 $ 20 $ 20 Total trading securities 59 20 20 Total short-term investments $ 59 $ 20 $ 20 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Prepaid Expenses and Other Assets | |
Schedule of prepaid expenses and other current assets | September 30, December 31, 2023 2022 (in thousands) Prepaid insurance $ 228 $ 488 Current portion of deferred offering costs — 45 Recoupable deposits and other 669 609 $ 897 $ 1,142 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventories | |
Schedule of inventories at the Velardea Properties | September 30, December 31, 2023 2022 (in thousands) Doré inventory $ 39 $ 230 In-process inventory — 572 Material and supplies, net 266 569 $ 305 $ 1,371 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment, Net | |
Schedule of components of property, plant and equipment | September 30, December 31, 2023 2022 (in thousands) Mineral properties $ 9,353 $ 9,353 Exploration properties 2,418 2,418 Royalty properties 200 200 Buildings 3,805 3,808 Mining equipment and machinery 16,321 17,127 Other furniture and equipment 1,377 1,355 Asset retirement cost 1,158 1,157 34,632 35,418 Less: Accumulated depreciation and amortization (28,674) (29,002) $ 5,958 $ 6,416 |
Accounts Payable and Other Ac_2
Accounts Payable and Other Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Payable and Other Accrued Liabilities | |
Schedule of accounts payable and other accrued liabilities | September 30, December 31, 2023 2022 (in thousands) Accounts payable and accruals $ 3,396 $ 2,213 Accrued employee compensation and benefits 1,615 1,478 Income taxes payable (Note 15) 25 25 $ 5,036 $ 3,716 |
Asset Retirement and Reclamat_2
Asset Retirement and Reclamation Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Asset Retirement and Reclamation Liabilities | |
Schedule of asset retirement obligations | September 30, December 31, 2023 2022 (in thousands) Current asset retirement and reclamation liabilities $ 50 $ — Non-current asset retirement and reclamation liabilities 4,142 3,993 $ 4,192 $ 3,993 |
Summary of activity in the Velardena Properties ARO | Nine Months Ended September 30, 2023 2022 (in thousands) Balance at January 1, $ 3,993 $ 3,569 Changes in estimates, and other (23) 25 Accretion expense 222 211 Balance at September 30, $ 4,192 $ 3,805 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities. | |
Schedule of other current liabilities | September 30, December 31, 2023 2022 (in thousands) Premium financing $ 138 $ 406 Office lease liability 125 164 Mining equipment lease liability — 63 Litigation contingency accrual 250 — Current asset retirement and reclamation liabilities 50 — $ 563 $ 633 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements | |
Schedule of financial assets and liabilities at fair value | Level 1 Level 2 Level 3 Total (in thousands) At September 30, 2023 Assets: Cash and cash equivalents $ 1,583 $ — $ — $ 1,583 Short-term investments 11 — — 11 $ 1,594 $ — $ — $ 1,594 At December 31, 2022 Assets: Cash and cash equivalents $ 3,972 $ — $ — $ 3,972 Short-term investments 20 — — 20 $ 3,992 $ — $ — $ 3,992 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity | |
Schedule of status of the restricted stock grants | Weighted Average Grant Date Number of Fair Value Restricted Stock Grants Shares Per Share Outstanding at beginning of period 19,800 $ 10.95 Granted during the period — — Restrictions lifted during the period (12,933) 11.97 Forfeited during the period — — Outstanding at end of period 6,867 $ 9.02 |
Schedule of restricted stock units | Weighted Average Grant Date Number of Fair Value Restricted Stock Units Shares Per Share Outstanding at beginning of period 232,409 $ 15.06 Granted during the period 40,000 1.62 Restrictions lifted during the period — — Forfeited during the period — — Outstanding at end of period 272,409 $ 13.09 |
Summary of the status of the Company's common stock warrants | The following table summarizes the status of the Company’s common stock warrants at December 31, 2022, and September 30, 2023, and the changes during the nine months then ended: Weighted Number of Average Underlying Exercise Price Common Stock Warrants Shares Per Share Outstanding at December 31, 2022 392,155 $ 8.58 Granted during period June 2023 pre-funded warrants 637,587 0.0001 June 2023 warrants 1,427,587 1.90 Exercised during period — — June 2023 pre-funded warrants (637,587) 0.0001 Expired during period — — Outstanding at September 30, 2023 1,819,742 $ 3.19 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Cash Flow Information | |
Schedule of reconciliation of net loss for the period to cash used in operations | Nine Months Ended September 30, 2023 2022 (in thousands) Cash flows (used in) from operating activities: Net loss $ (7,931) $ (5,826) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 380 241 Accretion of asset retirement obligation 222 211 Loss on trading securities 9 32 Gain on sale of assets (436) (125) Stock-based compensation 324 543 Litigation settlement 250 — Changes in operating assets and liabilities from continuing operations: Decrease (increase) in inventories, net 1,066 (150) Increase in value added tax receivable, net (1,679) (480) Decrease (increase) in prepaid expenses and other assets 201 (37) Decrease in other long-term assets 192 104 Increase in accounts payable and other accrued liabilities 1,320 835 Decrease in deferred revenue — (1,125) Decrease in other current liabilities (320) (445) (Decrease) increase in reclamation liability (73) 25 Decrease in other long-term liabilities (82) (204) Net cash used in operating activities $ (6,557) $ (6,401) Nine Months Ended September 30, 2023 2022 (in thousands) Supplemental disclosure: Interest paid $ 17 $ 6 Income taxes paid $ — $ 413 Supplemental disclosure of non-cash transactions: Deferred equity offering costs amortized $ 45 $ — |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Information | |
Schedule of financial information relating to discontinued operations and continuing operations | Exploration, El Costs Depreciation, Quevar, Velardeña Three Months Ended Applicable Depletion and and Administrative Capital September 30, 2023 Revenue to Sales Amortization Expense Pre-Tax Loss Total Assets Expenditures Mexico Operations $ 2,512 $ 3,347 $ 145 $ 753 $ 1,896 $ — Corporate, Exploration and Other — — 3 1,485 1,281 — Consolidated $ 2,512 $ 3,347 $ 148 $ 2,238 $ 3,177 $ — Nine Months Ended September 30, 2023 Mexico Operations $ 11,702 $ 11,225 $ 368 $ 2,907 $ 3,041 $ 7,727 $ Corporate, Exploration and Other — — 12 4,989 4,890 4,577 Consolidated $ 11,702 $ 11,225 $ 380 $ 7,896 $ 7,931 $ 12,304 $ — Three Months Ended September 30, 2022 Mexico Operations $ 5,268 $ 4,374 $ 77 $ 1,878 $ 1,097 $ 17 Corporate, Exploration and Other — — 12 1,940 1,646 2 Consolidated $ 5,268 $ 4,374 $ 89 $ 3,818 $ 2,743 $ 19 Nine Months Ended September 30, 2022 Mexico Operations $ 18,700 $ 13,335 $ 204 $ 5,815 $ 14 $ 9,084 $ 43 Corporate, Exploration and Other — — 37 5,980 5,902 9,465 3 Consolidated $ 18,700 $ 13,335 $ 241 $ 11,795 $ 5,916 $ 18,549 $ 46 |
Basis of Preparation of Finan_2
Basis of Preparation of Financial Statements and Nature of Operations (Details) | 9 Months Ended |
Sep. 30, 2023 property | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Number of additional selected properties advanced in portfolio | 12 |
Rodeo Property | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Investment ownership percentage | 100% |
El Quevar Project | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Investment ownership percentage | 100% |
Velardena Properties | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Investment ownership percentage | 100% |
Basis of Preparation of Finan_3
Basis of Preparation of Financial Statements and Nature of Operations - Reverse Stock Split (Details) | Jun. 09, 2023 shares | Sep. 30, 2023 $ / shares shares | Jun. 08, 2023 shares | May 26, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares |
Basis of Preparation of Financial Statements and Nature of Operations | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Reverse stock split | 0.04 | ||||
Reverse stock split, number of fractional shares | 0 | ||||
Common stock, shares authorized | 28,000,000 | 28,000,000 | 350,000,000 | 28,000,000 |
Liquidity, Capital Resources _2
Liquidity, Capital Resources and Going Concern (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Nov. 06, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2022 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Proceeds from the sale of the Company's common stock | $ 3,694 | $ 1,050 | ||||
Current assets | 5,940 | $ 7,970 | ||||
Cash and cash equivalents | 1,583 | 3,972 | ||||
Current liabilities | 5,599 | 4,349 | ||||
Value added tax receivable | 3,144 | $ 1,465 | ||||
MEXICO | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Value added tax receivable | 3,100 | |||||
Subsequent Event | November 2023 Offering | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Proceeds from the sale of the Company's common stock | $ 4,200 | |||||
Sale of Santa Maria Property | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Initial cash consideration | 1,500 | |||||
Amount of VAT payment to be retained | $ 240 | |||||
Net smelter return royalty (in percent) | 1.50% | |||||
Cap of net smelter return royalty | $ 1,000 | |||||
Purchase price of net smelter return royalty | $ 500 | |||||
Scenario, Forecast | Minimum | Velardena Properties | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Amount of capital inflows to be except over first five months of production | $ 3,000 | |||||
Amount of additional capital inflows | $ 4,000 | |||||
Scenario, Forecast | Maximum | Velardena Properties | ||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||||
Amount of capital inflows to be except over first five months of production | $ 3,500 | |||||
Amount of additional capital inflows | $ 5,000 |
Correction of Immaterial Error
Correction of Immaterial Error (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | $ (545,891,000) | $ (537,960,000) | |
Revision of Prior Period Error Correction Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | $ (93,000) |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Investments (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Aug. 29, 2023 | Aug. 31, 2022 | Apr. 30, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Cash and cash equivalents | $ 1,583,000 | $ 3,972,000 | ||||
Cash and cash equivalent, frozen bank balance | $ 153,000 | 153,000 | ||||
Trading securities, cost | 59,000 | 59,000 | ||||
Total short-term investments, cost | 59,000 | 59,000 | ||||
Total short-term investments | 11,000 | 20,000 | ||||
Aggregate purchase price | 40,000 | $ 225,000 | ||||
Financial institutions minimum net worth | $ 1,000,000,000 | |||||
Golden Gryphon Explorations Inc | ||||||
Shares purchased | 150,880 | 1,500,000 | 1,650,880 | |||
Aggregate purchase price | $ 40,000 | $ 225,000 | ||||
Trading securities | ||||||
Trading securities, cost | $ 59,000 | $ 59,000 | ||||
Sale of Santa Maria Property | Options Agreement | Fabled Copper Corp. | ||||||
Consideration received in shares | shares | 20,000 | 20,000 | ||||
Percentage of interest claims | 100% | |||||
Sale of Santa Maria Property | Options Agreement | Fabled Silver Gold Corp. | ||||||
Consideration received in shares | shares | 200,000 | 200,000 | ||||
Estimate of Fair Value Measurement | ||||||
Trading securities | $ 11,000 | $ 20,000 | ||||
Total short-term investments | 11,000 | 20,000 | ||||
Estimate of Fair Value Measurement | Trading securities | ||||||
Trading securities | 11,000 | 20,000 | ||||
Reported Value Measurement | ||||||
Trading securities | 11,000 | 20,000 | ||||
Total short-term investments | 11,000 | 20,000 | ||||
Reported Value Measurement | Trading securities | ||||||
Trading securities | $ 11,000 | $ 20,000 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Prepaid Expenses and Other Assets | ||
Prepaid insurance | $ 228,000 | $ 488,000 |
Current portion of deferred offering costs | 45,000 | |
Recoupable deposits and other | 669,000 | 609,000 |
Prepaid expenses and other assets | 897,000 | 1,142,000 |
Receivables for reimbursement of costs | $ 95,000 | $ 196,000 |
Inventories (Details)
Inventories (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) oz | Dec. 31, 2022 USD ($) oz | |
Material and supplies, net | $ 305,000 | $ 1,371,000 |
Velardena Properties | ||
Dore inventory | 39,000 | 230,000 |
In-process inventory | 572,000 | |
Material and supplies | 266,000 | 569,000 |
Material and supplies, net | 305,000 | 1,371,000 |
Capitalized depreciation and amortization | $ 2,000 | $ 28,000 |
Dore inventory gold | oz | 21 | 157 |
Dore inventory silver | oz | 58 | 652 |
Obsolescence allowance | $ 300,000 | $ 300,000 |
Value Added Tax Receivable, N_2
Value Added Tax Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Value added tax receivable | $ 3,144 | $ 1,465 |
MEXICO | ||
Value added tax receivable | 3,100 | |
VAT receivables offset against VAT payable | $ 1,200 | $ 1,500 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 34,632,000 | $ 34,632,000 | $ 35,418,000 | ||
Less: Accumulated depreciation and amortization | (28,674,000) | (28,674,000) | (29,002,000) | ||
Property, plant and equipment, net | 5,958,000 | 5,958,000 | 6,416,000 | ||
Depreciation and amortization | 148,000 | $ 89,000 | 380,000 | $ 241,000 | |
Mineral properties | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 9,353,000 | 9,353,000 | 9,353,000 | ||
Exploration properties | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 2,418,000 | 2,418,000 | 2,418,000 | ||
Royalty properties | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 200,000 | 200,000 | 200,000 | ||
Buildings | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 3,805,000 | 3,805,000 | 3,808,000 | ||
Mining equipment and machinery | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 16,321,000 | 16,321,000 | 17,127,000 | ||
Other furniture and equipment | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | 1,377,000 | 1,377,000 | 1,355,000 | ||
Asset retirement cost | |||||
Property, plant and equipment | |||||
Property, plant and equipment, gross | $ 1,158,000 | $ 1,158,000 | $ 1,157,000 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Disposals (Details) | 9 Months Ended | 12 Months Ended | ||||
Dec. 19, 2022 USD ($) installment | Dec. 04, 2020 USD ($) | Apr. 09, 2020 | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Property, plant and equipment | ||||||
Contract with customer liability | $ 0 | $ 0 | $ 1,500,000 | |||
Minimum work expenditures spend to withdraw agreement | $ 1,000,000 | |||||
El Quevar Project | ||||||
Property, plant and equipment | ||||||
Ownership after transaction (as a percent) | 70% | |||||
Sale of Santa Maria Property | ||||||
Property, plant and equipment | ||||||
Ownership after transaction (as a percent) | 100% | |||||
Carrying value of concessions allowed | $ 0 | $ 0 | ||||
Cash consideration received | $ 4,500,000 | |||||
Sale of Santa Maria Property | Fabled Copper Corp. | Binding Letter of Intent Agreement | ||||||
Property, plant and equipment | ||||||
Number of quarterly installments of second year anniversary | installment | 8 | |||||
Amount of second year anniversary consideration | $ 250,000 | |||||
Second year anniversary consideration | $ 2,000,000 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
Office Leases | |||
Change in Accounting Principle | |||
Right of use assets | $ 141,000 | $ 263,000 | |
Mining Equipment Lease Property | |||
Change in Accounting Principle | |||
Right of use assets | $ 70,000 | ||
Rodeo Property | |||
Change in Accounting Principle | |||
Term of operating lease | 27 months | ||
Right of use assets | $ 420,000 | ||
Lease liability | $ 420,000 | ||
Future lease payments discount rate | 7% |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts payable and accruals | $ 3,396 | $ 2,213 |
Accrued employee compensation and benefits | 1,615 | 1,478 |
Income taxes payable (Note 15) | 25 | 25 |
Accounts payable and other accrued liabilities | 5,036 | 3,716 |
Accrued vacation | 400 | 400 |
Withholding taxes and benefits payable | 1,200 | 1,100 |
Velardena Properties | ||
Accounts payable and accruals | 2,200 | 1,800 |
Accrued employee compensation and benefits | 1,400 | 1,200 |
Corporate administrative and exploration | ||
Accounts payable and accruals | $ 1,200 | $ 400 |
Asset Retirement and Reclamat_3
Asset Retirement and Reclamation Liabilities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jun. 30, 2012 | |
Current asset retirement and reclamation liabilities | $ 50,000 | ||||
Non-current asset retirement and reclamation liabilities | 4,142,000 | $ 3,993,000 | |||
Total | $ 3,569,000 | 4,192,000 | $ 3,805,000 | 3,993,000 | |
Summary of activity in the Velardena Operations ARO | |||||
ARO, Beginning balance | 3,993,000 | 3,569,000 | 3,569,000 | ||
Changes in estimates, and other | (23,000) | 25,000 | |||
Accretion expense | 222,000 | 211,000 | |||
ARO, Ending balance | $ 3,569,000 | $ 4,192,000 | $ 3,805,000 | $ 3,993,000 | |
Velardena Properties | |||||
Non-current asset retirement and reclamation liabilities | $ 1,900,000 | ||||
Reclamation activity extension term | 7 years | 1 year |
Other Liabilities (Details)
Other Liabilities (Details) | 1 Months Ended | |||
May 31, 2023 USD ($) installment | Nov. 30, 2022 USD ($) installment | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Other Current Liabilities | ||||
Premium financing | $ 138,000 | $ 406,000 | ||
Office lease liability | 125,000 | 164,000 | ||
Mining equipment lease liability | 63,000 | |||
Litigation contingency accrual | 250,000 | |||
Current asset retirement and reclamation liabilities | 50,000 | |||
Other current liabilities | 563,000 | 633,000 | ||
Other long term liabilities | $ 40,000 | $ 122,000 | ||
General Liability | ||||
Other Current Liabilities | ||||
Number of payment | installment | 11 | |||
Premium interest rate | 8.30% | |||
Insurance premium payable | $ 147,000 | |||
Directors and Officers Liability, and General Liability Insurance | ||||
Other Current Liabilities | ||||
Number of payment | installment | 11 | |||
Premium interest rate | 7% | |||
Insurance premium payable | $ 445,000 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair value measurements | |||
Changes in estimates, and other | $ (23,000) | $ 25,000 | |
Fair value Assumptions | |||
Fair value adjustments to long lived assets | $ 0 | $ 0 | |
Fabled Copper Corp. | Sale, not discontinued operations | Binding Letter of Intent Agreement | |||
Fair value Assumptions | |||
Consideration received in shares | shares | 200,000 | ||
Level 1 | Fabled Copper Corp. | Binding Letter of Intent Agreement | |||
Fair value Assumptions | |||
Investment shares held (in shares) | 20,000 | ||
Fair Value, Measurements, Recurring | |||
Fair value measurements | |||
Cash and cash equivalents | $ 1,583,000 | $ 3,972,000 | |
Short-term investments | 11,000 | 20,000 | |
Assets | 1,594,000 | 3,992,000 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Fair value measurements | |||
Cash and cash equivalents | 1,583,000 | 3,972,000 | |
Short-term investments | 11,000 | 20,000 | |
Assets | $ 1,594,000 | $ 3,992,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Net deferred tax assets | $ 0 | $ 0 |
Net deferred tax liabilities | 0 | 0 |
Unrecognized tax benefits | 0 | $ 0 |
Maximum | ||
Current tax expense | $ 1,000 |
Equity - Offering and Private P
Equity - Offering and Private Placement Transaction (Details) | 3 Months Ended | |||||
Jun. 26, 2023 USD ($) $ / shares shares | Jun. 09, 2023 shares | Sep. 30, 2023 USD ($) $ / shares shares | Jun. 08, 2023 shares | May 26, 2023 $ / shares | Dec. 31, 2022 $ / shares shares | |
Subsidiary, Sale of Stock [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Reverse stock split | 0.04 | |||||
Common stock, shares authorized | shares | 28,000,000 | 28,000,000 | 350,000,000 | 28,000,000 | ||
Exercise price of warrants (in dollars per share) | $ / shares | $ 3.19 | $ 8.58 | ||||
Total cost of offering | $ | $ 215,000 | |||||
Placement agent fee (as a percent) | 6% | |||||
Offering And Private Placement Transaction | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Aggregate gross proceeds | $ | $ 2,100,000 | |||||
June 2023 Offering | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Aggregate number of common stock sold (Shares) | shares | 790,000 | |||||
Purchase price (in dollars per shares) | $ / shares | $ 1.45 | |||||
Warrants to purchase common stock | shares | 637,587 | |||||
Purchase price per warrant | $ / shares | $ 1.4499 | |||||
Threshold minimum beneficial ownership percentage | 9.99% | |||||
Number of common shares which can be purchased with each warrant | shares | 1 | |||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 0.0001 | |||||
June 2023 Offering | Pre-Funded Warrants | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Number of warrants exercised | shares | 637,587 | |||||
Net proceeds | $ | $ 63,760,000 | |||||
June 2023 Private Placement | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Number of common shares which can be purchased with each warrant | shares | 1,427,587 | |||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 1.90 | |||||
Warrants exercise period | 6 months | |||||
Expiration term of warrant | 5 years |
Equity - Issue and Conversion (
Equity - Issue and Conversion (Details) - USD ($) | 9 Months Ended | |||||
Jun. 26, 2023 | Mar. 29, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 28, 2023 | Dec. 31, 2016 | |
Total cost of offering | $ 215,000 | |||||
Placement agent fee (as a percent) | 6% | |||||
Proceeds from issuance of common stock, net of issuance costs | $ 3,694,000 | $ 1,050,000 | ||||
June 2023 Private Placement | ||||||
Expiration term of warrant | 5 years | |||||
ATM Agreement | ||||||
Aggregate number of common stock sold (Shares) | 308,930 | |||||
Aggregate value of securities allowed under agreement | $ 10,000,000 | $ 3,000,000 | $ 5,000,000 | |||
Sale price (in dollars per shares) | $ 6.19 | |||||
Proceeds from issuance of common stock, net of issuance costs | $ 1,839,000 | |||||
Amortization of deferred cost | 45,000 | $ 70,000 | ||||
Unamortized deferred cost | 0 | |||||
Aggregate securities allowed under agreement (in shares) | 10,000,000 | |||||
Commission rate (as a percent) | 3% | |||||
Common shares available for issuance | $ 3,000,000 |
Equity - Non-Option Incentive (
Equity - Non-Option Incentive (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
May 26, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Compensation expense | $ 92,000 | $ 194,000 | $ 324,000 | $ 543,000 | |
Restricted Stock | |||||
Number of Shares - Non-option | |||||
Outstanding at beginning of period (in shares) | 19,800 | ||||
Granted during the period (in shares) | 0 | ||||
Restrictions lifted during the period (in shares) | (12,933) | ||||
Forfeited during the period (in shares) | |||||
Outstanding at end of period (in shares) | 6,867 | 6,867 | |||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Outstanding at beginning of year (in dollars per share) | $ 10.95 | ||||
Granted during the period (in dollars per share) | |||||
Restrictions lifted during the period (in dollars per share) | 11.97 | ||||
Forfeited during the period (in dollars per share) | |||||
Outstanding at end of year (in dollars per share) | $ 9.02 | $ 9.02 | |||
Compensation expense | $ 20,000 | 37,000 | $ 76,000 | 163,000 | |
Restricted Stock Units (RSUs) | |||||
Number of Shares - Non-option | |||||
Outstanding at beginning of period (in shares) | 232,409 | ||||
Granted during the period (in shares) | 40,000 | ||||
Restrictions lifted during the period (in shares) | |||||
Forfeited during the period (in shares) | |||||
Outstanding at end of period (in shares) | 272,409 | 272,409 | |||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Outstanding at beginning of year (in dollars per share) | $ 15.06 | ||||
Granted during the period (in dollars per share) | 1.62 | ||||
Restrictions lifted during the period (in dollars per share) | |||||
Forfeited during the period (in dollars per share) | |||||
Outstanding at end of year (in dollars per share) | $ 13.09 | $ 13.09 | |||
Number of unrestricted shares Director to receive for vested RSU upon termination from board | 1 | ||||
Units | Officers | |||||
Number of Shares - Non-option | |||||
Outstanding at beginning of period (in shares) | 188,000 | ||||
Outstanding at end of period (in shares) | 168,000 | 168,000 | |||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Compensation expense | $ 14,000 | 39,000 | $ 21,000 | 136,000 | |
Equity Incentive Plan | |||||
Number of Shares - Non-option | |||||
Stock Plan Reserve Shares | 360,000 | ||||
2023 Plan | Restricted Stock Units (RSUs) | |||||
Weighted Average Grant Date Fair Value Per Share - Non-option | |||||
Compensation expense | $ 58,000 | $ 73,000 | $ 270,000 | $ 244,000 |
Equity - Warrants (Details)
Equity - Warrants (Details) - $ / shares | 9 Months Ended | |
Jun. 26, 2023 | Sep. 30, 2023 | |
Number of Underlying Shares | ||
Outstanding, beginning balance (in shares) | 392,155 | |
Exercised during period (in shares) | ||
Expired during period (in shares) | ||
Outstanding, end balance (in shares) | 1,819,742 | |
Weighted Average Exercise Price Per Share | ||
Outstanding, beginning balance (in dollars per share) | $ 8.58 | |
Exercised during period (in dollar per share) | ||
Expired during period (in dollar per share) | ||
Outstanding, end balance (in dollars per share) | $ 3.19 | |
June 2023 pre-funded warrants | ||
Number of Underlying Shares | ||
Granted during the period (in shares) | 637,587 | |
Exercised during period (in shares) | (637,587) | |
Weighted Average Exercise Price Per Share | ||
Granted (in dollars per share) | $ 0.0001 | |
Exercised during period (in dollar per share) | $ 0.0001 | |
June 2023 warrants | ||
Number of Underlying Shares | ||
Granted during the period (in shares) | 1,427,587 | |
Weighted Average Exercise Price Per Share | ||
Granted (in dollars per share) | $ 1.90 | |
June 2023 Private Placement | ||
Weighted Average Exercise Price Per Share | ||
Outstanding, end balance (in dollars per share) | $ 1.90 | |
Number of common shares which can be purchased with each warrant | 1,427,587 |
Sale of Metals and Related Co_2
Sale of Metals and Related Costs (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Sale of Metals and Related Costs | |||||
Sale of metals | $ 2,512 | $ 5,268 | $ 11,702 | $ 18,700 | |
Costs Applicable to Sales | $ 3,320 | $ 4,374 | $ 11,225 | $ 13,335 | |
Percentage of provisional payment for gold and silver | 95% | ||||
Term of final payment within shipment date | 30 days | ||||
Gold | |||||
Sale of Metals and Related Costs | |||||
Percentage of provisional payment for gold and silver | 95% | ||||
Silver | |||||
Sale of Metals and Related Costs | |||||
Percentage of provisional payment for gold and silver | 90% | ||||
Gold and Silver in Dore [Member] | |||||
Sale of Metals and Related Costs | |||||
Sale of metals | $ 9,700 | ||||
Costs Applicable to Sales | $ 11,000 | ||||
Term of final payment within shipment date | 30 days | ||||
Minimum | |||||
Sale of Metals and Related Costs | |||||
Provisional payment term of gold and silver | 10 days | ||||
Minimum | Gold and Silver in Dore [Member] | |||||
Sale of Metals and Related Costs | |||||
Provisional payment term of gold and silver | 10 days | ||||
Maximum | |||||
Sale of Metals and Related Costs | |||||
Provisional payment term of gold and silver | 12 days | ||||
Maximum | Gold and Silver in Dore [Member] | |||||
Sale of Metals and Related Costs | |||||
Provisional payment term of gold and silver | 12 days |
Sale of Metals and Related Co_3
Sale of Metals and Related Costs - Revenue from Concentrate Sales and Slag Sales (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2023 USD ($) item | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Sale of Metals and Related Costs | |||||
Number of different type of concentrates, the entity sell | item | 3 | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,512,000 | $ 5,268,000 | $ 11,702,000 | $ 18,700,000 | |
Costs Applicable to Sales | $ 3,320,000 | $ 4,374,000 | $ 11,225,000 | 13,335,000 | |
Percentage of provisional payment for gold and silver | 95% | ||||
Term of final payment within shipment date | 30 days | ||||
Minimum | |||||
Sale of Metals and Related Costs | |||||
Provisional payment term of gold and silver | 10 days | ||||
Maximum | |||||
Sale of Metals and Related Costs | |||||
Provisional payment term of gold and silver | 12 days | ||||
Gold and Silver in Dore | |||||
Sale of Metals and Related Costs | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 9,700,000 | ||||
Costs Applicable to Sales | $ 11,000,000 | ||||
Term of final payment within shipment date | 30 days | ||||
Gold and Silver in Dore | Minimum | |||||
Sale of Metals and Related Costs | |||||
Provisional payment term of gold and silver | 10 days | ||||
Gold and Silver in Dore | Maximum | |||||
Sale of Metals and Related Costs | |||||
Provisional payment term of gold and silver | 12 days | ||||
Concentrate Sales | |||||
Sale of Metals and Related Costs | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | ||||
Concentrates containing various amounts of gold, silver, lead and zinc produced | |||||
Sale of Metals and Related Costs | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,500,000 | ||||
Costs Applicable to Sales | $ 200,000 | ||||
Percentage of provisional payment for gold and silver | 90% | ||||
Term of final payment within shipment date | 60 days | ||||
Term after delivery of concentrate to the buyer to determine price of gold and silver | 1 month | ||||
Slag Sales | |||||
Sale of Metals and Related Costs | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | ||||
Gold and silver contained in the slag | |||||
Sale of Metals and Related Costs | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 500,000 | ||||
Costs Applicable to Sales | $ 0 | ||||
Gold | |||||
Sale of Metals and Related Costs | |||||
Percentage of provisional payment for gold and silver | 95% | ||||
Silver | |||||
Sale of Metals and Related Costs | |||||
Percentage of provisional payment for gold and silver | 90% |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows (used in) from operating activities: | ||||
Net loss | $ (7,931,000) | $ (5,826,000) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | $ 148,000 | $ 89,000 | 380,000 | 241,000 |
Accretion of asset retirement obligation | 222,000 | 211,000 | ||
Loss on trading securities | 9,000 | 32,000 | ||
Gain on sale of assets | (436,000) | (125,000) | ||
Stock-based compensation | 324,000 | 543,000 | ||
Litigation settlement | $ 250,000 | 250,000 | ||
Changes in operating assets and liabilities from continuing operations: | ||||
Decrease (increase) in inventories, net | 1,066,000 | (150,000) | ||
Increase in value added tax receivable, net | (1,679,000) | (480,000) | ||
Decrease (increase) in prepaid expenses and other assets | 201,000 | (37,000) | ||
Decrease in other long-term assets | 192,000 | 104,000 | ||
Increase in accounts payable and other accrued liabilities | 1,320,000 | 835,000 | ||
Decrease in deferred revenue | (1,125,000) | |||
Decrease in other current liabilities | (320,000) | (445,000) | ||
(Decrease) increase in reclamation liability | (73,000) | 25,000 | ||
Decrease in other long-term liabilities | (82,000) | (204,000) | ||
Net cash used in operating activities | $ (6,557,000) | $ (6,401,000) |
Cash Flow Information - Supplem
Cash Flow Information - Supplemental and Non-cash transactions (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flow Information | ||
Interest paid | $ 17 | $ 6 |
Income taxes paid | $ 413 | |
Deferred equity offering costs amortized | $ 45 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 9 Months Ended | |
Oct. 27, 2023 USD ($) | Apr. 30, 2021 USD ($) | Sep. 30, 2023 USD ($) item | |
Contingencies | |||
Cash and cash equivalent, frozen bank balance | $ 153,000 | $ 153,000 | |
Number of processing plants held | item | 1 | ||
Accrued liability | $ 250,000 | ||
Potential Lawsuit From Unifin Financiera | Threatened Litigation | |||
Contingencies | |||
Loss Contingency, Damages Sought | 12,500,000 | ||
Accrued liability | $ 250,000 | ||
Potential Lawsuit From Unifin Financiera | Threatened Litigation | Subsequent Event | |||
Contingencies | |||
Amount awarded to settle the lawsuit | $ 250,000 |
Segment Information (Details)
Segment Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Information | |||||
Number of reportable segments | segment | 2 | ||||
Revenue | $ 2,512,000 | $ 5,268,000 | $ 11,702,000 | $ 18,700,000 | |
Costs Applicable to Sales | 3,347,000 | 4,374,000 | 11,225,000 | 13,335,000 | |
Depreciation, Depletion and Amortization | 148,000 | 89,000 | 380,000 | 241,000 | |
Exploration, El Quevar, Velardena and Administrative Expense | 2,238,000 | 3,818,000 | 7,896,000 | 11,795,000 | |
Pre-Tax (gain) loss | 3,177,000 | 2,743,000 | 7,931,000 | 5,916,000 | |
Total Assets | 12,304,000 | 18,549,000 | $ 12,304,000 | 18,549,000 | $ 14,944,000 |
Capital Expenditures | 19,000 | 46,000 | |||
Mexico Operations | |||||
Segment Information | |||||
Number of reportable segments | segment | 1 | ||||
Revenue | 2,512,000 | 5,268,000 | $ 11,702,000 | 18,700,000 | |
Costs Applicable to Sales | 3,347,000 | 4,374,000 | 11,225,000 | 13,335,000 | |
Depreciation, Depletion and Amortization | 145,000 | 77,000 | 368,000 | 204,000 | |
Exploration, El Quevar, Velardena and Administrative Expense | 753,000 | 1,878,000 | 2,907,000 | 5,815,000 | |
Pre-Tax (gain) loss | 1,896,000 | 1,097,000 | 3,041,000 | 14,000 | |
Total Assets | 7,727,000 | 9,084,000 | 7,727,000 | 9,084,000 | |
Capital Expenditures | 17,000 | 43,000 | |||
Corporate, Exploration and Other | |||||
Segment Information | |||||
Depreciation, Depletion and Amortization | 3,000 | 12,000 | 12,000 | 37,000 | |
Exploration, El Quevar, Velardena and Administrative Expense | 1,485,000 | 1,940,000 | 4,989,000 | 5,980,000 | |
Pre-Tax (gain) loss | 1,281,000 | 1,646,000 | 4,890,000 | 5,902,000 | |
Total Assets | $ 4,577,000 | 9,465,000 | $ 4,577,000 | 9,465,000 | |
Capital Expenditures | $ 2,000 | $ 3,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) shares in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Minera Inde | ||
Related Party Transaction | ||
Monthly charges received | $ 15,000 | |
Received amount | $ 233,000 | $ 135,000 |
Sentient Loan | The Sentient Group | ||
Related Party Transaction | ||
Ownership (as a percent) | 18% | |
Shares issued | 8.6 | |
Shares outstanding | 8.6 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 9 Months Ended | |||||
Nov. 06, 2023 | Oct. 27, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | May 26, 2023 | Dec. 31, 2022 | |
Subsequent Event | ||||||
Accrued liability | $ 250,000 | |||||
Par value of shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Purchase price | $ 3.19 | $ 8.58 | ||||
Proceeds from the sale of the Company's common stock | $ 3,694,000 | $ 1,050,000 | ||||
Potential Lawsuit From Unifin Financiera | Threatened Litigation | ||||||
Subsequent Event | ||||||
Accrued liability | $ 250,000 | |||||
Subsequent Event | November 2023 Offering | ||||||
Subsequent Event | ||||||
Number of shares to be sold | 4,712,488 | |||||
Par value of shares | $ 0.01 | |||||
Purchase price (in dollars per shares) | $ 0.70 | |||||
Proceeds from the sale of the Company's common stock | $ 4,200,000 | |||||
Subsequent Event | Series A Warrants | November 2023 Offering | ||||||
Subsequent Event | ||||||
Warrants to purchase common stock | 6,000,000 | |||||
Purchase price | $ 0.70 | |||||
Expiration term of warrant | 5 years | |||||
Subsequent Event | Series B Warrants | November 2023 Offering | ||||||
Subsequent Event | ||||||
Warrants to purchase common stock | 3,000,000 | |||||
Purchase price | $ 0.70 | |||||
Expiration term of warrant | 18 months | |||||
Subsequent Event | Pre-Funded Warrants | November 2023 Offering | ||||||
Subsequent Event | ||||||
Warrants to purchase common stock | 1,287,512 | |||||
Purchase price | $ 0.0001 | |||||
Subsequent Event | Potential Lawsuit From Unifin Financiera | Threatened Litigation | ||||||
Subsequent Event | ||||||
Amount awarded to settle the lawsuit | $ 250,000 | |||||
payment partially settled | $ 153,000 |