Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Apr. 02, 2018 | Jun. 30, 2017 | |
Document And Entity Information | |||
Entity Registrant Name | UNITED STATES ANTIMONY CORP | ||
Entity Central Index Key | 101,538 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 18,797,116 | ||
Entity Common Stock, Shares Outstanding | 67,488,153 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 27,987 | $ 10,057 |
Certificates of deposit | 252,298 | 251,641 |
Accounts receivable, net of allowance | 362,579 | 552,119 |
Inventories | 914,709 | 855,637 |
Other current assets | 4,697 | 23,101 |
Total current assets | 1,562,270 | 1,692,555 |
Properties, plants and equipment, net | 15,132,897 | 15,695,966 |
Restricted cash for reclamation bonds | 63,345 | 63,274 |
IVA receivable and other assets | 372,742 | 314,203 |
Total assets | 17,131,254 | 17,765,998 |
Current liabilities: | ||
Checks issued and payable | 28,248 | 35,682 |
Accounts payable | 2,276,357 | 1,797,251 |
Due to factor | 10,880 | 150,399 |
Accrued payroll, taxes and interest | 185,283 | 213,695 |
Other accrued liabilities | 168,578 | 122,968 |
Payables to related parties | 22,668 | 14,525 |
Deferred revenue | 60,049 | 78,730 |
Notes payable to bank | 192,565 | 167,317 |
Income taxes payable (Note 13) | 443,110 | 410,510 |
Long-term debt, current portion, net of discount | 546,988 | 391,046 |
Total current liabilities | 3,934,726 | 3,382,123 |
Long-term debt, net of discount and current portion | 1,239,126 | 1,472,869 |
Hillgrove advances payable (Note 10) | 1,134,221 | 1,134,221 |
Stock payable to directors for services | 175,000 | 168,750 |
Asset retirement obligation and accrued reclamation costs | 271,572 | 265,782 |
Total liabilities | 6,754,645 | 6,423,745 |
Commitments and contingencies (Note 4, 10 and 15) | ||
Stockholders' equity: | ||
Preferred stock $0.01 par value, 10,000,000 shares authorized: Series A: -0- shares issued and outstanding | 0 | 0 |
Series B: 750,000 shares issued and outstanding (liquidation preference $922,500 and $915,000 respectively) | 7,500 | 7,500 |
Series C: 177,904 shares issued and outstanding (liquidation preference $97,847 both years) | 1,779 | 1,779 |
Series D: 1,751,005 shares issued and outstanding (liquidation preference $4,961,324 and $4,920,178 respectively) | 17,509 | 17,509 |
Common stock, $0.01 par value, 90,000,000 shares authorized; 67,488,153 and 67,066,278 shares issued and outstanding, respectively | 674,881 | 670,662 |
Additional paid-in capital | 36,239,264 | 36,074,733 |
Accumulated deficit | (26,564,324) | (25,429,930) |
Total stockholders' equity | 10,376,609 | 11,342,253 |
Total liabilities and stockholders' equity | $ 17,131,254 | $ 17,765,998 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Stockholders' equity: | ||
Series A Preferred stock, par value | $ 0.01 | $ 0.01 |
Series A Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Series A Preferred stock, issued shares | 0 | 0 |
Series A Preferred stock, outstanding shares | 0 | 0 |
Series B Preferred stock, par value | $ 0.01 | $ 0.01 |
Series B Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Series B Preferred stock, issued shares | 750,000 | 750,000 |
Series B Preferred stock, outstanding shares | 750,000 | 750,000 |
Series B liquidation preference | $ 922,500 | $ 915,000 |
Series C Preferred stock, par value | $ 0.01 | $ 0.01 |
Series C Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Series C Preferred stock, issued shares | 177,904 | 177,904 |
Series C Preferred stock, outstanding shares | 177,904 | 177,904 |
Series C liquidation preference | $ 97,847 | $ 97,847 |
Series D Preferred stock, par value | $ 0.01 | $ 0.01 |
Series D Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Series D Preferred stock, issued shares | 1,751,005 | 1,751,005 |
Series D Preferred stock, outstanding shares | 1,751,005 | 1,751,005 |
Series D liquidation preference | $ 4,961,324 | $ 4,920,178 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 90,000,000 | 90,000,000 |
Common stock, issued shares | 67,488,153 | 67,066,278 |
Common stock, outstanding shares | 67,488,153 | 67,066,278 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
REVENUES | $ 10,229,978 | $ 11,890,135 |
COST OF REVENUES | 10,068,578 | 11,353,484 |
GROSS PROFIT | 161,400 | 536,651 |
OPERATING EXPENSES: | ||
General and administrative | 533,506 | 681,487 |
Salaries and benefits | 371,162 | 483,937 |
Hillgrove advance - earned credit (Note 40) | 0 | (120,329) |
Professional fees | 216,431 | 308,078 |
TOTAL OPERATING EXPENSES | 1,121,099 | 1,353,173 |
INCOME (LOSS) FROM OPERATIONS | (959,699) | (816,522) |
OTHER INCOME (EXPENSE): | ||
Interest income | 873 | 1,437 |
Interest expense | (106,975) | (160,795) |
Factoring expense | (35,993) | (35,182) |
Foreign exchange loss | (32,600) | 0 |
TOTAL OTHER INCOME (EXPENSE) | (174,695) | (194,540) |
INCOME (LOSS) BEFORE INCOME TAXES | (1,134,394) | (1,011,062) |
INCOME TAX PROVISION | 0 | (298,138) |
NET INCOME (LOSS) | (1,134,394) | (1,309,200) |
Preferred dividends | (48,649) | (48,649) |
Net income (loss) available to common shareholders | $ (1,183,043) | $ (1,357,849) |
Net income (loss) per share of common stock basic and diluted: | $ (0.02) | $ (0.02) |
Weighted average shares outstanding basic and diluted | 67,413,025 | 66,781,757 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Beginning Balance - Shares at Dec. 31, 2015 | 26,789,909 | 66,316,278 | |||
Beginning Balance - Amount at Dec. 31, 2015 | $ 26,788 | $ 663,162 | $ 35,890,733 | $ (24,120,730) | $ 12,459,953 |
Issuance of common stock to directors for services, Shares | 550,000 | ||||
Issuance of common stock to directors for services, Amount | $ 5,500 | 132,000 | 137,500 | ||
Issuance of common stock to chief financial officer, Shares | 200,000 | ||||
Issuance of common stock to chief financial officer, Amount | $ 2,000 | 52,000 | 54,000 | ||
Net loss | (1,309,200) | (1,309,200) | |||
Ending Balance, Shares at Dec. 31, 2016 | 2,678,909 | 67,066,278 | |||
Ending Balance, Amount at Dec. 31, 2016 | $ 26,788 | $ 670,662 | 36,074,733 | (25,429,930) | 11,342,253 |
Issuance of common stock to directors for services, Shares | 421,875 | ||||
Issuance of common stock to directors for services, Amount | $ 4,219 | 164,531 | 168,750 | ||
Net loss | (1,134,394) | (1,134,394) | |||
Ending Balance, Shares at Dec. 31, 2017 | 2,678,909 | 67,488,153 | |||
Ending Balance, Amount at Dec. 31, 2017 | $ 26,788 | $ 674,881 | $ 36,239,264 | $ (26,564,324) | $ 10,376,609 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ (1,134,394) | $ (1,309,200) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 968,888 | 999,737 |
Amortization of debt discount | 93,450 | 70,590 |
Hillgrove advance earned credit | 0 | (120,329) |
Accretion of asset retirement obligation | 5,790 | 5,455 |
Common stock issued for services | 0 | 54,000 |
Common stock payable for directors fees | 175,000 | 168,750 |
Foreign exchange loss | 32,600 | 0 |
Non-cash miscellaneous income | (728) | (1,595) |
Change in: | ||
Accounts receivable | 189,540 | (129,446) |
Inventories | (59,072) | 238,601 |
Other current assets | 18,404 | 212,356 |
IVA receivable and other assets | (58,539) | (296,673) |
Accounts payable | 479,106 | 167,280 |
Accrued payroll, taxes and interest | (28,412) | (7,751) |
Other accrued liabilities | 45,610 | (18,577) |
Deferred revenues | (18,681) | 0 |
Income taxes payable | 0 | 410,510 |
Payables to related parties | 8,143 | (17,871) |
Net cash provided by operating activities | 716,705 | 425,837 |
Cash Flows From Investing Activities: | ||
Redemption of reclamation bonds | 0 | 12,810 |
Purchase of properties, plants and equipment | (365,541) | (595,839) |
Net cash used by investing activities | (365,541) | (583,029) |
Cash Flows From Financing Activities: | ||
Net proceeds (to) from factor | (139,519) | 136,617 |
Proceeds from notes payable to bank, net | 25,248 | 36,645 |
Principal payments of long-term debt | (211,529) | (175,238) |
Checks issued and payable | (7,434) | 35,682 |
Net cash provided by financing activities | (333,234) | 33,706 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 17,930 | (123,486) |
Cash and cash equivalents at beginning of year | 10,057 | 133,543 |
Cash and cash equivalents at end of year | 27,987 | 10,057 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest paid in cash (net of amount capitailzed) | 14,632 | 14,694 |
Income taxes paid in cash | 0 | 13,090 |
Noncash investing and financing activities: | ||
Properties, plants & equipment acquired with long-term debt | 40,278 | 42,735 |
Imputed interest included in property, plant and equipment | 0 | 26,796 |
Common stock payable issued to directors | $ 168,750 | $ 137,500 |
1. Background of Company and Ba
1. Background of Company and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Background of Company and Basis of Presentation | AGAU Mines, Inc., predecessor of United States Antimony Corporation ("USAC" or "the Company"), was incorporated in June 1968 as a Delaware corporation to mine gold and silver. USAC was incorporated in Montana in January 1970 to mine and produce antimony products. In June 1973, AGAU Mines, Inc. was merged into USAC. In December 1983, the Company suspended its antimony mining operations when it became possible to purchase antimony raw materials more economically from foreign sources. The principal business of the Company has been the production and sale of antimony products. During 2000, the Company formed a 75% owned subsidiary, Bear River Zeolite Company ("BRZ"), to mine and market zeolite and zeolite products from a mineral deposit in southeastern Idaho. In 2001, an operating plant was constructed at the zeolite site and zeolite production and sales commenced. During 2002, the Company acquired the remaining 25% of BRZ and continued to produce and sell zeolite products. During 2005, the Company formed a 100% owned subsidiary, Antimonio de Mexico S.A. de C.V. (“AM”), to explore and develop potential antimony properties in Mexico. During 2006, the Company acquired 100% ownership in United States Antimony, Mexico S.A. de C.V. (“USAMSA”), which became a wholly-owned subsidiary of the Company. |
2. Concentrations of Risk
2. Concentrations of Risk | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | The Company’s financial instruments that were exposed to concentrations consist primarily of sales and accounts receivable. Sales to For the Year Ended Largest Customers December 31, 2017 December 31, 2016 Mexichem Specialty Compounds Inc. $ 3,335,046 $ 2,108,998 East Penn Manufacturing Inc 512,621 1,147,854 Kohler Corporation 1,928,962 1,474,854 $ 5,776,629 $ 4,731,706 % of Total Revenues 56.50 % 39.80 % Largest Accounts Receivable December 31, 2017 December 31, 2016 Nutreco Canada Inc. $ 25,657 GE Lighting $ 162,582 Teck American Inc 241,627 Kohler Corporation 151,500 Ralco Mix Products 16,000 $ 283,284 $ 314,082 % of Total Receivables 78.10 % 83.90 % The Company's revenues from antimony sales are strongly influenced by world prices for such commodities, which fluctuate and are affected by numerous factors beyond the Company's control, including inflation and worldwide forces of supply and demand. The aggregate effect of these factors is not possible to predict accurately. |
3. Summary of Significant Accou
3. Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Principles of Consolidation The Company's consolidated financial statements include the accounts of BRZ, USAMSA and AM, all wholly-owned subsidiaries. Intercompany balances and transactions are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant and critical estimates include property, plant and equipment depreciation and potential impairment, metal content of mineral resources, accounts receivable allowance for uncollectible accounts, deferred income taxes, income taxes payable, environmental remediation liabilities and asset retirement obligations. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers cash in banks and investments with original maturities of three months or less when purchased to be cash equivalents. Restricted Cash Restricted cash at December 31, 2017 and 2016 consists of cash held for reclamation performance bonds, and is held in certificates of deposit with financial institutions. Accounts Receivable Accounts receivable are stated at the amount that management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through an allowance for doubtful accounts. Changes to the allowance for doubtful accounts are based on management’s judgment, considering historical write-offs, collections and current credit conditions. Balances which remain outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to the applicable accounts receivable. Payments received on receivables subsequent to being written off are considered a bad debt recovery. Inventories Inventories at December 31, 2017 and 2016 consisted of finished antimony products, antimony metal, antimony concentrates, antimony ore, and finished zeolite products, and are stated at the lower of first-in, first-out weighted average cost or estimated net realizable value. Finished antimony products, antimony metal and finished zeolite products costs include raw materials, direct labor and processing facility overhead costs and freight allocated based on production quantity. Stockpiled ore is carried at the lower of average cost or net realizable value. Since the Company's antimony inventory is a commodity with a sales value that is subject to world prices for antimony that are beyond the Company's control, a significant change in the world market price of antimony could have a significant effect on the net realizable value of inventories. The Company periodically reviews its inventories to identify excess and obsolete inventories and to estimate reserves for obsolete inventories as necessary to reflect inventories at net realizable value. Translations of Foreign Currencies All amounts in the financial statements are presented in U.S. dollars, which is the functional currency for all of our operations. Foreign translation gains and losses relating to our Mexican subsidiaries are recognized as foreign exchange gain or loss in our consolidated statement of operations. Going Concern Consideration At December 31, 2017, the Company’s financial statements show negative working capital of approximately $2.4 million and accumulated deficit of approximately $26.5 million. In addition, the Company has incurred losses for the prior three years. These factors indicate that there may be doubt regarding the ability to continue as a going concern for the next twelve months. The continuing losses are principally a result of the Company’s antimony operations and in particular to the production costs incurred in Mexico. The other two operating divisions, precious metals and zeolite, had gross profits of $310,373 and $408,403, respectively, in 2017. Regarding the antimony division, in 2016 the Company endured some of the lowest prices for antimony in the past seven years, with an average sales price of only $2.98 per pound of metal contained. Prices improved during 2017 with an average sale price of $4.01. Through March 2018, the average sale price for antimony is approximately $4.10 per pound. Additionally in November 2017, the Company renegotiated its domestic sodium antimonite supply agreement resulting in a lower cost per antimony per pound of approximately $0.44. With the new supply agreement in place, most of the market increase in antimony prices will result in increased Company cash flow in 2018 from its antimony division. In 2017, the Company reduced costs for labor at the Mexico locations which has resulted in a lower overall production costs in Mexico which will continue through 2018. The reduction was due to a large reduction in the work force at the Madero smelter because of the decrease in antimony concentrate from Hillgrove (see Note 10). In the fourth quarter 2017, the Company also adjusted operating approaches at Madero that will likely result in a decrease in operating costs for fuel, natural gas, electricity, and reagents. Although total production activity in Mexico decreased in 2017 due to the lack of Hillgrove concentrates, the Company’s 2018 plan involves ramping up production at its own antimony properties in Mexico. In addition, a new leach circuit expected to come on line during 2018 in Mexico will result in more extraction of precious metals. In 2017, management implemented wage and other cost reductions at the corporate level that will keep administrative costs stable in 2018. The Company expects to continue paying a low cost for propane in Montana, which in years past has been a major operating cost. Over the past several years, the Company has been able to make required principal payments on its debt from cash generated from operations without the need for additional borrowings or selling shares of its common stock. The Company plans to continue keeping current on its debt payments in 2018 through cash flows from operations. Management believes that the current circumstances and cost reduction actions taken will enable the Company to be actively operating for the next twelve months. Mineral Rights The costs to obtain the legal right to explore, extract and retain at least a portion of the benefits from mineral deposits are capitalized as mineral rights in the year of acquisition. These capitalized costs are amortized on the statement of operations using the straight line method over the expected life of the mineral deposit when placed into production. Mineral rights are assessed for impairment when facts and circumstances indicate that the potential for impairment exists. No impairment has been indicated for the years ended December 31, 2017 or 2016 as a result of this assessment. Mineral rights are subject to write down in the period the property is abandoned. Properties, Plants and Equipment Properties, plants and equipment are stated at historical cost and are depreciated using the straight-line method over estimated useful lives of two to thirty years. Vehicles and office equipment are stated at cost and are depreciated using the straight-line method over estimated useful lives of three to twelve years. Maintenance and repairs are charged to operations as incurred. Betterments of a major nature are capitalized. Expenditures for new property, plant, equipment, and improvements that extend the useful life or functionality of the asset are capitalized. The Company capitalized $405,819 and $665,370 in plant construction and other capital costs for the years ended December 31, 2017 and 2016, respectively. These amounts include capitalized interest of $0 and $35,305, respectively. When assets are retired or sold, the costs and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in operations. Mineral properties are amortized over the estimated economic life of the mineral resource using the straight-line method, based upon estimated lives of the properties, or the units-of-production method, based upon estimated units of mineral resource. Management of the Company periodically reviews the net carrying value of all of its long-lived assets. These reviews consider the net realizable value of each asset or group to determine whether a permanent impairment in value has occurred and the need for any asset write-down. An impairment loss is recognized when the estimated future cash flows (undiscounted and without interest) expected to result from the use of an asset are less than the carrying amount of the asset. Measurement of an impairment loss is based on the estimated fair value of the asset if the asset is expected to be held and used. Exploration and Development The Company records exploration costs as operating expenses in the period they occur, and capitalizes development costs on discrete mineralized bodies that have proven reserves in compliance with Securities and Exchange Commission Industry Guide 7, and are in development or production. Asset Retirement Obligations and Reclamation Costs All of the Company's mining operations are subject to reclamation and remediation requirements. Minimum standards for mine reclamation have been established by various governmental agencies. Costs are estimated based primarily upon environmental and regulatory requirements and are accrued. The liability for reclamation is classified as current or noncurrent based on the expected timing of expenditures. Reclamation differs from an asset retirement obligation in that no associated asset is recorded in the case of reclamation liabilities. It is reasonably possible that because of uncertainties associated with defining the nature and extent of environmental contamination, application of laws and regulations by regulatory authorities, and changes in remediation technology, the ultimate cost of remediation and reclamation could change in the future. The Company continually reviews its accrued liabilities for such remediation and reclamation costs as evidence becomes available indicating that its remediation and reclamation liability has changed. The Company records the fair value of an asset retirement obligation as a liability in the period in which the Company incurs a legal obligation for the retirement of long-lived assets if it is probable that such costs will be incurred and they are reasonably estimable. A corresponding asset is also recorded and depreciated over the life of the assets on a straight line basis. After the initial measurement of the asset retirement obligation, the liability will be adjusted to reflect changes in the estimated future cash flows underlying the obligation. Determination of any amounts included in determination of fair value is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates, and the Company’s credit-adjusted risk-free interest rates. Revenue Recognition Sales of antimony and zeolite products are recorded either upon shipment or delivery dependent on the term, and when title passes to the customer. The Company's sales agreements do not provide for product returns or allowances. Prepayments, which are not common, received from customers prior to the time that products are processed and shipped, are recorded as deferred revenue. When the related products are shipped, the amount recorded as deferred revenue is recognized as revenue. Sales of precious metals are recognized when pervasive evidence of an arrangement exists, the price is reasonably determinable, the product has been delivered, no obligations remain, and collection is reasonably assured. Common Stock Issued for Consideration Other than Cash All transactions in which goods or services are received for the issuance of shares of the Company’s common stock are accounted for based on the fair value of the consideration received or the fair value of the common stock issued, whichever is more readily determinable. Income Taxes Income taxes are accounted for under the liability method. Under this method, deferred income tax liabilities or assets are determined at the end of each period using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized. The Company applies generally accepted accounting principles for recognition of uncertainty in income taxes and prescribing a recognition threshold and measurement attribute for the recognition and measurement of a tax position taken or expected to be taken in a tax return. Income (Loss) Per Common Share Basic earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including stock options, warrants to purchase the Company's common stock and convertible preferred stock. Management has determined that the calculation of diluted earnings per share for the years ended December 31, 2017, and 2016, does not add any shares to basic weighted average shares. As of December 31, 2017 and 2016, potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share are as follows: December 31, 2017 December 31, 2016 Warrants 250,000 250,000 Convertible preferred stock 1,751,005 1,751,005 Total possible dilution 2,001,005 2,001,005 Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, certificates of deposits, restricted cash, due to factor, and long-term debt. The carrying value of these instruments approximates fair value based on their contractual terms. Fair Value Measurements When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. The Company has no financial assets or liabilities that are adjusted to fair value on a recurring basis. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 Revenue Recognition, replacing guidance currently codified in Subtopic 605-10 Revenue Recognition-Overall with various SEC Staff Accounting Bulletins providing interpretive guidance. The new ASU establishes a new five step principles-based framework in an effort to significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. In August 2015, the FASB issued ASU No. 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. ASU No. 2015-14 defers the effective date of ASU No. 2014-09 until annual and interim reporting periods beginning after December 15, 2017. The Company has performed an assessment of the impact of implementation of ASU No. 2014-09, and concluded it will not change the timing of revenue recognition or amounts of revenue recognized compared to how revenue is recognized under current policies. ASU No. 2014-09 will require additional disclosures, where applicable, on (i) contracts with customers, (ii) significant judgments and changes in judgments in determining the timing of satisfaction of performance obligations and the transaction price, and (iii) assets recognized for costs to obtain or fulfill contracts. In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842). The update modifies the classification criteria and requires lessees to recognize the assets and liabilities on the balance sheet for most leases. The update is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the potential impact of implementing this update on the consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The update provides guidance on classification for cash receipts and payments related to eight specific issues. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of implementing this update on the consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash. The update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The Company does not expect this update to have a material impact on the consolidation financial statements. In January 2017, the FASB issued ASU No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company will apply the provisions of the update to potential future acquisitions occurring after the effective date. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. Reclassifications Certain reclassifications have been made to conform the prior year’s data to the current year’s presentation. These reclassifications have no effect on previously reported operations, stockholders’ equity or cash flows. |
4. Accounts Receivable and Due
4. Accounts Receivable and Due to Factor | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Accounts Receivable and Due to Factor | The Company factors designated trade receivables pursuant to a factoring agreement with LSC Funding Group L.C., an unrelated factor (the “Factor”). The agreement is for a term of one year with automatic renewal for additional one-year terms. The agreement specifies that eligible trade receivables are factored with recourse. The performance of all obligations and payments to the factoring company is personally guaranteed by John C. Lawrence, the Company’s President and Chairman of the Board of Directors. Selected trade receivables are submitted to the factor, and the Company receives 85% of the face value of the receivable by wire transfer. Upon payment by the customer, the remainder of the amount due is received from the Factor, less a one-time servicing fee of 2% for the receivables factored. This servicing fee is recorded on the consolidated statement of operations in the period of sale to the factor. Trade receivables assigned to the Factor are carried at the original invoice amount less an estimate made for doubtful accounts. Under the terms of the recourse provision, the Company is required to reimburse the Factor, upon demand, for factored receivables that are not paid on time. Accordingly, these receivables are accounted for as a secured financing arrangement and not as a sale of financial assets. Receivables, net of allowances, are presented as current assets and the amount potentially due to the Factor is presented as a secured financing in current liabilities. Accounts Receivable December 31, 2017 December 31, 2016 Accounts receivable - non-factored $ 351,699 $ 401,720 Accounts receivable - factored with recourse 10,880 150,399 Accounts receivable - net $ 362,579 $ 552,119 Factoring fees paid by the Company during the years ended December 31, 2017 and 2016, were $35,993 and $35,182, respectively. For the years ended December 31, 2017 and 2016, net accounts receivable of approximately $1.70 million and $1.80 million, respectively, were sold under the agreement. Proceeds from the sales were used to fund inventory purchases and operating expenses. |
5. Inventories
5. Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | The major components of the Company's inventories at December 31, 2017 and 2016 were as follows: 2017 2016 Antimony Metal $ - $ 112,300 Antimony Oxide 408,217 326,126 Antimony Concentrates 35,554 30,815 Antimony Ore 187,133 181,815 Total antimony 630,904 651,056 Zeolite 283,805 204,581 $ 914,709 $ 855,637 At December 31, 2017 and 2016, antimony metal consisted principally of recast metal from antimony-based compounds, and metal purchased from foreign suppliers. Antimony oxide inventory consisted of finished product oxide held at the Company's plant. Antimony concentrates and ore were held primarily at sites in Mexico and are essentially raw material, carried at cost. At December 31, 2017 and 2016, the antimony inventory in Mexico was valued at net realizable value. The Company's zeolite inventory consists of salable zeolite material held at BRZ's Idaho mining and production facility, and is carried at cost. |
6. Properties, Plants and Equip
6. Properties, Plants and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Properties Plants And Equipment | |
Properties, Plants and Equipment | The major components of the Company's properties, plants and equipment at December 31, 2017 and 2016 are shown below: Antimony Segment Zeolite Segment Precious Metals 2017 USAC USAMSA BRZ Segment TOTAL Plant & Equipment $ 743,767 $ 7,655,777 $ 3,577,055 $ 751,640 $ 12,728,239 Buildings 247,210 900,992 349,946 1,498,148 Mineral Rights and Interests - 3,793,502 3,664 3,797,166 Land & Other 3,274,572 2,529,294 15,310 5,819,176 4,265,549 14,879,565 3,945,975 751,640 23,842,729 Accumulated Depreciation (2,577,552 ) (3,427,058 ) (2,596,356 ) (108,866 ) (8,709,832 ) $ 1,687,997 $ 11,452,507 $ 1,349,619 $ 642,774 $ 15,132,897 Antimony Segment Zeolite Segment Precious Metals 2016 USAC USAMSA BRZ Segment TOTAL Plant & Equipment $ 729,272 $ 7,598,640 $ 3,477,260 $ 565,972 $ 12,371,144 Buildings 247,210 900,992 349,946 1,498,148 Mineral Rights and Interests - 3,793,502 3,664 3,797,166 Land & Other 3,274,572 2,529,294 15,310 5,819,176 4,251,054 14,822,428 3,846,180 565,972 23,485,634 Accumulated Depreciation (2,538,257 ) (2,836,164 ) (2,373,627 ) (41,620 ) (7,789,668 ) $ 1,712,797 $ 11,986,264 $ 1,472,553 $ 524,352 $ 15,695,966 At December 31, 2017 and 2016, the Company had $521,896 and $521,376, respectively, of assets that were not yet placed in service and have not yet been depreciated. |
7. Asset Retirement Obligation
7. Asset Retirement Obligation and Accrued Reclamation Costs | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation and Accrued Reclamation Costs | Changes to the asset retirement obligation balance during 2017 and 2016 are as follows: Asset Retirement Obligation Balance December 31, 2015 $ 152,827 Accretion during 2016 5,455 Balance December 31, 2016 158,282 Accretion during 2017 5,790 Balance December 31, 2017 $ 164,072 The Company’s total asset retirement obligation and accrued reclamation costs of $271,572 and $265,782, at December 31, 2017 and 2016, respectively, include reclamation obligations for the Idaho and Montana operations of $107,500. |
8. Long-Term Debt
8. Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long - Term Debt | Long-Term debt at December 31, 2017 and December 31, 2016, is as follows: December 31, December 31, 2017 2016 Note payable to First Security Bank, bearing interest at 6%; payable in monthly installments of $917; maturing September 2018; collateralized by equipment. $ 8,054 $ 18,245 Note payable to Cat Financial Services, bearing interest at 6%; payable in monthly installments of $1,300; maturing August 2019; collateralized by equipment. 27,096 40,556 Note payable to Cat Financial Services, bearing interest at 6%; payable in monthly installments of $778; maturing December 2022; collateralized by equipment. 40,278 - Note payable to Wells Fargo Bank, bearing interest at 4%; payable in monthly installments of $477; maturing December 2016; collateralized by equipment. - 473 Note payable to De Lage Landen Financial Services, bearing interest at 3.51%; payable in monthly installments of $655; maturing September 2019; collateralized by equipment. 13,344 20,581 Note payable to De Lage Landen Financial Services, bearing interest at 3.51%; payable in monthly installments of $655; maturing December 2019; collateralized by equipment. 15,776 22,944 Note payable to Phyllis Rice, bearing interest at 1%; payable in monthly installments of $2,000; originally maturing March 2015; collateralized by equipment. 14,146 14,146 Obligation payable for Soyatal Mine, non-interest bearing, annual payments of $100,000 or $200,000 through 2020, net of discount of $49,360 and $84,750, respectively 715,709 776,319 Obligation payable for Guadalupe Mine, non-interest bearing, annual payments from $60,000 to $149,078 through 2026, net of discount of $309,397 and $367,456, respectively 951,711 970,651 1,786,114 1,863,915 Less current portion (546,988 ) (391,046 ) Long-term portion $ 1,239,126 $ 1,472,869 At December 31, 2017, principal payments on debt are due as follows: Year Ending December 31, 2018 $ 546,988 2019 312,150 2020 203,712 2021 115,253 2022 122,178 Thereafter 485,833 $ 1,786,114 |
9. Notes Payable to Bank
9. Notes Payable to Bank | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Notes Payable to Bank | At December 31, 2017 and 2016, the Company had the following notes payable to bank: December 31, December 31, 2017 2016 Promissory note payable to First Security Bank of Missoula, bearing interest at 3.150%, payable on demand, collateralized by a lien on Certificate of Deposit $ 98,863 $ 76,350 Promissory note payable to First Security Bank of Missoula, bearing interest at 3.150%, payable on demand, collateralized by a lien on Certificate of Deposit 93,702 90,967 Total notes payable to the bank $ 192,565 $ 167,317 These notes are personally guaranteed by John C. Lawrence the Company’s President and Chairman of the Board of Directors. The maximum amount available for borrowing under each note is $99,998. |
10. Hillgrove Advances Payable
10. Hillgrove Advances Payable | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
10. Hillgrove Advances Payable | On November 7, 2014, the Company entered into an advance and concentrate processing agreement with Hillgrove Mines Pty Ltd of Australia (Hillgrove) by which Hillgrove advanced the Company funds to be used to expand its smelter in Madero, Mexico, and in Thompson Falls, Montana, so that they may process antimony and gold concentrates produced by Hillgrove’s mine in Australia. The agreement required that the Company construct equipment so that it can process approximately 200 metric tons of concentrate initially shipped by Hillgrove. The parties agreed that the equipment will be owned by the Company. The agreement called for the Company to sell the final product for Hillgrove, and Hillgrove to have approval rights of the customers for their products. The agreement allows the Company to recover its operating costs at a rate approved by Hillgrove, and to charge a 7.5% processing fee and a 2.0% sales commission on each sale. The initial term of the agreement is five years; however, Hillgrove may suspend or terminate the agreement at its discretion. The Company may terminate the agreement and begin using the furnaces for their own production if Hillgrove fails to recommence shipments within 365 days of a suspension notice. The terms of the agreement require payment of the advance upon Hillgrove’s issuance of a stop notice. Under terms of the agreement, if a stop order is issued after two years, the repayment obligation is 81.25% of the funds advanced at that point. As no stop notice was issued during the initial two year period ended November 7, 2016, the Company’s obligation to Hillgrove is 81.25% of total advanced funds. Through December 31, 2016, Hillgrove advanced the Company a total of $1,396,721, resulting in a net liability of $1,134,221 which is 81.25% of monies advanced. No funds were advanced in 2017. Based on conversations with Hillgrove, management does not anticipate receiving a stop notice in 2018 thus the entire amount is classified as long term. |
11. Stockholder's Equity
11. Stockholder's Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholder's Equity | Issuance of Common Stock for Cash The Company did not issue any common stock for cash in 2017 or 2016. Issuance of Common Stock for Services to Directors and Consultants On December 31, 2017, the Company awarded shares of unregistered common stock to be paid to its directors for services during 2017, having a fair value of $175,000, based on the stock price at the date declared. The stock has not been issued as of the date of issuance of these financial statements. In December of 2016, the Company issued Daniel Parks, the Company’s Chief Financial Officer, 200,000 shares of the Company’s common stock valued at $54,000 to retain his services for a two year period. As part of the agreement, Mr. Parks’ hours worked and normal compensation was reduced. During 2016, the Company awarded common stock with a fair value at December 31, 2017 of $168,750 to its Board of Directors as compensation for their services as directors. In connection with the issuances, the Company recorded $168,750 as director compensation expense and accrued stock payable. In March 2017, the directors were issued 421,875 shares for this award. Common Stock Warrants The Company's Board of Directors has the authority to issue stock warrants for the purchase of preferred or unregistered common stock to directors and employees of the Company. At December 31, 2017 and 2016, warrants for purchase of 250,000 shares of the Company’s common stock for $0.25 per share are outstanding and have no expiration date. These warrants are owned by the Company’s president. Preferred Stock The Company's Articles of Incorporation authorize 10,000,000 shares of $0.01 par value preferred stock available for issuance with such rights and preferences, including liquidation, dividend, conversion, and voting rights, as the Board of Directors may determine. Series B During 1993, the Board established a Series B preferred stock, consisting of 750,000 shares. The Series B preferred stock has preference over the Company's common stock and Series A preferred stock (none of which are outstanding); has no voting rights (absent default in payment of declared dividends); and is entitled to cumulative dividends of $0.01 per share per year, payable if and when declared by the Board of Directors. During the years ended December 31, 2017 and 2016 the Company recognized $7,500 in Series B preferred stock dividend. In the event of dissolution or liquidation of the Company, the preferential amount payable to Series B preferred stockholders is $1.00 per share plus dividends in arrears. No dividends have been declared or paid with respect to the Series B preferred stock. The Series B Preferred stock is no longer convertible to shares of the Company’s common stock. At December 31, 2017 and 2016, cumulative dividends in arrears on the outstanding Series B shares were $172,500 and $165,000, respectively. Series C During 2000, the Board established a Series C preferred stock, consisting of 205,996 shares. In 2002, 28,092 shares were converted to common stock and cancelled, leaving 177,904 Series C preferred shares authorized and outstanding. The Series C preferred stock has preference over the Company’s common stock and has voting rights equal to that number of shares outstanding, but no conversion or dividend rights. In the event of dissolution or liquidation of the Company, the preferential amount payable to Series C preferred stockholders is $0.55 per share. Series D During 2002, the Board established a Series D preferred stock, authorizing the issuance of up to 2,500,000 shares. The Series D preferred stock has preference over the Company’s common stock but is subordinate to the liquidation preferences of the holders of the Company’s outstanding Series A, Series B and Series C preferred stock. Series D preferred stock carries voting rights and is entitled to annual dividends of $0.0235 per share. The dividends are cumulative and payable after payment and satisfaction of the Series A, B and C preferred stock dividends. No dividends have been declared or paid with respect to the Series D preferred stock. At December 31, 2017 and 2016, the cumulative dividends in arrears on the 1,751,005 outstanding Series D shares were $583,812 and $542,664, respectively, payable if and when declared by the Board of Directors. In the event of dissolution or liquidation of the Company, the preferential amount payable to Series D preferred stockholders is $2.50 per share. At December 31, 2017 and 2016, the liquidation preference for Series D preferred stock was $4,961,327 and $4,920,178, respectively. Holders of the Series D preferred stock have the right, subject to the availability of authorized but unissued common stock, to convert their shares into shares of the Company's common stock on a one-to-one basis without payment of additional consideration and are not redeemable unless by mutual consent. The majority of Series D preferred shares are held by John Lawrence, president of the Company. |
12. 2000 Stock Plan
12. 2000 Stock Plan | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
2000 Stock Plan | In January 2000, the Company's Board of Directors resolved to create the United States Antimony Corporation 2000 Stock Plan ("the Plan"). The purpose of the Plan is to attract and retain the best available personnel for positions of substantial responsibility and to provide additional incentive to employees, directors and consultants to promote the success of the Company's business. The maximum number of shares of common stock or options to purchase common stock that may be issued pursuant to the Plan is 500,000. At December 31, 2017 and 2016, 300,000 shares of the Company's common stock had been previously issued under the Plan. There were no issuances under the Plan during 2017 and 2016. |
13. Income Taxes
13. Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Income Taxes | Domestic and foreign components of income (loss) from operations before income taxes for the years ended December 31, 2017 and 2016, are as follows: 2017 2016 Domestic $ (374,478 ) $ (263,652 ) Foreign (759,916 ) (747,410 ) Total $ (1,134,394 ) $ (1,011,062 ) At December 31, 2017 and 2016, the Company had net deferred tax assets as follows: 2017 2016 Deferred tax assets: Foreign exploration costs $ 15,372 $ 47,011 Foreign net operating loss carry forward 1,537,420 1,309,445 Domestic net operating loss carry forward 443,100 465,145 Other 1,455 - Deferred tax assets 1,997,347 1,821,601 Valuation allowance (foreign) (1,537,420 ) (1,309,445 ) Valuation allowance (domestic) (316,793 ) (299,522 ) Total deferred tax assets 143,134 212,634 Deferred tax liabilities: Property, plant, and equipment (143,134 ) (210,912 ) Other - (1,722 ) Total deferred tax liabilities (143,134 ) (212,634 ) Net deferred tax assets $ - $ - At December 31, 2017, the Company has federal net operating loss (“NOL”) carry forwards of approximately $0.8 million that expire at various dates between 2026 and 2038. In addition, the Company has Montana state net operating loss carry forwards of approximately $3.5 million which expire between 2017 and 2024, and Idaho state net operating loss carry forwards of approximately $1.5 million, which expire between 2032 and 2038. The Company has approximately $5.1 million of Mexican net operating loss carry forwards which expire between 2023 and 2027. At December 31, 2017 and 2016, the Company had deferred tax assets arising principally from net operating loss carry forwards for income tax purposes. As management cannot determine that it is more likely than not the benefit of the net deferred tax asset will be realized, a valuation allowance equal to 100% of the net deferred tax asset has been recorded at December 31, 2017 and 2016. On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the "Act") resulting in significant modifications to existing law. The Company completed the accounting for the effects of the Act during the quarter ended December 31, 2017. The Company did not incur any income tax benefit or provision for the year ended December 31, 2017 as a result of the changes to tax laws and tax rates under the Act. The Company’s net deferred tax asset was reduced by approximately $7,000 during the year ended December 31, 2017, which consisted primarily of the re-measurement of federal deferred tax assets and liabilities from 35% to 21%. The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax loss for the years ended December 31, 2017 and 2016, due to the following: 2017 2016 Tax benefit at federal statutory rate $ (397,038 ) $ (353,872 ) State income tax effect (34,609 ) (21,754 ) Foreign income tax effect 37,996 37,371 Non-deductible items 930 3,263 Percentage depletion (58,056 ) (40,976 ) Change in valuation allowance - Domestic 229,462 151,745 Change in valuation allowance - Foreign 227,975 224,223 Impact on change in federal tax rate (6,660 ) - Foreign tax assessment - 285,048 Alternative minimum tax - Domestic - 13,090 Total $ - $ 298,138 Change in valuation allowance is comprised of the following: 2017 2016 Domestic Change in deferred tax asset for current year $ (229,462 ) $ (151,745 ) Adjustment for prior year tax estimate to actual due to transfer pricing adjustment for Mexican operations 212,146 (57,557 ) $ (17,316 ) $ (209,302 ) Foreign Change in deferred tax asset for current year $ (227,975 ) $ (224,223 ) Adjustment for impact of tax assessment - 285,048 Impact on change in foreign exchange rate - 421,643 Adjustment for prior year tax estimates to actual - 724,041 $ (227,975 ) $ 1,206,509 During the years ended December 31, 2017 and 2016, there were no material uncertain tax positions taken by the Company. The Company’s United States income tax filings are subject to examination for the years 2015 through 2017, and 2014 through 2017 in Mexico. The Company charges penalties on assessments to general and administrative expense and charges interest to interest expense. Mexican Tax Assessment In 2015, the Mexican tax authority (“SAT”) initiated an audit of the USAMSA’s 2013 income tax return. In October 2016, as a result of its audit, SAT assessed the Company $13.8 million Mexican pesos, which was approximately $666,400 in U.S. Dollars (“USD”) as of December 31, 2016. Approximately $285,000 USD of the total assessment is interest and penalties. SAT’s assessment is based on the disallowance of specific costs that the Company deducted on the 2013 USAMSA income tax return. These disallowed costs were incurred by the Company for USAMSA’s business operations. SAT claims that the costs were not deductible or were not supported by appropriate documentation. At December 31, 2017, the assessed amount is approximately $699,000 in U.S dollars. Management has reviewed the assessment notice from SAT and believes numerous findings have no merit. The Company has engaged accountants and tax attorneys in Mexico to defend its position. At December 31, 2016, management has estimated possible outcomes for this assessment and concluded the Company will ultimately pay an amount ranging from 30% to 100% of the total assessment. The 30% is based on the Company’s agreement with the tax professionals that the professionals will receive 30% of the amount of tax relief they are able to achieve. At December 31, 2016, the Company accrued a potential liability of $410,510 USD of which $285,048 was for unpaid income taxes, $75,510 was for interest expense, and $49,952 was for penalties. The amount accrued represented management’s best estimate of the amount that will ultimately be paid. The outcome could vary from this estimate. During 2017, the Company filed grievance and legal arguments regarding the SAT audit and presented arguments to the court in September 2017. The Company is waiting for the court’s ruling on the matter and expects resolution in 2018. Based on this status, the Company concluded that the estimate of potential assessment determined at December 31, 2016 remains the most likely outcome at December 31, 2017. The December 31, 2016 income tax payable due of $410,510 was increased by $32,600 due to the change in exchange rate between the U.S. dollar and Mexican peso. Fluctuation in exchange rates will have an ongoing impact on the amount the Company will pay in U.S. dollars. If an issue addressed during the SAT audit is resolved in a manner inconsistent with management expectations, the Company will adjust its net operating loss carryforward, or accrue any additional penalties, interest, and tax associated with the audit. The Company’s tax professionals in Mexico have reviewed and filed tax returns with the SAT for 2014, 2015, and 2016, and have advised the Company that they do not expect the Company to have a tax liability for those years relating to similar issues. |
14. Related Party Transactions
14. Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | The Company’s President and Chairman, John Lawrence, rents equipment and an aircraft to the Company and charges the Company for lodging and meals provided to consultants, customers and other parties by an entity that Mr. Lawrence owns. The amount due to Mr. Lawrence as of December 31, 2017 and 2016 was $22,668 and $14,525, respectively. Expenses paid to Mr. Lawrence for the years ended December 31, 2017 and 2016 were $13,603 and $16,791, respectively. |
15. Commitments and Contingenci
15. Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | In 2005, Antimonio de Mexico, S. A. (“AM”) signed an option agreement that gives AM the exclusive right to explore and develop the San Miguel I and San Miguel II concessions for annual payments. Total payments will not exceed $1,430,344, reduced by taxes paid. During the year ended 2016 $65,000 was paid and capitalized as mineral rights in accordance with the Company’s accounting policies. At December 31, 2017 and 2016, the Company has made all of the required payments under the agreement. In June of 2013, the Company entered into a lease to mine antimony ore from concessions located in the Wadley Mining district in Mexico. The lease calls for a mandatory term of one year and requires payments of $10,000 plus IVA tax of $1,600 per month. The lease is renewable each year with a 15 day notice to the lessor, and agreement of terms. The lease was renewed in June of 2017. From time to time, the Company is assessed fines and penalties by the Mine Safety and Health Administration (“MSHA”). Using appropriate regulatory channels, management may contest these proposed assessments. At December 31, 2017 and 2016, the Company has no accruals relating to such assessments. |
16. Business Segments
16. Business Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | The Company is currently organized and managed by four segments, which represent the three operating units: United States antimony operations, Mexican antimony operations and United States zeolite operations, and a separate segment for revenue received from the sale of precious metals recovered from the antimony process. The Company’s precious metals segment was added as a new reporting segment in 2016. The precious metals activity has been reclassified from the antimony segment for 2017 and 2016. The Company’s Other operating costs Other income and expense The Madero smelter and Puerto Blanco mill at the Company’s Mexico operation brings antimony up to an intermediate stage, which is then shipped to the United States operation for finishing and sales at the Thompson Falls, Montana plant. The Zeolite operation produces Zeolite near Preston, Idaho. Almost all of the sales of products from the United States antimony and Zeolite operations are to customers in the United States. Precious metal revenues are from sales to customers in the United States and Canada. Segment disclosures regarding sales to major customers and for property, plant, and equipment are located in Notes 2 and 6, respectively. Total Assets: December 31, 2017 December 31, 2016 Antimony United States $ 2,510,323 $ 2,514,306 Mexico 12,073,219 12,682,908 Subtotal Antimony 14,583,542 15,197,214 Precious Metals 642,774 524,352 Zeolite 1,904,938 2,044,432 Total $ 17,131,254 $ 17,765,998 For the year ended For the year ended Capital expenditures: December 31, 2017 December 31, 2016 Antimony United States $ 32,961 $ 1,331 Mexico 87,396 226,331 Subtotal Antimony 120,357 227,662 Precious metals 185,668 304,412 Zeolite 99,794 133,296 Total $ 405,819 $ 665,370 Segment Operations for the Antimony Antimony Total Precious Bear River Year ended December 31, 2017 USA Mexico Antimony Metals Zeolite Totals Total revenues $ 7,588,470 $ - $ 7,588,470 $ 374,872 $ 2,266,636 $ 10,229,978 Depreciation and amortization 57,761 623,899 681,660 64,499 222,729 968,888 Income (loss) from operations 1,965,573 (3,579,810 ) (1,614,237 ) 310,373 344,165 (959,699 ) Income tax expense - - - - - - Other income (expense) (35,853 ) (126,149 ) (162,002 ) - (12,693 ) (174,695 ) NET INCOME (LOSS) $ 1,929,720 $ (3,705,959 ) $ (1,776,239 ) $ 310,373 $ 331,472 $ (1,134,394 ) Segment Operations for the Antimony Antimony Total Precious Bear River Year ended December 31, 2016 USA Mexico Antimony Metals Zeolite Totals Total revenues $ 8,740,602 $ 3,568 $ 8,744,170 $ 672,871 $ 2,473,094 $ 11,890,135 Depreciation and amortization 62,863 678,639 741,502 44,367 213,868 999,737 Income (loss) from operations 3,393,787 (5,083,832 ) (1,690,045 ) 628,504 245,019 (816,522 ) Income tax expense (13,090 ) (285,048 ) (298,138 ) - - (298,138 ) Other income (expense) (34,262 ) (149,165 ) (183,427 ) - (11,113 ) (194,540 ) NET INCOME (LOSS) $ 3,346,435 $ (5,518,045 ) $ (2,171,610 ) $ 628,504 $ 233,906 $ (1,309,200 ) |
3. Summary of Significant Acc23
3. Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies Policies | |
Principles of Consolidation | The Company's consolidated financial statements include the accounts of BRZ, USAMSA and AM, all wholly-owned subsidiaries. Intercompany balances and transactions are eliminated in consolidation. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant and critical estimates include property, plant and equipment depreciation and potential impairment, metal content of mineral resources, accounts receivable allowance for uncollectible accounts, deferred income taxes, income taxes payable, environmental remediation liabilities and asset retirement obligations. Actual results could differ from those estimates. |
Cash and Cash Equivalents | The Company considers cash in banks and investments with original maturities of three months or less when purchased to be cash equivalents. |
Restricted Cash | Restricted cash at December 31, 2017 and 2016 consists of cash held for reclamation performance bonds, and is held in certificates of deposit with financial institutions. |
Accounts Receivable | Accounts receivable are stated at the amount that management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through an allowance for doubtful accounts. Changes to the allowance for doubtful accounts are based on management’s judgment, considering historical write-offs, collections and current credit conditions. Balances which remain outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to the applicable accounts receivable. Payments received on receivables subsequent to being written off are considered a bad debt recovery. |
Inventories | Inventories at December 31, 2017 and 2016 consisted of finished antimony products, antimony metal, antimony concentrates, antimony ore, and finished zeolite products, and are stated at the lower of first-in, first-out weighted average cost or estimated net realizable value. Finished antimony products, antimony metal and finished zeolite products costs include raw materials, direct labor and processing facility overhead costs and freight allocated based on production quantity. Stockpiled ore is carried at the lower of average cost or net realizable value. Since the Company's antimony inventory is a commodity with a sales value that is subject to world prices for antimony that are beyond the Company's control, a significant change in the world market price of antimony could have a significant effect on the net realizable value of inventories. The Company periodically reviews its inventories to identify excess and obsolete inventories and to estimate reserves for obsolete inventories as necessary to reflect inventories at net realizable value. |
Translations of Foreign Currencies | All amounts in the financial statements are presented in U.S. dollars, which is the functional currency for all of our operations. Foreign translation gains and losses relating to our Mexican subsidiaries are recognized as foreign exchange gain or loss in our consolidated statement of operations. |
Going Concern Consideration | At December 31, 2017, the Company’s financial statements show negative working capital of approximately $2.4 million and accumulated deficit of approximately $26.5 million. In addition, the Company has incurred losses for the prior three years. These factors indicate that there may be doubt regarding the ability to continue as a going concern for the next twelve months. The continuing losses are principally a result of the Company’s antimony operations and in particular to the production costs incurred in Mexico. The other two operating divisions, precious metals and zeolite, had gross profits of $310,373 and $408,403, respectively, in 2017. Regarding the antimony division, in 2016 the Company endured some of the lowest prices for antimony in the past seven years, with an average sales price of only $2.98 per pound of metal contained. Prices improved during 2017 with an average sale price of $4.01. Through March 2018, the average sale price for antimony is approximately $4.10 per pound. Additionally in November 2017, the Company renegotiated its domestic sodium antimonite supply agreement resulting in a lower cost per antimony per pound of approximately $0.44. With the new supply agreement in place, most of the market increase in antimony prices will result in increased Company cash flow in 2018 from its antimony division. In 2017, the Company reduced costs for labor at the Mexico locations which has resulted in a lower overall production costs in Mexico which will continue through 2018. The reduction was due to a large reduction in the work force at the Madero smelter because of the decrease in antimony concentrate from Hillgrove (see Note 10). In the fourth quarter 2017, the Company also adjusted operating approaches at Madero that will likely result in a decrease in operating costs for fuel, natural gas, electricity, and reagents. Although total production activity in Mexico decreased in 2017 due to the lack of Hillgrove concentrates, the Company’s 2018 plan involves ramping up production at its own antimony properties in Mexico. In addition, a new leach circuit expected to come on line during 2018 in Mexico will result in more extraction of precious metals. In 2017, management implemented wage and other cost reductions at the corporate level that will keep administrative costs stable in 2018. The Company expects to continue paying a low cost for propane in Montana, which in years past has been a major operating cost. Over the past several years, the Company has been able to make required principal payments on its debt from cash generated from operations without the need for additional borrowings or selling shares of its common stock. The Company plans to continue keeping current on its debt payments in 2018 through cash flows from operations. Management believes that the current circumstances and cost reduction actions taken will enable the Company to be actively operating for the next twelve months. |
Mineral Rights | The costs to obtain the legal right to explore, extract and retain at least a portion of the benefits from mineral deposits are capitalized as mineral rights in the year of acquisition. These capitalized costs are amortized on the statement of operations using the straight line method over the expected life of the mineral deposit when placed into production. Mineral rights are assessed for impairment when facts and circumstances indicate that the potential for impairment exists. No impairment has been indicated for the years ended December 31, 2017 or 2016 as a result of this assessment. Mineral rights are subject to write down in the period the property is abandoned. |
Properties, Plants and Equipment | Properties, plants and equipment are stated at historical cost and are depreciated using the straight-line method over estimated useful lives of two to thirty years. Vehicles and office equipment are stated at cost and are depreciated using the straight-line method over estimated useful lives of three to twelve years. Maintenance and repairs are charged to operations as incurred. Betterments of a major nature are capitalized. Expenditures for new property, plant, equipment, and improvements that extend the useful life or functionality of the asset are capitalized. The Company capitalized $405,819 and $665,370 in plant construction and other capital costs for the years ended December 31, 2017 and 2016, respectively. These amounts include capitalized interest of $0 and $35,305, respectively. When assets are retired or sold, the costs and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in operations. Mineral properties are amortized over the estimated economic life of the mineral resource using the straight-line method, based upon estimated lives of the properties, or the units-of-production method, based upon estimated units of mineral resource. Management of the Company periodically reviews the net carrying value of all of its long-lived assets. These reviews consider the net realizable value of each asset or group to determine whether a permanent impairment in value has occurred and the need for any asset write-down. An impairment loss is recognized when the estimated future cash flows (undiscounted and without interest) expected to result from the use of an asset are less than the carrying amount of the asset. Measurement of an impairment loss is based on the estimated fair value of the asset if the asset is expected to be held and used. |
Exploration and Development | The Company records exploration costs as operating expenses in the period they occur, and capitalizes development costs on discrete mineralized bodies that have proven reserves in compliance with Securities and Exchange Commission Industry Guide 7, and are in development or production. |
Asset Retirement Obligations and Reclamation Costs | All of the Company's mining operations are subject to reclamation and remediation requirements. Minimum standards for mine reclamation have been established by various governmental agencies. Costs are estimated based primarily upon environmental and regulatory requirements and are accrued. The liability for reclamation is classified as current or noncurrent based on the expected timing of expenditures. Reclamation differs from an asset retirement obligation in that no associated asset is recorded in the case of reclamation liabilities. It is reasonably possible that because of uncertainties associated with defining the nature and extent of environmental contamination, application of laws and regulations by regulatory authorities, and changes in remediation technology, the ultimate cost of remediation and reclamation could change in the future. The Company continually reviews its accrued liabilities for such remediation and reclamation costs as evidence becomes available indicating that its remediation and reclamation liability has changed. The Company records the fair value of an asset retirement obligation as a liability in the period in which the Company incurs a legal obligation for the retirement of long-lived assets if it is probable that such costs will be incurred and they are reasonably estimable. A corresponding asset is also recorded and depreciated over the life of the assets on a straight line basis. After the initial measurement of the asset retirement obligation, the liability will be adjusted to reflect changes in the estimated future cash flows underlying the obligation. Determination of any amounts included in determination of fair value is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates, and the Company’s credit-adjusted risk-free interest rates. |
Revenue Recognition | Sales of antimony and zeolite products are recorded either upon shipment or delivery dependent on the term, and when title passes to the customer. The Company's sales agreements do not provide for product returns or allowances. Prepayments, which are not common, received from customers prior to the time that products are processed and shipped, are recorded as deferred revenue. When the related products are shipped, the amount recorded as deferred revenue is recognized as revenue. Sales of precious metals are recognized when pervasive evidence of an arrangement exists, the price is reasonably determinable, the product has been delivered, no obligations remain, and collection is reasonably assured. |
Common Stock Issued for Consideration Other than Cash | All transactions in which goods or services are received for the issuance of shares of the Company’s common stock are accounted for based on the fair value of the consideration received or the fair value of the common stock issued, whichever is more readily determinable. |
Income Taxes | Income taxes are accounted for under the liability method. Under this method, deferred income tax liabilities or assets are determined at the end of each period using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized. The Company applies generally accepted accounting principles for recognition of uncertainty in income taxes and prescribing a recognition threshold and measurement attribute for the recognition and measurement of a tax position taken or expected to be taken in a tax return. |
Income (Loss) Per Common Share | Basic earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including stock options, warrants to purchase the Company's common stock and convertible preferred stock. Management has determined that the calculation of diluted earnings per share for the years ended December 31, 2017, and 2016, does not add any shares to basic weighted average shares. As of December 31, 2017 and 2016, potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share are as follows: December 31, 2017 December 31, 2016 Warrants 250,000 250,000 Convertible preferred stock 1,751,005 1,751,005 Total possible dilution 2,001,005 2,001,005 |
Fair Value of Financial Instruments | The Company’s financial instruments include cash and cash equivalents, certificates of deposits, restricted cash, due to factor, and long-term debt. The carrying value of these instruments approximates fair value based on their contractual terms. |
Fair Value Measurements | When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. The Company has no financial assets or liabilities that are adjusted to fair value on a recurring basis. |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 Revenue Recognition, replacing guidance currently codified in Subtopic 605-10 Revenue Recognition-Overall with various SEC Staff Accounting Bulletins providing interpretive guidance. The new ASU establishes a new five step principles-based framework in an effort to significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. In August 2015, the FASB issued ASU No. 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. ASU No. 2015-14 defers the effective date of ASU No. 2014-09 until annual and interim reporting periods beginning after December 15, 2017. The Company has performed an assessment of the impact of implementation of ASU No. 2014-09, and concluded it will not change the timing of revenue recognition or amounts of revenue recognized compared to how revenue is recognized under current policies. ASU No. 2014-09 will require additional disclosures, where applicable, on (i) contracts with customers, (ii) significant judgments and changes in judgments in determining the timing of satisfaction of performance obligations and the transaction price, and (iii) assets recognized for costs to obtain or fulfill contracts. In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842). The update modifies the classification criteria and requires lessees to recognize the assets and liabilities on the balance sheet for most leases. The update is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the potential impact of implementing this update on the consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The update provides guidance on classification for cash receipts and payments related to eight specific issues. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of implementing this update on the consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash. The update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The Company does not expect this update to have a material impact on the consolidation financial statements. In January 2017, the FASB issued ASU No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company will apply the provisions of the update to potential future acquisitions occurring after the effective date. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
Reclassifications | Certain reclassifications have been made to conform the prior year’s data to the current year’s presentation. These reclassifications have no effect on previously reported operations, stockholders’ equity or cash flows. |
2. Concentration of Risk (Table
2. Concentration of Risk (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Concentration Of Risk Tables | |
Major Customers Revenue Details | Sales to For the Year Ended Largest Customers December 31, 2017 December 31, 2016 Mexichem Specialty Compounds Inc. $ 3,335,046 $ 2,108,998 East Penn Manufacturing Inc 512,621 1,147,854 Kohler Corporation 1,928,962 1,474,854 $ 5,776,629 $ 4,731,706 % of Total Revenues 56.50 % 39.80 % Largest Accounts Receivable December 31, 2017 December 31, 2016 Nutreco Canada Inc. $ 25,657 GE Lighting $ 162,582 Teck American Inc 241,627 Kohler Corporation 151,500 Ralco Mix Products 16,000 $ 283,284 $ 314,082 % of Total Receivables 78.10 % 83.90 % |
3. Summary of Significant Acc25
3. Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | December 31, 2017 December 31, 2016 Warrants 250,000 250,000 Convertible preferred stock 1,751,005 1,751,005 Total possible dilution 2,001,005 2,001,005 |
4. Accounts Receivable and Du26
4. Accounts Receivable and Due to Factor (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Receivable And Due To Factor Tables | |
Account Receivables | Accounts Receivable December 31, 2017 December 31, 2016 Accounts receivable - non-factored $ 351,699 $ 401,720 Accounts receivable - factored with recourse 10,880 150,399 Accounts receivable - net $ 362,579 $ 552,119 |
5. Inventories (Tables)
5. Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 2017 2016 Antimony Metal $ - $ 112,300 Antimony Oxide 408,217 326,126 Antimony Concentrates 35,554 30,815 Antimony Ore 187,133 181,815 Total antimony 630,904 651,056 Zeolite 283,805 204,581 $ 914,709 $ 855,637 |
6. Properties, Plants and Equ28
6. Properties, Plants and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Properties Plants And Equipment Tables | |
Properties, Plants and Equipment | Antimony Segment Zeolite Segment Precious Metals 2017 USAC USAMSA BRZ Segment TOTAL Plant & Equipment $ 743,767 $ 7,655,777 $ 3,577,055 $ 751,640 $ 12,728,239 Buildings 247,210 900,992 349,946 1,498,148 Mineral Rights and Interests - 3,793,502 3,664 3,797,166 Land & Other 3,274,572 2,529,294 15,310 5,819,176 4,265,549 14,879,565 3,945,975 751,640 23,842,729 Accumulated Depreciation (2,577,552 ) (3,427,058 ) (2,596,356 ) (108,866 ) (8,709,832 ) $ 1,687,997 $ 11,452,507 $ 1,349,619 $ 642,774 $ 15,132,897 Antimony Segment Zeolite Segment Precious Metals 2016 USAC USAMSA BRZ Segment TOTAL Plant & Equipment $ 729,272 $ 7,598,640 $ 3,477,260 $ 565,972 $ 12,371,144 Buildings 247,210 900,992 349,946 1,498,148 Mineral Rights and Interests - 3,793,502 3,664 3,797,166 Land & Other 3,274,572 2,529,294 15,310 5,819,176 4,251,054 14,822,428 3,846,180 565,972 23,485,634 Accumulated Depreciation (2,538,257 ) (2,836,164 ) (2,373,627 ) (41,620 ) (7,789,668 ) $ 1,712,797 $ 11,986,264 $ 1,472,553 $ 524,352 $ 15,695,966 |
7. Asset Retirement Obligatio29
7. Asset Retirement Obligation and Accrued Reclamation Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | Asset Retirement Obligation Balance December 31, 2015 $ 152,827 Accretion during 2016 5,455 Balance December 31, 2016 158,282 Accretion during 2017 5,790 Balance December 31, 2017 $ 164,072 |
8. Long-Term Debt (Tables)
8. Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long - Term Debt | December 31, December 31, 2017 2016 Note payable to First Security Bank, bearing interest at 6%; payable in monthly installments of $917; maturing September 2018; collateralized by equipment. $ 8,054 $ 18,245 Note payable to Cat Financial Services, bearing interest at 6%; payable in monthly installments of $1,300; maturing August 2019; collateralized by equipment. 27,096 40,556 Note payable to Cat Financial Services, bearing interest at 6%; payable in monthly installments of $778; maturing December 2022; collateralized by equipment. 40,278 - Note payable to Wells Fargo Bank, bearing interest at 4%; payable in monthly installments of $477; maturing December 2016; collateralized by equipment. - 473 Note payable to De Lage Landen Financial Services, bearing interest at 3.51%; payable in monthly installments of $655; maturing September 2019; collateralized by equipment. 13,344 20,581 Note payable to De Lage Landen Financial Services, bearing interest at 3.51%; payable in monthly installments of $655; maturing December 2019; collateralized by equipment. 15,776 22,944 Note payable to Phyllis Rice, bearing interest at 1%; payable in monthly installments of $2,000; originally maturing March 2015; collateralized by equipment. 14,146 14,146 Obligation payable for Soyatal Mine, non-interest bearing, annual payments of $100,000 or $200,000 through 2020, net of discount of $49,360 and $84,750, respectively 715,709 776,319 Obligation payable for Guadalupe Mine, non-interest bearing, annual payments from $60,000 to $149,078 through 2026, net of discount of $309,397 and $367,456, respectively 951,711 970,651 1,786,114 1,863,915 Less current portion (546,988 ) (391,046 ) Long-term portion $ 1,239,126 $ 1,472,869 |
Principal payments on debt | Year Ending December 31, 2018 $ 546,988 2019 312,150 2020 203,712 2021 115,253 2022 122,178 Thereafter 485,833 $ 1,786,114 |
9. Notes Payable to Bank (Table
9. Notes Payable to Bank (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of notes payable to bank | December 31, December 31, 2017 2016 Promissory note payable to First Security Bank of Missoula, bearing interest at 3.150%, payable on demand, collateralized by a lien on Certificate of Deposit $ 98,863 $ 76,350 Promissory note payable to First Security Bank of Missoula, bearing interest at 3.150%, payable on demand, collateralized by a lien on Certificate of Deposit 93,702 90,967 Total notes payable to the bank $ 192,565 $ 167,317 |
13. Income Taxes (Tables)
13. Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes Tables | |
Domestic and foreign components of income (loss) from operations before income taxes | 2017 2016 Domestic $ (374,478 ) $ (263,652 ) Foreign (759,916 ) (747,410 ) Total $ (1,134,394 ) $ (1,011,062 ) |
Deferred tax assets | 2017 2016 Deferred tax assets: Foreign exploration costs $ 15,372 $ 47,011 Foreign net operating loss carry forward 1,537,420 1,309,445 Domestic net operating loss carry forward 443,100 465,145 Other 1,455 - Deferred tax assets 1,997,347 1,821,601 Valuation allowance (foreign) (1,537,420 ) (1,309,445 ) Valuation allowance (domestic) (316,793 ) (299,522 ) Total deferred tax assets 143,134 212,634 Deferred tax liabilities: Property, plant, and equipment (143,134 ) (210,912 ) Other - (1,722 ) Total deferred tax liabilities (143,134 ) (212,634 ) Net deferred tax assets $ - $ - |
Schedule of Components of Income Tax Expense (Benefit) | 2017 2016 Tax benefit at federal statutory rate $ (397,038 ) $ (353,872 ) State income tax effect (34,609 ) (21,754 ) Foreign income tax effect 37,996 37,371 Non-deductible items 930 3,263 Percentage depletion (58,056 ) (40,976 ) Change in valuation allowance - Domestic 229,462 151,745 Change in valuation allowance - Foreign 227,975 224,223 Impact on change in federal tax rate (6,660 ) - Foreign tax assessment - 285,048 Alternative minimum tax - Domestic - 13,090 Total $ - $ 298,138 |
Schedule of Effective Income Tax Rate Reconciliation | 2017 2016 Domestic Change in deferred tax asset for current year $ (229,462 ) $ (151,745 ) Adjustment for prior year tax estimate to actual due to transfer pricing adjustment for Mexican operations 212,146 (57,557 ) $ (17,316 ) $ (209,302 ) Foreign Change in deferred tax asset for current year $ (227,975 ) $ (224,223 ) Adjustment for impact of tax assessment - 285,048 Impact on change in foreign exchange rate - 421,643 Adjustment for prior year tax estimates to actual - 724,041 $ (227,975 ) $ 1,206,509 |
16. Business Segments (Tables)
16. Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Total Assets: December 31, 2017 December 31, 2016 Antimony United States $ 2,510,323 $ 2,514,306 Mexico 12,073,219 12,682,908 Subtotal Antimony 14,583,542 15,197,214 Precious Metals 642,774 524,352 Zeolite 1,904,938 2,044,432 Total $ 17,131,254 $ 17,765,998 For the year ended For the year ended Capital expenditures: December 31, 2017 December 31, 2016 Antimony United States $ 32,961 $ 1,331 Mexico 87,396 226,331 Subtotal Antimony 120,357 227,662 Precious metals 185,668 304,412 Zeolite 99,794 133,296 Total $ 405,819 $ 665,370 Segment Operations for the Antimony Antimony Total Precious Bear River Year ended December 31, 2017 USA Mexico Antimony Metals Zeolite Totals Total revenues $ 7,588,470 $ - $ 7,588,470 $ 374,872 $ 2,266,636 $ 10,229,978 Depreciation and amortization 57,761 623,899 681,660 64,499 222,729 968,888 Income (loss) from operations 1,965,573 (3,579,810 ) (1,614,237 ) 310,373 344,165 (959,699 ) Income tax expense - - - - - - Other income (expense) (35,853 ) (126,149 ) (162,002 ) - (12,693 ) (174,695 ) NET INCOME (LOSS) $ 1,929,720 $ (3,705,959 ) $ (1,776,239 ) $ 310,373 $ 331,472 $ (1,134,394 ) Segment Operations for the Antimony Antimony Total Precious Bear River Year ended December 31, 2016 USA Mexico Antimony Metals Zeolite Totals Total revenues $ 8,740,602 $ 3,568 $ 8,744,170 $ 672,871 $ 2,473,094 $ 11,890,135 Depreciation and amortization 62,863 678,639 741,502 44,367 213,868 999,737 Income (loss) from operations 3,393,787 (5,083,832 ) (1,690,045 ) 628,504 245,019 (816,522 ) Income tax expense (13,090 ) (285,048 ) (298,138 ) - - (298,138 ) Other income (expense) (34,262 ) (149,165 ) (183,427 ) - (11,113 ) (194,540 ) NET INCOME (LOSS) $ 3,346,435 $ (5,518,045 ) $ (2,171,610 ) $ 628,504 $ 233,906 $ (1,309,200 ) |
2. Concentrations of Risk (Deta
2. Concentrations of Risk (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Sales to Three Largest Customers | $ 5,776,629 | $ 4,731,706 |
Total percentage of revenue | 56.50% | 39.80% |
Mexichem Specialty Compounds Inc. | ||
Sales to Three Largest Customers | $ 3,335,046 | $ 2,108,998 |
East Penn Manufacturing Inc | ||
Sales to Three Largest Customers | 512,621 | 1,147,854 |
KohlerCorporation [Member] | ||
Sales to Three Largest Customers | $ 1,928,962 | $ 1,474,854 |
2. Concentrations of Risk (De35
2. Concentrations of Risk (Details 1) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Receivable | $ 283,284 | $ 314,082 |
Total percentage of receivables | 78.10% | 83.90% |
Nutreco Canada Inc. [Member] | ||
Accounts Receivable | $ 5,657 | $ 0 |
GE Lighting [Member] | ||
Accounts Receivable | 0 | 162,582 |
Teck American Inc | ||
Accounts Receivable | 241,627 | 0 |
KohlerCorporation [Member] | ||
Accounts Receivable | 0 | 151,500 |
Ralco Mix Products [Member] | ||
Accounts Receivable | $ 16,000 | $ 0 |
3. Summary of Significant Acc36
3. Summary of Significant Accounting Policies (Details) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Total possible dilution | 2,001,005 | 2,001,005 |
Warrant [Member] | ||
Total possible dilution | 250,000 | 250,000 |
Convertible preferred stock | ||
Total possible dilution | 1,751,005 | 1,751,005 |
4. Accounts Receivable and Du37
4. Accounts Receivable and Due to Factor (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Receivable And Due To Factor Tables | ||
Accounts receivable - non factored | $ 351,699 | $ 401,720 |
Accounts receivable - factored with recourse | 10,880 | 150,399 |
Accounts receivable - net | $ 362,579 | $ 552,119 |
4. Accounts Receivable and Du38
4. Accounts Receivable and Due to Factor (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts Receivable And Due To Factor Details Narrative | ||
Factoring Expense | $ 35,993 | $ 35,182 |
Net accounts receivable factored during the year | $ 1,700,000 | $ 1,800,000 |
5. Inventories (Details)
5. Inventories (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Inventories | $ 914,709 | $ 855,637 | |
Antimony Metal [Member] | |||
Inventories | 0 | 112,300 | |
Antimony Oxide [Member] | |||
Inventories | 408,217 | 326,126 | |
Antimony Concentrates | |||
Inventories | 35,554 | $ 30,815 | |
Antimony Ore [Member] | |||
Inventories | 187,133 | 181,815 | |
Antimony [Member] | |||
Inventories | 630,904 | 651,056 | |
Zeolite (Member) | |||
Inventories | $ 283,805 | $ 204,581 |
6. Properties, Plants and Equ40
6. Properties, Plants and Equipment (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Plant and equipment | $ 12,728,239 | $ 12,371,144 |
Buildings | 1,498,148 | 1,498,148 |
Mineral Rights | 3,797,166 | 3,797,166 |
Land & Other | 5,819,176 | 5,819,176 |
Total | 23,842,729 | 23,485,634 |
Accumulated Depreciation | (8,709,832) | (7,789,668) |
Properties, plants and equipment, net | 15,132,897 | 15,695,966 |
USAC | ||
Plant and equipment | 743,767 | 729,272 |
Buildings | 247,210 | 247,210 |
Mineral Rights | 0 | 0 |
Land & Other | 3,274,572 | 3,274,572 |
Total | 4,265,549 | 4,251,054 |
Accumulated Depreciation | (2,577,552) | (2,538,257) |
Properties, plants and equipment, net | 1,687,997 | 1,712,797 |
USAMSA | ||
Plant and equipment | 7,655,777 | 7,598,640 |
Buildings | 900,992 | 900,992 |
Mineral Rights | 3,793,502 | 3,793,502 |
Land & Other | 2,529,294 | 2,529,294 |
Total | 14,879,565 | 14,822,428 |
Accumulated Depreciation | (3,427,058) | (2,836,164) |
Properties, plants and equipment, net | 11,452,507 | 11,986,264 |
BRZ | ||
Plant and equipment | 3,577,055 | 3,477,260 |
Buildings | 349,946 | 349,946 |
Mineral Rights | 3,664 | 3,664 |
Land & Other | 15,310 | 15,310 |
Total | 3,945,975 | 3,846,180 |
Accumulated Depreciation | (2,596,356) | (2,373,627) |
Properties, plants and equipment, net | 1,349,619 | 1,472,553 |
Precious Metals [Member] | ||
Plant and equipment | 751,640 | 565,972 |
Buildings | 0 | 0 |
Mineral Rights | 0 | 0 |
Land & Other | 0 | 0 |
Total | 751,640 | 565,972 |
Accumulated Depreciation | (108,866) | (41,620) |
Properties, plants and equipment, net | $ 642,774 | $ 524,352 |
7. Asset Retirement Obligatio41
7. Asset Retirement Obligation and Accrued Reclamation Costs (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Beginning Balance | $ 158,282 | $ 152,827 |
Accretion during the year | 5,790 | 5,455 |
Ending Balance | $ 164,072 | $ 158,282 |
7. Asset Retirement Obligatio42
7. Asset Retirement Obligation and Accrued Reclamation Costs (Details Narrative) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Asset Retirement Obligation And Accrued Reclamation Costs Details Narrative | ||
Asset retirement obligation liability with reclamation obligations | $ 251,572 | $ 265,782 |
8. Long-Term Debt (Details)
8. Long-Term Debt (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Total debt | $ 1,786,114 | $ 1,863,915 |
Less current portion | (546,988) | (391,046) |
Noncurrent portion | 1,239,126 | 1,472,869 |
First Security Bank [Member] | ||
Total debt | 8,054 | 18,245 |
Catepillar Finance [Member] | ||
Total debt | 27,096 | 40,556 |
Catepillar Finance [Member] | ||
Total debt | 40,278 | 0 |
Wells Fargo Bank [Member] | ||
Total debt | 0 | 473 |
De Lage Landen Financial Services [Member] | ||
Total debt | 13,344 | 20,581 |
De Lage Landen Financial Services [Member] | ||
Total debt | 15,776 | 22,944 |
PhyllisRice [Member] | ||
Total debt | 14,146 | 14,146 |
SoyatalMine [Member] | ||
Total debt | 715,709 | 776,319 |
Guadalupe Mine [Member] | ||
Total debt | $ 951,711 | $ 970,651 |
8. Long-Term Debt (Details 1)
8. Long-Term Debt (Details 1) | Dec. 31, 2017USD ($) |
Long-term Debt Details 1 | |
2,018 | $ 546,988 |
2,019 | 312,150 |
2,020 | 203,712 |
2,021 | 115,253 |
2,022 | 122,178 |
Thereafter | 485,833 |
Long Term Debt Total | $ 1,786,114 |
9. Notes Payable to Bank (Detai
9. Notes Payable to Bank (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Notes payable to bank | $ 192,565 | $ 167,317 |
Promissory note payable CD 48614 | ||
Notes payable to bank | 98,863 | 76,350 |
Promissory note payable CD 48615 | ||
Notes payable to bank | $ 93,702 | $ 90,967 |
13. Income Taxes (Details 1)
13. Income Taxes (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Domestic | $ (374,478) | $ (236,652) |
Foreign | (759,916) | (747,410) |
Total | $ (1,134,394) | $ (1,011,062) |
13. Income Taxes (Details 2)
13. Income Taxes (Details 2) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax asset: | ||
Foreign exploration costs | $ 15,372 | $ 47,011 |
Foreign net operating loss carryforward | 1,537,420 | 1,309,445 |
Federal and state net operating loss carry forward | 443,100 | 465,145 |
Other | 1,455 | 0 |
Deferred tax asset | 1,997,347 | 1,821,601 |
Valuation allowance (foreign) | (1,537,420) | (1,309,445) |
Valuation allowance (federal) | (316,793) | (299,522) |
Total deferred tax asset | 143,134 | 212,634 |
Deferred tax liability: | ||
Property, plant, and equipment | (143,134) | (210,912) |
Other | 0 | (1,722) |
Total deferred tax liability | (143,134) | (212,664) |
Net deferred tax assets | $ 0 | $ 0 |
13. Income Taxes (Details 3)
13. Income Taxes (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Tax benefit at federal statutory rate | $ (397,038) | $ (353,872) |
State income tax effect | (34,609) | (21,754) |
Foreign income tax effect | 37,996 | 37,371 |
Non-deductible items | 930 | 3,263 |
Percentage depletion | (58,056) | (40,976) |
Change in valuation allowance - Domestic | 229,462 | 151,745 |
Change in valuation allowance - Foreign | 227,975 | 224,223 |
Impact on change in federal tax rate | (6,660) | 0 |
Foreign tax assessment | 0 | 285,048 |
Alternative minimum tax - Domestic | 0 | 13,090 |
Total | $ 0 | $ 298,138 |
13. Income Taxes (Details 4)
13. Income Taxes (Details 4) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Domestic | ||
Change in deferred tax asset for current year | $ (229,462) | $ (151,745) |
Adjustment for prior year tax estimate to actual | 212,146 | (57,557) |
Change in valuation allowance | (17,316) | (209,302) |
Foreign | ||
Change in deferred tax asset for current year | (227,975) | (224,223) |
Adjustment for impact of tax assessment | 0 | 285,048 |
Impact on change in foreign exchange rate | 0 | 421,643 |
Adjustment for prior year tax estimates to actual | 0 | 724,041 |
Change in valuation allowance | $ (227,975) | $ 1,206,509 |
13. Income Taxes (Details Narra
13. Income Taxes (Details Narrative) | Dec. 31, 2017USD ($) |
Operating loss carryforwards | $ 800,000 |
Montana [Member] | |
Operating loss carryforwards | 3,500,000 |
Idaho state [Member] | |
Operating loss carryforwards | 1,500,000 |
Mexican | |
Operating loss carryforwards | $ 5,100,000 |
14. Related Party Transactions
14. Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transactions Details Narrative | ||
Due to related party | $ 22,668 | $ 14,525 |
Related party expense | $ 13,603 | $ 16,791 |
15. Commitments and Contingen52
15. Commitments and Contingencies (Details Narrative) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Payments paid for capitalized mineral rights | $ 65,000 |
16. Business Segments (Details)
16. Business Segments (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Total Assets | $ 17,131,254 | $ 17,765,998 |
United States Antimony [Member] | ||
Total Assets | 2,510,323 | 2,514,306 |
Mexico Antimony [Member] | ||
Total Assets | 12,073,219 | 12,682,908 |
Subtotal Antimony [Member] | ||
Total Assets | 14,583,542 | 15,197,214 |
Precious Metals [Member] | ||
Total Assets | 642,774 | 524,352 |
Zeolite (Member) | ||
Total Assets | $ 1,904,938 | $ 2,044,432 |
16. Business Segments (Details
16. Business Segments (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Capital Expenditures | $ 405,819 | $ 665,370 |
United States Antimony [Member] | ||
Capital Expenditures | 32,961 | 1,331 |
Mexico Antimony [Member] | ||
Capital Expenditures | 87,396 | 226,331 |
Subtotal Antimony [Member] | ||
Capital Expenditures | 120,357 | 227,662 |
Precious Metals [Member] | ||
Capital Expenditures | 185,668 | 304,412 |
Zeolite (Member) | ||
Capital Expenditures | $ 99,794 | $ 133,296 |
16. Business Segments (Detail55
16. Business Segments (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 10,229,978 | $ 11,890,135 |
Depreciation and amortization | 968,888 | 999,737 |
Income (loss) from operations | (959,699) | (816,522) |
Income tax expense | 0 | (298,138) |
Other income (expense) | (174,695) | (194,540) |
NET INCOME (LOSS) | (1,134,394) | (1,309,200) |
USA Antimony [Member] | ||
Revenues | 7,588,470 | 8,740,602 |
Depreciation and amortization | 57,761 | 62,863 |
Income (loss) from operations | 1,965,573 | 3,393,787 |
Income tax expense | 0 | (13,090) |
Other income (expense) | (35,853) | (34,262) |
NET INCOME (LOSS) | 1,929,720 | 3,346,435 |
Mexico Antimony [Member] | ||
Revenues | 0 | 3,568 |
Depreciation and amortization | 623,899 | 678,639 |
Income (loss) from operations | (3,579,810) | (5,083,832) |
Income tax expense | 0 | (285,048) |
Other income (expense) | (126,149) | (149,165) |
NET INCOME (LOSS) | (3,705,959) | (5,518,045) |
Antimony [Member] | ||
Revenues | 7,588,470 | 8,744,170 |
Depreciation and amortization | 681,660 | 741,502 |
Income (loss) from operations | (1,614,237) | (1,690,045) |
Income tax expense | 0 | (298,138) |
Other income (expense) | (162,002) | (183,427) |
NET INCOME (LOSS) | (1,776,239) | (2,171,610) |
Precious Metals [Member] | ||
Revenues | 374,872 | 672,871 |
Depreciation and amortization | 64,499 | 44,367 |
Income (loss) from operations | 310,373 | 628,504 |
Income tax expense | 0 | 0 |
Other income (expense) | 0 | 0 |
NET INCOME (LOSS) | 310,373 | 628,504 |
Zeolite (Member) | ||
Revenues | 2,266,636 | 2,473,094 |
Depreciation and amortization | 222,729 | 213,868 |
Income (loss) from operations | 344,165 | 245,019 |
Income tax expense | 0 | 0 |
Other income (expense) | (12,693) | (11,113) |
NET INCOME (LOSS) | $ 331,472 | $ 233,906 |