(Mark One) | |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended | |
OR | |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Montana | 81-0305822 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
Common Stock, $0.01 par value | UAMY | NYSE American |
Large Accelerated Filer ☐ | Accelerated Filer ☐ |
Non-Accelerated Filer ☐ | Small Reporting Company Emerging Growth Company ☐ |
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CERTIFICATIONS |
ASSETS | ||
June 30, 2020 | December 31, 2019 | |
Current assets: | ||
Cash and cash equivalents | $123,415 | $115,506 |
Certificates of deposit | 254,212 | 253,552 |
Accounts receivable | 233,636 | 284,453 |
Inventories | 586,354 | 626,244 |
Total current assets | 1,197,617 | 1,279,755 |
Properties, plants and equipment, net | 11,937,366 | 12,186,848 |
Restricted cash for reclamation bonds | 57,261 | 57,261 |
IVA receivable and other assets | 214,063 | 170,111 |
Total assets | $13,406,307 | $13,693,975 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities: | ||
Checks issued and payable | $160,163 | $17,633 |
Accounts payable | 2,072,609 | 2,328,977 |
Due to factor | 11,492 | 10,880 |
Accrued payroll, taxes and interest | 189,777 | 260,800 |
Other accrued liabilities | 381,563 | 334,208 |
Payable to related parties | 272,054 | 359,309 |
Deferred revenue | 32,400 | 32,400 |
Notes payable to bank | 165,931 | 197,066 |
Hillgrove advances payable (Note 10) | 378,074 | 378,074 |
Long-term debt, current portion | 55,875 | 56,334 |
Total current liabilities | 3,719,938 | 3,975,681 |
Long-term debt, net of current portion | 55,983 | 76,762 |
Hillgrove advances payable (Note 10) | 756,147 | 756,147 |
Note payable-SBA (Note 15) | 443,400 | - |
Stock payable to directors for services | 65,625 | 134,375 |
Asset retirement obligations and accrued reclamation costs | 288,254 | 283,868 |
Total liabilities | 5,329,347 | 5,226,833 |
Commitments and contingencies (Note 4 and 10) | ||
Stockholders' equity: | ||
Preferred stock $0.01 par value, 10,000,000 shares authorized: | ||
Series A: -0- shares issued and outstanding | - | - |
Series B: 750,000 shares issued and outstanding | ||
(liquidation preference $937,500 and $930,000 | ||
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 $5,043,622 and $5,002,473 | ||
respectively) | 17,509 | 17,509 |
Common stock, $0.01 par value, 90,000,000 shares authorized; | ||
70,206,899 and 69,661,436 shares issued and outstanding, respectively | 702,068 | 696,614 |
Additional paid-in capital | 37,295,259 | 37,107,730 |
Accumulated deficit | (29,947,155) | (29,363,990) |
Total stockholders' equity | 8,076,960 | 8,467,142 |
Total liabilities and stockholders' equity | $13,406,307 | $13,693,975 |
For the three months ended | For the six months ended | |||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |
REVENUES | $1,585,191 | $2,272,283 | $3,328,182 | $4,728,648 |
COST OF REVENUES | 1,601,252 | 2,445,478 | 3,243,066 | 4,970,896 |
GROSS PROFIT (LOSS) | (16,061) | (173,195) | 85,116 | (242,248) |
OPERATING EXPENSES: | ||||
General and administrative | 116,560 | 153,909 | 316,531 | 359,083 |
Salaries and benefits | 111,178 | 100,362 | 206,147 | 333,030 |
Other operating expenses | 25 | 10,500 | 24,250 | 86,630 |
Professional fees | 32,652 | 22,452 | 117,610 | 123,194 |
TOTAL OPERATING EXPENSES | 260,415 | 287,223 | 664,538 | 901,937 |
INCOME (LOSS) FROM OPERATIONS | (276,476) | (460,418) | (579,422) | (1,144,185) |
OTHER INCOME (EXPENSE): | ||||
Interest income | 31 | 31 | 835 | 772 |
Interest expense | (6,439) | (24,228) | (11,187) | (46,716) |
Grant income (Note 15) | 10,000 | - | 10,000 | - |
Factoring expense | (1,399) | (1,424) | (3,391) | (3,370) |
TOTAL OTHER INCOME (EXPENSE) | 2,193 | (25,621) | (3,743) | (49,314) |
NET INCOME (LOSS) | (274,283) | (486,039) | (583,165) | (1,193,499) |
Preferred dividends | (12,162) | (12,162) | (24,325) | (24,325) |
Net income (loss) available to common stockholders | $(286,445) | $(498,201) | $(607,490) | $(1,217,824) |
Net income (loss) per share of common stock: | ||||
Basic | - | $(0.01) | $(0.01) | $(0.02) |
Diluted | - | $(0.01) | $(0.01) | $(0.02) |
Weighted average shares outstanding: | ||||
Basic | 70,177,677 | 68,721,070 | 69,937,144 | 68,614,804 |
Diluted | 70,177,677 | 68,721,070 | 69,937,144 | 68,613,804 |
Total Preferred Stock | Common Stock | ||||||
Three months ended June 30, 2020 | Shares | Amount | Shares | Amount | Additional Paid In Capital | Accumulated Deficit | Total Stockholders' Equity |
Balances, April 1, 2020 | 2,678,909 | $26,788 | 69,911,436 | $699,114 | $37,167,730 | $(29,672,872) | $8,220,760 |
Issuance of common stock to Directors | 295,463 | 2,954 | 127,529 | 130,483 | |||
Net loss | (274,283) | (274,283) | |||||
Balances, June 30, 2020 | 2,678,909 | $26,788 | 70,206,899 | $702,068 | $37,295,259 | $(29,947,155) | $8,076,960 |
Total Preferred Stock | Common Stock | ||||||
Three months ended June 30, 2019 | Shares | Amount | Shares | Amount | Additional Paid In Capital | Accumulated Deficit | Stockholders' Equity |
Balances, April 1, 2019 | 2,678,909 | $26,788 | 68,427,171 | $684,271 | $36,540,874 | $(26,398,559) | $10,853,374 |
Issuance of common stock to Directors | 330,183 | 3,302 | 171,698 | 175,000 | |||
Net loss | (486,039) | (486,039) | |||||
Balances, June 30, 2019 | 2,678,909 | $26,788 | 68,757,354 | $687,573 | $36,712,572 | $(26,884,598) | $10,542,335 |
For the six month periods ended June 30, 2020 and 2019 |
Total Preferred Stock | Common Stock | ||||||
Six months ended June 30, 2020 | Shares | Amount | Shares | Amount | Additional Paid In Capital | Accumulated Deficit | Total Stockholders' Equity |
Balances, January 1, 2020 | 2,678,909 | $26,788 | 69,661,436 | $696,614 | $37,107,730 | $(29,363,990) | $8,467,142 |
Issuance of common stock upon exercise of warrants (Note 10) | 250,000 | 2,500 | 60,000 | 62,500 | |||
Issuance of common stock to Directors | 295,463 | 2,954 | 127,529 | 130,483 | |||
Net loss | (583,165) | (583,165) | |||||
Balances, June 30, 2020 | 2,678,909 | $26,788 | 70,206,899 | $702,068 | $37,295,259 | $(29,947,155) | $8,076,960 |
Total Preferred Stock | Common Stock | ||||||
Six months ended June 30, 2019 | Shares | Amount | Shares | Amount | Additional Paid In Capital | Accumulated Deficit | Stockholders' Equity |
Balances, January 1, 2019 | 2,678,909 | $26,788 | 68,227,171 | $682,271 | $36,406,874 | $(25,691,099) | $11,424,834 |
Issuance of common stock to chief financial officer | 200,000 | 2,000 | 134,000 | 136,000 | |||
Issuance of common stock to Directors | 330,183 | 3,302 | 171,698 | 175,000 | |||
Net loss | (1,193,499) | (1,193,499) | |||||
Balances, June 30, 2019 | 2,678,909 | $26,788 | 68,757,354 | $687,573 | $36,712,572 | $(26,884,598) | $10,542,335 |
ASSETS | ||
September 30, 2020 | December 31, 2019 | |
Current assets: | ||
Cash and cash equivalents | $1,435,225 | $115,506 |
Certificates of deposit | 254,213 | 253,552 |
Accounts receivable | 222,054 | 284,453 |
Inventories | 565,050 | 626,244 |
Total current assets | 2,476,542 | 1,279,755 |
Properties, plants and equipment, net | 11,421,503 | 12,186,848 |
Restricted cash for reclamation bonds | 57,261 | 57,261 |
IVA receivable and other assets | 159,992 | 170,111 |
Total assets | $14,115,298 | $13,693,975 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities: | ||
Checks issued and payable | $14,754 | $17,633 |
Accounts payable | 2,076,794 | 2,328,977 |
Due to factor | 5,848 | 10,880 |
Accrued payroll, taxes and interest | 215,973 | 260,800 |
Other accrued liabilities | 404,804 | 334,208 |
Payable to related parties | 253,564 | 359,309 |
Deferred revenue | 32,400 | 32,400 |
Notes payable to bank | 150,796 | 197,066 |
Hillgrove advances payable (Note 10) | 378,074 | 378,074 |
Long-term debt, current portion | 55,956 | 56,334 |
Total current liabilities | 3,588,963 | 3,975,681 |
Long-term debt, net of current portion | 46,264 | 76,762 |
Hillgrove advances payable (Note 10) | 756,147 | 756,147 |
Note payable-SBA (Note 15) | 443,400 | - |
Stock payable to directors for services | 93,750 | 134,375 |
Asset retirement obligations and accrued reclamation costs | 289,986 | 283,868 |
Total liabilities | 5,218,510 | 5,226,833 |
Commitments and contingencies (Note 4 and 10) | ||
Stockholders' equity: | ||
Preferred stock $0.01 par value, 10,000,000 shares authorized: | ||
Series A: -0- shares issued and outstanding | - | - |
Series B: 750,000 shares issued and outstanding | ||
(liquidation preference $937,500 and $930,000 | ||
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 $5,043,622 and $5,002,473 | ||
respectively) | 17,509 | 17,509 |
Common stock, $0.01 par value, 90,000,000 shares authorized; | ||
75,949,757 and 69,661,436 shares issued and outstanding, respectively | 759,496 | 696,614 |
Additional paid-in capital | 39,050,899 | 37,107,730 |
Accumulated deficit | (30,940,395) | (29,363,990) |
Total stockholders' equity | 8,896,788 | 8,467,142 |
Total liabilities and stockholders' equity | $14,115,298 | $13,693,975 |
For the three months ended | For the nine months ended | |||
September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |
REVENUES | $1,007,231 | $1,787,934 | $4,335,413 | $6,516,582 |
COST OF REVENUES | 1,442,322 | 2,058,751 | 4,685,388 | 7,029,647 |
GROSS PROFIT (LOSS) | (435,091) | (270,817) | (349,975) | (513,065) |
OPERATING EXPENSES: | ||||
General and administrative | 108,643 | 139,456 | 425,174 | 498,539 |
Salaries and benefits | 82,308 | 91,178 | 288,455 | 424,208 |
Other operating expenses | - | - | 24,250 | 86,630 |
Professional fees | 43,557 | 40,010 | 161,167 | 163,204 |
Loss on abandonment of mineral properties | 318,502 | - | 318,502 | - |
TOTAL OPERATING EXPENSES | 553,010 | 270,644 | 1,217,548 | 1,172,581 |
INCOME (LOSS) FROM OPERATIONS | (988,101) | (541,461) | (1,567,523) | (1,685,646) |
OTHER INCOME (EXPENSE): | ||||
Interest income | 19 | 19 | 854 | 791 |
Interest expense | (3,750) | (24,444) | (14,937) | (71,160) |
Grant income (Note 15) | - | - | 10,000 | - |
Factoring expense | (1,408) | (2,706) | (4,799) | (6,076) |
TOTAL OTHER INCOME (EXPENSE) | (5,139) | (27,131) | (8,882) | (76,445) |
NET INCOME (LOSS) | (993,240) | (568,592) | (1,576,405) | (1,762,091) |
Preferred dividends | (12,162) | (12,162) | (36,487) | (36,487) |
Net income (loss) available to common stockholders | $(1,005,402) | $(580,754) | $(1,612,892) | $(1,798,578) |
Net income (loss) per share of common stock: | ||||
Basic and diluted | $(0.01) | $(0.01) | $(0.02) | $(0.03) |
Weighted average shares outstanding: | ||||
Basic and diluted | 73,240,218 | 69,224,297 | 71,033,733 | 68,818,050 |
For the three month periods ended September 30, 2020 and 2019 | |||||||
Additional | Total | ||||||
Total Preferred Stock | Common Stock | Paid | Accumulated | Stockholders' | |||
Three months ended September 30, 2020 | Shares | Amount | Shares | Amount | In Capital | Deficit | Equity |
Balances, July 1, 2020 | 2,678,909 | $26,788 | 70,206,899 | $702,068 | $37,295,259 | $(29,947,155) | $8,076,960 |
Issuance of common stock and warrants for cash | 5,742,858 | 57,428 | 1,952,572 | 2,010,000 | |||
Common stock issuance costs | (196,932) | (196,932) | |||||
Net loss | (993,240) | (993,240) | |||||
Balances, September 30, 2020 | 2,678,909 | $26,788 | 75,949,757 | $759,496 | $39,050,899 | $(30,940,395) | $8,896,788 |
Additional | Total | ||||||
Total Preferred Stock | Common Stock | Paid | Accumulated | Stockholders' | |||
Three months ended September 30, 2019 | Shares | Amount | Shares | Amount | In Capital | Deficit | Equity |
Balances, July 1, 2019 | 2,678,909 | $26,788 | 68,757,354 | $687,573 | $36,712,572 | $(26,884,598) | $10,542,335 |
Issuance of common stock for cash | 904,082 | 9,041 | 422,281 | 431,322 | |||
Net loss | (568,592) | (568,592) | |||||
Balances, September 30, 2019 | 2,678,909 | $26,788 | 69,661,436 | $696,614 | $37,134,853 | $(27,453,190) | $10,405,065 |
For the nine month periods ended September 30, 2020 and 2019 | |||||||
Additional | Total | ||||||
Total Preferred Stock | Common Stock | Paid | Accumulated | Stockholders' | |||
Nine months ended September 30, 2020 | Shares | Amount | Shares | Amount | In Capital | Deficit | Equity |
Balances, January 1, 2020 | 2,678,909 | $26,788 | 69,661,436 | $696,614 | $37,107,730 | $(29,363,990) | $8,467,142 |
Issuance of common stock upon exercise of warrants (Note 10) | 250,000 | 2,500 | 60,000 | 62,500 | |||
Issuance of common stock to Directors | 295,463 | 2,954 | 127,529 | 130,483 | |||
Issuance of common stock and warrants for cash | 5,742,858 | 57,428 | 1,952,572 | 2,010,000 | |||
Common stock issuance costs | (196,932) | (196,932) | |||||
Net loss | (1,576,405) | (1,576,405) | |||||
Balances, September 30, 2020 | 2,678,909 | $26,788 | 75,949,757 | $759,496 | $39,050,899 | $(30,940,395) | $8,896,788 |
Additional | Total | ||||||
Total Preferred Stock | Common Stock | Paid | Accumulated | Stockholders' | |||
Nine months ended September 30, 2019 | Shares | Amount | Shares | Amount | In Capital | Deficit | Equity |
Balances, January 1, 2019 | 2,678,909 | $26,788 | 68,227,171 | $682,271 | $36,406,874 | $(25,691,099) | $11,424,834 |
Issuance of common stock to chief financial officer | 200,000 | 2,000 | 134,000 | 136,000 | |||
Issuance of common stock to Directors | 330,183 | 3,302 | 171,698 | 175,000 | |||
Issuance of common stock for cash | 904,082 | 9,041 | 422,281 | 431,322 | |||
Net loss | (1,762,091) | (1,762,091) | |||||
Balances, September 30, 2019 | 2,678,909 | $26,788 | 69,661,436 | $696,614 | $37,134,853 | $(27,453,190) | $10,405,065 |
For the six months ended | For the nine months ended | |||
June 30, 2020 | June 30, 2019 | September 30, 2020 | September 30, 2019 | |
Cash Flows From Operating Activities: | ||||
Net income (loss) | $(583,165) | $(1,193,499) | $(1,576,405) | $(1,762,091) |
Adjustments to reconcile net income (loss) to net cash | ||||
provided (used) by operating activities: | ||||
Depreciation and amortization | 449,648 | 446,546 | 667,298 | 732,702 |
Loss on abandonment of mineral properties | 318,502 | |||
Amortization of debt discount | - | 36,338 | - | 54,110 |
Accretion of asset retirement obligation | 4,386 | 3,074 | 6,118 | 4,611 |
Common stock issued for services | - | 136,000 | - | 136,000 |
Common stock payable for directors' fees | 61,733 | 62,500 | 89,858 | 96,875 |
Other non cash items | (660) | (598) | (661) | (598) |
Change in: | ||||
Accounts receivable, net | 50,817 | 21,386 | 62,399 | 115,451 |
Inventories | 39,890 | 31,573 | 61,194 | 47,187 |
IVA receivable and other assets | (43,952) | 1,679 | 10,119 | 39,501 |
Accounts payable | (256,368) | 145,252 | (252,183) | 134,237 |
Accrued payroll, taxes and interest | (71,023) | 82,845 | (44,827) | 41,325 |
Other accrued liabilities | 47,355 | 35,782 | 70,596 | 47,465 |
Payables to related parties | 21,405 | 36,135 | 21,405 | 29,683 |
Net cash provided (used) by operating activities | (279,934) | (154,987) | (566,587) | (283,542) |
Cash Flows From Investing Activities: | ||||
Payment received on note receivable for sale of land | - | 400,000 | - | 400,000 |
Purchases of properties, plants and equipment | (200,166) | (473,578) | (220,455) | (677,837) |
Net cash used by investing activities | (200,166) | (73,578) | (220,455) | (277,837) |
Cash Flows From Financing Activities: | ||||
Change in checks issued and payable | 142,530 | 66,546 | (2,879) | 42,580 |
Net proceeds from (payments to) factor | 612 | (2,720) | (5,032) | (14,777) |
Proceeds from issuance of common stock and warrants, net of issuance costs | 1,813,068 | 431,322 | ||
Advances from related party | - | 227,200 | - | 237,400 |
Payments on advances from related party | (46,160) | - | (64,650) | (17,387) |
Proceeds from note payable-SBA | 443,400 | - | 443,400 | - |
Proceeds from notes payable to bank, net of payments | (31,135) | 16,081 | (46,270) | 14,311 |
Principal payments on long-term debt | (21,238) | (89,430) | (30,876) | (116,961) |
Net cash provided (used) by financing activities | 488,009 | 217,677 | 2,106,761 | 576,488 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 7,909 | (10,888) | 1,319,719 | 15,109 |
Cash and cash equivalents and restricted cash at beginning of period | 172,767 | 113,897 | 172,767 | 113,897 |
Cash and cash equivalents and restricted cash at end of period | $180,676 | $103,009 | $1,492,486 | $129,006 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||
Noncash investing and financing activities: | ||||
Common stock payable issued to directors | $130,483 | $175,000 | $130,483 | $175,000 |
Payable to related party satisfied with exercise of stock | ||||
purchase warrant | $62,500 | $62,500 | ||
June 30, 2020 | June 30, 2019 | September 30, 2020 | September 30, 2019 | |
Warrants | 452,041 | 250,000 | 6,194,899 | 702,041 |
Convertible preferred stock | 1,751,005 | 1,751,005 | ||
Total possible dilution | 2,203,046 | 2,001,005 | 7,945,904 | 2,453,046 |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||
June 30, | September 30, | |||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
Antimony | $910,484 | $1,507,588 | $2,031,909 | $3,213,411 | $477,273 | $1,080,871 | $2,509,183 | $4,294,281 |
Zeolite | 612,715 | 704,172 | 1,172,075 | 1,430,187 | 481,126 | 651,563 | 1,653,201 | 2,081,751 |
Precious metals | 61,992 | 60,523 | 124,198 | 85,050 | 48,832 | 55,500 | 173,029 | 140,550 |
$1,585,191 | $2,272,283 | $3,328,182 | $4,728,648 | $1,007,231 | $1,787,934 | $4,335,413 | $6,516,582 |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||
June 30, | September 30, | |||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
United States | $1,436,047 | $1,819,707 | $3,002,284 | $3,928,276 | $891,090 | $1,570,364 | $3,893,374 | $5,498,640 |
Canada | 149,144 | 139,523 | 325,898 | 326,780 | 116,141 | 217,570 | 442,039 | 544,350 |
Mexico | - | 313,053 | - | 473,592 | - | 473,592 | ||
$1,585,191 | $2,272,283 | $3,328,182 | $4,728,648 | $1,007,231 | $1,787,934 | $4,335,413 | $6,516,582 |
For the Three Months Ended | For the Six Months Ended | |||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |
Mexichem Speciality Compounds | $375,514 | $523,660 | $1,059,525 | |
Nyacol Nanotechnologies | 267,638 | - | 404,324 | |
Kohler Corporation | 454,943 | - | 913,037 | |
GE Chaplin, Inc | $176,081 | - | 290,372 | - |
Comerce Industrial Chemical | 148,019 | - | - | - |
ZEO, Inc. | 231,010 | - | 374,102 | - |
$555,110 | $1,098,095 | $1,188,134 | $2,376,886 | |
% of Total Revenues | 35.00% | 48.33% | 35.70% | 50.27% |
For the Three Months Ended | For the Nine Months Ended | |||
Sales to Three | September 30, | September 30, | September 30, | September 30, |
Largest Customers | 2020 | 2019 | 2020 | 2019 |
Axens North America | $128,805 | |||
GE Chaplin, Inc. | $114,075 | - | $404,447 | |
Mexichem Specialty Compounds Inc. | - | 314,008 | 523,660 | $1,373,533 |
Kohler Corporation | 131,360 | - | 345,899 | 1,028,624 |
Nyacol Nanotechnologies | 105,865 | 374,070 | - | 778,394 |
$351,300 | $816,883 | $1,274,006 | $3,180,551 | |
% of Total Revenues | 35% | 46% | 29% | 49% |
Largest Accounts Receivable | June 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 |
Nutreco Canada Inc. | $21,219 | $14,172 | $21,219 | |
Zeo Inc. | $21,633 | - | ||
RyMar Synthetic Grass | 20,710 | - | ||
Earth Innovations Inc. | 24,570 | - | ||
Axens North America Inc. | 15,770 | - | ||
Lake Shore Gold | - | 27,854 | - | 27,854 |
Teck North America Inc. | 93,100 | - | ||
Commerce Industrial Chemical | - | 54,684 | - | 54,684 |
$135,443 | $103,757 | $54,512 | $103,757 | |
% of Total Receivables | 58.00% | 36.48% | 24.55% | 36.48% |
June 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | |
Antimony Oxide | $122,783 | $204,550 | $47,981 | $204,550 |
Antimony Metal | 25,776 | 5,654 | 28,807 | 5,654 |
Antimony Ore | 151,841 | 151,841 | ||
Total antimony | 300,400 | 362,045 | 228,629 | 362,045 |
Zeolite | 285,954 | 264,199 | 336,421 | 264,199 |
$586,354 | $626,244 | $565,050 | $626,244 |
Accounts Receivble | June 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 |
Accounts receivable - non factored | $222,144 | $273,573 | $216,206 | $273,573 |
Accounts receivable - factored with recourse | 11,492 | 10,880 | 5,848 | 10,880 |
Accounts receivable - net | $233,636 | $284,453 | $222,054 | $284,453 |
At September 30, 2020 and December 31, 2019, the Company had the following notes payable to bank: | At September 30, 2020 and December 31, 2019, the Company had the following notes payable to bank: | |||
September 30, | December 31, | |||
June 30, 2020 | December 31, 2019 | 2020 | 2019 | |
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 | $99,999 | $97,067 | $88,585 | $97,067 |
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 | 65,932 | 99,999 | 62,211 | 99,999 |
Total notes payable to the bank | $165,931 | $197,066 | $150,796 | $197,066 |
Long-Term debt at September 30, 2020 and December 31, 2019 is as follows: | September 30, | December 31, | ||
June 30, 2020 | December 31, 2019 | 2020 | 2019 | |
Note payable to Zeo Inc., non interest bearing, | ||||
payable in 11 quarterly installments of $8,300 with a final payment of $8,700; | ||||
maturing December 2022; uncollateralized. | $83,400 | $100,000 | $75,100 | $100,000 |
Note payable to Cat Financial Services, bearing interest at 6%; | ||||
payable in monthly installments of $778; maturing | ||||
December 2022; collateralized by equipment. | 22,312 | 26,250 | 20,974 | 26,250 |
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. | - | 700 | 700 | |
Note payable to Phyllis Rice, bearing interest | ||||
at 1%; payable in monthly installments of $2,000; originally maturing | ||||
March 2015; collateralized by equipment. | 6,146 | 6,146 | ||
111,858 | 133,096 | 102,220 | 133,096 | |
Less current portion | (55,875) | (56,334) | (55,956) | (56,334) |
Long-term portion | $55,983 | $76,762 | $46,264 | $76,762 |
12 Months Ending June 30, | Principal Payment |
2021 | 55,875 |
2022 | 41,931 |
2023 | 14,052 |
$111,858 |
12 Months Ending September 30, | Principal Payment |
2021 | 55,956 |
2022 | 41,920 |
2023 | 4,344 |
$102,220 |
Properties, plants and equipment, net: | June 30, 2020 | December 31, 2019 |
Antimony | ||
United States | $1,648,758 | $1,631,100 |
Mexico | 8,244,499 | 8,800,820 |
Subtotal Antimony | 9,893,257 | 10,431,920 |
Precious metals | 939,087 | 567,738 |
Zeolite | 1,105,022 | 1,187,190 |
Total | $11,937,366 | $12,186,848 |
For the Three Months Ended | For the Six Months Ended | |||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||
Capital expenditures: | ||||||
Properties, plants and equipment, net: | September 30, 2020 | December 31, 2019 | ||||
Antimony | ||||||
United States | $9,327 | $1,368 | $32,448 | $2,713 | $1,641,364 | $1,631,100 |
Mexico | 3,897 | 141,797 | 30,662 | 416,703 | 7,782,821 | 8,800,820 |
Subtotal Antimony | 13,224 | 143,165 | 63,110 | 419,416 | 9,424,185 | 10,431,920 |
Precious Metals | 82,324 | 6,398 | 120,845 | 13,152 | ||
Precious metals | 934,312 | 567,738 | ||||
Zeolite | 8,347 | 11,447 | 16,211 | 41,010 | 1,063,006 | 1,187,190 |
Total | $103,895 | $161,010 | $200,166 | $473,578 | $11,421,503 | $12,186,848 |
For the Three Months Ended | For the Nine Months Ended | |||
September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |
Capital expenditures: | ||||
Antimony | ||||
United States | $32,448 | $2,713 | ||
Mexico | $2,923 | $190,861 | 33,585 | 607,564 |
Subtotal Antimony | 2,923 | 190,861 | 66,033 | 610,277 |
Precious Metals | 17,366 | 4,095 | 138,211 | 17,247 |
Zeolite | 9,304 | 16,211 | 50,313 | |
Total | $20,289 | $204,260 | $220,455 | $677,837 |
Segment Operations for the three months ended June 30, 2020 | Antimony USA | Antimony Mexico | Total Antimony | Precious Metals | Zeolite | Totals |
Total revenues | $910,484 | $- | $910,484 | $61,992 | $612,715 | $1,585,191 |
Depreciation and amortization | $7,394 | $146,101 | $153,495 | $20,683 | $49,189 | $223,367 |
Income (loss) from operations | $126,208 | $(559,575) | $(433,367) | $41,308 | $115,583 | $(276,476) |
Other income (expense): | 4,739 | - | 4,739 | - | (2,546) | 2,193 |
NET INCOME (LOSS) | $130,947 | $(559,575) | $(428,628) | $41,308 | $113,037 | $(274,283) |
Segment Operations for the three months ended June 30, 2019 | Antimony USA | Antimony Mexico | Total Antimony | Precious Metals | Zeolite | Totals |
Total revenues | $1,194,535 | $313,053 | $1,507,588 | $60,523 | $704,172 | $2,272,283 |
Depreciation and amortization | $10,878 | $149,083 | $159,961 | $17,011 | $46,301 | $223,273 |
Income (loss) from operations | (56,245) | (629,422) | (685,667) | 43,513 | 181,736 | (460,418) |
Other income (expense): | (4,420) | (18,051) | (22,471) | - | (3,150) | (25,621) |
NET INCOME (LOSS) | $(60,665) | $(647,473) | $(708,138) | $43,513 | $178,586 | $(486,039) |
Segment Operations for the six months ended June 30, 2020 | Antimony USA | Antimony Mexico | Total Antimony | Precious Metals | Zeolite | Totals |
Total revenues | $2,031,909 | $- | $2,031,909 | $124,198 | $1,172,075 | $3,328,182 |
Depreciation and amortization | $14,789 | $292,199 | $306,988 | $44,281 | $98,379 | $449,648 |
Income (loss) from operations | $365,559 | $(1,278,641) | $(913,082) | $79,917 | $253,743 | $(579,422) |
Other income (expense): | 1,824 | - | 1,824 | - | (5,567) | (3,743) |
NET INCOME (LOSS) | $367,383 | $(1,278,641) | $(911,258) | $79,917 | $248,176 | $(583,165) |
Segment Operations for the sixmonths ended June 30, 2019 | Antimony USA | Antimony Mexico | Total Antimony | Precious Metals | Zeolite | Totals | ||||||
Segment Operations for the three | Antimony | Total | Precious | |||||||||
months ended September 30, 2020 | USA | Mexico | Antimony | Metals | Zeolite | Totals | ||||||
Total revenues | $2,739,819 | $473,592 | $3,213,411 | $85,050 | $1,430,187 | $4,728,648 | $477,273 | $- | $477,273 | $48,832 | $481,126 | $1,007,231 |
Depreciation and amortization | $21,755 | $298,168 | $319,923 | $34,021 | $92,602 | $446,546 | $7,395 | $146,099 | $153,494 | $22,141 | $42,015 | $217,650 |
Income (loss) from operations | (108,341) | (1,432,098) | (1,540,439) | 51,029 | 345,225 | (1,144,185) | $(208,676) | $(904,337) | $(1,113,013) | $26,691 | $98,221 | $(988,101) |
Other income (expense): | (5,787) | (36,338) | (42,125) | - | (7,189) | (49,314) | (2,883) | (4) | (2,887) | - | (2,252) | (5,139) |
NET INCOME (LOSS) | $(114,128) | $(1,468,436) | $(1,582,564) | $51,029 | $338,036 | $(1,193,499) | $(211,559) | $(904,341) | $(1,115,900) | $26,691 | $95,969 | $(993,240) |
Segment Operations for the three | Antimony | Antimony | Total | Precious | ||
months ended September 30, 2019 | USA | Mexico | Antimony | Metals | Zeolite | Totals |
Total revenues | $1,080,871 | $- | $1,080,871 | $55,500 | $651,563 | $1,787,934 |
Depreciation and amortization | $10,935 | $210,766 | $221,701 | $17,630 | $46,825 | $286,156 |
Income (loss) from operations | $227,712 | $(921,965) | $(694,253) | $37,869 | $114,923 | $(541,461) |
Other income (expense): | (4,602) | (18,037) | (22,639) | - | (4,492) | (27,131) |
NET INCOME (LOSS) | $223,110 | $(940,002) | $(716,892) | $37,869 | $110,431 | $(568,592) |
Segment Operations for the nine | Antimony | Antimony | Total | Precious | ||
months ended September 30, 2020 | USA | Mexico | Antimony | Metals | Zeolite | Totals |
Total revenues | $2,509,183 | $- | $2,509,183 | $173,029 | $1,653,201 | $4,335,413 |
Depreciation and amortization | $22,184 | $438,297 | $460,481 | $66,422 | $140,395 | $667,298 |
Income (loss) from operations | $156,884 | $(2,182,979) | $(2,026,095) | $106,607 | $351,965 | $(1,567,523) |
Other income (expense): | (1,058) | (4) | (1,062) | - | (7,820) | (8,882) |
NET INCOME (LOSS) | $155,826 | $(2,182,983) | $(2,027,157) | $106,607 | $344,145 | $(1,576,405) |
Segment Operations for the nine | Antimony | Antimony | Total | Precious | ||
months ended September 30, 2019 | USA | Mexico | Antimony | Metals | Zeolite | Totals |
Total revenues | $3,820,689 | $473,592 | $4,294,281 | $140,550 | $2,081,751 | $6,516,582 |
Depreciation and amortization | $32,690 | $508,934 | $541,624 | $51,652 | $139,426 | $732,702 |
Income (loss) from operations | $1,083,360 | $(3,318,053) | $(2,234,693) | $88,898 | $460,149 | $(1,685,646) |
Other income (expense): | (10,388) | (54,375) | (64,763) | - | (11,682) | (76,445) |
NET INCOME (LOSS) | $1,072,972 | $(3,372,428) | $(2,299,456) | $88,898 | $448,467 | $(1,762,091) |
Antimony - Combined USA | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended |
and Mexico | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 |
Lbs of Antimony Metal USA | 119,559 | 175,823 | 286,467 | 409,419 |
Lbs of Antimony Metal Mexico: | 114,139 | 242,306 | 242,684 | 451,858 |
Total Lbs of Antimony Metal Sold | 233,698 | 418,129 | 529,151 | 861,277 |
Average Sales Price/Lb Metal | $3.90 | $3.61 | $3.84 | $3.73 |
Net loss/Lb Metal | $(1.83) | $(1.69) | $(1.72) | $(1.84) |
Gross antimony revenue | $910,484 | $1,507,588 | $2,031,909 | $3,213,411 |
Cost of sales - domestic | (534,638) | (859,301) | (1,067,926) | (1,643,463) |
Cost of sales - Mexico | (563,666) | (1,065,791) | (1,247,727) | (2,245,594) |
Operating expenses | (245,549) | (268,163) | (629,338) | (864,794) |
Non-operating expenses | 4,739 | (22,471) | 1,824 | (42,125) |
(1,339,114) | (2,215,726) | (2,943,167) | (4,795,976) | |
Net loss - antimony | (428,630) | (708,138) | (911,258) | (1,582,565) |
Depreciation,& amortization | 153,495 | 159,961 | 306,988 | 319,923 |
EBITDA - antimony | $(275,135) | $(548,177) | $(604,270) | $(1,262,642) |
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |
Antimony - Combined USA and Mexico | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 |
Lbs of Antimony Metal USA | 89,052 | 187,889 | 375,519 | 597,308 |
Lbs of Antimony Metal Mexico | 57,790 | 155,549 | 300,474 | 607,407 |
Total Lbs of Antimony Metal Sold | 146,842 | 343,438 | 675,993 | 1,204,715 |
Average Sales Price/Lb Metal | $3.25 | $3.15 | $3.71 | $3.56 |
Net loss/Lb Metal | $(7.60) | $(2.09) | $(3.00) | $(1.91) |
Gross antimony revenue | $477,273 | $1,080,871 | $2,509,183 | $4,294,281 |
Cost of sales - domestic | (491,092) | (628,050) | (1,559,018) | (2,271,512) |
Cost of sales - Mexico | (557,399) | (892,714) | (1,805,127) | (3,138,309) |
Operating expenses | (223,293) | (254,360) | (852,631) | (1,119,153) |
Non-operating expenses | (2,887) | (22,639) | (1,062) | (64,763) |
Loss on abandonment of mineral properties | (318,502) | - | (318,502) | - |
(1,593,173) | (1,797,763) | (4,536,340) | (6,593,737) | |
Net loss - antimony | (1,115,900) | (716,892) | (2,027,157) | (2,299,456) |
Depreciation,& amortization | 153,494 | 221,701 | 460,481 | 541,624 |
EBITDA - antimony | $(962,406) | $(495,191) | $(1,566,676) | $(1,757,832) |
Precious Metals | ||||
Ounces sold | ||||
Gold | 6 | 12 | 31 | 36 |
Silver | 2,403 | 3,445 | 11,434 | 8,333 |
Gross precious metals revenue | $48,832 | $55,500 | $173,029 | $140,550 |
Production costs | (22,141) | (17,631) | (66,422) | (51,652) |
Net income - precious metals | 26,691 | 37,869 | 106,607 | 88,898 |
Depreciation | 22,141 | 17,630 | 66,422 | 51,652 |
EBITDA - precious metals | $48,832 | $55,499 | $173,029 | $140,550 |
Zeolite | ||||
Tons sold | 2,500 | 3,483 | 8,354 | 10,924 |
Average Sales Price/Ton | $192.45 | $187.07 | $197.89 | $190.57 |
Net income (Loss)/Ton | $38.39 | $31.71 | $41.20 | $41.05 |
Gross zeolite revenue | $481,126 | $651,563 | $1,653,201 | $2,081,751 |
Cost of sales | (371,690) | (520,356) | (1,254,823) | (1,568,174) |
Operating expenses | (11,215) | (16,284) | (46,414) | (53,428) |
Non-operating expenses | (2,252) | (4,492) | (7,820) | (11,682) |
Net income - zeolite | 95,969 | 110,431 | 344,145 | 448,467 |
Depreciation | 42,015 | 46,825 | 140,395 | 139,426 |
EBITDA - zeolite | $137,985 | $157,256 | $484,539 | $587,893 |
Company-wide | ||||
Gross revenue | $1,007,231 | $1,787,934 | $4,335,413 | $6,516,582 |
Production costs | (1,442,322) | (2,058,751) | (4,685,390) | (7,029,647) |
Operating expenses | (234,508) | (270,644) | (899,045) | (1,172,581) |
Non-operating expenses | (5,139) | (27,131) | (8,882) | (76,445) |
Loss on abandonment of mineral properties | (318,502) | - | (318,502) | - |
Net income (loss) | (993,240) | (568,592) | (1,576,405) | (1,762,091) |
Depreciation,& amortization | 217,650 | 286,156 | 667,298 | 732,702 |
EBITDA | $(775,590) | $(282,436) | $(909,108) | $(1,029,389) |
Precious Metals | ||||
Ounces sold | ||||
Gold | 10 | 18 | 24 | 24 |
Silver | 3,983 | 3,408 | 9,031 | 5,133 |
Gross precious metals revenue | $61,992 | $60,523 | $124,198 | $85,050 |
Production costs | (20,683) | (17,011) | (44,281) | (34,021) |
Net income - precious metals | 41,309 | 43,512 | 79,917 | 51,029 |
Depreciation | 20,683 | 17,011 | 44,281 | 34,021 |
EBITDA - precious metals | $61,992 | $60,523 | $124,198 | $85,050 |
Zeolite | ||||
Tons sold | 3,045 | 3,600 | 5,854 | 7,441 |
Average Sales Price/Ton | $201.22 | $195.60 | $200.22 | $192.20 |
Net income (Loss)/Ton | $37.12 | $49.61 | $42.39 | $45.43 |
Gross zeolite revenue | $612,715 | $704,172 | $1,172,075 | $1,430,187 |
Cost of sales | (482,266) | (503,375) | (883,132) | (1,047,818) |
Operating expenses | (14,865) | (19,060) | (35,200) | (37,143) |
Non-operating expenses | (2,546) | (3,150) | (5,567) | (7,189) |
Net income - zeolite | 113,038 | 178,587 | 248,176 | 338,037 |
Depreciation | 49,189 | 46,301 | 98,379 | 92,601 |
EBITDA - zeolite | $162,227 | $224,888 | $346,555 | $430,638 |
Company-wide | ||||
Gross revenue | $1,585,191 | $2,272,283 | $3,328,182 | $4,728,648 |
Production costs | (1,601,253) | (2,445,478) | (3,243,066) | (4,970,896) |
Operating expenses | (260,414) | (287,223) | (664,538) | (901,937) |
Non-operating expenses | 2,193 | (25,621) | (3,743) | (49,314) |
Net income (loss) | (274,283) | (486,039) | (583,165) | (1,193,499) |
Depreciation,& amortization | 223,367 | 223,273 | 449,648 | 446,545 |
EBITDA | $(50,916) | $(262,766) | $(133,517) | $(746,954) |
Schedule of recovery values | ||||||||
Metal | Assay | Recovery | Value | Value/Mt | Assay | Recovery | Value | Value/Mt |
Gold | 0.035 opmt | 90% | $1900/oz | $59.85 | 0.035 opmt | 90% | $1900/oz | $59.85 |
Silver | 3.27 opmt | 90% | $26.0/oz | $76.52 | 3.27 opmt | 90% | $24.0/oz | $70.63 |
Antimony | 0.652% | 70% | $2.70/oz | $27.11 | 0.652% | 70% | 2.70/lb | $27.11 |
Total | $163.48 | $157.59 |
Precious Metal Sales Silver/Gold | For the three months ended June 30, | For the six months ended June 30, | For the three months ended September 30, | For the nine months ended September 30, | ||||
Montana | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
Ounces Gold Shipped (Au) | 9.80 | 9.67 | 24.71 | 16.12 | 6.08 | 12.53 | 30.79 | 27.67 |
Ounces Silver Shipped (Ag) | 3,983.46 | 2,680.77 | 9,031.12 | 4,405.17 | 2,402.68 | 3,444.68 | 11,433.80 | 7,604.84 |
Total Revenues | $61,992 | $37,952 | $124,198 | $62,479 | $48,832 | $55,500 | $173,029 | $117,979 |
Mexico | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
Ounces Gold Shipped (Au) | - | 8.21 | - | 8.21 | - | - | 8.21 | |
Ounces Silver Shipped (Ag) | - | 727.88 | - | 727.88 | - | - | 727.88 | |
Total Revenues | $0 | $22,571 | $0 | $22,571 | $0 | $0 | $22,571 |
Financial Condition and Liquidity | June 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 |
Current assets | $1,197,617 | $1,279,755 | $2,476,542 | $1,279,755 |
Current liabilities | (3,719,938) | (3,975,681) | (3,588,963) | (3,975,681) |
Net Working Capital | $(2,522,321) | $(2,695,926) | $(1,112,421) | $(2,695,926) |
For the Three Months Ended | For the Three Months Ended | |||
June 30, 2020 | June 30, 2019 | September 30, 2020 | September 30, 2019 | |
Cash provided (used) by operations | $(279,934) | $(154,987) | $(566,587) | $(283,542) |
Cash provided (used) by investing: | ||||
Cash used for capital outlay | (200,166) | (473,578) | (220,455) | (677,837) |
Payment received on note receivable | - | 400,000 | - | 400,000 |
Cash provided (used) by financing: | ||||
Net payments (to) from factor | 612 | (2,720) | (5,032) | 42,580 |
Proceeds from notes payable to bank, net of payments | (31,135) | 16,081 | (46,270) | 14,311 |
Principal paid on long-term debt | (21,238) | (89,430) | (30,876) | (116,961) |
Advances from related party | - | 227,200 | - | 237,400 |
Payments on advances from related parties | (46,160) | - | (64,650) | (17,387) |
Proceeds from note payable-SBA | 443,400 | - | 443,400 | - |
Stock issued for cash | 1,813,068 | 431,322 | ||
Checks issued and payable | 142,530 | 66,546 | (2,879) | (14,777) |
Net change in cash and restricted cash | $7,909 | $(10,888) | $1,319,719 | $15,109 |
By: /s/ John C. Gustaven | Date: | |||
John C. Gustaven, Director and President (Principal Executive) | ||||
By: /s/ Daniel L. Parks | Date: November 16, 2020 | |||
Daniel L. Parks, Chief Financial Officer | ||||