Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2016 | |
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, 2016 | ||
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 | $ 11,420,775 | ||
Entity Common Stock, Shares Outstanding | 67,488,153 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 10,057 | $ 133,543 |
Certificates of deposit | 251,641 | 250,414 |
Accounts receivable, net | 552,119 | 422,673 |
Inventories | 855,637 | 1,094,238 |
Other current assets | 23,101 | 235,458 |
Total current assets | 1,692,555 | 2,136,326 |
Properties, plants and equipment, net | 15,695,966 | 16,030,333 |
Restricted cash for reclamation bonds | 63,274 | 76,012 |
Other assets | 314,203 | 17,530 |
Total assets | 17,765,998 | 18,260,201 |
Current liabilities: | ||
Checks issued and payable | 35,682 | 0 |
Accounts payable | 1,797,251 | 1,629,972 |
Due to factor | 150,399 | 13,782 |
Accrued payroll, taxes and interest | 213,695 | 221,446 |
Other accrued liabilities | 122,968 | 141,545 |
Payables to related parties | 14,525 | 32,396 |
Deferred revenue | 78,730 | 78,730 |
Notes payable to bank | 167,317 | 130,672 |
Income taxes payable (Note 13) | 410,510 | 0 |
Long-term debt, current portion, net of discount | 391,046 | 181,287 |
Total current liabilities | 3,382,123 | 2,429,830 |
Long-term debt, net of discount and current portion | 1,472,869 | 1,717,745 |
Hillgrove advances payable (Note 10) | 1,134,221 | 1,254,846 |
Stock payable to directors for services | 168,750 | 137,500 |
Asset retirement obligation and accrued reclamation costs | 265,782 | 260,327 |
Total liabilities | 6,423,745 | 5,800,248 |
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 $915,000 and $907,500 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 $4,920,178 and $4,879,029 respectively) | 17,509 | 17,509 |
Common stock, $0.01 par value, 90,000,000 shares authorized; 67,066,278 and 66,316,278 shares issued and outstanding, respectively | 670,662 | 663,162 |
Additional paid-in capital | 36,074,733 | 35,890,733 |
Accumulated deficit | (25,429,930) | (24,120,730) |
Total stockholders' equity | 11,342,253 | 12,459,953 |
Total liabilities and stockholders' equity | $ 17,765,998 | $ 18,260,201 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
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 | $ 915,000 | $ 907,500 |
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 | $ 4,920,178 | $ 4,879,029 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 90,000,000 | 90,000,000 |
Common stock, issued shares | 67,066,278 | 66,316,278 |
Common stock, outstanding shares | 67,066,278 | 66,316,278 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
REVENUES | $ 11,890,135 | $ 13,109,003 |
COST OF REVENUES | 11,353,484 | 13,521,363 |
GROSS PROFIT (LOSS) | 536,651 | (412,360) |
OPERATING EXPENSES: | ||
General and administrative | 681,487 | 736,265 |
Salaries and benefits | 483,937 | 436,897 |
Gain on liability adjustment (Note 3) | 0 | (914,770) |
Hillgrove advance - earned credit (Note 9) | (120,329) | (142,170) |
Professional fees | 308,078 | 280,415 |
TOTAL OPERATING EXPENSES | 1,353,173 | 396,637 |
INCOME (LOSS) FROM OPERATIONS | (816,522) | (808,997) |
OTHER INCOME (EXPENSE): | ||
Gain on sale of equipment | 0 | 5,200 |
Interest income | 1,437 | 6,383 |
Interest expense | (160,795) | 0 |
Factoring expense | (35,182) | (41,117) |
TOTAL OTHER INCOME (EXPENSE) | (194,540) | (29,534) |
INCOME (LOSS) BEFORE INCOME TAXES | (1,011,062) | (838,531) |
INCOME TAX PROVISION | (298,138) | 0 |
NET INCOME (LOSS) | (1,309,200) | (838,531) |
Preferred dividends | (48,649) | (48,649) |
Net income (loss) available to common shareholders | $ (1,357,849) | $ (887,180) |
Net loss per share of common stock basic and diluted: | $ (0.02) | $ (0.01) |
Weighted average shares outstanding basic and diluted: | 66,781,757 | 66,207,241 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Notes Receivable for Stock Sales | Accumulated Deficit | Total |
Beginning Balance - Shares at Dec. 31, 2014 | 2,678,909 | 66,027,453 | ||||
Beginning Balance - Amount at Dec. 31, 2014 | $ 26,788 | $ 660,274 | $ 35,740,671 | $ (150,000) | $ (23,282,199) | $ 12,995,534 |
Issuance of common stock to directors for services, Shares | 183,825 | |||||
Issuance of common stock to directors for services, Amount | $ 1,838 | 123,162 | 125,000 | |||
Issuance of common stock to consultant for services and settlement agreement, Shares | 105,000 | |||||
Issuance of common stock to consultant for services and settlement agreement, Amount | $ 1,050 | 56,900 | 57,950 | |||
Forgiveness of note receivable | (30,000) | 30,000 | 0 | |||
Cash received on notes receivable | 120,000 | 120,000 | ||||
Net loss | (838,531) | (838,531) | ||||
Ending Balance, Shares at Dec. 31, 2015 | 26,789,909 | 66,316,278 | ||||
Ending Balance, Amount at Dec. 31, 2015 | $ 26,788 | $ 663,162 | 35,890,733 | 0 | (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 | |||
Cash received on notes receivable | 0 | |||||
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 | $ 0 | $ (25,429,930) | $ 11,342,253 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ (1,309,200) | $ (838,531) |
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 999,737 | 932,786 |
Amortization of debt discount | 70,590 | 0 |
Gain on sale of equipment | 0 | (5,200) |
Bad debt expense | 0 | 18,668 |
Hillgrove advance earned credit | (120,329) | (142,170) |
Accretion of asset retirement obligation | 5,455 | 5,137 |
Common stock issued for services | 54,000 | 57,950 |
Common stock payable for directors fees | 168,750 | 137,500 |
Non-cash miscellaneous income | (1,595) | 0 |
Change in: | ||
Accounts receivable | (129,446) | 13,333 |
Inventories | 238,601 | 339,301 |
Other current assets | 212,356 | (194,357) |
Other assets | (296,673) | 49,382 |
Accounts payable | 167,280 | (191,701) |
Accrued payroll, taxes and interest | (7,751) | 86,201 |
Other accrued liabilities | (18,577) | 66,115 |
Income taxes payable | 410,510 | 0 |
Payables to related parties | (17,871) | 24,039 |
Net cash provided (used) by operating activities | 425,837 | 358,453 |
Cash Flows From Investing Activities: | ||
Redemption of reclamation bonds | 12,810 | 0 |
Proceeds from sale of equipment | 0 | 5,200 |
Purchase of properties, plants and equipment | (595,839) | (1,709,237) |
Net cash used by investing activities | (583,029) | (1,704,037) |
Cash Flows From Financing Activities: | ||
Net proceeds from factor | 136,617 | 468 |
Proceeds from Hillgrove advances | 0 | 1,198,445 |
Proceeds from notes payable to bank | 36,645 | 130,672 |
Principal paid notes to bank | 0 | |
Principal payments of long-term debt | (175,238) | (94,141) |
Proceeds from long term debt | 0 | |
Proceeds from related party loans | 0 | |
Payments on related party loans | 0 | |
Checks issued and payable | 35,682 | 0 |
Received on notes receivable for stock | 0 | 120,000 |
Net cash provided by financing activities | 33,706 | 1,355,444 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (123,486) | 9,860 |
Cash and cash equivalents at beginning of year | 133,543 | 123,683 |
Cash and cash equivalents at end of year | 10,057 | 133,543 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest paid in cash (net of amount capitailzed) | 14,694 | |
Income taxes paid in cash | 13,090 | |
Noncash investing and financing activities: | ||
Properties, plants & equipment acquired with long-term debt | 42,735 | 1,061,479 |
Properties, plants & equipment acquired with accrued liability | 0 | 36,619 |
Imputed interest included in property, plant and equipment | 26,796 | 57,088 |
Properties, plants & equipment acquired with other long term assets | 0 | 586,893 |
Common stock payable issued to directors | 137,500 | 125,000 |
Forgiveness of note receivable-stock | $ 0 | $ 30,000 |
1. Background of Company and Ba
1. Background of Company and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | For the Year Ended Sales to Largest Customers December 31, 2016 December 31, 2015 Mexichem Specialty Compounds Inc. $ 2,108,998 $ 3,142,586 East Penn Manufacturing Inc 1,147,854 1,236,250 Kohler Corporation 1,474,854 1,736,914 $ 4,731,706 $ 6,115,750 % of Total Revenues 39.80 % 46.70 % Largest Accounts Receivable December 31, 2016 December 31, 2015 Gopher Resources $ 141,570 GE Lighting $ 162,582 Teck American Inc 80,946 Kohler Corporation 151,500 Wildfire Construction 43,327 $ 314,082 $ 265,843 % of Total Receivables 83.90 % 62.90 % 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, 2016 | |
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 impairment, accounts receivable allowance, 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, 2016 and 2015 consists of cash held for reclamation performance bonds, and is held as 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, 2016 and 2015 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 are presented in United States (US) Dollars, and the US Dollar is the functional currency of the Company and its foreign subsidiaries. All transactions are carried out in US Dollars, or translated at the time of the transaction. Going Concern Consideration At December 31, 2016, our financial statements show that we have negative working capital of approximately $1.7 million and accumulated deficit of approximately $25.4 million. In addition, we have incurred losses for the prior three years. These factors indicate that there may be doubt regarding our ability to continue as a going concern for the next twelve months. During the year ended December 31, 2016, we endured some of the lowest prices for antimony in the past seven years, with an average sales price for our products of only $2.98 per pound of metal contained. As of late March 2017, the price for antimony metal contained is approximately $4.00 per pound. While we experience an increase in our raw material cost in the United States as a result, most of the $1.02 market increase will result in increased cash flow. In addition, we have cut costs for our labor at our Mexico locations which will result in a lower cost of raw material from Mexico. These cuts have resulted from not processing concentrates from Hillgrove Mines of Australia LTD in 2017. This has resulted in a large reduction in our work force at our Madero smelter, along with a significant decrease in our operating costs for fuel, natural gas, electricity, and reagents. Although our total production in Mexico will decrease due to the lack of Hillgrove concentrates, we are ramping up production from our own mining properties. We are currently on schedule to have seventeen small rotating furnaces in operation by the second quarter of 2017. In addition, we have implemented wage and other cost reductions across at the corporate level that will decrease our administrative costs in 2017. We expect to continue paying a low cost for propane in Montana, which in years past has been a major operating cost. In 2017, we have negotiated a reduced monthly lease cost for the Wadley mine of approximately $11,600 a decrease from $23,200 per month. In addition, we paid the final installment to purchase mining concessions in the Los Juarez mining area. In 2015 and 2016, we paid $100,000 and $68,600, respectively, for these concession rights. We believe that our current circumstances and actions taken by management will enable us to be actively operating for the next twelve months. 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 $665,370 and $3,451,317 in plant construction and other capital costs for the years ended December 31, 2016 and 2015, respectively. These amounts include capitalized interest of $35,305 and $66,965, 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. 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, 2016 or 2015 as a result of this assessment. Mineral rights are subject to write down in the period the property is abandoned. 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 upon shipment and when title passes to the customer. Prepayments 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. The Company's sales agreements do not provide for product returns or allowances. 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 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, 2016, and 2015, does not add any shares to basic weighted average shares. As of December 31, 2016 and 2015, potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share are as follows: December 31, 2016 December 31, 2015 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 August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements—Going Concern. The provisions of ASU No. 2014-15 require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company adopted the ASU No. 2014-15 on December 31, 2016. In May 2014, the FASB issued 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 guidance establishes a new five step principle-based framework in an effort to significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. ASU No. 2014-09 is effective for annual and interim reporting periods beginning after December 15, 2017. We are in the process of evaluating this guidance and our method of adoption. In July 2015, the FASB issued ASU 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory. The update provides for inventory to be measured at the lower of cost and net realizable value, and is effective for the fiscal years beginning after December 15, 2016. We do not believe that this will have an impact on our consolidated financial statements when adopted. In November 2015, the FASB issued ASU No. 2015-17 Income Taxes - Balance Sheet Classification of Deferred Taxes (Topic 740). The update is designed to reduce complexity of reporting deferred income tax liabilities and assets into current and non-current amounts in a statement of financial position. The FASB has proposed the presentation of deferred income taxes, changes to deferred tax liabilities and assets be classified as non-current in the statement of financial position. The update is effective for fiscal years beginning after December 15, 2016. ASU No. 2015-17 is not expected to have a material impact on our 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. Other accounting standards that have been issued 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 prior year’s data to the current year’s presentation. These reclassifications have no effect on previously reported operations, stockholders’ equity (deficit) or cash flows. |
4. Accounts Receivable and Due
4. Accounts Receivable and Due to Factor | 12 Months Ended |
Dec. 31, 2016 | |
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 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 Receivble December 31, 2016 December 31, 2015 Accounts receivable - non factored $ 401,720 $ 412,922 Accounts receivable - factored with recourse 150,399 13,782 less allowance for doubtful accounts - (4,031 ) Accounts receivable - net $ 552,119 $ 422,673 Factoring fees paid by the Company during the years ended December 31, 2016 and 2015, were $35,182 and $41,117, respectively. For the years ended December 31, 2016 and 2015, net accounts receivable of approximately $1.80 million and $2.10 million, respectively, were sold under the agreement. Proceeds from the sales were used to fund inventory purchases and operating expenses. The agreement is for a term of one year with automatic renewal for additional one-year terms. |
5. Inventories
5. Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | The major components of the Company's inventories at December 31, 2016 and 2015 were as follows: 2016 2015 Antimony Metal $ 112,300 $ 102,207 Antimony Oxide 326,126 332,068 Antimony Concentrates 30,815 133,954 Antimony Ore 181,815 319,631 Total antimony 651,056 887,860 Zeolite 204,581 206,378 $ 855,637 $ 1,094,238 At December 31, 2016 and 2015, 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, 2015, antimony inventory 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. Gain on Liability Adjustment During the first quarter of 2015, we noted that the amounts we were being invoiced by our Canadian supplier did not appear to be in compliance with our understanding of what we should be paying for the raw material supplied by them. We determined that since April of 2012 the supplier had been billing us for the entire amount of pounds of antimony delivered to us, even though we believed that we should only pay for 90% of the delivered antimony since we lose approximately 10% in processing. We contacted the supplier, and after a mutual review and modification of information that we had supplied to them, the supplier proposed a settlement of $914,770 to be credited against amounts we owed them. We agreed to the settlement amount and recorded it as a reduction of an account payable to the supplier and recognized a gain on liability adjustment in our statement of operations. |
6. Properties, Plants and Equip
6. Properties, Plants and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Properties Plants And Equipment | |
Properties, Plants and Equipment | The major components of the Company's properties, plants and equipment at December 31, 2016 and 2015 are shown below: Antimony Segment Zeolite Segment 2016 USAC USAMSA BRZ TOTAL Plant & Equipment $ 908,578 $ 7,943,686 $ 3,477,260 $ 12,329,524 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 4,430,360 15,167,474 3,846,180 23,444,014 Accumulated Depreciation (2,538,257 ) (2,836,164 ) (2,373,627 ) (7,748,048 ) $ 1,892,103 $ 12,331,310 $ 1,472,553 $ 15,695,966 2015 USAC MEXICO BRZ TOTAL Plant & Equipment $ 872,548 $ 7,497,791 $ 3,347,629 $ 11,717,968 Buildings 247,210 900,992 349,946 1,498,148 Mineral Rights and Interests - 3,743,352 - 3,743,352 Land & Other 3,274,572 2,529,294 15,310 5,819,176 4,394,330 14,671,429 3,712,885 22,778,644 Accumulated Depreciation (2,456,928 ) (2,131,624 ) (2,159,759 ) (6,748,311 ) $ 1,937,402 $ 12,539,805 $ 1,553,126 $ 16,030,333 At December 31, 2016 and 2015, the Company had $521,376 and $891,576, of assets that were considered to be construction in progress and had not yet been depreciated. The majority of this amount relates to equipment not yet placed in service. |
7. Asset Retirement Obligation
7. Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | Changes to the Asset Retirement Obligation balance during 2016 and 2015 are as follows: Asset Retirement Obligation Balance December 31, 2014 $ 147,690 Accretion during 2015 5,137 Balance December 31, 2015 152,827 Accretion during 2016 5,455 Balance December 31, 2016 $ 158,282 The Company’s total asset retirement obligation and accrued reclamation costs of $265,782 and $260,327, at December 31, 2016 and 2015, 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, 2016 | |
Debt Disclosure [Abstract] | |
Long - Term Debt | Long-Term debt at December 31, 2016 and 2015, is as follows: December 31, December 31, 2016 2015 Note payable to First Security Bank, bearing interest at 6%; payable in monthly installments of $917; maturing September 2018; collateralized by equipment. $ 18,245 $ 27,845 Note payable to Caterpillar Financial Services, bearing interest at 6%; payable in monthly installments of $1,300; maturing August 2019; collateralized by equipment. 40,556 - Note payable to Wells Fargo Bank, bearing interest at 4%; payable in monthly installments of $477; original maturity date of December 2016; collateralized by equipment. 473 5,399 Note payable to De Lage Landen Financial Services, bearing interest at 5.30%; payable in monthly installments of $549; original maturity date of March 2016; collateralized by equipment. - 2,171 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. 20,581 27,587 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. 22,944 29,300 Note payable to Phyllis Rice, bearing interest at 1%; payable in monthly installments of $2,000; original maturity date of 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 2019, net of discount. 776,319 820,272 Obligation payable for Guadalupe Mine, non-interest bearing, annual payments from $60,000 to $149,078 through 2026, net of discount. 970,651 972,312 1,863,915 1,899,032 Less current portion (391,046 ) (181,287 ) Long-term portion $ 1,472,869 $ 1,717,745 At December 31, 2016, principal payments on debt are due as follows: Year Ending December 31, 2017 $ 391,046 2018 260,232 2019 307,081 2020 198,436 2021 108,150 Thereafter 598,970 $ 1,863,915 Guadalupe Mine On March 7, 2012 and on April 4, 2012, the Company entered into a supply agreement and a loan agreement, respectively, (“the Agreements”) with several individuals collectively referred to as ‘Grupo Roga’ or ‘Guadalupe.’ During the term of the supply agreement the Company funded certain of Guadalupe’s equipment purchases, tax payments, labor costs, milling and trucking costs, and other expenses incurred in the Guadalupe mining operations for approximately $112,000. In addition to the advances for mining costs, the Company purchased antimony ore from Guadalupe that failed to meet agreed upon antimony metal recoveries and resulted in approximately $475,000 of excess advances paid to Guadalupe. The Agreements with Guadalupe granted the Company an option to purchase the concessions outright for $2,000,000. On September 29, 2015, the Company notified the owners of Guadalupe that it was exercising the option to purchase the Guadalupe property. The option exercise agreement allowed the Company to apply all amounts previously due the Company by Guadalupe of $586,893 to the purchase price consideration, resulting in a net obligation for the purchase of the Guadalupe mine of $1,413,107. The Company is obligated to make annual payments that vary from $60,000 to $149,077 annually through 2026. The debt payments are non-interest bearing. In 2015, the Company determined the net present value of the future contractual stream of payments to be $972,722 using a 6% discount rate. The Company recorded $972,722 as the cost of the concessions and the debt payable equal to total payments due of $1,413,107 less a discount of $440,385. The discount is being amortized to interest expense using the effective interest method over the life of the debt. During the years ended December 31, 2016 and 2015, the Company paid $60,000 and $15,000 on this debt, respectively, and amortized $58,339 and $14,591, respectively, of discount. |
9. Notes Payable to Bank
9. Notes Payable to Bank | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable to Bank | At December 31, 2016 and 2015, the Company had the following notes payable to bank: December 31, December 31, 2016 2015 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 $ 76,350 $ 36,881 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 90,967 93,791 Total notes payable to the bank $ 167,317 $ 130,672 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, 2016 | |
Notes to Financial Statements | |
10. Hillgrove Advances Payable | On November 7, 2014, the Company entered into a loan and concentrate processing agreement with Hillgrove Mines Pty Ltd of Australia (Hillgrove) by which Hillgrove advanced the Company funds to be used to expand their 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, with a provision so that the Company may expand to process more than that. The parties agreed that the equipment will be owned by USAC and USAMSA. 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 upon Hillgrove’s issuance of a stop notice. If a stop notice was issued between one year and two years, there was a formula to prorate the repayment amount from 0% to 81.25%. If a stop order is issued after two years, the repayment obligation is 81.25% of the funds advanced at that point. No stop notice was issued during the initial two year period ended November 7, 2016, thus 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. The difference between the amount advanced and the amount payable of $262,500 was recorded as deferred earned credit and recognized ratably through the period ending November 7, 2016. During the year ended December 31, 2016 and 2015, $120,329 and $142,171 of the deferred earned credit was recognized. Based on conversations with Hillgrove, management does not anticipate receiving a stop notice in 2017 thus the entire amount is classified as long term. |
11. Stockholder's Equity
11. Stockholder's Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholder's Equity | Issuance of Common Stock for Cash The Company did not issue any common stock for cash in 2015 or 2016. Issuance of Common Stock for Services to Directors and Consultants On December 30, 2015, the Company awarded shares of unregistered common stock to be paid to its directors for services during 2015, having a fair value of $125,000, based on the stock price at the date declared. In March of 2016 the Company issued the Board members 550,000 shares of the Company’s common stock at $0.25 per share for services in 2015 with a value of $137,500. During 2015, the Company issued 105,000 shares to Herbert Denton for investor relations services provided and in connection with the Settlement Agreement (Note 15). The shares estimated fair value at the time of issue was approximately $27,950. 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 will be reduced. During 2016, the Company awarded common stock with a value at December 31, 2016 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, 2016 and 2015, 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. During 2015, warrants for purchase of 476,917 shares of common stock for $4.50 expired. 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, 2016 and 2015 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, 2016 and 2015, cumulative dividends in arrears on the outstanding Series B shares were $165,000 and $157,500, 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, 2016 and 2015, the cumulative dividends in arrears on the 1,751,005 outstanding Series D shares were $542,664 and $501,515, 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, 2016 and 2015, the liquidation preference for Series D preferred stock was $4,920,178 and $4,879,029, 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, 2016 | |
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, 2016 and 2015, 300,000 shares of the Company's common stock had been previously issued and are outstanding under the Plan. There were no issuances under the Plan during 2016 and 2015. |
13. Income Taxes
13. Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Income Taxes | Domestic and foreign components of income (loss) from operations before income taxes for the years ended December 31, 2016 and 2015, are as follows: 2016 2015 Domestic $ (263,652 ) $ 982,901 Foreign (747,410 ) (1,821,432 ) Total $ (1,011,062 ) $ (838,531 ) At December 31, 2016 and 2015, the Company had net deferred tax assets as follows: 2016 2015 Deferred tax assets: Foreign exploration costs $ 47,011 $ 87,494 Foreign net operating loss carry forward 1,309,445 2,515,954 Domestic net operating loss carry forward 465,145 185,472 Deferred tax assets 1,821,601 2,788,920 Valuation allowance (foreign) (1,309,445 ) (2,515,954 ) Valuation allowance (domestic) (299,522 ) (90,220 ) Total deferred tax assets 212,634 182,746 Deferred tax liabilities: Property, plant, and equipment (210,912 ) (181,224 ) Other (1,722 ) (1,522 ) Total deferred tax liabilities (212,634 ) (182,746 ) Net Deferred Tax Assets $ - $ - At December 31, 2016, the Company has federal net operating loss (“NOL”) carry forwards of approximately $0.9 million that expire at various dates between 2026 and 2037. In addition, the Company has Montana state net operating loss carry forwards of approximately $2.9 million which expire between 2017 and 2023, and Idaho state net operating loss carry forwards of approximately $1.2 million, which expire between 2032 and 2037. The Company has approximately $4.3 million of Mexican net operating loss carry forwards which expire between 2023 and 2026. At December 31 2016 and 2015, 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, 2016 and 2015. 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, 2016 and 2015, due to the following: 2016 2015 Tax benefit at federal statutory rate $ (353,872 ) $ (293,486 ) State income tax effect (21,754 ) (32,283 ) Foreign income tax effect 37,371 91,072 Non-deductible items 3,263 - Percentage depletion (40,976 ) - Change in valuation allowance - Domestic 151,745 (311,732 ) Change in valuation allowance - Foreign 224,223 546,429 Foreign tax assessment 285,048 - Alternative minimum tax - Domestic 13,090 - Total $ 298,138 $ - Change in valuation allowance is comprised of the following: 2016 2015 Domestic Change in deferred tax asset for current year $ (151,745 ) $ (166,547 ) Adjustment for prior year tax estimate to actual (57,557 ) (145,185 ) $ (209,302 ) $ (311,732 ) Foreign Change in deferred tax asset for current year $ (224,223 ) $ 589,613 Adjustment for impact of tax assessment 285,048 - Impact on change in foreign exchange rate 421,643 366,591 Adjustment for prior year tax estimates to actual 724,041 (409,775 ) $ 1,206,509 $ 546,429 In 2015, the Mexican tax authority (“SAT”) initiated an audit of the USAMSA’s 2013 income tax return. In October 2016, as a result of its audit, SAT assessed the Company $13.8 million pesos, which is 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. 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. An appeal has been filed which is expected to be completed during 2017. At December 31, 2016, management has estimated possible outcomes for this assessment and believes it will ultimately pay an amount ranging from 30% of the total assessment to the total assessed amount. The Company’s agreement with the tax professionals is that the professionals will receive 30% of the amount of tax relief they are able to achieve. At December 31, 2016, we have accrued a potential liability of $410,510 USD of which $285,048 is for unpaid income taxes, $75,510 is for interest expense, and $49,952 is for penalties. The amount accrued represents management’s best estimate of the amount that will ultimately be paid. The outcome could vary from this estimate. In addition, fluctuation in exchange rates have an ongoing impact on the amount the Company will pay in U.S. dollars. At March 17, 2017, the assessed amount is approximately $712,000 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. Our tax professionals in Mexico have reviewed and filed tax returns with the SAT for 2014 and 2015, and have advised us that they do not expect us to have a tax liability for those years relating to similar issues. During the years ended December 31, 2016 and 2015, there were no material uncertain tax positions taken by the Company. The Company United States income tax filings are subject to examination for the years 2014 through 2016, and 2013 through 2016 in Mexico. The Company charges penalties on assessments to general and administrative expense and charges interest to interest expense. |
14. Related Party Transactions
14. Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 was $14,525 and $32,396, respectively. Expenses paid to Mr. Lawrence for the years ended December 31, 2016 and 2015 were $16,791 and $30,844, respectively. |
15. Commitments and Contingenci
15. Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
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 years ended December 31, 2016 and 2015, $65,000 and $127,500, respectively, was paid and capitalized as mineral rights in accordance with the Company’s accounting policies. At December 31, 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 $10,500 plus IVA tax 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 2016. 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, 2016 and 2015, the Company has no accruals relating to such assessments. In prior years, the Company utilized Providence Capital, Inc., a Delaware corporation (“Providence”), and Herbert A. Denton to provide investor relations services. On April 1, 2015, we entered into an agreement with Providence to provide us services as our Investor Relations Representative. We terminated this agreement in May 2015, and signed a Settlement Agreement dated July 27, 2015, and a Supplemental Settlement Agreement dated August 1, 2015. These agreements provided for a payment to Mr. Denton of 100,000 shares of the Company’s common stock and $25,000 to be paid in five equal installments. On August 31, 2015, we issued 100,000 shares of common stock valued at $0.55 per share or $55,000 to Mr. Denton. On October 12, 2015, we served Mr. Denton with a notice of material breach of the termination agreements and suspended the remaining payments of $15,000. We have subsequently filed an action in federal court to force Mr. Denton to comply with the terms of the termination agreements and for damages related to his non-compliance. Subsequent to the Company’s filing, Mr. Denton filed a counterclaim against the Company seeking an award for damages for breach of contract, conversion, defamation of character, failure to exercise business judgement and intentional infliction of emotional duress and damage to reputation. We have settled with Mr. Denton for a cash payment of $10,000 and the removal of all restrictions on the 100,000 shares of common stock we previously issued to him. |
16. Business Segments
16. Business Segments | 12 Months Ended |
Dec. 31, 2016 | |
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 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 2015. 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. Properties, plants December 31, December 31, and equipment, net: 2016 2015 Antimony United States $ 1,892,103 $ 1,937,402 Mexico 12,331,310 12,539,805 Subtotal Antimony 14,223,413 14,477,207 Zeolite 1,472,553 1,553,126 Total $ 15,695,966 $ 16,030,333 Total Assets: December 31, 2016 December 31, 2015 Antimony United States $ 2,693,614 $ 2,676,263 Mexico 13,027,952 13,400,895 Subtotal Antimony 15,721,566 16,077,158 Zeolite 2,044,432 2,183,043 Total $ 17,765,998 $ 18,260,201 For the year ended For the year ended Capital expenditures: December 31, 2016 December 31, 2015 Antimony United States $ 36,028 $ 33,028 Mexico 496,046 3,435,002 Subtotal Antimony 532,074 3,468,030 Zeolite 133,296 196,238 Total $ 665,370 $ 3,664,268 Segment Operations for the Antimony Antimony Precious Bear River Year ended December 31, 2016 USA Mexico Metals Zeolite Totals Total revenues $ 8,740,602 $ 3,568 $ 672,871 $ 2,473,094 $ 11,890,135 Depreciation and amortization 81,328 704,541 - 213,868 999,737 Income (loss) from operations 4,048,193 (5,109,734 ) - 245,019 (816,522 ) Income tax expense (13,090 ) (285,048 ) - - (298,138 ) Other income (expense) (34,262 ) (149,165 ) - (11,113 ) (194,540 ) NET INCOME (LOSS) $ 2,859,972 $ (5,133,439 ) $ 672,871 $ 233,907 $ (1,309,200 ) Segment Operations for the Antimony Antimony Precious Bear River Year ended December 31, 2015 USAC Mexico Metals Zeolite Totals Total revenues $ 9,856,398 $ 7,535 $ 491,426 $ 2,753,644 $ 13,109,003 Depreciation and amortization 61,819 649,526 - 221,441 932,786 Income (loss) from operations 4,990,865 (6,311,265 ) - 511,403 (808,997 ) Other income (expense): (24,280 ) - - (5,255 ) (29,534 ) NET INCOME (LOSS) $ 4,475,160 $ (6,311,265 ) $ 491,426 $ 506,148 $ (838,531 ) |
3. Summary of Significant Acc23
3. Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 impairment, accounts receivable allowance, 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, 2016 and 2015 consists of cash held for reclamation performance bonds, and is held as 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, 2016 and 2015 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 are presented in United States (US) Dollars, and the US Dollar is the functional currency of the Company and its foreign subsidiaries. All transactions are carried out in US Dollars, or translated at the time of the transaction. |
Going Concern Consideration | At December 31, 2016, our financial statements show that we have negative working capital of approximately $1.7 million and accumulated deficit of approximately $25.4 million. In addition, we have incurred losses for the prior three years. These factors indicate that there may be doubt regarding our ability to continue as a going concern for the next twelve months. During the year ended December 31, 2016, we endured some of the lowest prices for antimony in the past seven years, with an average sales price for our products of only $2.98 per pound of metal contained. As of late March 2017, the price for antimony metal contained is approximately $4.00 per pound. While we experience an increase in our raw material cost in the United States as a result, most of the $1.02 market increase will result in increased cash flow. In addition, we have cut costs for our labor at our Mexico locations which will result in a lower cost of raw material from Mexico. These cuts have resulted from not processing concentrates from Hillgrove Mines of Australia LTD in 2017. This has resulted in a large reduction in our work force at our Madero smelter, along with a significant decrease in our operating costs for fuel, natural gas, electricity, and reagents. Although our total production in Mexico will decrease due to the lack of Hillgrove concentrates, we are ramping up production from our own mining properties. We are currently on schedule to have seventeen small rotating furnaces in operation by the second quarter of 2017. In addition, we have implemented wage and other cost reductions across at the corporate level that will decrease our administrative costs in 2017. We expect to continue paying a low cost for propane in Montana, which in years past has been a major operating cost. In 2017, we have negotiated a reduced monthly lease cost for the Wadley mine of approximately $11,600 a decrease from $23,200 per month. In addition, we paid the final installment to purchase mining concessions in the Los Juarez mining area. In 2015 and 2016, we paid $100,000 and $68,600, respectively, for these concession rights. We believe that our current circumstances and actions taken by management will enable us to be actively operating for the next twelve months. |
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 $665,370 and $3,451,317 in plant construction and other capital costs for the years ended December 31, 2016 and 2015, respectively. These amounts include capitalized interest of $35,305 and $66,965, 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. |
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, 2016 or 2015 as a result of this assessment. Mineral rights are subject to write down in the period the property is abandoned. |
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 upon shipment and when title passes to the customer. Prepayments 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. The Company's sales agreements do not provide for product returns or allowances. 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 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, 2016, and 2015, does not add any shares to basic weighted average shares. As of December 31, 2016 and 2015, potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share are as follows: December 31, 2016 December 31, 2015 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 August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements—Going Concern. The provisions of ASU No. 2014-15 require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company adopted the ASU No. 2014-15 on December 31, 2016. In May 2014, the FASB issued 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 guidance establishes a new five step principle-based framework in an effort to significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. ASU No. 2014-09 is effective for annual and interim reporting periods beginning after December 15, 2017. We are in the process of evaluating this guidance and our method of adoption. In July 2015, the FASB issued ASU 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory. The update provides for inventory to be measured at the lower of cost and net realizable value, and is effective for the fiscal years beginning after December 15, 2016. We do not believe that this will have an impact on our consolidated financial statements when adopted. In November 2015, the FASB issued ASU No. 2015-17 Income Taxes - Balance Sheet Classification of Deferred Taxes (Topic 740). The update is designed to reduce complexity of reporting deferred income tax liabilities and assets into current and non-current amounts in a statement of financial position. The FASB has proposed the presentation of deferred income taxes, changes to deferred tax liabilities and assets be classified as non-current in the statement of financial position. The update is effective for fiscal years beginning after December 15, 2016. ASU No. 2015-17 is not expected to have a material impact on our 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. Other accounting standards that have been issued 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 prior year’s data to the current year’s presentation. These reclassifications have no effect on previously reported operations, stockholders’ equity (deficit) or cash flows. |
2. Concentration of Risk (Table
2. Concentration of Risk (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Concentration Of Risk Tables | |
Major Customers Revenue Details | For the Year Ended Sales to Largest Customers December 31, 2016 December 31, 2015 Mexichem Specialty Compounds Inc. $ 2,108,998 $ 3,142,586 East Penn Manufacturing Inc 1,147,854 1,236,250 Kohler Corporation 1,474,854 1,736,914 $ 4,731,706 $ 6,115,750 % of Total Revenues 39.80 % 46.70 % Largest Accounts Receivable December 31, 2016 December 31, 2015 Gopher Resources $ 141,570 GE Lighting $ 162,582 Teck American Inc 80,946 Kohler Corporation 151,500 Wildfire Construction 43,327 $ 314,082 $ 265,843 % of Total Receivables 83.90 % 62.90 % |
3. Summary of Significant Acc25
3. Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | December 31, 2016 December 31, 2015 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, 2016 | |
Accounts Receivable And Due To Factor Tables | |
Account Receivables | Accounts Receivble December 31, 2016 December 31, 2015 Accounts receivable - non factored $ 401,720 $ 412,922 Accounts receivable - factored with recourse 150,399 13,782 less allowance for doubtful accounts - (4,031 ) Accounts receivable - net $ 552,119 $ 422,673 |
5. Inventories (Tables)
5. Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 2016 2015 Antimony Metal $ 112,300 $ 102,207 Antimony Oxide 326,126 332,068 Antimony Concentrates 30,815 133,954 Antimony Ore 181,815 319,631 Total antimony 651,056 887,860 Zeolite 204,581 206,378 $ 855,637 $ 1,094,238 |
6. Properties, Plants and Equ28
6. Properties, Plants and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Properties Plants And Equipment Tables | |
Properties, Plants and Equipment | Antimony Segment Zeolite Segment 2016 USAC USAMSA BRZ TOTAL Plant & Equipment $ 908,578 $ 7,943,686 $ 3,477,260 $ 12,329,524 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 4,430,360 15,167,474 3,846,180 23,444,014 Accumulated Depreciation (2,538,257 ) (2,836,164 ) (2,373,627 ) (7,748,048 ) $ 1,892,103 $ 12,331,310 $ 1,472,553 $ 15,695,966 2015 USAC MEXICO BRZ TOTAL Plant & Equipment $ 872,548 $ 7,497,791 $ 3,347,629 $ 11,717,968 Buildings 247,210 900,992 349,946 1,498,148 Mineral Rights and Interests - 3,743,352 - 3,743,352 Land & Other 3,274,572 2,529,294 15,310 5,819,176 4,394,330 14,671,429 3,712,885 22,778,644 Accumulated Depreciation (2,456,928 ) (2,131,624 ) (2,159,759 ) (6,748,311 ) $ 1,937,402 $ 12,539,805 $ 1,553,126 $ 16,030,333 |
7. Asset Retirement Obligation
7. Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | Asset Retirement Obligation Balance December 31, 2014 $ 147,690 Accretion during 2015 5,137 Balance December 31, 2015 152,827 Accretion during 2016 5,455 Balance December 31, 2016 $ 158,282 |
8. Long-Term Debt (Tables)
8. Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long - Term Debt | Long-Term debt at December 31, 2016 and 2015, is as follows: December 31, December 31, 2016 2015 Note payable to First Security Bank, bearing interest at 6%; payable in monthly installments of $917; maturing September 2018; collateralized by equipment. $ 18,245 $ 27,845 Note payable to Caterpillar Financial Services, bearing interest at 6%; payable in monthly installments of $1,300; maturing August 2019; collateralized by equipment. 40,556 - Note payable to Wells Fargo Bank, bearing interest at 4%; payable in monthly installments of $477; original maturity date of December 2016; collateralized by equipment. 473 5,399 Note payable to De Lage Landen Financial Services, bearing interest at 5.30%; payable in monthly installments of $549; original maturity date of March 2016; collateralized by equipment. - 2,171 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. 20,581 27,587 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. 22,944 29,300 Note payable to Phyllis Rice, bearing interest at 1%; payable in monthly installments of $2,000; original maturity date of 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 2019, net of discount. 776,319 820,272 Obligation payable for Guadalupe Mine, non-interest bearing, annual payments from $60,000 to $149,078 through 2026, net of discount. 970,651 972,312 1,863,915 1,899,032 Less current portion (391,046 ) (181,287 ) Long-term portion $ 1,472,869 $ 1,717,745 |
Principal payments on debt | Year Ending December 31, 2017 $ 391,046 2018 260,232 2019 307,081 2020 198,436 2021 108,150 Thereafter 598,970 $ 1,863,915 |
9. Notes Payable to Bank (Table
9. Notes Payable to Bank (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of notes payable to bank | At December 31, 2016 and 2015, the Company had the following notes payable to bank: December 31, December 31, 2016 2015 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 $ 76,350 $ 36,881 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 90,967 93,791 Total notes payable to the bank $ 167,317 $ 130,672 |
13. Income Taxes (Tables)
13. Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes Tables | |
Schedule of Components of Income Tax Expense (Benefit) | 2016 2015 Tax benefit at federal statutory rate $ (353,872 ) $ (293,486 ) State income tax effect (21,754 ) (32,283 ) Foreign income tax effect 37,371 91,072 Non-deductible items 3,263 - Percentage depletion (40,976 ) - Change in valuation allowance - Domestic 151,745 (311,732 ) Change in valuation allowance - Foreign 224,223 546,429 Foreign tax assessment 285,048 - Alternative minimum tax - Domestic 13,090 - Total $ 298,138 $ - |
Domestic and foreign components of income (loss) from operations before income taxes | 2016 2015 Domestic $ (263,652 ) $ 982,901 Foreign (747,410 ) (1,821,432 ) Total $ (1,011,062 ) $ (838,531 ) |
Deferred tax assets | 2016 2015 Deferred tax assets: Foreign exploration costs $ 47,011 $ 87,494 Foreign net operating loss carry forward 1,309,445 2,515,954 Domestic net operating loss carry forward 465,145 185,472 Deferred tax assets 1,821,601 2,788,920 Valuation allowance (foreign) (1,309,445 ) (2,515,954 ) Valuation allowance (domestic) (299,522 ) (90,220 ) Total deferred tax assets 212,634 182,746 Deferred tax liabilities: Property, plant, and equipment (210,912 ) (181,224 ) Other (1,722 ) (1,522 ) Total deferred tax liabilities (212,634 ) (182,746 ) Net Deferred Tax Assets $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation | Change in valuation allowance is comprised of the following: 2016 2015 Domestic Change in deferred tax asset for current year $ (151,745 ) $ (166,547 ) Adjustment for prior year tax estimate to actual (57,557 ) (145,185 ) $ (209,302 ) $ (311,732 ) Foreign Change in deferred tax asset for current year $ (224,223 ) $ 589,613 Adjustment for impact of tax assessment 285,048 - Impact on change in foreign exchange rate 421,643 366,591 Adjustment for prior year tax estimates to actual 724,041 (409,775 ) $ 1,206,509 $ 546,429 |
16. Business Segments (Tables)
16. Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Properties, plants December 31, December 31, and equipment, net: 2016 2015 Antimony United States $ 1,892,103 $ 1,937,402 Mexico 12,331,310 12,539,805 Subtotal Antimony 14,223,413 14,477,207 Zeolite 1,472,553 1,553,126 Total $ 15,695,966 $ 16,030,333 Total Assets: December 31, 2016 December 31, 2015 Antimony United States $ 2,693,614 $ 2,676,263 Mexico 13,027,952 13,400,895 Subtotal Antimony 15,721,566 16,077,158 Zeolite 2,044,432 2,183,043 Total $ 17,765,998 $ 18,260,201 For the year ended For the year ended Capital expenditures: December 31, 2016 December 31, 2015 Antimony United States $ 36,028 $ 33,028 Mexico 496,046 3,435,002 Subtotal Antimony 532,074 3,468,030 Zeolite 133,296 196,238 Total $ 665,370 $ 3,664,268 Segment Operations for the Antimony Antimony Precious Bear River Year ended December 31, 2016 USA Mexico Metals Zeolite Totals Total revenues $ 8,740,602 $ 3,568 $ 672,871 $ 2,473,094 $ 11,890,135 Depreciation and amortization 81,328 704,541 - 213,868 999,737 Income (loss) from operations 4,048,193 (5,109,734 ) - 245,019 (816,522 ) Income tax expense (13,090 ) (285,048 ) - - (298,138 ) Other income (expense) (34,262 ) (149,165 ) - (11,113 ) (194,540 ) NET INCOME (LOSS) $ 2,859,972 $ (5,133,439 ) $ 672,871 $ 233,907 $ (1,309,200 ) Segment Operations for the Antimony Antimony Precious Bear River Year ended December 31, 2015 USAC Mexico Metals Zeolite Totals Total revenues $ 9,856,398 $ 7,535 $ 491,426 $ 2,753,644 $ 13,109,003 Depreciation and amortization 61,819 649,526 - 221,441 932,786 Income (loss) from operations 4,990,865 (6,311,265 ) - 511,403 (808,997 ) Other income (expense): (24,280 ) - - (5,255 ) (29,534 ) NET INCOME (LOSS) $ 4,475,160 $ (6,311,265 ) $ 491,426 $ 506,148 $ (838,531 ) |
2. Concentrations of Risk (Deta
2. Concentrations of Risk (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Sales to Three Largest Customers | $ 4,731,706 | $ 6,115,750 |
Total percentage of revenue | 39.80% | 46.70% |
Mexichem Specialty Compounds Inc. | ||
Sales to Three Largest Customers | $ 2,108,998 | $ 3,142,586 |
East Penn Manufacturing Inc | ||
Sales to Three Largest Customers | 1,147,854 | 1,236,250 |
KohlerCorporation [Member] | ||
Sales to Three Largest Customers | $ 1,474,854 | $ 1,736,914 |
2. Concentrations of Risk (De35
2. Concentrations of Risk (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Receivable | $ 314,082 | $ 265,843 |
Total percentage of receivables | 83.90% | 62.90% |
Gopher Resources | ||
Accounts Receivable | $ 0 | $ 141,570 |
GE Lighting [Member] | ||
Accounts Receivable | 162,582 | 0 |
Teck American Inc | ||
Accounts Receivable | 0 | 80,946 |
KohlerCorporation [Member] | ||
Accounts Receivable | 151,500 | 0 |
Wildfire Construction | ||
Accounts Receivable | $ 0 | $ 43,327 |
3. Summary of Significant Acc36
3. Summary of Significant Accounting Policies (Details) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
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, 2016 | Dec. 31, 2015 |
Accounts Receivable And Due To Factor Tables | ||
Accounts receivable - non factored | $ 401,720 | $ 412,922 |
Accounts receivable - factored with recourse | 150,399 | 13,782 |
Less allowance for doubtful accounts | 0 | (4,031) |
Accounts receivable - net | $ 552,119 | $ 422,673 |
4. Accounts Receivable and Du38
4. Accounts Receivable and Due to Factor (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Receivable And Due To Factor Details Narrative | ||
Factoring Expense | $ 35,182 | $ 41,117 |
Net accounts receivable factored during the year | $ 1,800,000 | $ 2,100,000 |
5. Inventories (Details)
5. Inventories (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories | $ 855,637 | $ 1,094,238 | |
Antimony Metal [Member] | |||
Inventories | 112,300 | 102,207 | |
Antimony Oxide [Member] | |||
Inventories | 326,126 | 332,068 | |
Antimony Concentrates | |||
Inventories | 30,815 | $ 133,954 | |
Antimony Ore [Member] | |||
Inventories | 181,815 | 319,631 | |
Antimony [Member] | |||
Inventories | 651,056 | 887,860 | |
Zeolite (Member) | |||
Inventories | $ 204,581 | $ 206,378 |
6. Properties, Plants and Equ40
6. Properties, Plants and Equipment (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Plant and equipment | $ 12,329,524 | $ 11,717,968 |
Buildings | 1,498,148 | 1,498,148 |
Mineral Rights | 3,797,166 | 3,743,352 |
Land & Other | 5,819,176 | 5,819,176 |
Total | 23,444,014 | 22,778,644 |
Accumulated Depreciation | (7,748,048) | (6,748,311) |
Properties, plants and equipment, net | 15,695,966 | 16,030,333 |
USAC | ||
Plant and equipment | 908,578 | 872,548 |
Buildings | 247,210 | 247,210 |
Mineral Rights | 0 | 0 |
Land & Other | 3,274,572 | 3,274,572 |
Total | 4,430,360 | 4,394,330 |
Accumulated Depreciation | (2,538,257) | (2,456,928) |
Properties, plants and equipment, net | 1,892,103 | 1,937,402 |
MEXICO | ||
Plant and equipment | 7,943,686 | 7,497,791 |
Buildings | 900,992 | 900,992 |
Mineral Rights | 3,793,502 | 3,743,352 |
Land & Other | 2,529,294 | 2,529,294 |
Total | 15,167,474 | 14,671,429 |
Accumulated Depreciation | (2,836,164) | (2,131,624) |
Properties, plants and equipment, net | 12,331,310 | 12,539,805 |
BRZ | ||
Plant and equipment | 3,477,260 | 3,347,629 |
Buildings | 349,946 | 349,946 |
Mineral Rights | 3,664 | 0 |
Land & Other | 15,310 | 15,310 |
Total | 3,846,180 | 3,712,885 |
Accumulated Depreciation | (2,373,627) | (2,159,759) |
Properties, plants and equipment, net | $ 1,472,553 | $ 1,553,126 |
7. Asset Retirement Obligatio41
7. Asset Retirement Obligation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Beginning Balance | $ 152,827 | $ 147,690 | $ 150,080 |
Accretion during the year | 5,455 | 5,137 | (2,390) |
Ending Balance | $ 158,282 | $ 152,827 | $ 147,690 |
7. Asset Retirement Obligatio42
7. Asset Retirement Obligation (Details Narrative) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Asset Retirement Obligation Details Narrative | ||
Asset retirement obligation liability with reclamation obligations | $ 265,782 | $ 260,327 |
8. Long-Term Debt (Details)
8. Long-Term Debt (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Total debt | $ 1,863,915 | $ 1,899,032 |
Less current portion | (391,046) | (181,287) |
Noncurrent portion | 1,472,869 | 1,717,745 |
First Security Bank [Member] | ||
Total debt | 18,245 | 27,845 |
Catepillar Finance [Member] | ||
Total debt | 40,556 | 0 |
Wells Fargo Bank [Member] | ||
Total debt | 473 | 5,399 |
De Lage Landen Financial Services [Member] | ||
Total debt | 0 | 2,171 |
De Lage Landen Financial Services 1 [Member] | ||
Total debt | 20,581 | 0 |
De Lage Landen Financial Services 2 [Member] | ||
Total debt | 22,944 | 27,587 |
PhyllisRice [Member] | ||
Total debt | 14,146 | 14,146 |
SoyatalMine [Member] | ||
Total debt | 776,319 | 820,272 |
Guadalupe Mine [Member] | ||
Total debt | 970,651 | 972,312 |
Western States Equipment Co [Member] | ||
Total debt | 0 | 0 |
BMT Leasing [Member] | ||
Total debt | 0 | 0 |
De Lage Landen Financial Services 3 [Member] | ||
Total debt | $ 0 | $ 29,300 |
8. Long-Term Debt (Details 1)
8. Long-Term Debt (Details 1) | Dec. 31, 2016USD ($) |
Long-term Debt Details 1 | |
2,017 | $ 391,046 |
2,018 | 260,232 |
2,019 | 307,081 |
2,020 | 198,436 |
2,021 | 108,150 |
Thereafter | 598,970 |
Long Term Debt Total | $ 1,863,915 |
9. Notes Payable to Bank (Detai
9. Notes Payable to Bank (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Notes payable to bank | $ 167,317 | $ 130,672 |
Promissory note payable CD 48614 | ||
Notes payable to bank | 76,350 | 36,881 |
Promissory note payable CD 48615 | ||
Notes payable to bank | $ 90,967 | $ 93,791 |
13. Income Taxes (Details 1)
13. Income Taxes (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Domestic | $ (236,652) | $ 982,901 |
Foreign | (747,410) | (1,821,432) |
Total | $ (1,011,062) | $ (838,531) |
13. Income Taxes (Details 2)
13. Income Taxes (Details 2) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax asset: | ||
Foreign exploration costs | $ 47,011 | $ 87,494 |
Foreign net operating loss carryforward | 1,309,445 | 2,515,954 |
Federal and state net operating loss carry forward | 465,145 | 185,472 |
Deferred tax asset | 1,821,601 | 2,788,920 |
Valuation allowance (foreign) | (1,309,445) | (2,515,954) |
Valuation allowance (federal) | (299,522) | (90,220) |
Total deferred tax asset | 212,634 | 182,746 |
Deferred tax liability: | ||
Property, plant, and equipment | (210,912) | (181,224) |
Other | (1,722) | (1,522) |
Total deferred tax liability | (212,664) | (182,746) |
Net Deferred Tax Asset | $ 0 | $ 0 |
13. Income Taxes (Details 3)
13. Income Taxes (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Computed expected tax provision (benefit) | $ (353,872) | $ (293,486) |
State taxes | (21,754) | (32,283) |
Foreign taxes | 37,371 | 91,072 |
Non-deductible items | 3,263 | 0 |
Percentage depletion | (40,976) | 0 |
Change in valuation allowance U.S. | 151,745 | (311,732) |
Change in valuation allowance Foreign | 224,223 | 546,429 |
Foreign tax assessment | 285,048 | 0 |
Alternative minimum tax - Domestic | 13,090 | 0 |
Income tax (expense) | $ 298,138 | $ 0 |
13. Income Taxes (Details 4)
13. Income Taxes (Details 4) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Domestic | ||
Change in deferred tax asset for current year | $ (151,745) | $ (166,547) |
Adjustment for prior year tax estimate to actual | (57,557) | (145,185) |
Change in valuation allowance | (209,302) | (311,732) |
Foreign | ||
Change in deferred tax asset for current year | (224,223) | 589,613 |
Adjustment for impact of tax assessment | 285,048 | 0 |
Impact on change in foreign exchange rate | 421,643 | 366,591 |
Adjustment for prior year tax estimates to actual | 724,041 | (409,775) |
Change in valuation allowance | $ 1,206,509 | $ 546,429 |
13. Income Taxes (Details Narra
13. Income Taxes (Details Narrative) | Dec. 31, 2016USD ($) |
Operating loss carryforwards | $ 900,000 |
Montana [Member] | |
Operating loss carryforwards | 2,900,000 |
Idaho state [Member] | |
Operating loss carryforwards | 1,200,000 |
Mexican | |
Operating loss carryforwards | $ 4,300,000 |
15. Commitments and Contingen51
15. Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Payments paid for capitalized mineral rights | $ 65,000 | $ 127,500 |
16. Business Segments (Details)
16. Business Segments (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Properties, plants and equipment, net | $ 15,695,966 | $ 16,030,333 |
United States Antimony [Member] | ||
Properties, plants and equipment, net | 1,892,103 | 1,937,402 |
Mexico Antimony [Member] | ||
Properties, plants and equipment, net | 12,331,310 | 12,539,805 |
Subtotal Antimony [Member] | ||
Properties, plants and equipment, net | 14,223,413 | 14,477,207 |
Zeolite (Member) | ||
Properties, plants and equipment, net | $ 1,472,553 | $ 1,553,126 |
16. Business Segments (Details
16. Business Segments (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Total Assets | $ 17,765,998 | $ 18,260,201 |
United States Antimony [Member] | ||
Total Assets | 2,693,614 | 2,676,263 |
Mexico Antimony [Member] | ||
Total Assets | 13,027,952 | 13,400,895 |
Subtotal Antimony [Member] | ||
Total Assets | 15,721,566 | 16,077,158 |
Zeolite (Member) | ||
Total Assets | $ 2,044,432 | $ 2,183,043 |
16. Business Segments (Detail54
16. Business Segments (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Capital Expenditure | $ 665,370 | $ 3,664,268 |
United States Antimony [Member] | ||
Capital Expenditure | 36,028 | 33,028 |
Mexico Antimony [Member] | ||
Capital Expenditure | 496,046 | 3,435,002 |
Subtotal Antimony [Member] | ||
Capital Expenditure | 532,074 | 3,468,030 |
Zeolite (Member) | ||
Capital Expenditure | $ 133,296 | $ 196,238 |
16. Business Segments (Detail55
16. Business Segments (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | $ 11,890,135 | $ 13,109,003 |
Depreciation and amortization | 999,737 | 932,786 |
Income (loss) from operations | (816,522) | (808,997) |
Income tax expense | (298,138) | |
Other income (expense): | (194,540) | (29,534) |
Income (loss) before income taxes | (1,011,062) | (838,531) |
NET INCOME (LOSS) | (1,309,200) | (838,531) |
Antimony [Member] | ||
Revenues | 8,740,602 | 9,856,398 |
Depreciation and amortization | 81,328 | 61,819 |
Income (loss) from operations | 4,048,193 | 4,990,865 |
Income tax expense | (13,090) | |
Other income (expense): | (34,262) | (24,280) |
NET INCOME (LOSS) | 2,859,972 | 4,475,160 |
Mexico Antimony [Member] | ||
Revenues | 3,568 | 7,535 |
Depreciation and amortization | 704,541 | 649,526 |
Income (loss) from operations | (5,109,734) | (6,311,265) |
Income tax expense | (285,048) | |
Other income (expense): | (149,165) | |
NET INCOME (LOSS) | (5,133,439) | (6,311,265) |
Precious Metals [Member] | ||
Revenues | 672,871 | 491,426 |
Depreciation and amortization | 0 | |
Income (loss) from operations | 0 | |
Income tax expense | 0 | |
Other income (expense): | 0 | |
NET INCOME (LOSS) | 672,871 | 491,426 |
Zeolite (Member) | ||
Revenues | 2,473,094 | 2,753,644 |
Depreciation and amortization | 213,868 | 221,441 |
Income (loss) from operations | 245,019 | 511,403 |
Income tax expense | 0 | |
Other income (expense): | (11,113) | (5,255) |
NET INCOME (LOSS) | $ 233,907 | $ 506,148 |