United States Antimony (UAMY) 10-Q 14 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 14, 2017
Document And Entity Information
Entity Registrant Name	UNITED STATES ANTIMONY CORP
Entity Central Index Key	101,538
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		67,488,153
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 24,550	$ 10,057
Certificates of deposit	252,298	251,641
Accounts receivable, net	541,284	552,119
Inventories	806,441	855,637
Other current assets	30,748	23,101
Total current assets	1,655,321	1,692,555
Properties, plants and equipment, net	15,417,160	15,695,966
Restricted cash for reclamation bonds	63,274	63,274
Foreign value added tax refund receivable	365,120	276,500
Other assets	32,520	37,703
Total assets	17,533,395	17,765,998
Current liabilities:
Checks issued and payable	22,906	35,682
Accounts payable	1,864,415	1,797,251
Due to factor	170,870	150,399
Accrued payroll, taxes and interest	173,333	213,695
Other accrued liabilities	154,659	122,968
Payables to related parties	16,759	14,525
Deferred revenue	78,730	78,730
Notes payable to bank	192,144	167,317
Income taxes payable (Note 11)	462,152	410,510
Long-term debt, current portion, net of discount	462,524	391,046
Total current liabilities	3,598,492	3,382,123
Long-term debt, net of discount and current portion	1,341,780	1,472,869
Hillgrove advances payable (Note 8)	1,134,201	1,134,221
Common stock payable to directors for services	87,500	168,750
Asset retirement obligations and accrued reclamation costs	268,677	265,782
Total liabilities	6,430,650	6,423,745
Commitments and contingencies (Note 5 and 11)
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 $909,375 and $907,500 respectively)	7,500	7,500
Series C: 177,904 shares issued and outstanding (liquidation preference $97,847)	1,779	1,779
Series D: 1,751,005 shares issued and outstanding (liquidation preference $5,014,692 and $4,920,178 respectively)	17,509	17,509
Common stock, $0.01 par value, 90,000,000 shares authorized; 67,488,153 and 67,066,278 shares issued and outstanding, respectively	674,881	670,662
Additional paid-in capital	36,239,264	36,074,733
Accumulated deficit	(25,838,188)	(25,429,930)
Total stockholders' equity	11,102,745	11,342,253
Total liabilities and stockholders' equity	$ 17,533,395	$ 17,765,998

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Stockholders' equity:
Series A Preferred stock, par value	$ 0.01	$ 0.01
Series A Preferred stock, authorized shares	10,000,000	10,000,000
Series A Preferred stock, issued shares	0	0
Series A Preferred stock, outstanding shares	0	0
Series B Preferred stock, par value	$ 0.01	$ 0.01
Series B Preferred stock, authorized shares	10,000,000	10,000,000
Series B Preferred stock, issued shares	750,000	750,000
Series B Preferred stock, outstanding shares	750,000	750,000
Series B liquidation preference	$ 909,375	$ 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	$ 5,014,692	$ 4,920,178
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	90,000,000	90,000,000
Common stock, issued shares	67,488,153	67,066,278
Common stock, outstanding shares	67,488,153	67,066,278

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
REVENUES	$ 2,838,480	$ 3,014,394	$ 5,457,811	$ 6,319,929
COST OF REVENUES	2,535,587	2,824,779	5,065,374	5,923,003
GROSS PROFIT	302,893	189,615	392,437	396,926
OPERATING EXPENSES:
General and administrative	236,482	270,514	534,560	540,423
Professional fees	34,582	79,815	137,920	223,465
Hillgrove advance - earned credit (Note 8)	0	(52,588)	0	(76,579)
TOTAL OPERATING EXPENSES	271,064	297,741	672,480	687,309
INCOME (LOSS) FROM OPERATIONS	31,829	(108,126)	(280,043)	(290,383)
OTHER INCOME (EXPENSE):
Interest income	267	220	838	1,402
Interest expense	(27,154)	(28,855)	(54,804)	(28,860)
Foreign exchange loss	(10,191)	0	(51,642)	0
Factoring expense	(11,706)	(7,909)	(22,607)	(15,435)
TOTAL OTHER INCOME (EXPENSE)	(48,784)	(36,544)	(128,215)	(42,893)
INCOME (LOSS) BEFORE INCOME TAXES	(16,955)	(144,670)	(408,258)	(333,276)
Provision for income tax	0	(12,000)	0	(12,000)
NET INCOME (LOSS)	$ (16,955)	$ (156,670)	$ (408,258)	$ (345,276)
Preferred dividends	$ (12,162)	$ (12,162)	$ (24,325)	$ (24,325)
Net income (loss) available to common stockholders	$ (29,117)	$ (168,832)	$ (432,583)	$ (369,601)
Net income (loss) per share of common stock:
Basic	$ 0	$ 0	$ (.01)	$ (0.01)
Diluted	$ 0	$ 0	$ (0.01)	$ (0.01)
Weighted average shares outstanding:
Basic	67,488,153	66,866,278	67,336,651	66,687,981
Diluted	67,488,153	66,866,278	67,336,651	66,687,981

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash Flows From Operating Activities:
Net income (loss)	$ (408,258)	$ (345,276)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
Depreciation and amortization expense	430,050	442,100
Amortization of debt discount	46,828	0
Hillgrove advance earned credit	0	(76,579)
Accretion of asset retirement obligation	2,895	2,727
Common stock payable for directors fees	87,500	75,000
Foreign exchange loss	51,642	0
Other, net	(677)	0
Change in:
Accounts receivable, net	10,835	(249,178)
Inventories	49,196	188,536
Other current assets	(7,647)	(30,604)
Other assets	(83,437)	(15,286)
Accounts payable	67,164	100,638
Accrued payroll, taxes and interest	(40,362)	67,224
Other accrued liabilities	31,691	74,128
Income tax payable	0	12,000
Payables to related parties	2,234	11,553
Net cash provided (used) by operating activities	239,654	256,983
Cash Flows From Investing Activities:
Purchase of properties, plants and equipment	(151,244)	(361,003)
Net cash used by investing activities	(151,244)	(361,003)
Cash Flows From Financing Activities:
Change in checks issued and payable	(12,776)	0
Net proceeds from factor	20,471	94,182
Proceeds from note payable to bank	24,827	26,506
Principal paid notes payable to bank	0	(30,673)
Principal payments on long-term debt	(106,439)	(36,596)
Net cash provided (used) by financing activities	(73,917)	53,419
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	14,493	(50,601)
Cash and cash equivalents at beginning of period	10,057	133,543
Cash and cash equivalents at end of period	24,550	82,942
Noncash investing and financing activities:
Common stock payable issued to directors	$ 168,750	$ 137,500

1. Basis of Presentation

1. Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	The unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the three and six month periods ended June 30, 2017 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2017. For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Certain consolidated financial statement amounts for the three and six month periods ended June 30, 2016, have been reclassified to conform to the 2017 presentation. These reclassifications had no effect on the net income (loss) or cash flows or accumulated deficit as previously reported. Going Concern Consideration At June 30, 2017, our financial statements show that we have a negative working capital of approximately $1.9 million and an accumulated deficit of approximately $25.8 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 past twelve months, the price of antimony has increased from a low of $2.81 per pound to an average price of $4.11 for the second quarter of 2017. We have gross profit and a positive cash flow from our U.S. operations at this price. Our operations in Mexico are still in a transitional phase since the loss of our raw material supply from Hillgrove of Australia. We are focusing our production at our Wadley mine to increase grade and output, and we have recently seen ore from there assaying 50% antimony. We are also trying new production techniques, and have found that we can process direct shipping ore successfully at our Madero mill which will result in a reduction in our operating costs in Mexico going forward. We have reduced costs at our Mexico locations, most notably a reduced monthly lease payment of $11,600 for the Wadley mine from $23,200 one year ago, and reduced cost for labor at the same mine. We have also reduced administrative costs by approximately 18% from the prior year for the second quarter at the corporate level. Our capital outlay should be minimal in the near future; and we completed paying for the Los Juarez mining concessions in 2016 which were a major outlay in prior years. Our zeolite operations continue to operate profitably and provide cash to our operations. We are aggressively seeking new markets for our zeolite products, and we now have an outside sales staff that is working to obtain new customers and have had some success. We believe that the combination of the above will enable us to stay in operation and meet our financial obligations for the next twelve months and further.

2. Income (Loss) Per Common Sha

2. Income (Loss) Per Common Share	6 Months Ended
	Jun. 30, 2017
Net income (loss) per share of common stock:
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 three and six month periods ended June 30, 2017 and June 30, 2016, is not applicable since any additions to outstanding shares related to common stock equivalents would be anti-dilutive. As of June 30, 2017 and 2016, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows: June 30, 2017 June 30, 2016 Warrants 250,000 250,000 Convertible preferred stock 1,751,005 1,751,005 Total possible dilution 2,001,005 2,001,005

3. Inventories

3. Inventories	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories at June 30, 2017 and December 31, 2016 consisted primarily of finished antimony products, antimony metal, antimony ore, and finished zeolite products that are stated at the lower of first-in, first-out 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. Inventory at June 30, 2017 and December 31, 2016, is as follows: June 30, December 31, 2017 2016 Antimony Metal $ 37,397 $ 112,300 Antimony Oxide 357,996 326,126 Antimony Concentrates 10,006 30,815 Antimony Ore 154,973 181,815 Total antimony 560,372 651,056 Zeolite 246,069 204,581 $ 806,441 $ 855,637

4. Accounts Receivable and Due

4. Accounts Receivable and Due to Factor	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Accounts Receivable and Due to Factor	The Company factors designated trade receivables pursuant to a factoring agreement with LSQ Funding Group L.C., an unrelated factor (the “Factor”). The agreement specifies that eligible trade receivables are factored with recourse. We submit selected trade receivables to the factor, and receive 83% of the face value of the receivable by wire transfer. The Factor withholds 15% as retainage and 2% as a servicing fee. Upon payment by the customer, we receive the remainder of the amount due from the factor. The 2% servicing fee is recorded on the consolidated statement of operations in the period of sale to the factor. John Lawrence, CEO, is a personal guarantor of the amount due to 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. The allowance for doubtful accounts is based on management’s regular evaluation of individual customer’s receivables and consideration of a customer’s financial condition and credit history. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. Interest is not charged on past due accounts. We present the receivables, net of allowances, as current assets and we present the amount potentially due to the Factor as a secured financing in current liabilities. Accounts Receivble June 30, 2017 December 31, 2016 Accounts receivable - non factored $ 370,414 $ 401,720 Accounts receivable - factored with recourse 170,870 150,399 Accounts receivable - net $ 541,284 $ 552,119

5. Commitments and Contingencie

5. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	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, as of June 30, 2017, requires payments of $10,000 plus a tax of $1,600 per month. The lease is renewable each year with a 15 day notice to the lessor, and agreement of terms. The lease is scheduled for renewal in June 2018.

6. Note Payable to Bank

6. Note Payable to Bank	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Note Payable to Bank	At June 30, 2017 and December 31, 2016, the Company had the following notes payable to bank: June 30, December 31, 2017 2016 Promissory note payable to First Security Bank of Missoula, bearing interest at 3.150%, payable on demand, collateralized by a lien on Certificate of Deposit $ 92,145 $ 76,350 Promissory note payable to First Security Bank of Missoula, bearing interest at 3.150%, payable on demand, collateralized by a lien on Certificate of Deposit 99,999 90,967 Total notes payable to the bank $ 192,144 $ 167,317 These notes are personally guaranteed by John C. Lawrence the Company’s President and Chairman of the Board of Directors. The maximum amount available for borrowing under each note is $99,999.

7. Long-Term Debt

7. Long-Term Debt	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Long - Term Debt	Long-Term debt at June 30, 2017 and December 31, 2016 is as follows: June 30, December 31, 2017 2016 Note payable to First Security Bank, bearing interest at 6%; payable in monthly installments of $917; maturing September 2018; collateralized by equipment. $ 13,226 $ 18,245 Note payable to Cat Financial Services, bearing interest at 6%; payable in monthly installments of $1,300; maturing August 2019; collateralized by equipment. 33,954 40,556 Note payable to Wells Fargo Bank, bearing interest at 4%; payable in monthly installments of $477; maturing December 2016; collateralized by equipment. - 473 Note payable to De Lage Landen Financial Services, bearing interest at 3.51%; payable in monthly installments of $655; maturing September 2019; collateralized by equipment. 16,389 20,581 Note payable to De Lage Landen Financial Services, bearing interest at 3.51%; payable in monthly installments of $655; maturing December 2019; collateralized by equipment. 18,791 22,944 Note payable to Phyllis Rice, bearing interest at 1%; payable in monthly installments of $2,000; maturing March 2015; collateralized by equipment. 14,146 14,146 Obligation payable for Soyatal Mine, non-interest bearing, annual payments of $100,000 or $200,000 through 2019, net of discount. 746,014 776,319 Obligation payable for Guadalupe Mine, non-interest bearing, annual payments from $60,000 to $149,078 through 2026, net of discount. 961,784 970,651 1,804,304 1,863,915 Less current portion (462,524 ) (391,046 ) Long-term portion $ 1,341,780 $ 1,472,869 Principal payments due Year Ending June 30, 2018 $ 462,524 2019 289,265 2020 247,045 2021 150,840 2022 109,890 Thereafter 544,740 $ 1,804,304

8. Hillgrove Advances Payable

8. Hillgrove Advances Payable	6 Months Ended
	Jun. 30, 2017
Hillgrove Advances Payable
Hillgrove Advances Payable	On November 7, 2014, the Company entered into a loan and processing agreement with Hillgrove Mines Pty Ltd of Australia (Hillgrove) by which Hillgrove will advance 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 requires 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 final terms of when the repayment takes place have not yet been agreed on. 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 as approved by Hillgrove, and to charge a 7.5% processing fee and a 2.0% sales commission. 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. At June 30, 2017, the net amount due to Hillgrove for advances was $1,134,201. As of June 30, 2107, repayment of the advances is not expected to occur within the next twelve months so the balance is classified as a long term liability.

9. Concentrations of Risk

9. Concentrations of Risk	6 Months Ended
	Jun. 30, 2017
Risks and Uncertainties [Abstract]
Concentrations of Risk	Sales to Three For the Three Months Ended For the Six Months Ended Largest Customers June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Mexichem Speciality Compounds $ 769,998 $ 585,798 $ 1,556,423 $ 1,176,221 East Penn Manufacturing Inc. 363,979 512,621 751,150 Kohler Corporation 501,320 946,498 649,050 Plastatech 279,543 Rubicon Minerals Corporation 328,057 $ 1,635,297 $ 1,193,398 $ 3,015,542 $ 2,576,421 % of Total Revenues 57.30 % 39.60 % 55.30 % 40.80 % Three Largest Accounts Receivable June 30, 2017 June 30, 2016 Kohler Corporation $ 175,182 $ 111,016 GE Lighting (LPC) 162,582 Polymer Products 104,498 East Penn manufacturing, Inc. 64,532 Teck American, Inc. 126,569 $ 402,296 $ 342,083 % of Total Receivables 62.70 % 46.15 %

10. Related Party Transactions

10. Related Party Transactions	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	During the three and six months ended June 30, 2017 and 2016, the Chairman of the audit committee and compensation committee received $4,500 and $9,000, and $9,000 and $18,000, respectively, for services performed. See Note 12 for shares of common stock issued to directors. During the three and six months ended June 30, 2017 and 2016, the Company paid $2,480 and $5,054, and $2,444 and $4,924, respectively, to John Lawrence, President and Chief Executive Officer, as reimbursement for equipment used by the Company.

11. Income Taxes

11. Income Taxes	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Income Taxes	During the six months ended June 30, 2017 and the year ended December 31, 2016, the Company determined that a valuation allowance equal to 100% of any deferred tax asset was appropriate, as management of the Company cannot determine that it is more likely than not the Company will realize the benefit of a net deferred tax asset. The net effect is that the deferred tax asset as of December 31, 2016, and any deferred tax assets that may have been incurred since then, are fully reserved for at June 30, 2017. Management estimates the effective tax rate at 0% for the current year. 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 was approximately $666,400 in U.S. Dollars (“USD”) as of December 31, 2016. Approximately $285,000 USD of the total assessment is interest and penalties. SAT’s assessment is based on the disallowance of specific costs that the Company deducted on the 2013 USAMSA income tax return. These disallowed costs were incurred by the Company for USAMSA’s business operations. SAT claims that the costs were not deductible or were not supported by appropriate documentation. At June 30, 2017, the assessed amount is $762,000 in U.S dollars. Management has reviewed the assessment notice from SAT and believes numerous findings have no merit. The Company has engaged accountants and tax attorneys in Mexico to defend its position. An appeal has been filed. 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, the Company 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. At June 30, 2017, the Company recognized a $51,642 increase due to the change in exchange rate. Fluctuation in exchange rates has an ongoing impact on the amount the Company will pay in U.S. dollars. If an issue addressed during the SAT audit is resolved in a manner inconsistent with management expectations, the Company will adjust its net operating loss carryforward, or accrue any additional penalties, interest, and tax associated with the audit. The Company’s tax professionals in Mexico have reviewed and filed tax returns with the SAT for 2014 and 2015, and have advised the Company that they do not expect the Company to have a tax liability for those years relating to similar issues.

12. Stockholder's Equity

12. Stockholder's Equity	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Stockholder's Equity	Issuance of Common Stock for Payable to Board of Directors During the six months ended June 30, 2016, the Board of Directors was issued a total of 550,000 shares of common stock for $137,500 in directors’ fees that were payable at December 31, 2015. In addition, the Company accrued $75,000 in directors’ fees payable as of June 30, 2016, that will be paid in common stock. During the six months ended June 30, 2017, the Board of Directors was issued a total of 421,875 shares of common stock for $168,750 in directors’ fees that were payable at December 31, 2016. In addition, the Company accrued $87,500 in directors’ fees payable as of June 30, 2017, that will be paid in common stock.

13. Business Segments

13. Business Segments	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Business Segments	The Company is currently organized and managed by four segments, which represent our operating units: United States antimony operations, Mexican antimony operations, precious metals recovery and United States zeolite operations. The Madero smelter and Puerto Blanco mill at the Company’s Mexico operation brings antimony up to an intermediate stage, which is typically sold directly or shipped to the United States operation for finishing and sales at the Thompson Falls, Montana plant. The precious metals recovery plant is operated in conjunction with the antimony processing plant at Thompson Falls, Montana. 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. Disclosure of the activity relating to our precious metals recovery requires that it be reported as a separate business segment. The prior period comparative information has been reclassified to reflect this change. Segment disclosure regarding sales to major customers is located in Note 9. For the Three Months Ended For the Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Capital expenditures: Antimony United States $ - $ 5,583 $ - $ 25,983 Mexico 47,033 104,618 75,716 312,505 Subtotal Antimony 47,033 110,201 75,716 338,488 Precious Metals 16,582 - 59,582 - Zeolite 8,030 20,023 15,946 61,791 Total $ 71,645 $ 130,224 $ 151,244 $ 400,279 Properties, plants and equipment, net: June 30, 2017 December 31, 2016 Antimony United States $ 1,656,131 $ 1,694,331 Mexico 11,768,133 11,984,467 Subtotal Antimony 13,424,264 13,678,798 Precious metals 604,197 544,615 Zeolite 1,388,699 1,472,553 Total $ 15,417,160 $ 15,695,966 Total Assets: June 30, 2017 December 31, 2016 Antimony United States $ 2,419,320 $ 2,495,842 Mexico 12,500,099 12,681,109 Subtotal Antimony 14,919,419 15,176,951 Precious metals 604,197 544,615 Zeolite 2,009,779 2,044,432 Total $ 17,533,395 $ 17,765,998 Segment Operations for the three Antimony Antimony Precious months ended June 30, 2017 USA Mexico Metals Zeolite Totals Total revenues $ 2,077,300 $ - $ 144,766 $ 616,414 $ 2,838,480 Depreciation and amortization $ 18,700 $ 145,875 $ - $ 49,800 $ 214,375 Income (loss) from operations 844,257 (1,089,834 ) 144,766 132,640 31,829 Other income (expense): (11,965 ) (33,605 ) - (3,214 ) (48,784 ) NET INCOME (LOSS) $ 832,292 $ (1,123,439 ) $ 144,766 $ 129,426 $ (16,955 ) Segment Operations for the three Antimony Antimony Precious months ended June 30, 2016 USA Mexico Metals Zeolite Totals Total revenues $ 2,056,644 $ - $ 141,495 $ 816,255 $ 3,014,394 Depreciation and amortization $ 24,900 $ 138,950 $ 49,600 $ 213,450 Income (loss) from operations 974,565 (1,328,242 ) 141,495 104,056 (108,126 ) Income tax expense (12,000 ) (12,000 ) Other income (expense): (8,454 ) (24,505 ) (3,585 ) (36,544 ) NET INCOME (LOSS) $ 954,111 $ (1,352,747 ) $ 141,495 $ 100,471 $ (156,670 ) Segment Operations for the six Antimony Antimony Precious months ended June 30, 2017 USA Mexico Metals Zeolite Totals Total revenues $ 4,046,026 $ 17,782 $ 165,577 $ 1,228,426 $ 5,457,811 Depreciation and amortization $ 38,200 $ 292,050 $ 99,800 $ 430,050 Income (loss) from operations 1,173,160 (1,841,012 ) 165,577 222,232 (280,044 ) Income tax expense - - - - - Other income (expense): (23,044 ) (98,569 ) - (6,602 ) (128,215 ) NET INCOME (LOSS) $ 1,150,115 $ (1,939,581 ) $ 165,577 $ 215,630 $ (408,258 ) Segment Operations for the six Antimony Antimony Precious months ended June 30, 2016 USA Mexico Metals Zeolite Totals Total revenues $ 4,595,977 $ - $ 324,343 $ 1,399,609 $ 6,319,929 Depreciation and amortization $ 40,400 $ 295,100 $ 106,600 $ 442,100 Income (loss) from operations 1,858,762 (2,607,754 ) 324,343 134,266 (290,383 ) Income tax expense (12,000 ) (12,000 ) Other income (expense): (14,430 ) (24,505 ) (3,958 ) (42,893 ) NET INCOME (LOSS) $ 1,832,332 $ (2,632,259 ) $ 324,343 $ 130,308 $ (345,276 )

2. Income (Loss) Per Common S19

2. Income (Loss) Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2017
Net income (loss) per share of common stock:
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	June 30, 2017 June 30, 2016 Warrants 250,000 250,000 Convertible preferred stock 1,751,005 1,751,005 Total possible dilution 2,001,005 2,001,005

3. Inventories (Tables)

3. Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	June 30, December 31, 2017 2016 Antimony Metal $ 37,397 $ 112,300 Antimony Oxide 357,996 326,126 Antimony Concentrates 10,006 30,815 Antimony Ore 154,973 181,815 Total antimony 560,372 651,056 Zeolite 246,069 204,581 $ 806,441 $ 855,637

4. Accounts Receivable and Du21

4. Accounts Receivable and Due to Factor (Tables)	6 Months Ended
	Jun. 30, 2017
Accounts Receivable And Due To Factor Tables
Account Receivables	Accounts Receivble June 30, 2017 December 31, 2016 Accounts receivable - non factored $ 370,414 $ 401,720 Accounts receivable - factored with recourse 170,870 150,399 Accounts receivable - net $ 541,284 $ 552,119

6. Note Payable to Bank (Tables

6. Note Payable to Bank (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Summary of notes payable to bank	June 30, December 31, 2017 2016 Promissory note payable to First Security Bank of Missoula, bearing interest at 3.150%, payable on demand, collateralized by a lien on Certificate of Deposit $ 92,145 $ 76,350 Promissory note payable to First Security Bank of Missoula, bearing interest at 3.150%, payable on demand, collateralized by a lien on Certificate of Deposit 99,999 90,967 Total notes payable to the bank $ 192,144 $ 167,317

7. Long-Term Debt (Tables)

7. Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Long - Term Debt	Long-Term debt at June 30, 2017 and December 31, 2016 is as follows: June 30, December 31, 2017 2016 Note payable to First Security Bank, bearing interest at 6%; payable in monthly installments of $917; maturing September 2018; collateralized by equipment. $ 13,226 $ 18,245 Note payable to Cat Financial Services, bearing interest at 6%; payable in monthly installments of $1,300; maturing August 2019; collateralized by equipment. 33,954 40,556 Note payable to Wells Fargo Bank, bearing interest at 4%; payable in monthly installments of $477; maturing December 2016; collateralized by equipment. - 473 Note payable to De Lage Landen Financial Services, bearing interest at 3.51%; payable in monthly installments of $655; maturing September 2019; collateralized by equipment. 16,389 20,581 Note payable to De Lage Landen Financial Services, bearing interest at 3.51%; payable in monthly installments of $655; maturing December 2019; collateralized by equipment. 18,791 22,944 Note payable to Phyllis Rice, bearing interest at 1%; payable in monthly installments of $2,000; maturing March 2015; collateralized by equipment. 14,146 14,146 Obligation payable for Soyatal Mine, non-interest bearing, annual payments of $100,000 or $200,000 through 2019, net of discount. 746,014 776,319 Obligation payable for Guadalupe Mine, non-interest bearing, annual payments from $60,000 to $149,078 through 2026, net of discount. 961,784 970,651 1,804,304 1,863,915 Less current portion (462,524 ) (391,046 ) Long-term portion $ 1,341,780 $ 1,472,869
Debt Outstanding	Principal payments due Year Ending June 30, 2018 $ 462,524 2019 289,265 2020 247,045 2021 150,840 2022 109,890 Thereafter 544,740 $ 1,804,304

9. Concentration of Risk (Table

9. Concentration of Risk (Tables)	6 Months Ended
	Jun. 30, 2017
Concentration Of Risk Tables
Major Customers Revenue Details	Sales to Three For the Three Months Ended For the Six Months Ended Largest Customers June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Mexichem Speciality Compounds $ 769,998 $ 585,798 $ 1,556,423 $ 1,176,221 East Penn Manufacturing Inc. 363,979 512,621 751,150 Kohler Corporation 501,320 946,498 649,050 Plastatech 279,543 Rubicon Minerals Corporation 328,057 $ 1,635,297 $ 1,193,398 $ 3,015,542 $ 2,576,421 % of Total Revenues 57.30 % 39.60 % 55.30 % 40.80 % Three Largest Accounts Receivable June 30, 2017 June 30, 2016 Kohler Corporation $ 175,182 $ 111,016 GE Lighting (LPC) 162,582 Polymer Products 104,498 East Penn manufacturing, Inc. 64,532 Teck American, Inc. 126,569 $ 402,296 $ 342,083 % of Total Receivables 62.70 % 46.15 %

13. Business Segments (Tables)

13. Business Segments (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Capital Expenditure Information	For the Three Months Ended For the Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Capital expenditures: Antimony United States $ - $ 5,583 $ - $ 25,983 Mexico 47,033 104,618 75,716 312,505 Subtotal Antimony 47,033 110,201 75,716 338,488 Precious Metals 16,582 - 59,582 - Zeolite 8,030 20,023 15,946 61,791 Total $ 71,645 $ 130,224 $ 151,244 $ 400,279
Segment Information	Properties, plants and equipment, net: June 30, 2017 December 31, 2016 Antimony United States $ 1,656,131 $ 1,694,331 Mexico 11,768,133 11,984,467 Subtotal Antimony 13,424,264 13,678,798 Precious metals 604,197 544,615 Zeolite 1,388,699 1,472,553 Total $ 15,417,160 $ 15,695,966 Total Assets: June 30, 2017 December 31, 2016 Antimony United States $ 2,419,320 $ 2,495,842 Mexico 12,500,099 12,681,109 Subtotal Antimony 14,919,419 15,176,951 Precious metals 604,197 544,615 Zeolite 2,009,779 2,044,432 Total $ 17,533,395 $ 17,765,998
Segment Revenue Information	Segment Operations for the three Antimony Antimony Precious months ended June 30, 2017 USA Mexico Metals Zeolite Totals Total revenues $ 2,077,300 $ - $ 144,766 $ 616,414 $ 2,838,480 Depreciation and amortization $ 18,700 $ 145,875 $ - $ 49,800 $ 214,375 Income (loss) from operations 844,257 (1,089,834 ) 144,766 132,640 31,829 Other income (expense): (11,965 ) (33,605 ) - (3,214 ) (48,784 ) NET INCOME (LOSS) $ 832,292 $ (1,123,439 ) $ 144,766 $ 129,426 $ (16,955 ) Segment Operations for the three Antimony Antimony Precious months ended June 30, 2016 USA Mexico Metals Zeolite Totals Total revenues $ 2,056,644 $ - $ 141,495 $ 816,255 $ 3,014,394 Depreciation and amortization $ 24,900 $ 138,950 $ 49,600 $ 213,450 Income (loss) from operations 974,565 (1,328,242 ) 141,495 104,056 (108,126 ) Income tax expense (12,000 ) (12,000 ) Other income (expense): (8,454 ) (24,505 ) (3,585 ) (36,544 ) NET INCOME (LOSS) $ 954,111 $ (1,352,747 ) $ 141,495 $ 100,471 $ (156,670 ) Segment Operations for the six Antimony Antimony Precious months ended June 30, 2017 USA Mexico Metals Zeolite Totals Total revenues $ 4,046,026 $ 17,782 $ 165,577 $ 1,228,426 $ 5,457,811 Depreciation and amortization $ 38,200 $ 292,050 $ 99,800 $ 430,050 Income (loss) from operations 1,173,160 (1,841,012 ) 165,577 222,232 (280,044 ) Income tax expense - - - - - Other income (expense): (23,044 ) (98,569 ) - (6,602 ) (128,215 ) NET INCOME (LOSS) $ 1,150,115 $ (1,939,581 ) $ 165,577 $ 215,630 $ (408,258 ) Segment Operations for the six Antimony Antimony Precious months ended June 30, 2016 USA Mexico Metals Zeolite Totals Total revenues $ 4,595,977 $ - $ 324,343 $ 1,399,609 $ 6,319,929 Depreciation and amortization $ 40,400 $ 295,100 $ 106,600 $ 442,100 Income (loss) from operations 1,858,762 (2,607,754 ) 324,343 134,266 (290,383 ) Income tax expense (12,000 ) (12,000 ) Other income (expense): (14,430 ) (24,505 ) (3,958 ) (42,893 ) NET INCOME (LOSS) $ 1,832,332 $ (2,632,259 ) $ 324,343 $ 130,308 $ (345,276 )

2. Income (Loss) Per Common S26

2. Income (Loss) Per Common Share (Details) - shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Net income (loss) per share of common stock:
Warrants	250,000	250,000
Convertible preferred stock	1,751,005	1,751,005
Total possible dilution	2,001,005	2,001,005

3. Inventories (Details)

3. Inventories (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Inventories	$ 806,441	$ 855,637
Antimony Oxide - Finished
Inventories	357,996	326,126
Antimony Metal [Member]
Inventories	37,397	112,300
Antimony Concentrates
Inventories	10,006	30,815
Antimony Ore [Member]
Inventories	154,973	181,815
Antimony [Member]
Inventories	560,372	651,056
Zeolite [Member]
Inventories	$ 246,069	$ 204,581

4. Accounts Receivable and Du28

4. Accounts Receivable and Due to Factor (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Accounts Receivable And Due To Factor Tables
Accounts receivable - non factored	$ 370,414	$ 401,720
Accounts receivable - factored with recourse	170,870	150,399
Accounts receivable - net	$ 541,284	$ 552,119

5. Commitments and Contingenc29

5. Commitments and Contingencies (Details Narrative)	6 Months Ended
	Jun. 30, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Payments paid for capitalized mineral rights	$ 11,600

6. Note Payable to Bank (Detail

6. Note Payable to Bank (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Note payable to bank	$ 192,144	$ 167,317
Promissory note payable CD 48614
Note payable to bank	92,145	76,350
Promissory note payable CD 48615
Note payable to bank	$ 99,999	$ 90,967

7. Long - Term Debt (Details)

7. Long - Term Debt (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Total debt	$ 1,804,304	$ 1,863,916
Less current portion	(462,524)	(391,046)
Noncurrent portion	1,341,780	1,472,870
First Security
Total debt	13,226	18,246
Cat Financial Services
Total debt	33,954	40,556
Wells fargo bank
Total debt	0	473
De Lage Landen Financial Services
Total debt	16,389	20,581
De Lage Landen Financial Services 1
Total debt	18,791	22,944
Phyllis Rice
Total debt	14,146	14,146
Soyatal Mine
Total debt	746,014	776,319
Guadalupe Mine
Total debt	$ 961,784	$ 970,651

7. Long - Term Debt (Details 1)

7. Long - Term Debt (Details 1)	Jun. 30, 2017USD ($)
Long Term Debt Details 1
2,018	$ 462,524
2,019	289,265
2,020	247,045
2,021	150,840
2,022	109,890
Thereafter	544,740
Total	$ 1,804,304

9. Concentrations of Risk (Deta

9. Concentrations of Risk (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Sales to Three Largest Customers	$ 1,635,297	$ 1,193,398	$ 3,015,542	$ 2,576,421
Total percentage of revenue	57.30%	39.60%	55.30%	40.80%
Mexichem Speciality Compounds
Sales to Three Largest Customers	$ 769,998	$ 585,798	$ 1,556,423	$ 1,176,221
East Penn Manufacturing Inc.
Sales to Three Largest Customers	363,979		512,621	751,150
Kohler Corporation [Member]
Sales to Three Largest Customers	$ 501,320		$ 946,498	$ 649,050
Plastatech [Member]
Sales to Three Largest Customers		279,543
Rubicon Minerals Corporation [Member]
Sales to Three Largest Customers		$ 328,057

9. Concentrations of Risk (De34

9. Concentrations of Risk (Details 1) - USD ($)	Jun. 30, 2017	Jun. 30, 2016
Accounts Receivable	$ 402,296	$ 342,083
Total percentage of receivables	62.70%	46.15%
Kohler Corporation [Member]
Accounts Receivable	$ 175,182	$ 111,016
General Electric
Accounts Receivable	162,582
Polymer Products [Member]
Accounts Receivable		104,498
East Penn Manufacturing Inc.
Accounts Receivable	$ 64,532
Teck American, Inc. [Member]
Accounts Receivable		$ 126,569

10. Related Party Transactions

10. Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Chairman of the audit committee and compensation committee
Related Party Transactions	$ 4,500	$ 9,000	$ 9,000	$ 18,000
Chief Executive Officer
Related Party Transactions	$ 2,480	$ 2,444	$ 5,054	$ 4,924

13. Business Segments (Details)

13. Business Segments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Capital Expenditure	$ 71,645	$ 130,224	$ 151,244	$ 400,279
United States Antimony [Member]
Capital Expenditure	0	5,583	0	25,983
Mexico Antimony [Member]
Capital Expenditure	47,033	104,618	75,716	312,505
Subtotal Antimony [Member]
Capital Expenditure	47,033	110,201	75,716	338,488
Precious Metals [Member]
Capital Expenditure	16,582	0	59,582	0
Zeolite [Member]
Capital Expenditure	$ 8,030	$ 20,023	$ 15,946	$ 61,791

13. Business Segments (Details

13. Business Segments (Details 1) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Properties, plants and equipment, net	$ 15,417,160	$ 15,695,966
Total Assets	17,533,395	17,765,998
United States Antimony [Member]
Properties, plants and equipment, net	1,656,131	1,694,331
Total Assets	2,419,320	2,495,842
Mexico Antimony [Member]
Properties, plants and equipment, net	11,768,133	11,984,467
Total Assets	12,500,099	12,681,109
Subtotal Antimony [Member]
Properties, plants and equipment, net	13,424,264	13,678,798
Total Assets	14,919,419	15,176,951
Precious Metals [Member]
Properties, plants and equipment, net	604,197	544,615
Total Assets	604,197	544,615
Zeolite [Member]
Properties, plants and equipment, net	1,388,699	1,472,553
Total Assets	$ 2,009,779	$ 2,044,432

13. Business Segments (Detail38

13. Business Segments (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Total revenues	$ 2,838,480	$ 3,014,394	$ 5,457,811	$ 6,319,929
Depreciation and amortization	214,375	213,450	430,050	442,100
Income (loss) from operations	31,829	(108,126)	(280,044)	(290,383)
Income tax expense		(12,000)	0	(12,000)
Other income (expense)	(48,784)	(36,544)	(128,215)	(42,893)
NET INCOME (LOSS)	(16,955)	(156,670)	(408,258)	(345,276)
United States Antimony [Member]
Total revenues	2,077,300	2,056,644	4,046,026	4,595,977
Depreciation and amortization	18,700	24,900	38,200	40,400
Income (loss) from operations	844,257	974,565	1,173,160	1,858,762
Income tax expense		(12,000)	0	(12,000)
Other income (expense)	(11,965)	(8,454)	(23,044)	(14,430)
NET INCOME (LOSS)	832,292	954,111	1,150,115	1,832,332
Mexico Antimony [Member]
Total revenues	0	0	17,782	0
Depreciation and amortization	145,875	138,950	292,050	295,100
Income (loss) from operations	(1,089,834)	(1,328,242)	(1,841,012)	(2,607,754)
Income tax expense		0	0	0
Other income (expense)	(33,605)	(24,505)	(98,569)	(24,505)
NET INCOME (LOSS)	(1,123,439)	(1,352,747)	(1,939,581)	(2,632,259)
Precious Metals [Member]
Total revenues	144,766	141,495	165,577	324,343
Depreciation and amortization	0	0	0	0
Income (loss) from operations	144,766	141,495	165,577	324,343
Income tax expense		0	0	0
Other income (expense)	0	0	0	0
NET INCOME (LOSS)	144,766	141,495	165,577	324,343
Zeolite [Member]
Total revenues	616,414	816,255	1,228,426	1,399,609
Depreciation and amortization	49,800	49,600	99,800	106,600
Income (loss) from operations	132,640	104,056	222,232	134,266
Income tax expense		0	0	0
Other income (expense)	(3,214)	(3,585)	(6,602)	(3,958)
NET INCOME (LOSS)	$ 129,426	$ 100,471	$ 215,630	$ 130,308