Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 01, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | IDAHO STRATEGIC RESOURCES, INC. | ||
Entity Central Index Key | 0001030192 | ||
Document Type | 10-K/A | ||
Amendment Flag | true | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Entity Common Stock Shares Outstanding | 11,309,160 | ||
Entity Public Float | $ 39,775,500 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-28837 | ||
Entity Incorporation State Country Code | ID | ||
Entity Tax Identification Number | 82-0490295 | ||
Entity Address Address Line 1 | 201 N. Third Street | ||
Entity Address City Or Town | Coeur d’Alene | ||
Entity Address Postal Zip Code | 83814 | ||
City Area Code | 208 | ||
Auditor Name | Assure CPA, LLC | ||
Auditor Location | Spokane, Washington | ||
Auditor Firm Id | 444 | ||
Local Phone Number | 625-9001 | ||
Security 12b Title | Common Stock, $0.00 par value | ||
Trading Symbol | IDR | ||
Security Exchange Name | NYSE | ||
Entity Interactive Data Current | Yes | ||
Entity Address State Or Province | ID | ||
Amendment Description | We are filing this Amendment No. 1 on Form 10-K/A, or this Amendment, to our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, for the purpose of reporting the information required by Items 1300 through 1305 of Regulation S-K for our mining properties under Item 2 of Part I, revising our reporting under Item 7, Part II of Form 10-K, and correcting our name in our auditor’s audit report in Item 8 of Part II. Our Annual Report on Form 10-K, or the Original Filing, was originally filed with the Securities and Exchange Commission, or the SEC, on March 31, 2022. Item 2 of Part I of Form 10-K is reorganized and includes additional disclosures and clarifications related to our properties as prescribed by Items 1300 through 1305 of Regulation S-K. Item 7 of Part II includes further details related to our increase in revenues and gross profits. Item 8 of Part II has been corrected to state our name, Idaho Strategic Resources Inc., rather than our former name, New Jersey Mining Company. And, we have included a Technical Report Summary that is attached as Exhibit 96.1 in Item 15 of Part IV. Pursuant to the SEC rules, Item 15 of Part IV has also been amended to contain the currently dated certificates from the Company’s principal executive officer and principal financial officer pursuant to Sections 302, 303, and 308 of the Sarbanes-Oxley Act of 2002. The certificates of the Company’s principal executive officer and principal financial officer are attached to this Amendment as Exhibits 31.1, 31.2, 31.3 and 31.4. Other than with respect to the information contained herein with respect to Item 2 of Part I, Item 7 of Part II, and Item 8 of Part II, below, this Amendment does not change any of the information contained in the Original Filing. Other than as specifically set forth herein, we have not updated or amended the disclosures contained in the Original Filing to reflect events that have occurred since the date thereof. Accordingly, this Amendment should be read in conjunction with our Original Filing. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Original Filing. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,976,518 | $ 2,539,945 |
Gold sales receivable | 408,187 | 264,779 |
Inventories | 213,722 | 402,537 |
Joint venture receivable | 4,442 | 4,177 |
Other current assets | 334,443 | 224,063 |
Total current assets | 2,937,312 | 3,435,501 |
Property, plant and equipment, net of accumulated depreciation | 8,255,961 | 7,227,144 |
Mineral properties, net of accumulated amortization | 5,843,186 | 3,455,233 |
Investment in Buckskin | 332,728 | 0 |
Investment in joint venture | 435,000 | 435,000 |
Reclamation bond | 103,320 | 103,320 |
Deposits | 11,694 | 12,863 |
Total assets | 17,919,201 | 14,669,061 |
Current liabilities: | ||
Accounts payable and accrued expenses | 647,218 | 687,331 |
Accrued payroll and related payroll expenses | 174,110 | 143,485 |
Notes payable related parties, current portion | 10,543 | 37,078 |
Notes payable, current portion | 664,153 | 339,704 |
Small Business Administration loan and interest, current portion | 2,469 | 1,741 |
Total current liabilities | 1,498,493 | 1,209,339 |
Asset retirement obligation | 172,348 | 173,001 |
Notes payable related parties, long term | 117,234 | |
Convertible debt | 1,950,000 | 1,010,000 |
Convertible debt-related party | 0 | 25,000 |
Notes payable, long term | 961,748 | 709,072 |
Small Business Administration loan and interest, long term | 166,742 | 161,251 |
Total long-term liabilities | 3,356,906 | 2,195,558 |
Total liabilities | 4,855,399 | 3,404,897 |
Commitments and Contingencies | 0 | 0 |
Stockholders' equity: | ||
Preferred stock, no par value, 1,000,000 shares authorized; no sharesissued or outstanding | 0 | 0 |
Common stock, no par value, 200,000,000 shares authorized; 10,940,969 and 9,826,665 shares issued and outstanding, respectively | 26,004,756 | 20,986,062 |
Accumulated deficit | (15,832,955) | (12,672,786) |
Total Idaho Strategic Resources, Inc. stockholders' equity | 10,171,801 | 8,313,276 |
Non-controlling interest | 2,892,001 | 2,950,888 |
Total stockholders' equity | 13,063,802 | 11,264,164 |
Total liabilities and stockholders' equity | $ 17,919,201 | $ 14,669,061 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets | ||
Preferred Stock, Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares outstanding | 0 | 0 |
Common Stock, Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Issued | 10,940,969 | 9,826,665 |
Common Stock, Shares outstanding | 10,940,969 | 9,826,665 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Balance Sheets | ||
Revenue-gold sales | $ 7,630,416 | $ 5,674,947 |
Cost of sales: | ||
Cost of sales and other direct production costs | 6,328,117 | 5,031,730 |
Depreciation and amortization | 814,422 | 575,671 |
Total cost of sales | 7,142,539 | 5,607,401 |
Gross profit | 487,877 | 67,546 |
Other operating expenses: | ||
Exploration | 1,417,605 | 303,291 |
Loss on write-off of equipment | 0 | 9,536 |
Management | 518,011 | 169,493 |
Professional services | 293,402 | 183,017 |
General and administrative | 1,319,145 | 397,315 |
Total other operating expenses | 3,548,163 | 1,062,652 |
Income (loss) from operations | (3,060,286) | (995,106) |
Other (income) expense: | ||
Gain on forgiveness of CARES Act loan | 0 | 358,346 |
Equity income on investment in Buckskin | (3,782) | |
Timber revenue | (4,338) | (49,798) |
Timber expense | 0 | 3,494 |
Interest Income | (146) | (1,696) |
Interest expense | 208,341 | 151,179 |
Total other (income) expense | 200,075 | (255,167) |
Net income (loss) | (3,260,361) | (739,939) |
Net income (loss) attributable to non-controlling interest | (100,192) | (97,063) |
Net income (loss) attributable to Idaho Strategic Resources, Inc. | $ (3,160,169) | $ (642,876) |
Net income (loss) per common share-basic and diluted | $ (0.31) | $ (0.07) |
Weighted average common shares outstanding-basic and diluted | 10,192,465 | 9,198,015 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders Equity - USD ($) | Total | Common Stock | Accumulated Deficit Attributable to Idaho Strategic Resources, Inc. [Member] | Non-Controlling Interest [Member] |
Balance, shares at Dec. 31, 2019 | 8,843,725 | |||
Balance, amount at Dec. 31, 2019 | $ 8,656,977 | $ 17,682,999 | $ (12,029,910) | $ 3,003,888 |
Contribution from non-controlling interest in Mill JV | 44,063 | $ 0 | 0 | 44,063 |
Issuance of common stock for cash and warrants net of issuance costs, shares | 800,004 | |||
Issuance of common stock for cash and warrants net of issuance costs, amount | 2,906,896 | $ 2,906,896 | 0 | 0 |
Issuance of common stock for options exercised, shares | 1,786 | |||
Issuance of common stock for options exercised, amount | 4,500 | $ 4,500 | 0 | 0 |
Issuance of common stock for warrants exercised, shares | 122,024 | |||
Issuance of common stock for warrants exercised, amount | 341,667 | $ 341,667 | 0 | 0 |
Issuance of common stock for cashless option exercise, shares | 39,286 | |||
Issuance of common stock for cashless option exercise, amount | 0 | $ 0 | 0 | 0 |
Conversion of convertible debt to common stock, shares | 19,840 | |||
Conversion of convertible debt to common stock, amount | 50,000 | $ 50,000 | 0 | 0 |
Net loss | (739,939) | $ 0 | (642,876) | (97,063) |
Issuance of common stock for services, amount | 0 | |||
Balance, shares at Dec. 31, 2020 | 9,826,665 | |||
Balance, amount at Dec. 31, 2020 | 11,264,164 | $ 20,986,062 | (12,672,786) | 2,950,888 |
Contribution from non-controlling interest in Mill JV | 41,305 | $ 0 | 0 | 41,305 |
Issuance of common stock for cash and warrants net of issuance costs, shares | 578,579 | |||
Issuance of common stock for cash and warrants net of issuance costs, amount | 2,580,000 | $ 2,580,000 | 0 | 0 |
Issuance of common stock for warrants exercised, shares | 46,627 | |||
Issuance of common stock for warrants exercised, amount | 117,500 | $ 117,500 | 0 | 0 |
Issuance of common stock for cashless option exercise, shares | 70,725 | |||
Issuance of common stock for cashless option exercise, amount | 0 | $ 0 | 0 | 0 |
Conversion of convertible debt to common stock, shares | 331,349 | |||
Conversion of convertible debt to common stock, amount | 835,000 | $ 835,000 | 0 | 0 |
Net loss | (3,260,361) | $ 0 | (3,160,169) | (100,192) |
Issuance of common stock for services, shares | 10,726 | |||
Issuance of common stock for services, amount | 69,673 | $ 69,673 | 0 | 0 |
Issuance of common stock for investment in Buckskin, shares | 76,298 | |||
Issuance of common stock for investment in Buckskin, amount | 328,946 | $ 328,946 | 0 | 0 |
Issuance of options to management, directors, and employees | 1,087,575 | $ 1,087,575 | 0 | 0 |
Balance, shares at Dec. 31, 2021 | 10,940,969 | |||
Balance, amount at Dec. 31, 2021 | $ 13,063,802 | $ 26,004,756 | $ (15,832,955) | $ 2,892,001 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (3,260,361) | $ (739,939) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and amortization | 814,422 | 575,671 |
Accretion of asset retirement obligation | 9,953 | 9,632 |
Stock based compensation | 1,087,575 | 0 |
Stock issued for services | 69,673 | 0 |
Loss on write-off of equipment | 0 | 9,536 |
Equity income on investment in Buckskin | (3,782) | 0 |
Gain on forgiveness of CARES Act loan | 0 | (358,346) |
Change in operating assets and liabilities: | ||
Gold sales receivable | (143,408) | 41,145 |
Inventories | 188,815 | (177,391) |
Joint venture receivable | (265) | (1,767) |
Other current assets | (110,380) | (65,230) |
Accounts payable and accrued expenses | (33,894) | 161,188 |
Accrued payroll and related payroll expenses | 30,625 | 63,083 |
Net cash used by operating activities | (1,351,027) | (482,418) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (664,645) | (502,879) |
Additions to mineral properties | (2,414,607) | (1,077,799) |
Deposit on equipment | (11,694) | (12,863) |
Net cash used by investing activities | (3,090,946) | (1,593,541) |
Cash flows from financing activities: | ||
Sales of common stock and warrants, net of issuance costs | 2,580,000 | 2,906,896 |
Proceeds from exercise of warrants | 117,500 | 341,667 |
Proceeds from exercise of stock options | 0 | 4,500 |
Principal payments on notes payable | (572,558) | (439,902) |
Principal payments on notes, related parties | (37,701) | (62,362) |
Issuance of convertible debt | 1,750,000 | 1,085,000 |
Proceeds from Small Business Administration loans | 0 | 518,246 |
Contributions from non-controlling interest | 41,305 | 44,063 |
Net cash provided by financing activities | 3,878,546 | 4,398,108 |
Net change in cash and cash equivalents | (563,427) | 2,322,149 |
Cash and cash equivalents, beginning of year | 2,539,945 | 217,796 |
Cash and cash equivalents, end of year | 1,976,518 | 2,539,945 |
Supplemental disclosure of cash flow information: | ||
Interest paid in cash, net of amount capitalized | 257,614 | 148,086 |
Non-cash investing and financing activities: | ||
Deposit applied to purchase of equipment and mineral property | 12,863 | 25,000 |
Notes payable for equipment purchase | $ 1,149,683 | 283,154 |
Common stock issued for investment in Buckskin | 328,946 | |
Conversion of convertible debt to common stock | $ 835,000 | $ 50,000 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Description of Business | |
Description of Business | 1. Description of Business Idaho Strategic Resources, Inc. (“the Company”) was incorporated as an Idaho corporation on July 18, 1996, as New Jersey Mining Company. On December 6, 2021 New Jersey Mining Company changed its name to Idaho Strategic Resources Inc. and also finalized a 1 for 14 reverse stock split of its common stock as previously approved by shareholders at a Special Meeting of the Shareholders held on October 6, 2021. On the date of the reverse stock split, every fourteen (14) shares of New Jersey Mining Company were automatically converted into one issued and outstanding share of Idaho Strategic Resources, Inc. common stock without any change in the par value per share. The Company’s primary business is exploring for, developing, and extracting gold, and to a lesser extent, silver, and base metal mineral resources in the Greater Coeur d’Alene Mining District of North Idaho. From an operational perspective, the Company produces gold at the Golden Chest Mine located in the Murray Gold Belt (MGB) area of the world-class Coeur d’Alene Mining District, north of the prolific Silver Valley. With over 7,000 acres of patented and unpatented land, the Company has the largest private land position in the area following its consolidation of the Murray Gold Belt for the first time in over 100-years. The Company also has an expanded focus on identifying and exploring Critical Minerals (Rare Earth Minerals). Its business strategy is to grow its asset base and mineral production over time while advancing its Rare Earth Element projects. In addition to gold and gold production, the Company maintains an important strategic presence in the U.S. Critical Minerals sector, specifically focused on the more “at-risk” Rare Earth Elements (REE’s). The Company’s Diamond Creek and Roberts REE properties are included the U.S. national REE inventory as listed in USGS, IGS and DOE publications. Both projects are in central Idaho and participating in the USGS Earth MRI program, with the Diamond Creek Project also participating in the Idaho Department of Commerce’s IGEM program. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiary, the New Jersey Mill Joint Venture (“NJMJV”). Intercompany accounts and transactions are eliminated. The portion of NJMJV partially owned by other investors is presented as non-controlling interest on the consolidated balance sheets, statements of operations, and statement of changes in stockholders’ equity. Accounting for Investments in Joint Ventures and Equity Method Investments Investment in Joint Ventures For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee. For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. For those joint ventures in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. The Company periodically assesses its investments in joint ventures for impairment. If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations. Equity Method Investments Investments in companies and joint ventures in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and representation on governing bodies. Under the equity method of accounting, our share of the net earnings or losses of the investee are included in net income (loss) in the consolidated statements of operations. We evaluate equity method investments whenever events or changes in circumstance indicate the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. At December 31, 2021, the Company’s 37% common stock holding of Buckskin Gold and Silver, Inc. is accounted for using the equity method (Note 9). At December 31, 2021 and 2020, the Company’s percentage ownership and method of accounting for each joint venture and equity method investment is as follows: December 31, 2021 December 31, 2020 Joint Venture % Ownership Significant Influence? Accounting Method % Ownership Significant Influence? Accounting Method NJMJV 65 % Yes Consolidated 65 % Yes Consolidated Butte Highlands Joint Venture (“BHJV”) 50 % No Cost 50 % No Cost Buckskin Gold and Silver 37 % Yes Equity - - - Non-controlling Interest Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Company’s stockholders’ equity and its net income (loss). Non-controlling interests represent non-controlling investor’s initial contribution at the date of the original acquisition, ongoing contributions, and percentage share of earnings since inception. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes for items such as mineral reserves, depreciation lives and methods, potential impairment of long-lived assets, deferred income taxes, settlement pricing of gold sales, fair value of stock based compensation, estimation of asset retirement obligations and reclamation liabilities. Estimates are based on historical experience and various other assumptions that the Company believes to be reasonable. Actual results could differ from those estimates. Revenue Recognition Gold Revenue Recognition and Receivables- Sales and accounts receivable for concentrate shipments are recorded net of charges by the customer for treatment, refining, smelting losses, and other charges negotiated with the customers. Charges are estimated upon shipment of concentrates based on contractual terms, and actual charges typically do not vary materially from estimates. Costs charged by customers include fixed costs per ton of concentrate and price escalators. Refining, selling, and shipping costs related to sales of doré and metals from doré are recorded to cost of sales as incurred. See Note 13 for more information on our sales of products. Other Revenue Recognition- Inventories Inventories include concentrate inventory and supplies inventory. Concentrate inventory is valued at the lower of full cost of production or estimated net realizable value based on current metal prices. Costs consist of mining, transportation, royalties, and milling costs including applicable overhead, depreciation, depletion, and amortization relating to the operations. Costs are allocated based on the stage at which the ore is in the production process. Supplies inventory is stated at the lower of first-in, first-out weighted average cost or estimated net realizable value. Income Taxes Income taxes are recognized in accordance with Accounting Standards Codification (“ASC”) 740 Income Taxes, whereby deferred income tax liabilities or assets at the end of each period are determined 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. Uncertain tax positions are evaluated in a two-step process, whereby (i) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the related tax authority would be recognized. 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. At December 31, 2021 and 2020, the Company did not have any assets or liabilities that were valued at a fair value measurement other than its gold sales receivable. Due to the time elapsed from shipment to the customer and the final settlement with the customer, management must estimate the prices at which sales of gold concentrates will be settled. Previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement by the customer. See Note 13 for further information. Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, reclamation bond, notes payable to related parties, notes payable, and the Small Business Administration loan approximate their fair values. The fair value of the convertible notes payable at December 31, 2021 is $2,922,923 based on the convertible rate and the trading price of the Company’s stock at December 31, 2021. Net Income (Loss) Per Share Net income (loss) per share is computed by dividing net income (loss) attributable to the Company excluding net income (loss) attributable to a non-controlling interest by the weighted average number of common shares outstanding during the year. Diluted net income (loss) per share reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities. For the years ended December 31, 2021, and 2020, potentially dilutive common stock equivalents excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows: December 31, 2021 December 31, 2020 Stock options 507,175 150,000 Stock purchase warrants 669,467 426,788 Convertible debt 392,866 367,064 Total 1,569,508 943,852 Reclassifications Certain prior period amounts have been reclassified to conform to the 2021 financial statement presentation. Reclassifications had no effect on net income (loss), stockholders’ equity, or cash flows as previously reported. Cash and Cash Equivalents The Company considers cash in banks and other deposits with an original maturity of three months or less when purchased to be cash and cash equivalents. These deposit balances may at times exceed federally insured limits. No losses have been recognized because of these balances. Property, Plant and Equipment Property, plant, and equipment are stated at cost. Depreciation and amortization are based on the estimated useful lives of the assets and are computed using straight-line or units-of-production methods. The expected useful lives of most of the Company’s buildings are up to 50 years and equipment life expectancy ranges between 2 and 10 years. When assets are retired or sold, the costs and related allowances for depreciation and amortization are eliminated from the accounts and any resulting gain or loss is reflected in operations. Mineral Properties Significant payments related to the acquisition of mineral properties, mineral rights, and mineral leases are capitalized. If a commercially mineable ore body is discovered, such costs are amortized when production begins using the units-of-production method based on estimated reserves. If no commercially mineable ore body is discovered, or such rights are otherwise determined to have no value, such costs are expensed in the period in which it is determined the property has no future economic value. Consideration received by the Company pursuant to joint ventures or mineral interest agreements is applied against the carrying value of the related mineral interest. When and if payments received exceed the carrying value, the excess amount is recognized as a gain in the consolidated statement of operations in the period the consideration is received. Interest Capitalization When capital projects are funded within the reporting period for which cash is paid which could have been used for debt reduction an amount equal to 10% of the capital project expenditure in interest expense is capitalized in mineral properties. Mine Exploration and Development Costs The Company expenses exploration costs as such in the period they occur. The mine development stage begins once the Company identifies ore reserves which is based on a determination whether an ore body can be economically developed. Expenditures incurred during the development stage are capitalized as deferred development costs and include such costs for drifts, ramps, and infrastructure. Costs to improve, alter, or rehabilitate primary development assets which appreciably extend the life, increase capacity, or improve the efficiency or safety of such assets are also capitalized. The development stage ends when the production stage of ore reserves begins. Amortization of deferred development costs is calculated using the units-of-production method over the expected life of the operation based on the estimated recoverable mineral ounces. Pre-Development Activities Pre-development activities involve cost incurred in the exploration stage that may ultimately benefit production, such as underground ramp development, pumping, and open-pit development, which are expensed due to the lack of evidence of economic development, which is necessary to demonstrate future recoverability of these expenses. These costs are charged to operations as incurred. Claim Fees Unpatented claim fees paid at time of staking are expensed when incurred. Recurring renewal fees which are paid annually are recorded as other current assets and expensed over the course of the year. Impairment of Long-Lived Assets The Company evaluates the carrying amounts of its long-lived assets for impairment whenever events and circumstances indicate the carrying value may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Estimated undiscounted future net cash flows from each mineral property are calculated using estimated future production, three-year average metals prices, operating capital and costs, and reclamations costs. An impairment loss is recognized when the estimated discounted future cash flows expected to result from the use of an asset are less than the carrying amount of the asset. The Company’s estimates of future cash flows are subject to risks and uncertainties. It is reasonably possible that changes in estimates could occur which may affect the expected recoverability of the Company’s investments in mineral properties. Asset Retirement Obligations and Remediation Costs Mineral properties are subject to standards for mine reclamation that have been established by various governmental agencies. Asset retirement obligations are related to the retirement of the mine when a contractual obligation has been established and a reasonable estimate of fair value can be determined. These obligations are initially measured at fair value with the resulting cost capitalized at the present value of estimated reclamation costs. An asset and a related liability are recorded for the fair value of these costs. The liability is accreted, and the asset amortized over the life of the related asset. Adjustments are made for changes resulting from either the timing or amount of the original estimate underlying the obligation. If there is an impairment to an asset’s carrying value and a decision is made to permanently close the property, changes to the liability are recognized and charged to the provision for closed operations and environmental matters. Separate from asset retirement obligations, the Company records liability for remediation costs when a reasonable estimate of fair value can be determined. Accrued remediation costs are not discounted. Reclamation Bond Various laws and permits require that financial assurances be in place for certain environmental and reclamation obligations and other potential liabilities. At December 31, 2021 and 2020, the Company had a $103,320 reclamation bond for the Golden Chest Mine. Stock Based Compensation All transactions in which goods or services are received for the issuance of shares of the Company’s common stock or options to purchase shares of common stock are measured at fair value of the equity interest issued. The fair value of common stock awards is determined based upon the closing price of the Company’s stock on the date of the award. The Company estimates the fair value of stock-based compensation of options using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of the fair value of stock-based compensation. COVID-19 Coronavirus Pandemic Response and Impact Following the outbreak of the COVID-19 coronavirus global pandemic (“COVID-19”) in early 2020, in March 2020 the U.S. Centers for Disease Control issued guidelines to mitigate the spread and health consequences of COVID-19. The impact of the guidelines on our business has been minimal. The Company implemented changes to its operations and business practices to follow the guidelines and minimize physical interaction, including using technology to allow employees to work from home when possible and altering production procedures and schedules, asset maintenance, and limiting discretionary spending. As long as they are required, the operational practices implemented could have an adverse impact on our operating results due to deferred production and revenues or additional costs. The negative impact of COVID-19 remains uncertain, including on overall business and market conditions. It is possible that future restrictions could have an adverse impact on our operations or financial results beyond 2021. Going Concern The Company is currently producing from both the open-pit and underground at the Golden Chest Mine. In the past, the Company has been successful in raising required capital from sale of common stock, forward gold contracts, and debt. As a result of its planned production, equity sales and potential debt borrowings or restructurings, management believes cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the next 12 months. Recent Accounting Pronouncements Accounting Standards Updates Adopted In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update contains several provisions intended to simplify the accounting for income taxes. The update is effective for fiscal years beginning after December 15, 2020. The update was adopted as of January 1, 2021, and its adoption did not have a material impact on the Company’s consolidated financial statements. Accounting Standards Updates to Become Effective in Future Periods In August 2020, No. 2019-12 470 -20 815 -40 December 15, 2021, |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Inventories | 3. Inventories At December 31, 2021 and 2020, inventories consisted of the following: 2021 2020 Concentrate inventory In process $ 41,082 $ 90,743 Finished goods 97,074 230,318 Total concentrate inventory 138,156 321,061 Supplies inventory Mine parts and supplies 54,998 52,600 Mill parts and supplies 20,568 28,876 Total supplies inventory 75,566 81,476 Total $ 213,722 $ 402,537 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | 4. Property, Plant and Equipment Property, plant and equipment at December 31, 2021 and 2020 consisted of the following: 2021 2020 Mill Land $ 225,289 $ 225,289 Building 536,193 536,193 Equipment 4,192,940 4,192,940 4,954,422 4,954,422 Less accumulated depreciation (1,085,730 ) (914,095 ) Total mill 3,868,692 4,040,327 Buildings and equipment Buildings 324,075 297,932 Equipment 5,042,915 3,250,551 5,366,990 3,548,483 Less accumulated depreciation (1,847,191 ) (1,229,136 ) Total building and equipment 3,519,799 2,319,347 Land Bear Creek 266,934 266,934 BOW 230,449 230,449 Eastern Star 250,817 250,817 Gillig 79,137 79,137 Highwater 40,133 40,133 Total land 867,470 867,470 Total $ 8,255,961 $ 7,227,144 |
Mineral Properties
Mineral Properties | 12 Months Ended |
Dec. 31, 2021 | |
Mineral Properties | |
Mineral Properties | 5. Mineral Properties Mineral properties at December 31, 2021 and 2020 are as follows: 2021 2020 Golden Chest Mineral Property $ 1,577,669 $ 1,539,001 Infrastructure 1,056,037 468,669 Total Golden Chest 2,633,706 2,007,670 New Jersey 248,289 248,289 McKinley-Monarch 200,000 200,000 Butte Potosi 274,440 274,440 Alder Gulch 2,473,066 773,101 Park Copper 78,000 - Less accumulated amortization (64,315 ) (48,267 ) Total $ 5,843,186 $ 3,455,233 For the year ended December 31, 2021, $49,273 of interest expense was capitalized in association with the ramp access project at the Golden Chest. No interest was capitalized in 2020. Golden Chest The Golden Chest is an open pit and underground mine project currently producing for the Company located near Murray, Idaho consisting of 25 patented and 70 unpatented mining claims. A 2% Net Smelter Royalty is payable on production at the Golden Chest to a former joint venture partner. Royalty expense of $151,763 and $114,204 was recognized as costs of sales and other direct production costs in the years ended December 31, 2021, and 2020, respectively. New Jersey The Coleman property is located at the New Jersey Mine area of interest and consists of 62 acres of patented mining claims, mineral rights to 108 acres of fee land, 80 acres of land for which the Company owns the surface but not the mineral rights, and approximately 130 acres of unpatented mining claims. McKinley-Monarch The McKinley-Monarch project is located near the town of Lucille, Idaho. The project consists of 28 unpatented claims totaling 560 acres. The Company started exploring the property in 2013. Butte Potosi In 2018, the Company purchased the Butte and Potosi properties near its Golden Chest mine. These properties consists of patented mining claims some of which include both the surface and mineral rights and some of which include only the mineral rights. There is an underlying 2% net smelter return on all ores mined and shipped from any lode production from the patented claims on the Butte property. Alder Gulch In February 2020, the Company purchased property located in Alder Gulch just north of Murray in Shoshone County, Idaho which consists of 368 acres of real property, including patented mining claims with both surface and mineral rights. In February 2021, the Company paid $10,000 and in April of 2021, the Company paid an additional $1,689,965 to complete the purchase of approximately 512 acres of land adjacent to the Alder Gulch property for a total of $1,699,965. The Company started exploring the property in 2020. Park Copper In August 2021, the Company paid $78,000 in cash for 100 acres of patented mineral property in Shoshone County referred to as Park Copper. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2021 | |
Notes Payable | |
Notes Payable | 6. Notes Payable At December 31, 2021 and 2020, notes payable are as follows: 2021 2020 Paus 2 yrd. LHD, 60-month note payable, 4.78% interest rate payable through October 2024, monthly payments of $5,181 $ 164,422 $ 217,354 Paus 2 yrd. LHD, 60-month note payable, 3.45% interest rate payable through July 2024, monthly payments of $4,847 143,547 195,768 Compressor, 48-month note payable, 5.25% interest rate payable monthly through January 2022, monthly payments of $813 410 9,958 CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through June 2024, monthly payments of $627 17,752 - CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through February 2024, monthly payments of $303 7,501 - Atlas Copco loader, 60-month note payable, 10.5% interest rate payable monthly through June 2023, monthly payments of $3,550 58,866 93,265 Sandvik LH203 LHD, 36-month note payable, 4.5% interest payable monthly through May 2027, monthly payments of $10,352 283,955 - Doosan Compressor, 36-month note payable, 6.99% interest payable monthly through July 2024, monthly payments of $602 17,064 - Caterpillar 306 excavator, 48-month note payable, 4.6% interest payable monthly through November 2024, monthly payments of $1,512 49,421 64,896 Caterpillar 938 loader, 60-month note payable, 6.8% interest rate payable monthly through August 2023, monthly payments of $3,751 70,734 109,492 Caterpillar R1600 LHD, 48-month note payable, 4.5% interest rate payable through January 2025, monthly payments of $17,125 590,535 - Caterpillar AD22 haul truck, 48-month note payable, 6.45% interest rate payable monthly through June 2023, monthly payments of $12,979 221,694 358,043 Total notes payable 1,625,901 1,048,776 Due within one year 664,153 339,704 Due after one year $ 961,748 $ 709,072 All notes are collateralized by the property or equipment purchased in connection with each note. Future principal payments of debt at December 31, 2021 are as follows: 2022 $ 664,153 2023 584,778 2024 354,770 2025 22,200 Total $ 1,625,901 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | 7. Asset Retirement Obligations The Company has established asset retirement obligations associated with the ultimate closing of its mineral properties where there has been or currently is operations. Obligations were established for the New Jersey mill in 2014 and the Golden Chest mine in 2016. Activity for the years ended December 31, 2021, and 2020 is as follows: 2021 2020 Balance at January 1 $ 173,001 $ 163,369 Accretion expense 9,953 9,632 Change in asset retirement obligation estimate (10,606 ) - Balance at December 31 $ 172,348 $ 173,001 The change in the asset retirement obligation estimate during the current year related to a revision to the estimated start of the reclamation process to a later date at our Golden Chest properties. |
Joint Venture Arrangements
Joint Venture Arrangements | 12 Months Ended |
Dec. 31, 2021 | |
Joint Venture Arrangements | |
Joint Venture Arrangements | 8. Joint Venture Arrangements New Jersey Mill Venture Agreement (“NJMJV”) In January 2011, the Company and United Mine Services, Inc. (“UMS”) now Crescent Silver, LLC (Crescent) entered into a joint venture agreement relating to the New Jersey mineral processing plant. To earn a 35 percent interest in the venture, UMS provided $3.2 million funding to expand the processing plant to 15 tonnes/hr. The Company is the operator of the venture and charges operating costs to Crescent for milling its ore up to 7,000 tonnes/month, retain a milling capacity of 3,000 tonnes/month, and as the operator of the venture receive a fee of $2.50/tonne milled. As of December 31, 2021, and 2020, an account receivable existed with the Mill Joint Venture from Crescent for $4,442 and $4,177, respectively. Butte Highlands Joint Venture On January 29, 2016, the Company purchased a 50% interest in Butte Highlands JV, LLC (“BHJV”) for a total consideration of $435,000. Highland Mining, LLC (“Highland”) is the other 50% owner and manager of the joint venture. Under the operating agreement, Highland will fund all future project exploration and mine development costs. The Agreement stipulates that Highland is manager of BHJV and will manage BHJV until such time as all mine development costs, less $2 million are distributed to Highland out of the proceeds from future mine production. The Company has determined that because it does not currently have significant influence over the joint venture’s activities, it will account for its investment on a cost basis. |
Investment in Buckskin
Investment in Buckskin | 12 Months Ended |
Dec. 31, 2021 | |
Investment in Buckskin | |
Investment in Buckskin | 9. Investment in Buckskin In August 2021 the Company exchanged 45,940 shares of the Company’s common stock for 22% of Buckskin Gold and Silver Inc. (“Buckskin”). The Company’s closing share price on the date of the agreement (August 18, 2021) was recorded as the cost basis for the investment. In October 2021 the Company exchanged an additional 30,358 shares of the Company’s common stock for an additional 15% of Buckskin. The Company’s closing share price on the date of the exchange (October 15, 2021) was recorded as the cost basis for the investment addition. This investment in Buckskin is being accounted for using the equity method resulted in recognition of equity income on the investment of $3,782 during the year ended December 31, 2021. The Company makes an annual payment of $12,000 to Buckskin per a lease covering 218 acres of patented mining claims. As of December 31, 2021, the Company holds 37% of Buckskins outstanding shares. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | 10. Income Taxes The Company did not recognize a provision (benefit) for income taxes for the years ended December 31, 2021 and 2020. The significant components of net deferred tax assets at December 31, 2021 and 2020 were as follows: 2021 2020 Deferred tax assets Net operating loss carry forward $ 4,796,000 $ 3,984,500 Mineral properties 241,300 201,200 Asset retirement obligation 4,600 8,400 Stock based compensation 503,400 219,000 Other 16,800 14,800 Total deferred tax assets 5,562,100 4,427,900 Valuation allowance (4,017,800 ) (3,286,100 ) 1,544,300 1,141,800 Deferred tax liabilities Property, plant, and equipment (1,544,300 ) (1,141,800 ) Total deferred tax liabilities (1,544,300 ) (1,141,800 ) Net deferred tax assets $ - $ - At December 31, 2021 and 2020, the Company had net deferred tax assets principally arising from the net operating loss carryforward for income tax purposes. As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the deferred tax assets, a valuation allowance equal to 100% of the net deferred tax asset exists at December 31, 2021 and 2020. At December 31, 2021 the Company had net operating loss carry forwards of approximately $18,118,000 for both federal and state purposes, $11,100,000 of which expire between 2021 through 2037. The remaining balance of $7,018,000 will never expire but its utilization is limited to 80% of taxable income in any future year. The income tax provision (benefit) for the years ended December 31, 2021 and 2020 differ from the statutory rate of 21% as follows: 2021 2020 Provision (benefit) at statutory rate for the period $ (683,600 ) $ (155,400 ) State taxes, net of federal taxes (178,200 ) (43,300 ) Non-taxable item-CARES Act loan forgiven - (96,200 ) Change in rate reconciliation 57,000 - Adjustment of prior year tax estimates 73,100 (5,800 ) Increase (decrease) in valuation allowance 731,700 300,250 Total provision (benefit) $ - $ - The Company is open to examination of our income tax filings in the United States and state jurisdictions for the 2019 through 2021 tax years. Tax attributes from years prior to that can be adjusted as a result of examinations. In the event that the Company is assessed penalties and or interest, penalties will be charged to other operating expense and interest will be charged to interest expense. The Company has reviewed its tax positions and believes it has not taken a position that would not be sustained under examination. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity | |
Equity | 11. Equity The Company has authorized 200,000,000 shares of no-par common stock at December 31, 2021 and 2020. In addition, the Company has authorized 1,000,000 shares of no-par preferred stock, none of which had been issued at December 31, 2021 or 2020. On December 6, 2021, the Corporation completed a one-for-fourteen (1:14) reverse share split of all of its issued and outstanding common shares, resulting in a reduction of the issued and outstanding shares from 152,573,743 to 10,898,408. Shares reserved under the Corporation’s equity, incentive plans and warrants were adjusted to reflect the reverse stock split. All share and per share data presented in the Corporation’s consolidated financial statements have been retroactively adjusted to reflect the reverse stock split unless otherwise noted. S tock Purchase Warrants Outstanding Transactions in common stock purchase warrants for the years ended December 31, 2021, and 2020 are as follows: Number of Warrants Exercise Prices Balance December 31, 2019 921,438 $2.52-3.08 Issued 400,002 $2.52-5.60 Expired (772,628 ) $2.52-3.08 Exercised (122,024 ) $ 2.80 Balance December 31, 2020 426,788 $2.52-5.60 Issued 289,294 $5.60-7.00 Exercised (46,615 ) $ 2.52 Balance December 31, 2020 669,467 $2.52-7.00 These warrants expire as follows: Shares Exercise Price Expiration Date 33,070 $ 2.52 April 21, 2022 347,103 $ 5.60 August 28, 2022 235,722 $ 5.60 October 14, 2023 53,572 $ 7.00 November 12, 2023 669,467 Stock Options In April 2014, the Board of Directors of the Company established a stock option plan to authorize the granting of stock options to officers and employees. Upon exercise of the options shares are issued from the available authorized shares of the Company. Options reserved to any one related person on an annual basis may not upon exercise exceed 5% and the aggregate number of all options outstanding will not exceed 10% of the issued outstanding common shares in total as calculated at that time. In February 2021, the board granted 283,936 stock options to officers, board members, and employees. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $604,571. In March 2021, the Company granted 3,572 stock options to an individual for services rendered to the Company. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $9,860. In October 2021 the Company granted 182,166 stock options to officers, board members, and employees. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $473,144. An additional 32 options were recorded in 2021 representing fractional share issuances related to the 1-14 reverse stock split. The fair value of stock option awards granted, and the key assumptions used in the Black-Scholes valuation model to calculate the fair value of the options are as follows: February 11, 2021 March 15, 2021 October 20, 2021 Fair value $ 604,572 $ 9,860 $ 473,143 Options issued 283,936 3,572 182,143 Exercise price $ 5.60 $ 5.60 $ 5.60 Expected term (in years) 3.0 3.0 3.0 Risk-free rate 0.19 % 0.33 % 0.70 % Volatility 97.9 % 99.3 % 96.6 % Transactions in stock options for the years ended December 31, 2021, and 2020 are as follows: Number of Options Exercise Prices Balance December 31, 2019 375,893 $ 1.40-2.52 Exercised (82,143 ) $ 1.40-2.52 Expired (143,750 ) $ 1.40-2.52 Balance December 31, 2020 150,000 $ 1.40-1.96 Granted 469,674 $ 5.60 Exercised (101,786 ) $ 1.40-1.96 Forfeited (10,713 ) $ 1.96-5.60 Balance December 31, 2021 507,175 $ 1.96-5.60 Exercisable at December 31, 2021 507,175 $ 1.96-5.60 At December 31, 2021, the outstanding stock options have an intrinsic value of approximately $1,108,000 and have a weighted average remaining term of 2.2 years. Cashless options exercised in the year ended December 31, 2021 had an intrinsic value of $445,290. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Related Party Transactions | 12. Related Party Transactions At December 31, 2021 and 2020, the Company had a note payable to Ophir Holdings, LLC, a company owned by two officers and one former officer of the Company, 6% interest, monthly payments of $3,777 with a balloon payment of $110,835 in February 2023. The balance due on the note was $116,611 and $154,312 at December 31, 2021, and 2020, respectively. At December 31, 2021, $10,543 of related party debt is payable in 2022 and the remaining $106,068 is payable in 2023. Related party interest expense for the years ending December 31, 2021, and 2020 was $7,627 and $10,992, respectively. There is no accrued interest payable at December 31, 2021 or 2020 on this note.In February 2020, the Company’s corporate secretary, Monique Hayes, participated in the Company’s convertible debt offering for $25,000. Interest expense on her note was $975 and $1,742 for the years ended December 31, 2021, and 2020 respectively. She converted her note in May 2021 as provided in the agreement. See Note 14. The Company leases office space from certain related parties on a month-to-month basis. Payments under these short-term lease arrangements totaled $25,008 and $24,840 for the years ended December 31, 2021, and 2020, respectively, and are included in general and administrative expenses on the Consolidated Statement of Operations. |
Sales of Products
Sales of Products | 12 Months Ended |
Dec. 31, 2021 | |
Sales of Products | |
Sales of Products | 13. Sales of Products Our products consist of both gold flotation concentrates which in 2020 and 2021 we sold to a broker (H&H Metal), and an unrefined gold-silver product known as doré which we sell to a precious metal refinery. Revenue is recognized upon the completion of the performance obligations and transfer of control of the product to the customer, and the transaction price can be determined or reasonably estimated. For gold flotation concentrate sales, the performance obligation is met when the transaction price can be reasonably estimated, and revenue is recognized generally at the time when risk is transferred to H&H Metal based on contractual terms. Based on contractual terms, the Company has determined the performance obligation is met and title is transferred to H&H Metal when the Company receives its first provisional payment on the concentrate because, at that time, 1) legal title is transferred to the customer, 2) the customer has accepted the concentrate lot and obtained the ability to realize all of the benefits from the product, 3) the concentrate content specifications are known, have been communicated to H&H Metal, and H&H Metal has the significant risks and rewards of ownership to it, 4) it is very unlikely a concentrate will be rejected by H&H Metal upon physical receipt, and 5) we have the right to payment for the concentrate. Concentrates lots that have been sold are held at our mill up to 60 days, until H&H Metal provides shipping instructions. Our concentrate sales sometimes involve variable consideration, as they can be subject to changes in metals prices between the time of shipment and their final settlement. However, we can reasonably estimate the transaction price for the concentrate sales at the time of shipment using forward prices for the estimated month of settlement, and previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement for financial reporting purposes. The embedded derivative contained in our concentrate sales is adjusted to fair value through earnings each period prior to final settlement. It is unlikely a significant reversal of revenue for any one concentrate lot will occur. As such, we use the expected value method to price the concentrate until the final settlement date occurs, at which time the final transaction price is known. At December 31, 2021, metals that had been sold but not final settled thus exposed to future price changes totaled 2,196 ounces of gold. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable. Sales and accounts receivable for concentrate shipments are recorded net of charges for treatment and other charges negotiated by us with H&H Metal, which represent components of the transaction price. Charges are estimated by us upon transfer of risk of the concentrates based on contractual terms, and actual charges typically do not vary materially from our estimates. Costs charged by the customer include fixed treatment, refining and costs per ton of concentrate and may include penalty charges for lead and zinc content above a negotiated baseline as well as excessive moisture. For sales of doré and of metals from doré, the performance obligation is met, the transaction price is known, and revenue is recognized at the time of transfer of control of the agreed-upon metal quantities to the customer. Sales of products by metal for the years ended December 31, 2021, and 2020 were as follows: 2021 2020 Gold $ 8,156,948 $ 6,102,115 Silver 24,689 10,699 Less: Smelter and refining charges (551,221 ) (437,867 ) Total $ 7,630,416 $ 5,674,947 Sales by significant product type for the years ended December 31, 2021 and 2020 were as follows: 2021 2020 Concentrate sales to H&H Metal $ 7,285,651 $ 5,384,597 Dore’ sales to refineries 344,765 290,350 Total $ 7,630,416 $ 5,674,947 In 2021 and 2020 floatation concentrates sold to H&H Metals Corp accounted 95% of all gold sales. The remaining 5% in 2021 and 2020 was doré sold to a third party. At December 31, 2021 and 2020, our gold sales receivable balance related to contracts with customers of $408,187 and $264,779, respectively, consist only of amounts due from H&H Metal. There is no allowance for doubtful accounts. We have determined our contracts do not include a significant financing component. For doré sales, payment is received at the time the performance obligation is satisfied. Consideration for concentrate sales is variable, and we receive payment for a significant portion of the estimated value of concentrate parcels at the time the performance obligation is satisfied. |
Convertible Debt
Convertible Debt | 12 Months Ended |
Dec. 31, 2021 | |
Convertible Debt | |
Convertible Debt | 14. Convertible Debt In February 2020, the Company issued convertible promissory notes with an aggregate principal value of $885,000 from which funds were utilized for the purchase of the Alder Gulch property (Note 5). The notes are collateralized by the Alder Gulch property as well as other unencumbered real property that the Company currently owns. The outstanding principal amount of the notes bears interest at an annual rate of 8.0% with interest payments due monthly and the principal due in February 2023. The principal amount of the notes is convertible at the option of the note holders into shares of the Company’s common stock at a price of $2.52 per share (351,192 shares) prior to the maturity date of the notes. In July 2020, one of the participants converted $50,000 in debt for 19,840 shares of the Company’s common stock. In 2021, the remaining eight participants converted 835,000 in debt for 331,349 shares of the Company’s common stock. Interest expense for these notes was $30,426 and $59,886 for the years ended December 31, 2021, and 2020, respectively including $975 and $1,742, respectively to the Company’s corporate secretary, Monique Hayes, who participated in the Company’s convertible debt offering for $25,000 which was also converted for 9,921 shares of the Company’s stock. In July 2020, a current convertible debt holder was issued an additional convertible promissory note for a principal balance of $200,000 which funds were utilized for the purchase of a new jumbo underground drill. The note is collateralized by the drill. The outstanding principal amount of the note bears interest at an annual rate of 6.0% with interest payments due monthly and the unpaid principal due in June 2023. The principal amount of the note is convertible at the option of the note holder into shares of the Company’s common stock at a price of $5.60 per share (35,715 shares) prior to the maturity date of the note. Interest expense for this note was $12,000 and $5,250 for the years ended December 31, 2021, and 2020, respectively. In March of 2021 the Company issued convertible promissory notes of $1,750,000 from which funds were utilized for the purchase of an addition to the Alder Gulch property (Note 5). The notes are collateralized by the Alder Gulch property as well as other unencumbered real property that the Company currently owns. The outstanding principal amount of the notes bears interest at an annual rate of 8.0% with interest payments due monthly and the principal due in March 2024. The principal amount of the notes is convertible at the option of the note holders into shares of the Company’s common stock at a price of $4.90 per share (357,143 shares) prior to the maturity date of the notes. Interest expense for this note was $109,775 for the year ended December 31, 2021. |
Small Business Administration L
Small Business Administration Loans | 12 Months Ended |
Dec. 31, 2021 | |
Small Business Administration Loans | |
Small Business Administration Loans | 15. Small Business Administration Loans On April 10, 2020, the Company received a loan of $358,346 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The loan, which was in the form of a Note dated April 10, 2020, had a maturity date on April 9, 2022, and an interest rate of 1% per annum, payable monthly commencing on October 9, 2020. The Note could be prepaid by the Company at any time prior to maturity with no prepayment penalties. This loan was forgiven after being used for qualifying expenses under the provisions of the CARES Act prior to the filing of these financial statements. Qualifying expenses included payroll costs, costs used to continue group health care benefits, rent, and utilities. The amount of the PPP loan has been recognized as gain on forgiveness of the CARES Act loan in the Company’s consolidated income statement for the year ended December 31, 2020. In April 2020, the Company received $10,000 under Division A, Title I, Section 1110 of the CARES Act. Additionally, in May 2020, the Company received a loan of $149,900 pursuant to the Small Business Act Section 7(b). The May loan which was in the form of a Note dated May 16, 2020, matures May 16, 2050, and bears interest at a rate of 3.75% per annum. Payments of $731 are due monthly and will begin in January 2022. At December 31, 2021, total accrued interest on the remaining loan is $9,311 of which $6,219 and $3,092 were accrued in 2021 and 2020, respectively and which is included in the Small Business Administration loan balance on the consolidated balance sheet. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events | |
Subsequent Events | 16. Subsequent Events The Company closed a private placement in February 2022. Under the private placement the Company sold 360,134 units at $7.50 per unit for net proceeds of $2,701,000. Each unit consisted of one share of the Company’s stock. On March 11, 2022, the Company started trading on the NYSE American exchange under the trading symbol IDR. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies (Policies) | |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company and its majority-owned subsidiary, the New Jersey Mill Joint Venture (“NJMJV”). Intercompany accounts and transactions are eliminated. The portion of NJMJV partially owned by other investors is presented as non-controlling interest on the consolidated balance sheets, statements of operations, and statement of changes in stockholders’ equity. |
Accounting for Investments in Joint Ventures and Equity Method Investments | Investment in Joint Ventures For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee. For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. For those joint ventures in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount. The Company periodically assesses its investments in joint ventures for impairment. If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations. Equity Method Investments Investments in companies and joint ventures in which we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and representation on governing bodies. Under the equity method of accounting, our share of the net earnings or losses of the investee are included in net income (loss) in the consolidated statements of operations. We evaluate equity method investments whenever events or changes in circumstance indicate the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. At December 31, 2021, the Company’s 37% common stock holding of Buckskin Gold and Silver, Inc. is accounted for using the equity method (Note 9). At December 31, 2021 and 2020, the Company’s percentage ownership and method of accounting for each joint venture and equity method investment is as follows: December 31, 2021 December 31, 2020 Joint Venture % Ownership Significant Influence? Accounting Method % Ownership Significant Influence? Accounting Method NJMJV 65 % Yes Consolidated 65 % Yes Consolidated Butte Highlands Joint Venture (“BHJV”) 50 % No Cost 50 % No Cost Buckskin Gold and Silver 37 % Yes Equity - - - |
Non-controlling Interest | Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Company’s stockholders’ equity and its net income (loss). Non-controlling interests represent non-controlling investor’s initial contribution at the date of the original acquisition, ongoing contributions, and percentage share of earnings since inception. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes for items such as mineral reserves, depreciation lives and methods, potential impairment of long-lived assets, deferred income taxes, settlement pricing of gold sales, fair value of stock based compensation, estimation of asset retirement obligations and reclamation liabilities. Estimates are based on historical experience and various other assumptions that the Company believes to be reasonable. Actual results could differ from those estimates. |
Revenue Recognition | Gold Revenue Recognition and Receivables- Sales and accounts receivable for concentrate shipments are recorded net of charges by the customer for treatment, refining, smelting losses, and other charges negotiated with the customers. Charges are estimated upon shipment of concentrates based on contractual terms, and actual charges typically do not vary materially from estimates. Costs charged by customers include fixed costs per ton of concentrate and price escalators. Refining, selling, and shipping costs related to sales of doré and metals from doré are recorded to cost of sales as incurred. See Note 13 for more information on our sales of products. Other Revenue Recognition- |
Inventories | Inventories include concentrate inventory and supplies inventory. Concentrate inventory is valued at the lower of full cost of production or estimated net realizable value based on current metal prices. Costs consist of mining, transportation, royalties, and milling costs including applicable overhead, depreciation, depletion, and amortization relating to the operations. Costs are allocated based on the stage at which the ore is in the production process. Supplies inventory is stated at the lower of first-in, first-out weighted average cost or estimated net realizable value. |
Income Taxes | Income taxes are recognized in accordance with Accounting Standards Codification (“ASC”) 740 Income Taxes, whereby deferred income tax liabilities or assets at the end of each period are determined 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. Uncertain tax positions are evaluated in a two-step process, whereby (i) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the related tax authority would be recognized. |
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. At December 31, 2021 and 2020, the Company did not have any assets or liabilities that were valued at a fair value measurement other than its gold sales receivable. Due to the time elapsed from shipment to the customer and the final settlement with the customer, management must estimate the prices at which sales of gold concentrates will be settled. Previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement by the customer. See Note 13 for further information. |
Financial Instruments | The carrying amounts of financial instruments including cash and cash equivalents, reclamation bond, notes payable to related parties, notes payable, and the Small Business Administration loan approximate their fair values. The fair value of the convertible notes payable at December 31, 2021 is $2,922,923 based on the convertible rate and the trading price of the Company’s stock at December 31, 2021. |
Net Income (Loss) Per Share | Net income (loss) per share is computed by dividing net income (loss) attributable to the Company excluding net income (loss) attributable to a non-controlling interest by the weighted average number of common shares outstanding during the year. Diluted net income (loss) per share reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities. For the years ended December 31, 2021, and 2020, potentially dilutive common stock equivalents excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows: December 31, 2021 December 31, 2020 Stock options 507,175 150,000 Stock purchase warrants 669,467 426,788 Convertible debt 392,866 367,064 Total 1,569,508 943,852 |
Reclassifications | Certain prior period amounts have been reclassified to conform to the 2021 financial statement presentation. Reclassifications had no effect on net income (loss), stockholders’ equity, or cash flows as previously reported. |
Cash and Cash Equivalents | The Company considers cash in banks and other deposits with an original maturity of three months or less when purchased to be cash and cash equivalents. These deposit balances may at times exceed federally insured limits. No losses have been recognized because of these balances. |
Property, Plant and Equipment | Property, plant, and equipment are stated at cost. Depreciation and amortization are based on the estimated useful lives of the assets and are computed using straight-line or units-of-production methods. The expected useful lives of most of the Company’s buildings are up to 50 years and equipment life expectancy ranges between 2 and 10 years. When assets are retired or sold, the costs and related allowances for depreciation and amortization are eliminated from the accounts and any resulting gain or loss is reflected in operations. |
Mineral Properties | Significant payments related to the acquisition of mineral properties, mineral rights, and mineral leases are capitalized. If a commercially mineable ore body is discovered, such costs are amortized when production begins using the units-of-production method based on estimated reserves. If no commercially mineable ore body is discovered, or such rights are otherwise determined to have no value, such costs are expensed in the period in which it is determined the property has no future economic value. Consideration received by the Company pursuant to joint ventures or mineral interest agreements is applied against the carrying value of the related mineral interest. When and if payments received exceed the carrying value, the excess amount is recognized as a gain in the consolidated statement of operations in the period the consideration is received. |
Interest Capitalization | When capital projects are funded within the reporting period for which cash is paid which could have been used for debt reduction an amount equal to 10% of the capital project expenditure in interest expense is capitalized in mineral properties. |
Mine Exploration and Development Costs | The Company expenses exploration costs as such in the period they occur. The mine development stage begins once the Company identifies ore reserves which is based on a determination whether an ore body can be economically developed. Expenditures incurred during the development stage are capitalized as deferred development costs and include such costs for drifts, ramps, and infrastructure. Costs to improve, alter, or rehabilitate primary development assets which appreciably extend the life, increase capacity, or improve the efficiency or safety of such assets are also capitalized. The development stage ends when the production stage of ore reserves begins. Amortization of deferred development costs is calculated using the units-of-production method over the expected life of the operation based on the estimated recoverable mineral ounces. |
Pre-Development Activities | Pre-development activities involve cost incurred in the exploration stage that may ultimately benefit production, such as underground ramp development, pumping, and open-pit development, which are expensed due to the lack of evidence of economic development, which is necessary to demonstrate future recoverability of these expenses. These costs are charged to operations as incurred. |
Claim Fees | Unpatented claim fees paid at time of staking are expensed when incurred. Recurring renewal fees which are paid annually are recorded as other current assets and expensed over the course of the year. |
Impairment of Long-Lived Assets | The Company evaluates the carrying amounts of its long-lived assets for impairment whenever events and circumstances indicate the carrying value may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Estimated undiscounted future net cash flows from each mineral property are calculated using estimated future production, three-year average metals prices, operating capital and costs, and reclamations costs. An impairment loss is recognized when the estimated discounted future cash flows expected to result from the use of an asset are less than the carrying amount of the asset. The Company’s estimates of future cash flows are subject to risks and uncertainties. It is reasonably possible that changes in estimates could occur which may affect the expected recoverability of the Company’s investments in mineral properties. |
Asset Retirement Obligations and Remediation Costs | Mineral properties are subject to standards for mine reclamation that have been established by various governmental agencies. Asset retirement obligations are related to the retirement of the mine when a contractual obligation has been established and a reasonable estimate of fair value can be determined. These obligations are initially measured at fair value with the resulting cost capitalized at the present value of estimated reclamation costs. An asset and a related liability are recorded for the fair value of these costs. The liability is accreted, and the asset amortized over the life of the related asset. Adjustments are made for changes resulting from either the timing or amount of the original estimate underlying the obligation. If there is an impairment to an asset’s carrying value and a decision is made to permanently close the property, changes to the liability are recognized and charged to the provision for closed operations and environmental matters. Separate from asset retirement obligations, the Company records liability for remediation costs when a reasonable estimate of fair value can be determined. Accrued remediation costs are not discounted. |
Reclamation Bond | Various laws and permits require that financial assurances be in place for certain environmental and reclamation obligations and other potential liabilities. At December 31, 2021 and 2020, the Company had a $103,320 reclamation bond for the Golden Chest Mine. |
Stock Based Compensation | All transactions in which goods or services are received for the issuance of shares of the Company’s common stock or options to purchase shares of common stock are measured at fair value of the equity interest issued. The fair value of common stock awards is determined based upon the closing price of the Company’s stock on the date of the award. The Company estimates the fair value of stock-based compensation of options using the Black-Scholes model, which requires the input of some subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected life”), the estimated volatility of the Company’s common stock price over the expected term (“volatility”), the risk-free interest rate and the dividend yield. Changes in the subjective assumptions can materially affect the estimate of the fair value of stock-based compensation. |
COVID-19 Coronavirus Pandemic Response and Impact | Following the outbreak of the COVID-19 coronavirus global pandemic (“COVID-19”) in early 2020, in March 2020 the U.S. Centers for Disease Control issued guidelines to mitigate the spread and health consequences of COVID-19. The impact of the guidelines on our business has been minimal. The Company implemented changes to its operations and business practices to follow the guidelines and minimize physical interaction, including using technology to allow employees to work from home when possible and altering production procedures and schedules, asset maintenance, and limiting discretionary spending. As long as they are required, the operational practices implemented could have an adverse impact on our operating results due to deferred production and revenues or additional costs. The negative impact of COVID-19 remains uncertain, including on overall business and market conditions. It is possible that future restrictions could have an adverse impact on our operations or financial results beyond 2021. |
Going Concern | The Company is currently producing from both the open-pit and underground at the Golden Chest Mine. In the past, the Company has been successful in raising required capital from sale of common stock, forward gold contracts, and debt. As a result of its planned production, equity sales and potential debt borrowings or restructurings, management believes cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the next 12 months. |
Recent Accounting Pronouncements | Accounting Standards Updates Adopted In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update contains several provisions intended to simplify the accounting for income taxes. The update is effective for fiscal years beginning after December 15, 2020. The update was adopted as of January 1, 2021, and its adoption did not have a material impact on the Company’s consolidated financial statements. Accounting Standards Updates to Become Effective in Future Periods In August 2020, No. 2019-12 470 -20 815 -40 December 15, 2021, |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Schedule of Cost Method Investments | December 31, 2021 December 31, 2020 Joint Venture % Ownership Significant Influence? Accounting Method % Ownership Significant Influence? Accounting Method NJMJV 65 % Yes Consolidated 65 % Yes Consolidated Butte Highlands Joint Venture (“BHJV”) 50 % No Cost 50 % No Cost Buckskin Gold and Silver 37 % Yes Equity - - - |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | December 31, 2021 December 31, 2020 Stock options 507,175 150,000 Stock purchase warrants 669,467 426,788 Convertible debt 392,866 367,064 Total 1,569,508 943,852 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Schedule of Inventory, Current | 2021 2020 Concentrate inventory In process $ 41,082 $ 90,743 Finished goods 97,074 230,318 Total concentrate inventory 138,156 321,061 Supplies inventory Mine parts and supplies 54,998 52,600 Mill parts and supplies 20,568 28,876 Total supplies inventory 75,566 81,476 Total $ 213,722 $ 402,537 |
Property Plant and Equipment (T
Property Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | 2021 2020 Mill Land $ 225,289 $ 225,289 Building 536,193 536,193 Equipment 4,192,940 4,192,940 4,954,422 4,954,422 Less accumulated depreciation (1,085,730 ) (914,095 ) Total mill 3,868,692 4,040,327 Buildings and equipment Buildings 324,075 297,932 Equipment 5,042,915 3,250,551 5,366,990 3,548,483 Less accumulated depreciation (1,847,191 ) (1,229,136 ) Total building and equipment 3,519,799 2,319,347 Land Bear Creek 266,934 266,934 BOW 230,449 230,449 Eastern Star 250,817 250,817 Gillig 79,137 79,137 Highwater 40,133 40,133 Total land 867,470 867,470 Total $ 8,255,961 $ 7,227,144 |
Mineral Properties (Tables)
Mineral Properties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Mineral Properties | |
Schedule of mineral properties | 2021 2020 Golden Chest Mineral Property $ 1,577,669 $ 1,539,001 Infrastructure 1,056,037 468,669 Total Golden Chest 2,633,706 2,007,670 New Jersey 248,289 248,289 McKinley-Monarch 200,000 200,000 Butte Potosi 274,440 274,440 Alder Gulch 2,473,066 773,101 Park Copper 78,000 - Less accumulated amortization (64,315 ) (48,267 ) Total $ 5,843,186 $ 3,455,233 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Notes Payable | |
Schedule of Debt | 2021 2020 Paus 2 yrd. LHD, 60-month note payable, 4.78% interest rate payable through October 2024, monthly payments of $5,181 $ 164,422 $ 217,354 Paus 2 yrd. LHD, 60-month note payable, 3.45% interest rate payable through July 2024, monthly payments of $4,847 143,547 195,768 Compressor, 48-month note payable, 5.25% interest rate payable monthly through January 2022, monthly payments of $813 410 9,958 CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through June 2024, monthly payments of $627 17,752 - CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through February 2024, monthly payments of $303 7,501 - Atlas Copco loader, 60-month note payable, 10.5% interest rate payable monthly through June 2023, monthly payments of $3,550 58,866 93,265 Sandvik LH203 LHD, 36-month note payable, 4.5% interest payable monthly through May 2027, monthly payments of $10,352 283,955 - Doosan Compressor, 36-month note payable, 6.99% interest payable monthly through July 2024, monthly payments of $602 17,064 - Caterpillar 306 excavator, 48-month note payable, 4.6% interest payable monthly through November 2024, monthly payments of $1,512 49,421 64,896 Caterpillar 938 loader, 60-month note payable, 6.8% interest rate payable monthly through August 2023, monthly payments of $3,751 70,734 109,492 Caterpillar R1600 LHD, 48-month note payable, 4.5% interest rate payable through January 2025, monthly payments of $17,125 590,535 - Caterpillar AD22 haul truck, 48-month note payable, 6.45% interest rate payable monthly through June 2023, monthly payments of $12,979 221,694 358,043 Total notes payable 1,625,901 1,048,776 Due within one year 664,153 339,704 Due after one year $ 961,748 $ 709,072 |
Schedule of Maturities of Long-term Debt | 2022 $ 664,153 2023 584,778 2024 354,770 2025 22,200 Total $ 1,625,901 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligations | |
Schedule of Asset Retirement Obligations | 2021 2020 Balance at January 1 $ 173,001 $ 163,369 Accretion expense 9,953 9,632 Change in asset retirement obligation estimate (10,606 ) - Balance at December 31 $ 172,348 $ 173,001 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of Deferred Tax Assets and Liabilities | 2021 2020 Deferred tax assets Net operating loss carry forward $ 4,796,000 $ 3,984,500 Mineral properties 241,300 201,200 Asset retirement obligation 4,600 8,400 Stock based compensation 503,400 219,000 Other 16,800 14,800 Total deferred tax assets 5,562,100 4,427,900 Valuation allowance (4,017,800 ) (3,286,100 ) 1,544,300 1,141,800 Deferred tax liabilities Property, plant, and equipment (1,544,300 ) (1,141,800 ) Total deferred tax liabilities (1,544,300 ) (1,141,800 ) Net deferred tax assets $ - $ - |
Schedule of Effective Income Tax Rate Reconciliation | 2021 2020 Provision (benefit) at statutory rate for the period $ (683,600 ) $ (155,400 ) State taxes, net of federal taxes (178,200 ) (43,300 ) Non-taxable item-CARES Act loan forgiven - (96,200 ) Change in rate reconciliation 57,000 - Adjustment of prior year tax estimates 73,100 (5,800 ) Increase (decrease) in valuation allowance 731,700 300,250 Total provision (benefit) $ - $ - |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity | |
Common Stock Purchase Warrant Transactions | Number of Warrants Exercise Prices Balance December 31, 2019 921,438 $2.52-3.08 Issued 400,002 $2.52-5.60 Expired (772,628 ) $2.52-3.08 Exercised (122,024 ) $ 2.80 Balance December 31, 2020 426,788 $2.52-5.60 Issued 289,294 $5.60-7.00 Exercised (46,615 ) $ 2.52 Balance December 31, 2020 669,467 $2.52-7.00 |
Warrant Expirations | Shares Exercise Price Expiration Date 33,070 $ 2.52 April 21, 2022 347,103 $ 5.60 August 28, 2022 235,722 $ 5.60 October 14, 2023 53,572 $ 7.00 November 12, 2023 669,467 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | February 11, 2021 March 15, 2021 October 20, 2021 Fair value $ 604,572 $ 9,860 $ 473,143 Options issued 283,936 3,572 182,143 Exercise price $ 5.60 $ 5.60 $ 5.60 Expected term (in years) 3.0 3.0 3.0 Risk-free rate 0.19 % 0.33 % 0.70 % Volatility 97.9 % 99.3 % 96.6 % |
Share-based Compensation, Stock Options, Activity | Number of Options Exercise Prices Balance December 31, 2019 375,893 $ 1.40-2.52 Exercised (82,143 ) $ 1.40-2.52 Expired (143,750 ) $ 1.40-2.52 Balance December 31, 2020 150,000 $ 1.40-1.96 Granted 469,674 $ 5.60 Exercised (101,786 ) $ 1.40-1.96 Forfeited (10,713 ) $ 1.96-5.60 Balance December 31, 2021 507,175 $ 1.96-5.60 Exercisable at December 31, 2021 507,175 $ 1.96-5.60 |
Sales of Products (Tables)
Sales of Products (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Sales of Products | |
Schedule of sales of products by metal | 2021 2020 Gold $ 8,156,948 $ 6,102,115 Silver 24,689 10,699 Less: Smelter and refining charges (551,221 ) (437,867 ) Total $ 7,630,416 $ 5,674,947 |
Schedule of sales by significant product type | 2021 2020 Concentrate sales to H&H Metal $ 7,285,651 $ 5,384,597 Dore’ sales to refineries 344,765 290,350 Total $ 7,630,416 $ 5,674,947 |
Description of Business (Detail
Description of Business (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Description of Business | |
Entity Incorporation, Date | July 18, 1996 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets | ||
Investment Owned, Percent of Net Assets | 65% | 65% |
Investment owned percentage of net assets 2 | 50% | 50% |
Investment owned percentage of net assets 3 | 37% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Balance Sheets | ||
Stock options | 507,175 | 150,000 |
Stock purchase warrants | 669,467 | 426,788 |
Convertible debt | 392,866 | 367,064 |
Total | 1,569,508 | 943,852 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Balance Sheets | ||
Reclamation bond | $ 103,320 | $ 103,320 |
Significant Accounting Policies description | largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the related tax authority would be recognized | |
Description of estimated life of plant and equipment | buildings are up to 50 years and equipment life expectancy ranges between 2 and 10 years | |
Convertible notes payable | $ 2,922,923 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Total concentrate inventory | $ 138,156 | $ 321,061 |
Total supplies inventory | 75,566 | 81,476 |
Total | 213,722 | 402,537 |
Concentrate Inventory | ||
In process | 41,082 | 90,743 |
Finished Goods | ||
Finished goods | 97,074 | 230,318 |
Mine Parts And Supplies | ||
Mine parts and supplies | 54,998 | 52,600 |
Mill Parts And Supplies | ||
Mine parts and supplies | $ 20,568 | $ 28,876 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment | ||
Mill land | $ 225,289 | $ 225,289 |
Mill building | 536,193 | 536,193 |
Buildings and equipment, equipment | 5,042,915 | 3,250,551 |
Buildings and improvements, accumulated depreciation | (1,847,191) | (1,229,136) |
Buildings and improvements net | 3,519,799 | 2,319,347 |
Bear Creek Land | 266,934 | 266,934 |
BOW Land | 230,449 | 230,449 |
Eastern Star Land | 250,817 | 250,817 |
Gillig Land | 79,137 | 79,137 |
Highwater Land | 40,133 | 40,133 |
Land | 867,470 | 867,470 |
Property, plant and equipment, net of accumulated depreciation | 8,255,961 | 7,227,144 |
Milling equipment | 4,192,940 | 4,192,940 |
Mill property and equipment gross | 4,954,422 | 4,954,422 |
Mill buildings and improvements, accumulated depreciation | (1,085,730) | (914,095) |
Mill Buildings and Improvements, Net | 3,868,692 | 4,040,327 |
Buildings and equipment, buildings | $ 324,075 | $ 297,932 |
Mineral Properties (Details)
Mineral Properties (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Mineral Properties | ||
Golden Chest Mineral Property | $ 1,577,669 | $ 1,539,001 |
Infrastructure | 1,056,037 | 468,669 |
Total Golden Chest | 2,633,706 | 2,007,670 |
Mineral Properties 1 | 248,289 | 248,289 |
Mineral Properties 2 | 200,000 | 200,000 |
Mineral Properties 3 | 274,440 | 274,440 |
Mineral Properties 4 | 2,473,066 | 773,101 |
Mineral Properties 5 | 78,000 | 0 |
Mineral properties amortization | (64,315) | (48,267) |
Total | $ 5,843,186 | $ 3,455,233 |
Mineral Properties (Details Nar
Mineral Properties (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Interest expense | $ 49,273 |
New Jersey | |
Mineral property description | The Coleman property is located at the New Jersey Mine area of interest and consists of 62 acres of patented mining claims, mineral rights to 108 acres of fee land, 80 acres of land for which the Company owns the surface but not the mineral rights, and approximately 130 acres of unpatented mining claims. |
Golden Chest | |
Mineral property description | The Golden Chest is an open pit and underground mine project currently producing for the Company located near Murray, Idaho consisting of 25 patented and 70 unpatented mining claims. A 2% Net Smelter Royalty is payable on production at the Golden Chest to a former joint venture partner. Royalty expense of $151,763 and $114,204 was recognized as costs of sales and other direct production costs in the years ended December 31, 2021, and 2020, respectively. |
Mckinley | |
Mineral property description | The McKinley-Monarch project is located near the town of Lucille, Idaho. The project consists of 28 unpatented claims totaling 560 acres. The Company started exploring the property in 2013. |
Butte Potosi | |
Mineral property description | In 2018, the Company purchased the Butte and Potosi properties near its Golden Chest mine. These properties consists of patented mining claims some of which include both the surface and mineral rights and some of which include only the mineral rights. There is an underlying 2% net smelter return on all ores mined and shipped from any lode production from the patented claims on the Butte property. |
Alder Gulch | |
Mineral property description | In February 2020, the Company purchased property located in Alder Gulch just north of Murray in Shoshone County, Idaho which consists of 368 acres of real property, including patented mining claims with both surface and mineral rights. In February 2021, the Company paid $10,000 and in April of 2021, the Company paid an additional $1,689,965 to complete the purchase of approximately 512 acres of land adjacent to the Alder Gulch property for a total of $1,699,965. The Company started exploring the property in 2020. |
Park Copper | |
Mineral property description | In August 2021, the Company paid $78,000 in cash for 100 acres of patented mineral property in Shoshone County referred to as Park Copper. |
Notes Payable - Schedule of Not
Notes Payable - Schedule of Note Payable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Total notes payable | $ 1,625,901 | $ 1,048,776 |
Due within one year | 664,153 | 339,704 |
Due after one year | 961,748 | 709,072 |
Note Payable through June 2024 [Member] | ||
Total notes payable | $ 17,752 | |
Note term | 36 years | |
Maturity date | Jun. 30, 2024 | |
Monthly payment | $ 627 | |
Interest rate | 4.50% | |
Note Payable through February 2024 [Member] | ||
Total notes payable | $ 7,501 | |
Note term | 36 months | |
Maturity date | Feb. 28, 2024 | |
Monthly payment | $ 303 | |
Interest rate | 4.50% | |
Note Payable through May 2027 [Member] | ||
Total notes payable | $ 283,955 | |
Note term | 36 years | |
Maturity date | May 30, 2027 | |
Monthly payment | $ 10,352 | |
Interest rate | 4.50% | |
Note Payable through January 2025 [Member] | ||
Total notes payable | $ 590,535 | |
Note term | 48 years | |
Maturity date | Jan. 31, 2025 | |
Monthly payment | $ 17,125 | |
Interest rate | 4.50% | |
Note Payable through October 2024 [Member] | ||
Total notes payable | $ 164,422 | 217,354 |
Note term | 60 years | |
Maturity date | Oct. 31, 2024 | |
Monthly payment | $ 5,181 | |
Interest rate | 4.78% | |
Note Payable through July 2024 [Member] | ||
Total notes payable | $ 143,547 | 195,768 |
Note term | 60 years | |
Maturity date | Jul. 31, 2024 | |
Monthly payment | $ 4,847 | |
Interest rate | 3.45% | |
Note Payable through January 2022 [Member] | ||
Total notes payable | $ 410 | 9,958 |
Note term | 48 years | |
Maturity date | Jan. 31, 2020 | |
Monthly payment | $ 813 | |
Interest rate | 5.25% | |
Note Payable through June 2023 [Member] | ||
Total notes payable | $ 58,866 | 93,265 |
Note term | 60 years | |
Maturity date | Jun. 30, 2023 | |
Monthly payment | $ 3,550 | |
Interest rate | 10.50% | |
Note Payable through November 2024 [Member] | ||
Total notes payable | $ 49,421 | 64,896 |
Note term | 48 years | |
Maturity date | Nov. 30, 2024 | |
Monthly payment | $ 1,512 | |
Interest rate | 4.60% | |
Note Payable through August 2023 [Member] | ||
Total notes payable | $ 70,734 | 109,492 |
Note term | 60 years | |
Maturity date | Aug. 30, 2023 | |
Monthly payment | $ 3,751 | |
Interest rate | 6.80% | |
Note Payable through June 2023 One [Member] | ||
Total notes payable | $ 221,694 | $ 358,043 |
Note term | 48 months | |
Maturity date | Jun. 30, 2023 | |
Monthly payment | $ 12,979 | |
Interest rate | 6.45% | |
Note Payable through July 2024 One [Member] | ||
Total notes payable | $ 17,064 | |
Note term | 36 months | |
Maturity date | Jul. 31, 2024 | |
Monthly payment | $ 602 | |
Interest rate | 6.99% |
Notes Payable - Schedule of Fut
Notes Payable - Schedule of Future of Principle Payment of Debt (Details) | Dec. 31, 2021 USD ($) |
Consolidated Balance Sheets | |
2022 | $ 664,153 |
2023 | 584,778 |
2024 | 354,770 |
2025 | 22,200 |
Total | $ 1,625,901 |
Asset Retirement Obligation Sch
Asset Retirement Obligation Schedule of Asset Retirement Obligations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Balance Sheets | ||
Beginning balance | $ 173,001 | $ 163,369 |
Accretion Expense | 9,953 | 9,632 |
Change in asset retirement obligation estimate | (10,606) | 0 |
Ending balance | $ 172,348 | $ 173,001 |
Joint Ventures (Details Narrati
Joint Ventures (Details Narrative) - USD ($) | 1 Months Ended | |||
Jan. 29, 2016 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2011 | |
Joint venture receivable | $ 4,442 | $ 4,177 | ||
New Jersey Mill | ||||
Ownership rate | 35% | |||
Funding provide to expand | $ 3,200,000 | |||
Joint venture receivable | $ 4,442 | $ 4,177 | ||
Fess receive per tonne | $ 2.50 | |||
Butte Highlands JV, LLC | ||||
Ownership rate | 50% | |||
Total coonsideration | $ 435,000 | |||
Development costs | $ 2,000,000 |
Investment in Buckskin (Details
Investment in Buckskin (Details Narrative) - Buckskin - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Oct. 31, 2021 | Aug. 31, 2011 | |
Additional Paid in Capital, Common Stock | $ 30,358 | ||
Investment Income | $ 3,782 | ||
Annual payment | $ 12,000 | ||
Percent of common stock | 37% | ||
Additional common stock percentage | 15% | ||
Exchanged common stock | 45,940 | ||
Ownership interest | 22% |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Net operating loss carryforward | $ 4,796,000 | $ 3,984,500 |
Mineral Properties | 241,300 | 201,200 |
Asset retirement obligation | 4,600 | 8,400 |
Stock based compensation | 503,400 | 219,000 |
Other | 16,800 | 14,800 |
Total deferred tax assets | 5,562,100 | 4,427,900 |
Valuation allowance | (4,017,800) | (3,286,100) |
Deferred tax assets net | 1,544,300 | 1,141,800 |
Deferred tax liabilities | ||
Property, plant, and equipment | (1,544,300) | (1,141,800) |
Total deferred tax liabilities | (1,544,300) | (1,141,800) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes Schedule of Effect
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Balance Sheets | |||
Provision (benefit) at statutory rate for the period | $ (683,600) | $ (155,400) | |
State taxes, net of federal taxes | (178,200) | (43,300) | |
Non-taxable item-CARES Act loan forgiven | 0 | (96,200) | |
Change in rate reconciliation | 57,000 | 0 | |
Adjustment of prior year tax estimates | 73,100 | (5,800) | |
Increase (decrease) in valuation allowance | 731,700 | 300,250 | |
Total provision (benefit) | $ 0 | $ 0 | $ 0 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Balance Sheets | |||
Income Tax Expense (Benefit) | $ 0 | $ 0 | $ 0 |
Operating Loss Carryforwards | 18,118,000 | ||
Operating loss carryforwards never expire | $ 7,018,000 | ||
Percent of taxable income | 80% | ||
Statutory rate | 21% | ||
Percent of deferred tax asset | 100% |
Equity (Details)
Equity (Details) - Warrant [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Beginning balance | 426,788 | 921,438 |
Warrants issued | 289,294 | 400,002 |
Warrants Expired | 0 | (772,628) |
Warrants Exercised | (46,615) | (122,024) |
Ending balance | 669,467 | 426,788 |
Warrants exercied | $ 2.52 | $ 2.80 |
Maximum [Member] | ||
Beginning balance | 2.52 | 3.08 |
Warrants issued | 7 | |
Warrants expired | 0 | 3.08 |
Ending balance | 7 | 2.52 |
Minimum [Member] | ||
Beginning balance | 2.52 | 2.52 |
Warrants issued | 5.60 | 2.52 |
Warrants expired | 0 | 2.52 |
Ending balance | $ 2.52 | $ 2.52 |
Equity (Details 1)
Equity (Details 1) - Warrant [Member] - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Number of shares | 669,467 | 426,788 | 921,438 |
Exercise Price 7.00 [Member] | |||
Number of shares | 53,572 | ||
Exercise price | $ 7 | ||
Warrant expiration date | Nov. 12, 2023 | ||
Exercise Price One 5.60 [Member] | |||
Number of shares | 235,722 | ||
Exercise price | $ 5.60 | ||
Warrant expiration date | Oct. 14, 2023 | ||
Exercise Price 5.60 [Member] | |||
Number of shares | 347,103 | ||
Exercise price | $ 5.60 | ||
Warrant expiration date | Aug. 28, 2022 | ||
Exercise Price 2.52 [Member] | |||
Number of shares | 33,070 | ||
Exercise price | $ 2.52 | ||
Warrant expiration date | Apr. 21, 2022 |
Equity (Details 2)
Equity (Details 2) - $ / shares | 1 Months Ended | |||||
Mar. 15, 2021 | Feb. 11, 2021 | Oct. 31, 2021 | Oct. 20, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | |
Consolidated Balance Sheets | ||||||
Fair value options | 9,860 | 604,572 | 473,143 | |||
Options issued | 3,572 | 283,936 | 182,166 | 182,143 | 3,572 | 283,936 |
Exercise price | $ 5.60 | $ 5.60 | $ 5.60 | $ 5.60 | $ 5.60 | $ 5.60 |
Expected term (in years) | 3.0 | 3.0 | 3 | 3.0 | 3 | 3 years |
Risk-free rate | 0.33% | 0.19% | 0.70% | |||
Expected volatility | 99.30% | 97.90% | 96.60% |
Equity (Details 3)
Equity (Details 3) - $ / shares | 1 Months Ended | 12 Months Ended | ||||||
Mar. 15, 2021 | Feb. 11, 2021 | Oct. 31, 2021 | Oct. 20, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Options Granted | 3,572 | 283,936 | 182,166 | 182,143 | 3,572 | 283,936 | ||
Equity Option [Member] | ||||||||
Beginning balance | 150,000 | 375,893 | ||||||
Stock Options Granted | 469,674 | |||||||
Warrants Exercised | (101,786) | (82,143) | ||||||
Warrants Expired | (143,750) | |||||||
Stock Options Forfeited | (10,713) | |||||||
Ending balance | 507,175 | 150,000 | ||||||
Stock Options Exercisable | 507,175 | |||||||
Exercise price granted | $ 5.60 | |||||||
Maximum [Member] | Equity Option [Member] | ||||||||
Beginning balance | 1.96 | $ 2.52 | ||||||
Exercise price expired | 2.52 | |||||||
Exercise price exercised | 1.96 | 2.52 | ||||||
Exercise price forfeited | 5.60 | |||||||
Ending balance | 5.60 | 1.96 | ||||||
Excercise price exercisable | 5.60 | |||||||
Minimum [Member] | Equity Option [Member] | ||||||||
Beginning balance | 1.40 | 1.40 | ||||||
Exercise price expired | 1.40 | |||||||
Exercise price exercised | 1.40 | 1.40 | ||||||
Exercise price forfeited | 1.96 | |||||||
Ending balance | 1.96 | $ 1.40 | ||||||
Excercise price exercisable | $ 1.96 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | 1 Months Ended | |||||||
Mar. 15, 2021 | Feb. 11, 2021 | Oct. 31, 2021 | Oct. 20, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Common Shares Authorized | 200,000,000 | 200,000,000 | ||||||
Intrinsic value | $ 445,290 | |||||||
Preferred Shares Authorized | 1,000,000 | 1,000,000 | ||||||
Granted Stock Option | 3,572 | 283,936 | 182,166 | 182,143 | 3,572 | 283,936 | ||
Exercise price per share | $ 5.60 | $ 5.60 | $ 5.60 | $ 5.60 | $ 5.60 | $ 5.60 | ||
ExpectedTerms | 3.0 | 3.0 | 3 | 3.0 | 3 | 3 years | ||
stock-based compensation recognized | $ 473,144 | $ 9,860 | $ 604,571 | |||||
Intrinsic Value Outstanding | $ 1,108,000 | |||||||
Weighted average remaining term | 2 years 2 months 12 days | |||||||
Maximum [Member] | ||||||||
Reduction of the issued and outstanding shares | 152,573,743 | |||||||
Options outstanding not exceed issued outstanding common shares | 10% | |||||||
Minimum [Member] | ||||||||
Reduction of the issued and outstanding shares | 10,898,408 | |||||||
Options outstanding not exceed issued outstanding common shares | 5% |
Related Party Transactions Rela
Related Party Transactions Related Party expense (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Convertible debt offering related party | $ 25,000 | |
Interest Expense Related Party | 975 | $ 1,742 |
Short-term lease arrangements | 25,008 | 24,840 |
Ophir Holdings LLC | ||
Interest Expense Related Party | $ 7,627 | $ 10,992 |
Officer Interest | 6% | |
Notes payable related parties, long term | $ 116,611 | |
Monthly Payments | 3,777 | |
Balloon Payment | 110,835 | |
Related party debt payable | 10,543 | |
Related party debt remaining | $ 106,068 |
Sales of Products (Details)
Sales of Products (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Balance Sheets | |||
Gold sales | $ 8,156,948 | $ 6,102,115 | |
Silver sales | 24,689 | 10,699 | |
Smelter and refining charges | (551,221) | (437,867) | |
Total | $ 7,630,416 | $ 5,674,947 | $ 5,674,947 |
Sales of Products (Details1)
Sales of Products (Details1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Balance Sheets | |||
Concentrate sales | $ 7,285,651 | $ 5,384,597 | |
Dore sales | 344,765 | 290,350 | |
Total | $ 7,630,416 | $ 5,674,947 | $ 5,674,947 |
Sales of Products (Details Narr
Sales of Products (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Balance Sheets | ||
Gold sales receivable | $ 408,187 | $ 264,779 |
Concentrates sold to H&H Metals Corp | 95% | 95% |
Concentrates sold to third party | 5% | 5% |
Convertible Debt (Details Narra
Convertible Debt (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2020 | Feb. 28, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 29, 2020 | |
Notes Payble | $ 1,625,901 | $ 1,048,776 | |||
Interest Expense | 49,273 | ||||
Common Stock | |||||
Notes Payble | $ 885,000 | ||||
Notes bears interest | 8% | ||||
converted debt | $ 50,000 | 835,000 | |||
Convertible Debt offering amount | $ 25,000 | ||||
Shares contingently issuable | 19,840 | 351,192 | 331,349 | ||
Common stock at a price | $ 2.52 | ||||
Interest Expense | $ 30,426 | 59,886 | |||
Convertible debt offering | 9,921 | ||||
Additional Interest Expense | $ 975 | 1,742 | |||
Promissory note 2 | |||||
Notes Payble | $ 1,750,000 | ||||
Notes bears interest | 8% | ||||
Shares contingently issuable | 357,143 | ||||
Common stock at a price | $ 4.90 | ||||
Interest Expense | $ 109,775 | ||||
Promissory note 1 | |||||
Notes Payble | $ 200,000 | ||||
Shares contingently issuable | 35,715 | ||||
Common stock at a price | $ 5.60 | ||||
Interest Expense | $ 12,000 | $ 5,250 | |||
Note bears interest | 6% |
Small Business Administration_2
Small Business Administration Loans and Grant (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Apr. 10, 2020 | May 16, 2020 | Apr. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
PPP loan | |||||
Proceeds from Loans | $ 358,346 | ||||
Interest rate on loan | 1% | ||||
SBA loan | |||||
Proceeds from Loans | $ 149,900 | ||||
Debt Instrument, Increase, Accrued Interest | $ 9,311 | ||||
Payments | $ 731 | ||||
Accrued interest on the remaining | $ 6,219 | $ 3,092 | |||
Company received | $ 10,000 | ||||
Bears interest | 3.75% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | 1 Months Ended | |
Mar. 11, 2022 | Feb. 28, 2022 | |
Common Stock | ||
Subsequent Event, Description | the Company started trading on the NYSE American exchange under the trading symbol IDR | the Company sold 360,134 units at $7.50 per unit for net proceeds of $2,701,000 |