Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Apr. 15, 2024 | |
Cover [Abstract] | |||
Entity Registrant Name | DYNARESOURCE, INC. | ||
Entity Central Index Key | 0001111741 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Dec. 31, 2023 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Entity Common Stock Shares Outstanding | 23,371,708 | ||
Entity Public Float | $ 26,616,189 | ||
Document Annual Report | true | ||
Entity File Number | 000-30371 | ||
Entity Incorporation State Country Code | DE | ||
Entity Interactive Data Current | Yes | ||
Entity Address Address Line 1 | 222 W. Las Colinas Blvd. | ||
Entity Address Address Line 2 | Suite 1910 North Tower | ||
Entity Address City Or Town | Irving | ||
Entity Address State Or Province | TX | ||
Entity Address Postal Zip Code | 75039 | ||
City Area Code | 972 | ||
Local Phone Number | 868-9066 | ||
Security 12g Title | Common Stock, par value $0.01 per share | ||
Auditor Name | Davidson & Company LLP | ArmaninoLLP | |
Document Transition Report | false | ||
Entity Tax Identification Number | 94-1589426 | ||
Auditor Location | Vancouver, BC | Dallas, Texas | |
Auditor Firm Id | 731 | 32 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash | $ 5,603,713 | $ 19,177,138 |
Accounts receivable | 880,473 | 724,642 |
Total Inventories | 2,089,194 | 2,720,811 |
Foreign tax receivable | 4,434,958 | 9,355,863 |
Other current assets | 1,137,162 | 1,145,501 |
Total current assets | 14,145,500 | 33,123,955 |
Property and equipment (net of accumulated depreciation and amortization of $12,239 and $119,154) | 103,034 | 0 |
Right-of-use assets, net | 848,822 | 550,473 |
Mining concessions | 4,132,678 | 4,132,678 |
Deferred tax asset, net | 4,264,115 | 2,970,410 |
Foreign tax receivable | 11,768,613 | 0 |
Other assets | 175,588 | 165,396 |
TOTAL ASSETS | 35,438,350 | 40,942,912 |
Current liabilities: | ||
Accounts payable | 2,768,634 | 2,057,880 |
Accrued expenses | 7,727,621 | 5,756,961 |
Customer advances | 0 | 9,350,000 |
Derivative liabilities | 1,797,341 | 2,172,417 |
Note payable | 9,750,000 | 0 |
Current portion of operating lease payable | 104,117 | 28,868 |
Installment notes payable | 2,259,432 | 1,968,251 |
Total current liabilities | 24,407,145 | 21,334,377 |
Operating lease payable, less current portion | 825,762 | 558,914 |
Deferred tax liability | 334,236 | |
Asset retirement obligation | 198,468 | 0 |
TOTAL LIABILITES | 25,765,611 | 21,893,291 |
TEMPORARY EQUITY | ||
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common Stock, $0.01 par value, 40,000,000 and 40,000,000 shares authorized 23,371,708 and 22,246,654 issued and outstanding | 233,717 | 222,467 |
Preferred rights | 40,000 | 40,000 |
Additional paid-in-capital | 61,509,032 | 56,889,031 |
Treasury stock, 37,180 and 12,180 shares at cost | (95,023) | (34,773) |
Accumulated other comprehensive income | 697,700 | 112,078 |
Accumulated deficit | (58,570,167) | (44,036,663) |
TOTAL STOCKHOLDERS' EQUITY | 3,815,259 | 13,192,141 |
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY | 35,438,350 | 40,942,912 |
Series C Senior Convertible Preferred Stock | ||
TEMPORARY EQUITY | ||
Senior Convertible Preferred Stock | 4,337,480 | 4,337,480 |
Series D Senior Convertible Preferred Stock | ||
TEMPORARY EQUITY | ||
Senior Convertible Preferred Stock | 1,520,000 | 1,520,000 |
Series A Preferred Stock | ||
STOCKHOLDERS' EQUITY | ||
Preferred Stock | $ 0 | $ 1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 40,000,000 | 40,000,000 |
Common Stock, Shares Issued | 23,371,708 | 22,246,654 |
Common Stock, Shares Outstanding | 23,371,708 | 22,246,654 |
Treasury Stock | 37,180 | 12,180 |
Accumulated Depreciation, Mining Equipment And Fixtures | $ 12,239 | $ 119,154 |
Preferred Stock, Par Value | $ 0.0001 | |
Series C Senior Convertible Preferred Stock | ||
Preferred Stock, Par Value | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 1,734,992 | 1,734,992 |
Preferred Stock, Shares Issued | 1,734,992 | 1,734,992 |
Preferred Stock, Shares Outstanding | 1,734,992 | 1,734,992 |
Series D Senior Convertible Preferred Stock | ||
Preferred Stock, Par Value | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 3,000,000 | 3,000,000 |
Preferred Stock, Shares Issued | 760,000 | 760,000 |
Preferred Stock, Shares Outstanding | 760,000 | 760,000 |
Series A Preferred Stock | ||
Preferred Stock, Par Value | $ 0.0001 | |
Preferred Stock, Shares Authorized | 0 | 1,000 |
Preferred Stock, Shares Issued | 0 | 1,000 |
Preferred Stock, Shares Outstanding | 0 | 1,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||
REVENUE | $ 35,573,194 | $ 39,767,460 |
COSTS AND EXPENSES OF MINING OPERATION | ||
Production cost applicable to sales | 8,256,062 | 4,413,649 |
Mine production costs | 11,156,677 | 6,500,975 |
Mine exploration costs | 8,311,027 | 5,707,832 |
Facilities expansion costs | 2,554,505 | 6,058,588 |
Exploration drilling | 2,514,544 | 2,484,072 |
Camp, Warehouse and Facilities | 5,453,778 | 4,403,660 |
Transportation costs | 2,898,272 | 2,261,681 |
Property holding costs | 172,663 | 149,571 |
Stock based compensation | 881,250 | 881,250 |
General and administrative | 8,592,745 | 4,134,902 |
Depreciation and amortization | 12,239 | 2,729 |
TOTAL OPERATING EXPENSES | 50,803,762 | 36,998,909 |
NET OPERATING INCOME (LOSS) | (15,230,568) | 2,768,551 |
Mining Concessions | ||
Foreign currency gains (loss) | (45,177) | 58,426 |
Interest expense | (567,792) | (450,324) |
Derivatives mark-to-market gain | 375,076 | 1,726,497 |
Other income | 2,218 | 2,242 |
TOTAL OTHER INCOME (EXPENSE) | (235,675) | 1,336,841 |
NET INCOME BEFORE TAXES | (15,466,243) | 4,105,392 |
INCOME TAXES BENEFIT | (932,739) | (2,580,410) |
NET INCOME (LOSS) | (14,533,504) | 6,685,802 |
DEEMED DIVIDEND FOR SERIES C & D PREFERRED | (234,299) | (234,299) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (14,767,803) | $ 6,451,503 |
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO THE EQUITY HOLDERS OF DYNARESOURCE, INC. | ||
Basic earnings (loss) per common share | $ (0.65) | $ 0.33 |
Weighted average shares outstanding - Basic | 22,705,923 | 19,456,765 |
Diluted earnings (loss) per common share | $ (0.65) | $ 0.29 |
Weighted average shares outstanding - Diluted | 22,705,923 | 22,890,246 |
OTHER COMPREHENSIVE INCOME | ||
Unrealized foreign currency translation gain | $ 585,622 | $ 359,743 |
TOTAL OTHER COMPREHENSIVE INCOME | 585,622 | 359,743 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ (13,947,882) | $ 7,045,545 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Total | Series A Preferred Stocks | Common Stock | Preferred Stock | Paid In Capital | Treasury Stock | Other Comp Income (Loss) | Accumulated Deficit |
Balance, shares at Dec. 31, 2021 | 1,000 | 18,091,293 | 1 | 12,180 | ||||
Balance, amount at Dec. 31, 2021 | $ (151,589) | $ 1 | $ 180,913 | $ 40,000 | $ 50,632,400 | $ (34,773) | $ (247,665) | $ (50,722,465) |
Stock Based Compensation, shares | 1,500,000 | |||||||
Stock Based Compensation, amount | 881,250 | $ 15,000 | 866,250 | |||||
Stock Warrant Exercised, shares | 2,655,361 | |||||||
Stock Warrant Exercised, amount | 5,416,935 | $ 26,554 | 5,390,381 | |||||
Other Comprehensive Income | 359,743 | 359,743 | ||||||
Net Income (Loss) | 6,685,802 | 6,685,802 | ||||||
Balance, shares at Dec. 31, 2022 | 1,000 | 22,246,654 | 1 | 12,180 | ||||
Balance, amount at Dec. 31, 2022 | 13,192,141 | $ 1 | $ 222,467 | $ 40,000 | 56,889,031 | $ (34,773) | 112,078 | (44,036,663) |
Sale of Common Stock, shares | 1,000,000 | |||||||
Sale of Common Stock, amount | 5,000,000 | $ 10,000 | 4,990,000 | |||||
Issuance of Non-Dilution Shares, shares | 125,054 | |||||||
Issuance of Non-Dilution Shares, amount | $ 1,250 | (1,250) | ||||||
Stock Based Compensation, amount | 881,250 | 881,250 | ||||||
Purchase of Series A Stock, shares | 1,000 | |||||||
Purchase of Series A Stock, amount | (1,250,000) | $ (1,250,000) | ||||||
Cancellation of Series A Stock, shares | (1,000) | (1,000) | ||||||
Cancellation of Series A Stock, amount | $ (1) | (1,249,999) | $ 1,250,000 | |||||
Acquisition of Treasury Stock, shares | 25,000 | |||||||
Acquisition of Treasury Stock, amount | (60,250) | $ (60,250) | ||||||
Other Comprehensive Income | 585,622 | 585,622 | ||||||
Net Income (Loss) | (14,533,504) | (14,533,504) | ||||||
Balance, shares at Dec. 31, 2023 | 23,371,708 | 1 | 37,180 | |||||
Balance, amount at Dec. 31, 2023 | $ 3,815,259 | $ 233,717 | $ 40,000 | $ 61,509,032 | $ (95,023) | $ 697,700 | $ (58,570,167) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS USED IN OPERATING ACTIVITES: | ||
Net Income (loss) | $ (14,533,504) | $ 6,685,802 |
Adjustments to reconcile net income to cash used in operating activities | ||
Derivatives mark-to-market gain | (375,076) | (1,726,497) |
Depreciation and amortization | 12,239 | 2,729 |
Stock based compensation | 881,250 | 881,250 |
Deferred tax asset | (614,073) | (2,970,410) |
Change in operating assets and liabilities | ||
Accounts receivable | (155,831) | (147,524) |
Inventories | 631,617 | (610,608) |
Foreign tax receivable | (6,847,708) | (4,613,683) |
Leased assets | (298,349) | 97,908 |
Other assets | (1,853) | (480,981) |
Accounts payable | 710,754 | 782,201 |
Accrued expenses | 2,169,128 | 316,757 |
Customer advances | 400,000 | 100,000 |
Operating lease liabilities | 342,097 | (98,169) |
CASH FLOWS USED IN OPERATING ACTIVITIES | (17,679,309) | (1,781,225) |
CASH FLOWS USED IN INVESTING ACTIVITIES | ||
Purchase of property and equipment | (115,273) | 0 |
CASH FLOWS USED IN INVESTING ACTIVITIES | (115,273) | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of common stock | 5,000,000 | 0 |
Proceeds from exercise of stock warrants | 0 | 5,416,935 |
Purchase of Series A Preferred Stock | (1,250,000) | 0 |
Acquisition of Treasury Stock | (60,250) | 0 |
Payments of convertible notes | 0 | (543,279) |
Payments of installment notes | 0 | (94,698) |
CASH FLOWS FROM FINANCING ACTIVITIES | 3,689,750 | 4,778,958 |
Effects of foreign currency exchange | 531,407 | 460,167 |
NET INCREASE (DECREASE) IN CASH | (13,573,425) | 3,457,900 |
CASH AT BEGINNING OF YEAR | 19,177,138 | 15,719,238 |
CASH AT END OF YEAR | 5,603,713 | 19,177,138 |
SUPPLEMENTAL DISCLOSURES | ||
Cash paid for interest | 0 | 63,277 |
Cash paid for income taxes | 200,000 | 28,970 |
NON-CASH TRANSACTIONS | ||
Conversion of customer advance into note payable | 9,750,000 | $ 0 |
Recognition of right of use asset and lease liability | $ 361,745 |
Nature of Activities and Signif
Nature of Activities and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Nature of Activities and Significant Accounting Policies | NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES Nature of Activities, History and Organization DynaResource, Inc. (the “Company” or “DynaResource”) was organized September 28, 1937, as a California corporation under the name of West Coast Mines, Inc. In 1998, the Company re-domiciled to Delaware and changed its name to DynaResource, Inc. The Company is in the business of acquiring, investing in, and developing precious metal properties, and the production of precious metals. The Company has one wholly owned subsidiary in the United States, DynaMéxico US Holding, LLC (“US Holding”) and three wholly owned subsidiaries in México, DynaResource de México, S.A. de C.V. (“DynaMéxico”), Mineras de DynaResource S.A. de C.V. (“DynaMineras”), and DynaResource Operaciones de San Jose De Gracia S.A. de C.V. (“DynaOperaciones”). Although the Company considers the three Mexican subsidiaries to be wholly owned, each has issued one qualifying share to a second shareholder as required under Mexican law, with such qualifying shares held by either US Holding or DynaResource’s Chief Executive Officer. DynaMéxico owns a portfolio of mining concessions that currently comprises its 100 % interest in the San José de Gracia Project (“SJG”) in northern Sinaloa State, México. Principles of Consolidation The consolidated financial statements include the accounts of DynaResource, Inc., as well as DynaResource de México, S.A. de C.V. ( 100 % ownership), DynaResource Operaciones S.A. de C.V. ( 100 % ownership) and Mineras de DynaResource S.A. de C.V. ( 100 % ownership). All significant intercompany transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated. Significant Accounting Policies The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application. The application of accounting principles requires the estimating, matching and timing of revenues and expenses. The accounting policies used conform to generally accepted accounting principles which have been consistently applied in the preparation of these consolidated financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. Management acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that: (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods presented. Basis of Presentation The Company prepares its consolidated financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States. These consolidated financial statements have been prepared on a going concern basis that contemplates the realization of assets and discharge of liabilities at their carrying value in the normal course of business for the foreseeable future. Correction of an Error The derivative liability in the Company’s December 31, 2022 balance sheet presented herein has been corrected to $ 2,172,417 from $ 2,334,377 . The change in accrued liabilities in the Company’s statement of cash flows presented herein has been corrected to $ 316,757 from $ 96,757 and the net income for the year ended December 31, 2022, attributable to common shareholders in Note 2 presented herein has been corrected from $ 6,744,654 to $ 6,451,503 from the Company’s Form 10-K which was filed with the Securities and Exchange Commission on April 17, 2023. The errors were typographical errors and it did not impact any other financial statement balances including total liabilities, net income, earnings per share, or management compensation . Exploration Stage Issuer (No Reserves Disclosed) The definitions of Measured Mineral Resource, Mineral Reserve and Mineral Resource are set forth in SEC Regulation S-K, Item 1300 (“Reg. S-K, Item 1300”). Measured mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve. Mineral reserve is an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. Mineral resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled. As of December 31, 2023, the Company continues to meets the definition of an exploration stage issuer which is defined as an issuer that has no material property with established proven and probable mineral reserves as defined by Regulation S-K, Item 1300. Segment Information The Company operates as one segment: test mining and milling gold-silver concentrate for sale from its location in Mexico. Cash and Cash Equivalents The Company considers all highly liquid debt instruments with an original maturity of three months or less to be cash equivalents. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. As of December 31, 2023, the Company had $ 5,250,603 of deposits in United States banks in excess of the FDIC limit. In addition, the Company does no t have any cash equivalents as of December 31, 2023 and 2022. The Company reduces this risk by maintaining such deposits at high quality financial institutions that management believes are creditworthy. Accounts Receivable and Allowances for Doubtful Accounts Accounts receivable consists of trade receivables which are recorded net of allowance for doubtful accounts for the sale of metal concentrate, as well as net of an embedded derivative based on mark-to-market adjustments for outstanding provisional invoices based on forward metal prices. The allowance for accounts receivable is recorded when receivables are considered to be uncollectible. As of December 31, 2023 and 2022, no allowance has been made. As of December 31, 2023 management believes all accounts receivable are fully collectable. Mined Tonnage Inventory Mined tonnage inventory represents ore that has been mined and is available for further processing. The stockpiles of mined tonnage are measured by estimating the number of tonnes added and removed from the stockpile, an estimate of the contained metals (based on assay data) and the estimated metallurgical recovery rates. Costs are allocated to stockpiles based on the relative values of material stockpiled and processed using current mining costs incurred, including applicable overhead. Material is removed at each stockpile’s average cost per tonne. Stockpiles are carried at the lower of average cost of net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metal prices, less the estimated cost to complete production and bring the product the sale. Concentrate Inventory Concentrate inventory include metal concentrates located either at the Company’s facilities or in transit to its customer’s port. Concentrate inventories are carried at the lower of cost of production or net realizable value based on current metals prices. Foreign Tax Receivable Foreign tax receivable is comprised of recoverable value-added taxes (“IVA”) charged by the Mexican government on goods and services rendered. Under certain circumstances, these taxes are recoverable by filing a tax return. Amounts paid for IVA are tracked and held as receivables until the funds are received by the Company. Property and Equipment Substantially all property and equipment at the Company’s mines, including design, engineering, mine construction, and installation of equipment are expensed as incurred, as the Company has not established proven and probable reserves on any of its properties. Only certain types of mining equipment which have alternative uses or significant salvage value, may be capitalized without proven and probable reserves. Office furniture and equipment are depreciated on a straight-line method over estimated economic lives ranging from 3 to 5 years. Leasehold improvements, which relate to the Company’s corporate office, are being amortized over the term of the lease which is 52 months. Mine Development Costs Mine development costs are expensed as incurred and include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines, and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines. When proven and probable reserves (as defined by Reg. S-K, Item 1300) exist, development costs are capitalized. Mine development costs incurred either to develop new ore deposits, expand the capacity of operating mines, or to develop mine areas substantially in advance of current production would also be capitalized. Costs of start-up activities and costs incurred to maintain current production or to maintain assets are charged to operations as incurred. All capitalized costs would be amortized using the units of production method over the estimated life of the ore body based on recoverable ounces to be mined from proven and probable reserves. Certain costs to design and construct mining and processing facilities may be incurred prior to establishing proven and probable reserves. As no proven and probable reserves have been established on any of the Company’s properties, the design, construction and development costs are not capitalized at any of the Company’s properties. Mining Concessions The Company’s mining concessions include acquired interests in development and exploration stage properties and are considered tangible assets. The amount capitalized relating to the Company’s mining concessions represents its fair value at the time of acquisition. If it is determined that the deferred costs related to a property are not recoverable over its productive life, those costs will be written down to fair value as a charge to operations in the period in which the determination is made. The amounts at which mining concessions and the related costs are recorded do not necessarily reflect present or future values. The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Mineral properties are monitored for impairment based on factors such as mineral prices, government regulation and taxation, the Company’s continued right to explore the area, exploration reports, assays, technical reports, drill results and its continued plans to fund exploration programs on the property. For operating mines, recoverability is measured by comparing the undiscounted future net cash flows to the net book value. When the net book value exceeds future net undiscounted cash flows, an impairment loss is measured and recorded based on the excess of the net book value over fair value. Fair value for operating mines is determined using a combined approach, which uses a discounted cash flow model for the existing operations and a market approach for the fair value assessment of exploration land claims. Future cash flows are estimated based on quantities of recoverable mineralized material, expected gold and silver prices (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. The term “recoverable mineralized material” refers to the estimated amount of gold or other commodities that will be obtained after considering losses during processing and treatment of mineralized material. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company’s estimates of future cash flows are based on numerous assumptions, and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold, and silver, commodity prices, production levels and costs and capital are each subject to significant risks and uncertainties. The recoverability of the book value of each property will be assessed annually for indicators of impairment such as adverse changes to any of the following: • estimated recoverable ounces of gold, silver or other precious minerals • estimated future commodity prices • estimated expected future operating costs, capital expenditures and reclamation expenditures A write-down to fair value would be recorded if the expected future cash flow is less than the net book value of the property, or when events or changes in the property indicate that carrying amounts are not recoverable. This analysis will be completed as needed. As of the date of this filing, no events have occurred that would require the write-down of any assets. As of December 31, 2023 and 2022, no indications of impairment existed. Asset Retirement Obligation (“ARO”) The Company records a liability based on the best estimate of costs for site closure and reclamation activities that the Company is legally or contractually required to remediate. The provision for closure and reclamation liabilities is estimated using expected cash flows based on engineering and environmental reports and accreted to full value over time through periodic charges to income. During 2023, a significant upgrade was made to the milling facility and therefore, an ARO has been established as of December 31, 2023 at the estimated costs to decommission the plant and tailings pond at the end of the estimated live of the mines in operation as of December 31, 2023. As the Company is an exploration stage property that does not qualify for asset capitalization, the costs associated with the obligation are charged to operations. Changes in regulations or laws, any instances of non-compliance with laws or regulations that result in fines, or any unforeseen environmental contamination could result in a material impact to the amounts charged to operations for reclamation and remediation. Significant judgments and estimates are made when estimating the fair value of AROs. Expected cash flows relating to AROs could occur over long periods of time and the assessment of the extent of environmental remediation work is highly subjective. Considering all the factors that go into the determination of an ARO, the fair value of the AROs can materially change over time. Property Holding Costs Holding costs to maintain the property are expensed in the period they are incurred. These costs include security and maintenance expenses, lease and claim fees and payments, and environmental monitoring and reporting costs. Exploration Costs Exploration costs, including exploration, development, direct field costs and related administrative costs are expensed in the period incurred. Leases The Company adopted ASC 842, which requires recognition of a right-of-use asset and lease liability for all leases at the commencement date based on the present value of lease payments over the lease term. Additional qualitative and quantitative disclosures regarding the Company’s leasing arrangements are also required. The Company adopted ASC 842 prospectively and elected the package of transition practical expedients that does not require reassessment of (1) whether any existing or expired contracts are or contain leases, (2) lease classification and (3) initial direct costs. In addition, the Company has elected other available practical expedients to not separate lease and non-lease components, which consist principally of common area maintenance charges, for all classes of underlying assets and to exclude leases with an initial term of 12 months or less. Transactions In and Translations Of Foreign Currency The functional currency for the subsidiaries of the Company is the Mexican Peso. As a result, the financial statements of the subsidiaries have been translated from Mexican Pesos into U.S. dollars using (i) year-end exchange rates for balance sheet accounts, and (ii) the weighted average exchange rate of the reporting period for all income statement accounts. Foreign currency translation gains and losses are reported as a separate component of stockholders’ equity and comprehensive income (loss). Foreign currency transactions are translated into the functional currency of the respective currency of the entity or division, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement of monetary items denominated in foreign currency at period-end exchange rates are recognized in profit or loss. Non-monetary items that are not re-translated at period end are measured at historical cost (translated using the exchange rates at the transaction date), except for non-monetary items measured at fair value, which are translated using the exchange rates as at the date when fair value was determined. Gains and losses are recorded in the statement of operations and comprehensive income (loss). Relevant exchange rates used in the preparation of the financial statements for the subsidiaries are as follows for the years ended December 31, 2023 and 2022 (Mexican Pesos per one U.S. dollar): December 31, 2023 December 31, 2022 Current exchange rate Pesos 16.97 19.48 Weighted average exchange rate for the year ended Pesos 17.23 20.11 The Company recorded currency transaction gains (losses) of $( 45,177 ) and $ 58,426 for the years ended December 31, 2023 and 2022, respectively. Income Taxes The Company accounts for income taxes under ASC 740 “Income Taxes” using the liability method, recognizing certain temporary differences between the financial reporting basis of liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset for the Company, as measured by the statutory tax rates in effect. The Company derives the deferred income tax charge or benefit by recording the change in either the net deferred income tax liability or asset balance for the year. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. Income from the Company’s subsidiaries in México are taxed in accordance with applicable Mexican tax law. Uncertain Tax Position The Company is subject to income taxes in the U.S. and other foreign jurisdictions, with respect to which some of the outcome is uncertain. The evaluation of the Company’s uncertain tax positions involves significant judgment in the interpretation and application of GAAP and complex domestic and international tax laws. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that it becomes uncertain based upon one of the following conditions: (1) the tax position is not "more likely than not" to be sustained, (2) the tax position is "more likely than not" to be sustained, but for a lesser amount, or (3) the tax position is "more likely than not" to be sustained, but not in the financial period in which the tax position was originally taken. For purposes of evaluating whether or not a tax position is uncertain, (1) we presume the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information; (2) the technical merits of a tax position are derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and case law and their applicability to the facts and circumstances of the tax position; and (3) each tax position is evaluated without consideration of the possibility of offset or aggregation with other tax positions taken. Although management believes the Company’s reserves are reasonable, no assurance can be given that the final outcome of these uncertainties will not be different from that which is reflected in the Company’s reserves. A number of years may elapse before a particular uncertain tax position is audited and finally resolved or when a tax assessment is raised. The number of years subject to tax assessments varies depending on the tax jurisdiction. Any tax benefit that is or has been reserved because of a failure to meet the "more likely than not" recognition threshold would be recognized in income tax expense in the first interim period when the uncertainty disappears under any one of the following conditions: (1) the tax position is "more likely than not" to be sustained, (2) the tax position, amount, and/or timing is ultimately settled through negotiation or litigation, or (3) the statute of limitations for the tax position has expired. Comprehensive Income (Loss) ASC 220 “Comprehensive Income” establishes standards for reporting and display of comprehensive income and its components in a full set of general-purpose consolidated financial statements. The Company’s comprehensive income consists of net income (loss) and other comprehensive income (loss), consisting of unrealized net gains and losses on the translation of the assets and liabilities of its foreign operations. Revenue Recognition The Company follows ASC 606 “ Revenue from Contracts with Customers ”. The Company generates revenue by selling gold and silver concentrate material produced from its mining operations. The Company recognizes revenue for gold and silver concentrate production, net of treatment and refining costs, when it satisfies the performance obligation of transferring control of the concentrate to the customer. This is generally when the material is delivered to the customer facility for treatment and processing, as the customer has the ability (upon such delivery) to direct the use of and obtain substantially all the remaining benefits from the material and the customer has the risk of loss. The amount of revenue recognized is initially recorded on a provisional basis based on the contract price and the estimated metal quantities based on assay data. Adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices of metals until final settlement occurs. The changes in price between the provisional sales price and final sales price are considered an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrate at the quoted metal prices at the time of delivery. The embedded derivative, which does not qualify for hedge accounting, is adjusted to market through revenue at final settlement. Market changes in the prices of metals between the delivery and final settlement dates will result in adjustments to revenues related to previously recorded sales of concentrate. The chief risk associated with the recognition of sales on a provisional basis is the fluctuation (if any) between the estimated quantities of the precious metals based on the initial assay and the actual recovery from treatment and processing. During the years ended December 31, 2023 and 2022, there were $ 9,350,000 and $ 9,250,000 , respectively of revenue recognized during the year from customer deposit liabilities (deferred contract revenue) from prior periods, and no customer deposits were refunded to the customer due to order cancellation. Shipping and handling costs are considered fulfillment costs after the customer obtains control of the goods. Derivative Financial Instruments Certain warrants are treated as derivative financial liabilities. The estimated fair value, based on the Black-Scholes model, is adjusted on a quarterly basis with gains or losses recognized in the statements of operations and comprehensive income (loss). The Black-Scholes model is based on significant assumptions such as volatility, dividend yield, and expected term. Fair Value of Financial Instruments The Company’s financial instruments consist of cash, accounts receivable, accounts payable, note payable and installment notes payable and derivative liabilities. The carrying amount of cash, accounts receivable, accounts payable and note payable approximates fair value because of the short-term nature of these items. The carrying amount of installment notes payable debt approximates fair value due to the relationship between the interest rate on installment notes payable debt and the Company’s incremental risk adjusted borrowing rate. The fair value of derivative liabilities is based on the Black-Scholes model. Earnings (Loss) Per Share Earnings (loss) per share attributable to the common equity holders of the Company are calculated in accordance with ASC 260 “ Earnings per Share ”. The weighted average number of common shares outstanding during each period is used to compute basic earnings (loss) per share. Diluted earnings per share are computed using the weighted average number of shares and potentially dilutive common shares outstanding. Potentially dilutive common shares are additional common shares assumed to be exercised. Potentially dilutive common shares consist of stock warrants and convertible preferred shares and are excluded from the diluted earnings per share computation in periods where the Company has incurred a net loss, as their effect would be considered anti-dilutive. The Company’s Series C Preferred Stock and related outstanding dividends are convertible into 2,853,721 shares of Common Stock at December 31, 2023. The Company’s Series D Preferred Stock and related outstanding dividends are convertible into 820,800 shares of common stock at December 31, 2023. During the years ended December 31, 2022 and 2023, the Company had warrants outstanding to purchase 892,165 shares of common stock. These shares related to these potentially dilutive common shares are included in the weighted average diluted shares outstanding for the year ended December 31, 2022 and are excluded for the year ended December 31, 2023, as including them would be anti-dilutive. Years ended December 31, 2023 2022 Net income (loss) attributable to common shareholders $ ( 14,767,803 ) $ 6,451,503 Shares: Weighted average number of common shares outstanding, Basic 22,705,923 19,456,765 Weighted average number of common shares outstanding, Diluted 22,705,923 22,890,246 Basic earnings (loss) per share $ ( 0.65 ) $ 0.33 Diluted earnings (loss) per share $ ( 0.65 ) $ 0.29 Diluted Earnings Per Share is calculated as follows: Dec 31, 2022 Net income attributable to common shareholders $ 6,451,503 Deemed Dividends of Series C Preferred Stock 173,499 Deemed Dividends of Series D Preferred Stock 60,800 Adjusted Diluted Earnings $ 6,685,802 Weighted average number of share outstanding - Basic 19,456,765 Series C Preferred Stock Common Stock Equivalent 2,643,081 Series D Preferred Stock Common Stock Equivalent 790,400 Weighted average number of share outstanding - Diluted 22,890,246 Diluted Earnings Per Share $ 0.29 Related Party Transactions FASB ASC 850 "Related Party Disclosures" requires companies to include in their consolidated financial statements disclosures of material related party transactions. The Company discloses all material related party transactions. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. Significant Judgments, Estimates and Assumptions The preparation of financial statements in accordance with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period. These judgments, estimates and assumptions are regularly evaluated and are based on management’s experience and knowledge of the relevant facts and circumstances. While management believes the estimates to be reasonable, actual results could differ from those estimates and could impact future results of operations and cash flows. The areas which require significant judgment and estimates that management has made at the financial reporting date, that could result in a material change to the carrying amounts of assets and liabilities, in the event actual results differ from the assumptions made, relate to, but are not limited to the following: Significant judgments: • the determination of income tax is inherently complex and requires making certain estimates and assumptions about future events; • quantitative and qualitative factors used in the assessment of impairment of the Company’s mineral property; • the analysis of resource calculations, drill results, etc. which can impact the Company’s assessment of impairment, and provisions, if any, for environmental rehabilitation and restoration; and • The valuation of derivatives liabilities requires management to determine the most appropriate valuation model and inputs to the valuation model. Recently Issued Accounting Standards In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” , which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORIES | |
Inventories | NOTE 2 – INVENTORIES Inventories are carried at the lower of cost or fair value and consist of mined tonnage, gravity-flotation concentrates, and gravity tailings (or, flotation feed material). Inventory balances as of December 31, 2023 and 2022, respectively, were as follows: 2023 2022 Mined Tonnage $ 2,061,149 $ 2,610,116 Gold-Silver Concentrates 28,045 110,695 Total Inventories $ 2,089,194 $ 2,720,811 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY AND EQUIPMENT | |
Property and Equipment | NOTE 3 – PROPERTY AND EQUIPMENT Property and equipment consists of the following as of December 31, 2023 and 2022: 2023 2022 Leasehold improvements $ 21,274 $ 9,340 Office equipment 42,483 31,012 Office furniture and fixtures 24,453 78,802 Other 27,063 — Sub-total 115,273 119,154 Less: Accumulated depreciation and amortization ( 12,239 ) ( 119,154 ) Total Property and Equipment $ 103,034 $ - Depreciation and amortization has been provided over each asset’s estimated useful life. Depreciation and amortization expense was $ 12,239 and $ 2,729 for the years ended December 31, 2023 and 2022 respectively. |
Mining Concessions
Mining Concessions | 12 Months Ended |
Dec. 31, 2023 | |
Mining Concessions [Abstract] | |
Mining Concessions | NOTE 4 – MINING CONCESSIONS Mining properties consist of the San Jose de Gracía (“SJG”) concessions. Mining Concessions were $ 4,132,678 and $ 4,132,678 at December 31, 2023 and December 31, 2022, respectively. As the Company is an exploration stage company, there was no depletion expense for the years ended December 31, 2023 and 2022. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | NOTE 5 - ACCRUED LIABILITIES As of December 31, 2023 and 2022, the Company had the following accrued liabilities: December 31, December 31, 2023 2022 Accrued interest $ 2,352,869 $ 1,532,971 Accrued mining expenses 2,104,938 1,138,698 Accrued payroll taxes 1,122,644 920,685 Other accrued liabilities 2,147,170 2,164,607 Total accrued liabilities $ 7,727,621 $ 5,756,961 |
Derivative Liabilities
Derivative Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVE LIABILITIES | |
Derivative Liabilities | NOTE 6 - DERIVATIVE LIABILITIES Warrants Issued With the Notes Convertible into Series D Preferred Stock In fiscal 2020, the Company closed a financing agreement with Golden Post Rail, LLC (“Golden Post”) and certain shareholders whereby the Company issued convertible promissory notes that bore interest at 10 % and were convertible into shares of Series D Senior Convertible Preferred Stock and common stock purchase warrants (“2020 warrants”) at an exercise price of $ 0.01 per share, with an expiry of ten years . These 2020 warrants contain anti-dilution provisions. See Note 12. The Company analyzed the conversion features of the promissory notes convertible into Series D Preferred Stock and determined that the 2020 warrants and remaining purchaser warrants issued with such notes qualified as a derivative liability. The fair value was required to be allocated among the notes, the notes’ conversion features, and the 2020 warrants and remaining purchaser warrants, and then remeasured at each reporting date. The Company performed a valuation of the conversion feature of the 2020 warrants and remaining purchaser warrants. In performing the valuation, the Company applied the guidance in ASC 820, “Fair Value Measurements”, to nonfinancial assets and liabilities that are recognized or disclosed at fair value on a nonrecurring basis. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). To measure fair value, the Company incorporates assumptions that market participants would use in pricing the asset or liability and utilizes market data to the maximum extent possible. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company considered the inputs in this valuation to be level 3 in the fair value hierarchy under ASC 820 and used the Black-Scholes model to determine the value of conversion feature of the Warrants issued with the notes convertible into Series D Preferred Stock based on the assumptions below: 2023 2022 Annual volatility rate 123 % 116 % Risk free rate 4.23 % 4.41 % Remaining term 6.37 years 7.37 years Fair value of common stock $ 2.02 $ 2.44 For the years ended December 31, 2023 and 2022, an active market for the Company’s common stock did not exist. Accordingly, the fair value of the Company’s common stock was estimated using a valuation model with level 3 inputs. The below table represents the change in the fair value of the derivative liability during the years ended December 31, 2023 and 2022. Year Ended 2023 2022 Fair value of derivative (warrants), beginning of year $ 2,172,417 $ 1,559,103 Exercise of warrants — — Change in fair value of derivative ( 375,076 ) 613,314 Fair value of derivative (warrants), end of year $ 1,797,341 $ 2,172,417 |
Advance Credit Line Facility_Cu
Advance Credit Line Facility/Customer Advances | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure Abstract | |
Advance Credit Line Facility/Customer Advances | NOTE 7 – ADVANCE CREDIT LINE FACILITY/CUSTOMER ADVANCES On February 4, 2021, the Company entered into a Advance Credit Line Facility and Purchase Agreement (the “ACL”), with a commercial buyer. On August 2, 2023, the ACL was extended through December 2026 in an Amendment Agreement (the “Amendment”). Under the terms of the ACL and Amendment: • The Company will deliver 100 % of its produced concentrates to the buyer and provider of the ACL, through December 31, 2026, with evergreen annual extensions thereafter until either party terminates with at least 365 days’ notice; • An initial ACL was established by the buyer in the amount of $ 3.75 million USD. • On May 1, 2021, the ACL increased to an amount equal to 80 % of the prior three months’ revenue. • Each successive month, the ACL shall be adjusted according to the Company’s prior three months’ revenue to a maximum advance line of $ 17.5 million as specified in the Amendment. • The ACL will be interest free for 45 days. • The ACL is to be repaid through deliveries of concentrates or cash within 120 days. • Beginning in September 2023, up to $10 million of the ACL advance may be converted into a one-year installment loan bearing interest at 3M SOFR + 7.5% and amortized as follows: Month 1, interest only; Month 2-11, 5% principal plus interest; and Month 12, final 50% principal plus interest. Converting the advance amount into an installment loan will reduce the available advance on a pro rata percentage basis; • If the ACL is converted into an installment loan subsequent deliveries during the term of the loan will be paid in cash within ten days of delivery; • The Amendment provides the buyer with a right of first refusal during the Purchase Agreement, to provide offtake financing and purchase other concentrates (zinc, silver, copper, etc) and dore from the Company’s open pit and underground operations. The ACL is included under Customer Advances on the consolidated balance sheet as of December 31 2022. Deposits under Advance Credit Line Facility Under the terms of the ACL, the Company received the following advances from the buyer (in millions): (1) $ 9.35 advance on December 28, 2022. Settled on February 16, 2023 . (2) $ 9.60 advance on February 21, 2023. Settled on March 31, 2023 . (3) $ 9.20 advance on March 31, 2023. Settled on May 17, 2023 . (4) $ 9.85 advance on May 18, 2023. Settled on June 28, 2023 . (5) $ 10.0 advance on June 29, 2023. Settled on August 14, 2023 . (6) $ 10.75 advance on August 17, 2023. Settled on September 16, 2023 . (7) $ 9.75 advance on September 29, 2023. Converted to a one year note payable on December 1, 2023. (Note 8). |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2023 | |
NOTES PAYABLE | |
Notes Payable | NOTE 8 – NOTE PAYABLE On December 1, 2023, the Company exercised its option under the Advance Credit Line Facility and Purchase Agreement (the “ACL”) to convert the outstanding ACL balance of $ 9,750,000 into a one year note payable bearing interest at 3M SOFR + 7.5%. The notes is repayable as follows: Month 1, interest only; Month 2-11, 5% principal plus interest; and Month 12, final 50% principal plus interest. |
Installment Notes Payable
Installment Notes Payable | 12 Months Ended |
Dec. 31, 2023 | |
INSTALLMENT NOTES PAYABLE | |
Installment Notes Payable | NOTE 9 – INSTALLMENT NOTES PAYABLE In June 2018, the Company entered into financing agreements for the unpaid mining concession taxes on the Francisco Arturo mining concession for the year ended December 31, 2017 and the period ending June 30, 2018 in the amount of $ 1,739,392 . The Company paid an initial 20 % payment of $ 347,826 and financed the balance over 36 months at 22 %. In February 2019, the Company entered into a financing agreement for unpaid mining concession taxes on the Francisco Arturo mining concession for the year ended December 31, 2018 in the amount of $ 335,350 . The Company paid an initial 20 % payment of $ 67,070 and financed the balance over 36 months at an interest rate of 22 %. In June 2018, the Company applied for a reduction of the Francisco Arturo mining concession, from 69,121 hectares to 3,280 hectares. On July 31, 2018, the application for reduction was approved and the Company paid an initial amount of 985,116 MNP (Pesos), for the second semester 2018 mining concessions taxes on the reduced Francisco Arturo mining concession. The Company continues to accrue an amount of $ 22,500 (USD) per semester on the reduced Francisco Arturo mining concession. As of June 2019, the Company ceased making monthly payments on the above noted Francisco Arturo concession notes and has petitioned the Hacienda for a reduction in the liability equal to the reduction in the Francisco Arturo concession above. For financial reporting purposes the Company continues to carry all notes at unpaid principal amount and accrues interest on a monthly basis. At December 31, 2023, $ 2,244,771 of accrued interest on the notes was included in accrued liabilities on the accompanying consolidated balance sheet. In October 2019, the Company entered into a financing agreement for unpaid mining concession taxes on the San Jose de Gracia core mining concessions in the amount of $ 299,474 . The Company paid an initial 20 % payment of $ 59,895 and financed the balance over 36 months at an interest rate of 22 %. The following is a summary of the transaction during the years ended December 31, 2023, and December 31, 2022: Balance December 31, 2021 $ 1,962,525 Exchange Rate Adjustment 100,424 2022 Principal Payments ( 94,698 ) Balance December 31, 2022 1,968,251 Exchange Rate Adjustment 291,181 2023 Principal Payments — Balance December 31, 2023 $ 2,259,432 |
Asset Retirement Obligation
Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | NOTE 10 - ASSET RETIREMENT OBLIGATION During 2023, a significant upgrade was made to the milling facility and therefore, an ARO has been established as of December 31, 2023 at the estimated undiscounted costs totaling $ 316,800 to decommission the plant and tailings pond at the end of the estimated live of the mines in operation as of December 31, 2023, discounted using credit-adjusted, risk-free interest rate of 9.2 %. As this is an exploration stage property that does not qualify for asset capitalization, the costs associated with the obligation are charged to operations. December 31, December 31, 2023 2022 Asset retirement obligation at beginning of year $ - $ - Additions to ARO liability 198,468 — Asset retirement obligation at end of year $ 198,468 $ - |
Convertible Promissory Notes
Convertible Promissory Notes | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure Abstract | |
Convertible Promissory Notes | NOTE 11 - CONVERTIBLE PROMISSORY NOTES Notes Payable – Series I In April and May 2013, the Company entered into note agreements with shareholders in the principal amount of $ 1,495,000 , of which $ 340,000 was converted to preferred shares within the same year, netting proceeds of $ 1,155,000 (the “Series I Notes”). The Series I Notes bear simple interest a 12.5 % accrued for twelve months, and with the accrued interest to be added to the principal, and then interest will be paid by the Company, quarterly in arrears. The Series I Note holders retained the option, at any time prior to maturity or prepayment, to convert any unpaid principal and accrued interest into Common Stock at $ 2.50 per share. If the Series I Note is converted into Common Stock, at the time of conversion, the holder would also receive warrants, in the same number as the number of common shares received upon conversion, to purchase additional common shares of the Company for $ 7.50 per share, with such warrants expiring one year from their conversion date. The Notes originally matured on December 31, 2015 . The notes were extended multiple times including some interest payments being rolled into the principal. At December 31, 2021, six Series I Notes remained outstanding with a total balance of $ 455,905 . On July 1, 2022 the remaining Series I Notes were repaid in full in cash. None of the notes were converted into common stock and no stock warrants were issued. Notes Payable – Series II In 2013 and 2014, the Company entered into additional note agreements of $ 199,808 and $ 250,000 , respectively (the “Series II Notes”) with similar terms as the Series I Notes. The Series II Notes bear simple interest at 12.5 %, accrued for twelve months, and with the accrued interest to be added to the principal, and then interest will be paid by the Company, quarterly in arrears. The Note holder retained the option to at any time prior to maturity or prepayment, convert any unpaid principal and accrued interest into common stock of the Company at $ 2.50 per share. At the time of conversion, the holder would receive a warrant to purchase additional common shares of the Company for $ 7.50 per share, such warrant expiring one year from their conversion date. The Notes originally matured on December 31, 2015 . The notes were extended multiple times including some interest payments being rolled into principal. At December 31, 2021, two Series II notes remained outstanding with a balance of $ 87,374 . On July 1, 2022 the remaining Series II Notes were paid off in full in cash. None of the notes were converted into common stock and no stock warrants were issued. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
STOCKHOLDERS EQUITY | |
Stockholders' Equity | NOTE 12– STOCKHOLDERS’ EQUITY The total number of shares of all classes of capital stock which the Company has the authority to issue is 60,001,000 shares, consisting of (i) twenty million and one thousand ( 20,001,000 ) shares of Preferred Stock, par value $ 0.0001 per share (“Preferred Stock”), of which 1,734,992 are designated as Series C Preferred Stock, and 3,000,000 shares are designated as Series D Preferred Stock, and (ii) forty million ( 40,000,000 ) shares of Common Stock, par value $ 0.01 per share (“Common Stock”). As of December 31, 2023, 15,266,008 of Preferred Stock remain undesignated. Series A Preferred Stock The Company had designated 1,000 shares of its Preferred Stock as Series A, having a par value of $ 0.0001 per share. Holders of the Series A Preferred Stock had he right to elect a majority of the Board of Directors of the Company. In 2007, the Company issued 1,000 shares of Series A Preferred Stock to its current CEO. At December 31, 2022 there were 1,000 shares of Series A Preferred Stock outstanding. On April 19, 2023 the Company repurchased the Series A Preferred stock from the CEO for $ 1,250,000 . On July 17, 2023 the Company amended its certificate of incorporation to cancel the Series A Preferred stock. Series C Senior Convertible Preferred Stock As of December 31, 2023 and 2022, there were 1,734,992 and 1,734,992 Series C Preferred shares outstanding, respectively. These Series C Preferred Shares are convertible to common shares at $ 1.95 per share, redeemable on demand and include anti-dilution protection on both the Preferred Series C and the 2,655,361 of Common Stock acquired through the exercise of the Series C stock warrants in June 2022. The Series C Preferred Shares may receive a 4 % per annum dividend, payable if available, and in arrears. The Dividend is calculated at 4.0 % of $ 4,337,480 payable annually on June 30. As of December 31, 2023, dividends for the years ending December 31, 2017 through 2023 totaling $ 1,227,276 were in arrears. (2022 - $ 1,053,777 ). Due to the nature of this transaction as mandatorily redeemable by the Company at the election of the Series C preferred stock shareholder at maturity, the Series C Senior Convertible Preferred Shares are classified as “temporary equity” on the balance sheet. Attached to the Series C Preferred Stock issued in 2015 were 2,000,000 warrants (the “2015 Warrant”), which gave the holder the right to purchase common shares at $ 2.50 per share. After anti-dilution protection, these warrants became 2,166,527 warrants to purchase common shares at $ 2.04 and on June 28, 2022, the 2015 Warrant was exercised and the common shares were issued. Series D Senior Convertible Preferred Stock Financing Agreement with Golden Post Rail, LLC, a Texas Limited Liability Company, and with Shareholders of DynaResource, Inc. On May 14, 2020, the Company closed an additional financing and related agreements with certain shareholders totaling $ 4,020,000 which was convertible into Series D Senior Preferred Stock. The noteholders also received the 2020 warrants, as outlined in Note 6, for the purchase of an aggregate of 1,260,633 shares of the Company’s common stock at an exercise price of $ .01 a share. On October 7, 2021, the Company paid $ 2,500,000 to repurchase one note. The remaining ten noteholders elected to convert their notes totaling $ 1,520,000 into Series D Preferred Stock at $ 2.00 per share. On October 18, 2021, the Company issued 760,000 shares of Series D Preferred Stock for these notes. The Series D Preferred Stock may receive a 4 % per annum dividend, payable if available, and in arrears. The dividend is calculated at 4.0 % of $ 1,520,000 payable annually on October 18 th . As of December 31, 2023 dividends for the years 2022 and 2023 totaling $ 121,600 were in arrears. Concurrently with the note conversion the noteholders exercised 368,468 of the 2020 warrants to purchase 368,468 shares of the Company’s common stock at $ .01 per share. Due to the nature of the Series D Preferred Stock, as mandatorily redeemable by the Company at the election of the Series D Preferred stockholder at any time following maturity, the Series D Preferred Stock is classified as “temporary equity” on the balance sheet. The deemed dividends on the Series C and D Preferred Stock for the years ended December 31, 2023 and 2022, were $ 234,299 and $ 234,299 , respectively. As the Company has not declared these dividends, it is required as an item “below” the net income amount on the accompanying consolidated statements of income. Preferred Stock (Undesignated) In addition to the 1,734,992 authorized shares designated as Series C Preferred Shares and 3,000,000 authorized shares designated as Series D Preferred Stock, the Company is authorized to issue an additional 15,266,008 shares of Preferred Stock, having a par value of $ 0.0001 per share. The Board of Directors of the Company has authority to issue the Preferred Stock from time to time in one or more series, and with respect to each series of the Preferred Stock, to fix and state by the resolution the terms attached to the Preferred Stock. At December 31, 2023 and December 31, 2022, there were no other shares of Preferred Stock outstanding. Separate Series; Increase or Decrease in Authorized Shares . The shares of each series of Preferred Stock may vary from the shares of any other series thereof in any or all of the foregoing respects and in any other manner. The Board of Directors may increase the number of shares of Preferred Stock designated for any existing series by a resolution adding to such series authorized and unissued shares of Preferred Stock not designated for any other series. Unless otherwise provided in the Preferred Stock Designation, the Board of Directors may decrease the number of shares of Preferred Stock designated for any existing series by a resolution subtracting from such series authorized and unissued shares of Preferred Stock designated for such existing series, and the shares so subtracted shall become authorized, unissued and undesignated shares of Preferred Stock. Common Stock The Company is authorized to issue 40,000,000 common shares at a par value of $ 0.01 per share. These shares have full voting rights. At December 31, 2023 and December 31, 2022, there were 23,371,708 and 22,246,654 common stock shares outstanding, respectively. No dividends were paid for the years ended December 31, 2023 and 2022, respectively. Preferred Rights In 2003, the Company issued “Preferred Rights” and received $ 784,500 for these rights. This has been reflected as “Preferred Rights” in stockholders’ equity in accompanying consolidated balance sheets. As of December 31, 2023, $ 744,500 had been repaid, leaving a current balance of $ 40,000 and $ 40,000 as of December 31, 2023 and 2022, respectively. Stock Issuances On August 4, 2023 the Company sold 1,000,000 common shares for $ 5.00 per share. In connection with the sales the Company issued 125,054 shares to the Series C Preferred Stockholder under the Series C anti-dilution provision. On June 28, 2022, the Company issued 2,655,361 shares of common stock upon the exercise of the 2,166,775 warrants by one warrant holder for $ 2.04 a share. There shares carry the antidilution provision of the Series C Preferred stock. On December 28, 2022, the Compensation Committee approved restricted common stock awards to employees, directors and consultants of the Company. The stock awards approved vested 25% immediately with the remainder vesting 25% each year on December 28 for the next three years, subject to resignation or termination provisions. The awards totaled 1,500,00 shares and the Company recorded stock compensation expense of $ 881,250 representing value of the 25% of shares that vested in 2022 and an additional $ 881,250 of stock compensation expense representing the value of the 25% of shares that vested in 2023. Treasury Stock During the year ended December 31, 2023, 25,000 shares of the Company’s common stock previously issued for services were returned to the Company as part of a settlement of fees. During the year ending December 31, 2022, there were no treasury stock transactions. At December 31, 2023 and 2022, 37,180 and 12,180 treasury shares were held by the Company. Warrants On June 28, 2022, one warrant holder exercised 2,166,775 warrants to purchase 2,655,361 shares of common stock for $ 2.04 a share. These shares carry the antidilution provisions of the Series C preferred Stock. As of December 31, 2023, the Company had a total of 892,165 warrants outstanding. Weighted Weighted Average Average Exercise Remaining Number Price Contractual Intrinsic of Shares per share Life (Years) Value Balance at December 31, 2021 3,060,998 $ 1.46 2.79 — Exercise of the 2015 warrant ( 2,166,775 ) 2.04 — Forfeiture of the 2015 warrant ( 2,058 ) — — Balance at December 31, 2022 892,165 $ 0.01 7.37 — Exercise of warrants — — — Forfeiture of the warrants — — — Balance at December 31, 2023 892,165 $ 0.01 6.37 — Exercisable at December 31, 2023 892,165 $ 0.01 6.37 — |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
STOCK BASED COMPENSATION | |
Stock Based Compensation | NOTE 13 – STOCK BASED COMPENSATION On December 28, 2022, the Company issued 1,500,000 shares of restricted common stock to certain key employees and consultants. The shares were 25 % vested at issuance and vest an additional 25 % on December 28, 2023, 2024, and 2025. The shares were valued at the closing stock price of $ 2.35 on the date of issuance and accounted for under ASC 718. Stock compensation expense for the years ended December 31, 2023 and 2022 was $ 881,250 representing the 25 % vested portion of the total stock value. As of December 31, 2023, deferred compensation totaling $ 1,762,500 will be expensed pro rata upon vesting. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Income Taxes | NOTE 14 – INCOME TAXES FASB ASC 740-10, Income Taxes, mandates the asset and liability approach to determine the income tax provision or benefit. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Income tax receivables and liabilities and deferred tax assets and liabilities are recognized based on the amounts that more likely than not will be sustained upon ultimate settlement with taxing authorities. Developing the provision for income taxes and analysis of uncertain tax positions requires significant judgment and knowledge of federal and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may be required for deferred tax assets. The Company assess the realization of our deferred tax assets to determine whether an income tax valuation allowance is required. Based on all available evidence, both positive and negative, and the weight of that evidence to the extent such evidence can be objectively verified, we determine whether it is more likely than not that all or a portion of the deferred tax assets will be realized. The Company considers many factors when evaluating our uncertain tax positions, and such judgments are subject to periodic review. Tax benefits associated with uncertain tax positions are recognized in the period in which one of the following conditions is satisfied: (1) the more likely than not recognition threshold is satisfied; (2) the position is ultimately settled through negotiation or litigation; or (3) the statute of limitations for the taxing authority to examine and challenge the position has expired. Tax benefits associated with an uncertain tax position are derecognized in the period in which the more likely than not recognition threshold is no longer satisfied. December 31, December 31, 2023 2022 Deferred Tax Assets: Federal net operating loss carryforwards $ 1,389,426 $ 509,711 Foreign net operating loss carryforwards 6,288,045 2,459,782 Lease liability 195,275 — Accrued bonus 105,240 — Other 185,867 917 Gross Deferred Tax Assets 8,163,853 2,970,410 Valuation allowance ( 3,468,858 ) — Total Deferred Tax Asset 4,694,995 2,970,410 Deferred Tax Liabilities: Right of use asset ( 178,253 ) — Other ( 252,627 ) — Total Deferred Tax Liabilities ( 430,880 ) — Net Deferred Tax Asset $ 4,264,115 $ 2,970,410 Deferred Tax Liability $ 334,236 $ - The Company's pre-tax income (loss) by jurisdiction was as follows for the years ending December 31, 2023 and 2022 December 31, December 31, 2023 2022 Domestic $ ( 3,925,864 ) $ 3,221,618 Foreign ( 11,540,379 ) 883,774 Total $ ( 15,466,243 ) $ 4,105,392 The provision for income taxes for continuing operations for the year ended December 31, 2023 and 2022 consist of the following December 31, December 31, 2023 2022 Current income taxes Federal $ ( 148,666 ) $ 220,000 State — — Foreign ( 170,000 ) 170,000 Total current income taxes $ ( 318,666 ) $ 390,000 Deferred income taxes Federal $ ( 983,296 ) $ ( 510,629 ) State — — Foreign 369,223 ( 2,459,781 ) Total deferred income taxes $ ( 614,073 ) $ ( 2,970,410 ) Total income tax benefit $ ( 932,739 ) $ ( 2,580,410 ) A reconciliation between the amount of reported income tax expense (benefit) and the amount computed by multiplying income from continuing operations before income taxes by the statutory federal income tax rate is shown below. Income tax expense for the year ended December 31, 2023 includes state minimum taxes, permanent differences, and deferred tax assets for which the valuation allowance has been released. A corresponding tax benefit is included for the year ended December 31, 2023 to reflect the release in the valuation allowance. December 31, December 31, 2023 2022 Tax Expense at statutory federal rate of 21% $ ( 3,247,911 ) $ 808,560 Permanent differences ( 118,773 ) 927,343 Foreign rate differential ( 1,038,635 ) 56,580 Return to provision ( 274,501 ) — GILTI NOL impact — 145,913 GILTI NOL adjustment – previously offset by valuation allowance — 7,781,388 Change in valuation allowance 3,468,858 ( 12,328,462 ) Statutory to GAAP 278,223 — Other — 28,268 Income tax benefit $ ( 932,739 ) $ ( 2,580,410 ) The net deferred tax asset and benefit for the current year is generated primarily from cumulative net operating loss carryforward, which totals approximately $ 28 million at December 31, 2023. December 31, December 31, 2023 2022 United States Expiring 2029 to 2037 $ - $ - United States Indefinite Limited to 80% 6,578,856 2,800,000 Foreign NOLs 21,742,318 8,200,000 Total Net Operating Loss Carryforward $ 28,321,174 $ 11,000,000 At December 31, 2023, the carryforwards available to offset US federal future taxable income consisted of net operating loss (“NOL”) carryforwards of approximately $ 6.6 million pre-tax, all of which, have no expiration date. Future NOL utilization will be subject to the 80-percent of taxable income limitation, as all remaining NOLs have been generated after 2017 and the passage of the Tax Cuts and Jobs Act of 2017. The Company’s Mexico net operating losses of $ 21.7 million pre-tax are subject to a ten-year carryforward period and the Company anticipates utilizing its Mexico NOL in future years before expiration. During the year ended December 31, 2022, the valuation allowance was released. The Company believes a full valuation allowance against the net deferred tax asset is no longer warranted based on the positive evidence in recent years. Such positive evidence includes no longer being in a three-year cumulative losses, the rising prices in gold, utilization of current year tax attributes, and projected taxable income in the future. The Company’s practice is to recognize interest and penalties related to income taxes in income tax expense in continuing operations, as incurred. There were no any uncertain tax benefits or interest and penalties related to uncertain tax benefits as of December 31, 2023. The Company is subject to income taxes in the US federal jurisdiction as well as Mexico. The Company is no longer subject to US federal, state and local tax examinations by tax authorities for years prior to fiscal year 2021. The Company began utilizing its NOL in 2021. The statute of limitations began when the Company filed its 2021 US Federal Tax Return. The Company is no longer subject to Mexican tax examinations for years prior to fiscal year 2017. The Company is currently not under audit by any tax authority. The Company has not provided U.S. income taxes and foreign withholding taxes, on its cumulative earnings for certain non-U.S. subsidiaries, because such earnings are intended to be indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability for temporary differences related to investments in these non-U.S. subsidiaries that are essentially permanent in duration is not practicable. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 – COMMITMENTS AND CONTINGENCIES Legal Update 2014 Arbitration Proceeding filed by Goldgroup Resources Inc. On March 14, 2014, Goldgroup Resources, Inc. ("Goldgroup") filed for arbitration in the United States with the American Arbitration Association (“AAA”), seeking monetary and nonmonetary relief under an Earn In/Option Agreement. On August 25, 2016, the AAA issued a ruling in favor of Goldgroup against the Company and DynaMéxico (the “Arbitration Award”). On May 9, 2019, the United States District Court for the District of Colorado (the “Colorado U.S. District Court”) confirmed the Arbitration Award. The Company fulfilled its obligations under the Arbitration Award prior to the beginning of 2023. On March 5, 2024, the Colorado U.S. District Court issued an Order denying requests for additional relief by both the Company and Goldgroup and stating that the case is closed. DynaResource de Mexico SA de CV Legal Update & Disclosure On March 3, 2023, Goldgroup Resources Inc. (“Goldgroup”) filed a formal notice with the México Federal Legal Authorities, which confirmed Goldgroup’s complete withdrawal of all legal claims in Mexico and under Mexican law against DynaResource de México SA de CV. Goldgroup’s complete legal withdrawal is the result and culmination of 7 years of legal actions undertaken in Mexico by DynaMéxico. Accordingly, all matters before the courts in México with respect to DynaMéxico and Goldgroup Resources Inc. are fully resolved and are no longer subject to appeal. Consequence of the México legal ruling and the Goldgroup legal withdrawal: 1. The $48,280,808 USD damages award (dated October 05, 2015) in favor of DynaMéxico and against Goldgroup Resources Inc., confirmed by Mexican courts in 2019, is final, conclusive, and enforceable under Mexican law. Goldgroup Resources’ challenges to that award have been fully denied and the damages award is final. 2. Goldgroup’s challenges to DynaMéxico’s share ownership have also been fully denied and consequently, under Mexican law, Goldgroup owns no shares in DynaMéxico. Mercuria Energy Trading S.A vs Mineras de DynaResource S.A. de C.V. In 2020, Mercuria Energy Trading, S.A. (“Mercuria”) initiated an arbitration proceeding against Mineras de Dynaresource, S.A. de C.V. (“Mineras”), arising out of the earlier-terminated supply agreement between the parties. In January 2022, The arbitration panel awarded Mercuria the sum of US$1,822,674, plus interest at 2% over the quarterly compounded USD 3- month LIBOR rate, from February 2020 forward. In August 2022, the panel also assessed costs of the arbitration proceeding against Mineras, in the aggregate amount of £ 376,232. DynaResource has accrued $1,000,000 for the arbitration award and related costs. The Company notes the following: since Mineras is a company of Mexican nationality, under Mexican law Mineras has the right to legally oppose the recognition and enforcement of the award to Mercuria, the assessment of any costs, and any supplemental award. Concession Taxes The Company is required to pay taxes in México in order to maintain mining concessions owned by DynaMéxico. Additionally, the Company is required to incur a minimum amount of expenditures each year for all concessions held. The minimum expenditures are calculated based upon the land area, as well as the age of the concessions. Amounts spent in excess of the minimum may be carried forward indefinitely over the life of the concessions and are adjusted annually for inflation. Based on Management’s recent business activities and current and forward plans and considering expenditures on mining concessions from 2002-2017 and continuing expenditures in current and forward activities, the Company does not anticipate that DynaMéxico will have any difficulties meeting the minimum annual expenditures for the concessions ($388 – $2,400 Mexican Pesos per hectare). DynaMéxico retains sufficient carryforward amounts to cover over 10 years of the minimum expenditure (as calculated at the 2017 minimum, adjusted for annual inflation of 4%). Leases In addition to the surface rights held by DynaMéxico pursuant to the Mining Act of México and its Regulations ( Ley Minera y su Reglamento ), DynaMineras maintains access and surface rights to the SJG Project pursuant to the 20-year Land Lease Agreement. The 20 Year Land Lease Agreement with the Santa Maria Ejido Community surrounding San Jose de Gracía was dated January 6, 2014 and continues through January 2033. It covers an area of 4,399 hectares surrounding the main mineral resource areas of SJG and provides for annual lease payments on January 1st each year by DynaMineras of $ 1,359,443 pesos adjusted for inflation based on the Mexico minimum wage increase commencing in 2014. Rent was $ 4,414,124 Pesos (approx. $ 249,000 USD) for the year ended December 31, 2023. The Land Lease Agreement provides DynaMineras with surface access to the core resource areas of SJG ( 4,399 hectares ), and allows for all permitted mining and exploration activities from the owners of the surface rights (Santa Maria Ejido community). The Company leases office space for its corporate headquarters in Irving, Texas. In February 2023, the Company entered into a fifty-two-month extension of the lease with additional office space. As part of the agreement the lease term commenced and the Company received four months free rent upon completion of the finish out of the new space. The expansion was completed and the Company moved into the office space affective August 1, 2023 The Company makes tiered lease payments on the 1st of each month. The Company determines if a contract is or contains a lease at inception. As of December 31, 2023, the Company has two operating leases - fifty-two month lease for office space with a remaining term of forty-seven months and a twenty-year ground lease in association with its México mining operations with a remaining term of ten years. Variable lease costs consist primarily of variable common area maintenance, storage parking and utilities. The Company’s leases do not have any residual value guarantees or restrictive covenants. As the implicit rate is not readily determinable for most of the Company’s lease agreements, the Company uses an estimated incremental borrowing rate to determine the initial present value of lease payments. These discount rates for leases are calculated using the Company's interest rate of promissory notes. The Company’s components of lease expense are as follows: Year Ended Operating Lease – Office Lease $ 99,627 Operating Lease – Ground Lease 94,074 Short Term Lease Costs 18,570 Variable Lease Costs 154,917 TOTAL $ 367,188 Weighted average remaining lease term and weighted average discount rate are as follows: Weighted Average Remaining Lease Term (Years) – Operating Leases 6.96 Weighted Average Discount Rate – Operating Leases 12.50 % Estimated future minimum lease obligations are as follow for the years ending December 31: YEAR 2024 $ 216,046 2025 221,426 2026 226,903 2027 211,191 2028 109,058 Thereafter 469,946 Total 1,454,570 Less Imputed Interest ( 524,691 ) OPERATING LEASE LIABILITY $ 929,879 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 16 – FAIR VALUE OF FINANCIAL INSTRUMENTS The ASC guidance for fair value measurements and disclosure establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Inputs – Quoted prices for identical instruments in active markets. Level 2 Inputs – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Inputs – Instruments with primarily unobservable value drivers. As of December 31, 2023 and 2022, the Company’s financial assets were carried at fair value and were measured at fair value using Level 3 inputs, with the exception of cash, which was valued using Level 1 inputs. A description of the valuation of the Level 3 inputs is discussed in Note 10. Quoted Prices Significant Significant Fair Value Measurement at December 31, 2023: (Level 1) (Level 2) (Level 3) Liabilities: Derivative Liabilities $ 1,797,341 - - $ 1,797,341 Totals $ 1,797,341 $ - $ - $ 1,797,341 Fair Value Measurement at December 31, 2022: Liabilities: Derivative Liabilities $ 2,172,417 - - $ 2,172,417 Totals $ 2,172,417 $ - $ - $ 2,172,417 |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2023 | |
CONCENTRATIONS | |
Concentrations | NOTE 17 – CONCENTRATIONS For the years ended December 31, 2023 and 2022, one customer accounted for 100 % of revenue and accounts receivable. |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segmented Information | NOTE 18 - SEGMENTED INFORMATION The Company operates as one segment: test-mining and pilot milling gold-silver concentrate for sale from its location in Mexico, and had the following geographic concentrations as of December 31, 2023 and 2022: Mexico United States Total December 31, 2023 Mineral property $ 4,132,678 $ - $ 4,132,678 Property and equipment — 103,034 103,034 Current assets 8,475,858 5,669,642 14,145,500 Other assets 15,271,752 1,785,386 17,057,138 Total assets $ 27,880,288 $ 7,558,062 $ 35,438,350 December 31, 2022 Mineral property $ 4,132,678 $ - $ 4,132,678 Property and equipment — — — Current assets 23,272,128 9,851,827 33,123,955 Other assets 3,092,483 593,796 3,686,279 Total assets $ 30,497,289 $ 10,445,623 $ 40,942,912 Period Ended December 31, 2023 December 31, 2022 Total comprehensive income (loss) for the year - Mexico $ ( 11,249,628 ) $ 3,559,456 Total comprehensive income (loss) for the year - United States ( 2,698,254 ) 3,486,089 Total comprehensive income (loss) for the year $ ( 13,947,882 ) $ 7,045,545 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
Related Party Transactions | NOTE 19 – RELATED PARTY TRANSACTIONS During the years ended December 31, 2023 and 2022, the Company paid or accrued $ 370,000 and $ 75,000 in management fees to its directors. Included in accounts payable at December 31, 2023 is $ 100,734 due to related parties. Restricted Stock Awards During the year ended December 31, 2022 the Compensation Committee approved stock awards to employees, directors and consultants of the Company. The stock awards approved were issued to each of the individuals/entities and vested 25 % immediately and the remainder vest 25 % each year on December 31st for the next three years, subject to resignation or termination provisions. The awards totaled 1,500,000 shares of which 1,175,000 were awarded to officers and/or directors. Total stock-based compensation recognized on awards granted to related parties totalled $ 690,313 during each of the years ended December 31, 2023 and 2022. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
SUBSEQUENT EVENTS | |
Subsequent Events | NOTE 20– SUBSEQUENT EVENTS The Company has evaluated events from December 31, 2023, through the date whereupon the consolidated financial statements were issued, and has described below the events subsequent to the end of the period: On February 19, 2024., the Board of Directors approved the DynaResource, Inc. 2024 Equity Incentive Plan (the “Plan”), which the Company intends to submit for stockholder approval at the 2024 annual meeting of stockholders. Pursuant to the Plan, the Company may issue various types of equity incentives, including stock options, restricted stock, and stock appreciation rights, to employees, directors, and consultants. The Plan has a term of 10 years and provides for the issuance of no more than an aggregate 2,700,000 shares of common stock over the life of the Plan. The Plan is administered by the Compensation Committee of the Board of Directors. On February 19, 2024, the Company issued 400,000 stock option awards to a new independent director, at an exercise price of $ 5.00 per share, with such options vesting in 25 % increments on each of the first four anniversaries of the date of the award. |
Nature of Activities and Sign_2
Nature of Activities and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Nature of Activities, History and Organization | Nature of Activities, History and Organization DynaResource, Inc. (the “Company” or “DynaResource”) was organized September 28, 1937, as a California corporation under the name of West Coast Mines, Inc. In 1998, the Company re-domiciled to Delaware and changed its name to DynaResource, Inc. The Company is in the business of acquiring, investing in, and developing precious metal properties, and the production of precious metals. The Company has one wholly owned subsidiary in the United States, DynaMéxico US Holding, LLC (“US Holding”) and three wholly owned subsidiaries in México, DynaResource de México, S.A. de C.V. (“DynaMéxico”), Mineras de DynaResource S.A. de C.V. (“DynaMineras”), and DynaResource Operaciones de San Jose De Gracia S.A. de C.V. (“DynaOperaciones”). Although the Company considers the three Mexican subsidiaries to be wholly owned, each has issued one qualifying share to a second shareholder as required under Mexican law, with such qualifying shares held by either US Holding or DynaResource’s Chief Executive Officer. DynaMéxico owns a portfolio of mining concessions that currently comprises its 100 % interest in the San José de Gracia Project (“SJG”) in northern Sinaloa State, México. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of DynaResource, Inc., as well as DynaResource de México, S.A. de C.V. ( 100 % ownership), DynaResource Operaciones S.A. de C.V. ( 100 % ownership) and Mineras de DynaResource S.A. de C.V. ( 100 % ownership). All significant intercompany transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated. |
Significant Accounting Policies | Significant Accounting Policies The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application. The application of accounting principles requires the estimating, matching and timing of revenues and expenses. The accounting policies used conform to generally accepted accounting principles which have been consistently applied in the preparation of these consolidated financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. Management acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that: (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods presented. |
Basis of Presentation | Basis of Presentation The Company prepares its consolidated financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States. These consolidated financial statements have been prepared on a going concern basis that contemplates the realization of assets and discharge of liabilities at their carrying value in the normal course of business for the foreseeable future. |
Correction of an Error | Correction of an Error The derivative liability in the Company’s December 31, 2022 balance sheet presented herein has been corrected to $ 2,172,417 from $ 2,334,377 . The change in accrued liabilities in the Company’s statement of cash flows presented herein has been corrected to $ 316,757 from $ 96,757 and the net income for the year ended December 31, 2022, attributable to common shareholders in Note 2 presented herein has been corrected from $ 6,744,654 to $ 6,451,503 from the Company’s Form 10-K which was filed with the Securities and Exchange Commission on April 17, 2023. The errors were typographical errors and it did not impact any other financial statement balances including total liabilities, net income, earnings per share, or management compensation . |
Exploration Stage Issuer | Exploration Stage Issuer (No Reserves Disclosed) The definitions of Measured Mineral Resource, Mineral Reserve and Mineral Resource are set forth in SEC Regulation S-K, Item 1300 (“Reg. S-K, Item 1300”). Measured mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve. Mineral reserve is an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. Mineral resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled. As of December 31, 2023, the Company continues to meets the definition of an exploration stage issuer which is defined as an issuer that has no material property with established proven and probable mineral reserves as defined by Regulation S-K, Item 1300. |
Segment Information | Segment Information The Company operates as one segment: test mining and milling gold-silver concentrate for sale from its location in Mexico. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid debt instruments with an original maturity of three months or less to be cash equivalents. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. As of December 31, 2023, the Company had $ 5,250,603 of deposits in United States banks in excess of the FDIC limit. In addition, the Company does no t have any cash equivalents as of December 31, 2023 and 2022. The Company reduces this risk by maintaining such deposits at high quality financial institutions that management believes are creditworthy. |
Accounts Receivable and Allowances for Doubtful Accounts | Accounts Receivable and Allowances for Doubtful Accounts Accounts receivable consists of trade receivables which are recorded net of allowance for doubtful accounts for the sale of metal concentrate, as well as net of an embedded derivative based on mark-to-market adjustments for outstanding provisional invoices based on forward metal prices. The allowance for accounts receivable is recorded when receivables are considered to be uncollectible. As of December 31, 2023 and 2022, no allowance has been made. As of December 31, 2023 management believes all accounts receivable are fully collectable. |
Mined Tonnage Inventory | Mined Tonnage Inventory Mined tonnage inventory represents ore that has been mined and is available for further processing. The stockpiles of mined tonnage are measured by estimating the number of tonnes added and removed from the stockpile, an estimate of the contained metals (based on assay data) and the estimated metallurgical recovery rates. Costs are allocated to stockpiles based on the relative values of material stockpiled and processed using current mining costs incurred, including applicable overhead. Material is removed at each stockpile’s average cost per tonne. Stockpiles are carried at the lower of average cost of net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metal prices, less the estimated cost to complete production and bring the product the sale. |
Concentrate Inventory | Concentrate Inventory Concentrate inventory include metal concentrates located either at the Company’s facilities or in transit to its customer’s port. Concentrate inventories are carried at the lower of cost of production or net realizable value based on current metals prices. |
Foreign Tax Receivable | Foreign Tax Receivable Foreign tax receivable is comprised of recoverable value-added taxes (“IVA”) charged by the Mexican government on goods and services rendered. Under certain circumstances, these taxes are recoverable by filing a tax return. Amounts paid for IVA are tracked and held as receivables until the funds are received by the Company. |
Property and Equipment | Property and Equipment Substantially all property and equipment at the Company’s mines, including design, engineering, mine construction, and installation of equipment are expensed as incurred, as the Company has not established proven and probable reserves on any of its properties. Only certain types of mining equipment which have alternative uses or significant salvage value, may be capitalized without proven and probable reserves. Office furniture and equipment are depreciated on a straight-line method over estimated economic lives ranging from 3 to 5 years. Leasehold improvements, which relate to the Company’s corporate office, are being amortized over the term of the lease which is 52 months. |
Mine Development Costs | Mine Development Costs Mine development costs are expensed as incurred and include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines, and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines. When proven and probable reserves (as defined by Reg. S-K, Item 1300) exist, development costs are capitalized. Mine development costs incurred either to develop new ore deposits, expand the capacity of operating mines, or to develop mine areas substantially in advance of current production would also be capitalized. Costs of start-up activities and costs incurred to maintain current production or to maintain assets are charged to operations as incurred. All capitalized costs would be amortized using the units of production method over the estimated life of the ore body based on recoverable ounces to be mined from proven and probable reserves. Certain costs to design and construct mining and processing facilities may be incurred prior to establishing proven and probable reserves. As no proven and probable reserves have been established on any of the Company’s properties, the design, construction and development costs are not capitalized at any of the Company’s properties. |
Mining Concessions | Mining Concessions The Company’s mining concessions include acquired interests in development and exploration stage properties and are considered tangible assets. The amount capitalized relating to the Company’s mining concessions represents its fair value at the time of acquisition. If it is determined that the deferred costs related to a property are not recoverable over its productive life, those costs will be written down to fair value as a charge to operations in the period in which the determination is made. The amounts at which mining concessions and the related costs are recorded do not necessarily reflect present or future values. The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Mineral properties are monitored for impairment based on factors such as mineral prices, government regulation and taxation, the Company’s continued right to explore the area, exploration reports, assays, technical reports, drill results and its continued plans to fund exploration programs on the property. For operating mines, recoverability is measured by comparing the undiscounted future net cash flows to the net book value. When the net book value exceeds future net undiscounted cash flows, an impairment loss is measured and recorded based on the excess of the net book value over fair value. Fair value for operating mines is determined using a combined approach, which uses a discounted cash flow model for the existing operations and a market approach for the fair value assessment of exploration land claims. Future cash flows are estimated based on quantities of recoverable mineralized material, expected gold and silver prices (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. The term “recoverable mineralized material” refers to the estimated amount of gold or other commodities that will be obtained after considering losses during processing and treatment of mineralized material. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company’s estimates of future cash flows are based on numerous assumptions, and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold, and silver, commodity prices, production levels and costs and capital are each subject to significant risks and uncertainties. The recoverability of the book value of each property will be assessed annually for indicators of impairment such as adverse changes to any of the following: • estimated recoverable ounces of gold, silver or other precious minerals • estimated future commodity prices • estimated expected future operating costs, capital expenditures and reclamation expenditures A write-down to fair value would be recorded if the expected future cash flow is less than the net book value of the property, or when events or changes in the property indicate that carrying amounts are not recoverable. This analysis will be completed as needed. As of the date of this filing, no events have occurred that would require the write-down of any assets. As of December 31, 2023 and 2022, no indications of impairment existed. |
Asset Retirement Obligation ("ARO") | Asset Retirement Obligation (“ARO”) The Company records a liability based on the best estimate of costs for site closure and reclamation activities that the Company is legally or contractually required to remediate. The provision for closure and reclamation liabilities is estimated using expected cash flows based on engineering and environmental reports and accreted to full value over time through periodic charges to income. During 2023, a significant upgrade was made to the milling facility and therefore, an ARO has been established as of December 31, 2023 at the estimated costs to decommission the plant and tailings pond at the end of the estimated live of the mines in operation as of December 31, 2023. As the Company is an exploration stage property that does not qualify for asset capitalization, the costs associated with the obligation are charged to operations. Changes in regulations or laws, any instances of non-compliance with laws or regulations that result in fines, or any unforeseen environmental contamination could result in a material impact to the amounts charged to operations for reclamation and remediation. Significant judgments and estimates are made when estimating the fair value of AROs. Expected cash flows relating to AROs could occur over long periods of time and the assessment of the extent of environmental remediation work is highly subjective. Considering all the factors that go into the determination of an ARO, the fair value of the AROs can materially change over time. |
Property Holding Costs | Property Holding Costs Holding costs to maintain the property are expensed in the period they are incurred. These costs include security and maintenance expenses, lease and claim fees and payments, and environmental monitoring and reporting costs. |
Exploration Costs | Exploration Costs Exploration costs, including exploration, development, direct field costs and related administrative costs are expensed in the period incurred. |
Leases | Leases The Company adopted ASC 842, which requires recognition of a right-of-use asset and lease liability for all leases at the commencement date based on the present value of lease payments over the lease term. Additional qualitative and quantitative disclosures regarding the Company’s leasing arrangements are also required. The Company adopted ASC 842 prospectively and elected the package of transition practical expedients that does not require reassessment of (1) whether any existing or expired contracts are or contain leases, (2) lease classification and (3) initial direct costs. In addition, the Company has elected other available practical expedients to not separate lease and non-lease components, which consist principally of common area maintenance charges, for all classes of underlying assets and to exclude leases with an initial term of 12 months or less. |
Transactions in and Translations of Foreign Currency | Transactions In and Translations Of Foreign Currency The functional currency for the subsidiaries of the Company is the Mexican Peso. As a result, the financial statements of the subsidiaries have been translated from Mexican Pesos into U.S. dollars using (i) year-end exchange rates for balance sheet accounts, and (ii) the weighted average exchange rate of the reporting period for all income statement accounts. Foreign currency translation gains and losses are reported as a separate component of stockholders’ equity and comprehensive income (loss). Foreign currency transactions are translated into the functional currency of the respective currency of the entity or division, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement of monetary items denominated in foreign currency at period-end exchange rates are recognized in profit or loss. Non-monetary items that are not re-translated at period end are measured at historical cost (translated using the exchange rates at the transaction date), except for non-monetary items measured at fair value, which are translated using the exchange rates as at the date when fair value was determined. Gains and losses are recorded in the statement of operations and comprehensive income (loss). Relevant exchange rates used in the preparation of the financial statements for the subsidiaries are as follows for the years ended December 31, 2023 and 2022 (Mexican Pesos per one U.S. dollar): December 31, 2023 December 31, 2022 Current exchange rate Pesos 16.97 19.48 Weighted average exchange rate for the year ended Pesos 17.23 20.11 The Company recorded currency transaction gains (losses) of $( 45,177 ) and $ 58,426 for the years ended December 31, 2023 and 2022, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes under ASC 740 “Income Taxes” using the liability method, recognizing certain temporary differences between the financial reporting basis of liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset for the Company, as measured by the statutory tax rates in effect. The Company derives the deferred income tax charge or benefit by recording the change in either the net deferred income tax liability or asset balance for the year. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. Income from the Company’s subsidiaries in México are taxed in accordance with applicable Mexican tax law. |
Uncertain Tax Position | Uncertain Tax Position The Company is subject to income taxes in the U.S. and other foreign jurisdictions, with respect to which some of the outcome is uncertain. The evaluation of the Company’s uncertain tax positions involves significant judgment in the interpretation and application of GAAP and complex domestic and international tax laws. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that it becomes uncertain based upon one of the following conditions: (1) the tax position is not "more likely than not" to be sustained, (2) the tax position is "more likely than not" to be sustained, but for a lesser amount, or (3) the tax position is "more likely than not" to be sustained, but not in the financial period in which the tax position was originally taken. For purposes of evaluating whether or not a tax position is uncertain, (1) we presume the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information; (2) the technical merits of a tax position are derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and case law and their applicability to the facts and circumstances of the tax position; and (3) each tax position is evaluated without consideration of the possibility of offset or aggregation with other tax positions taken. Although management believes the Company’s reserves are reasonable, no assurance can be given that the final outcome of these uncertainties will not be different from that which is reflected in the Company’s reserves. A number of years may elapse before a particular uncertain tax position is audited and finally resolved or when a tax assessment is raised. The number of years subject to tax assessments varies depending on the tax jurisdiction. Any tax benefit that is or has been reserved because of a failure to meet the "more likely than not" recognition threshold would be recognized in income tax expense in the first interim period when the uncertainty disappears under any one of the following conditions: (1) the tax position is "more likely than not" to be sustained, (2) the tax position, amount, and/or timing is ultimately settled through negotiation or litigation, or (3) the statute of limitations for the tax position has expired. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) ASC 220 “Comprehensive Income” establishes standards for reporting and display of comprehensive income and its components in a full set of general-purpose consolidated financial statements. The Company’s comprehensive income consists of net income (loss) and other comprehensive income (loss), consisting of unrealized net gains and losses on the translation of the assets and liabilities of its foreign operations. |
Revenue Recognition | Revenue Recognition The Company follows ASC 606 “ Revenue from Contracts with Customers ”. The Company generates revenue by selling gold and silver concentrate material produced from its mining operations. The Company recognizes revenue for gold and silver concentrate production, net of treatment and refining costs, when it satisfies the performance obligation of transferring control of the concentrate to the customer. This is generally when the material is delivered to the customer facility for treatment and processing, as the customer has the ability (upon such delivery) to direct the use of and obtain substantially all the remaining benefits from the material and the customer has the risk of loss. The amount of revenue recognized is initially recorded on a provisional basis based on the contract price and the estimated metal quantities based on assay data. Adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices of metals until final settlement occurs. The changes in price between the provisional sales price and final sales price are considered an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrate at the quoted metal prices at the time of delivery. The embedded derivative, which does not qualify for hedge accounting, is adjusted to market through revenue at final settlement. Market changes in the prices of metals between the delivery and final settlement dates will result in adjustments to revenues related to previously recorded sales of concentrate. The chief risk associated with the recognition of sales on a provisional basis is the fluctuation (if any) between the estimated quantities of the precious metals based on the initial assay and the actual recovery from treatment and processing. During the years ended December 31, 2023 and 2022, there were $ 9,350,000 and $ 9,250,000 , respectively of revenue recognized during the year from customer deposit liabilities (deferred contract revenue) from prior periods, and no customer deposits were refunded to the customer due to order cancellation. Shipping and handling costs are considered fulfillment costs after the customer obtains control of the goods. |
Derivative Financial Instruments | Derivative Financial Instruments Certain warrants are treated as derivative financial liabilities. The estimated fair value, based on the Black-Scholes model, is adjusted on a quarterly basis with gains or losses recognized in the statements of operations and comprehensive income (loss). The Black-Scholes model is based on significant assumptions such as volatility, dividend yield, and expected term. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist of cash, accounts receivable, accounts payable, note payable and installment notes payable and derivative liabilities. The carrying amount of cash, accounts receivable, accounts payable and note payable approximates fair value because of the short-term nature of these items. The carrying amount of installment notes payable debt approximates fair value due to the relationship between the interest rate on installment notes payable debt and the Company’s incremental risk adjusted borrowing rate. The fair value of derivative liabilities is based on the Black-Scholes model. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (loss) per share attributable to the common equity holders of the Company are calculated in accordance with ASC 260 “ Earnings per Share ”. The weighted average number of common shares outstanding during each period is used to compute basic earnings (loss) per share. Diluted earnings per share are computed using the weighted average number of shares and potentially dilutive common shares outstanding. Potentially dilutive common shares are additional common shares assumed to be exercised. Potentially dilutive common shares consist of stock warrants and convertible preferred shares and are excluded from the diluted earnings per share computation in periods where the Company has incurred a net loss, as their effect would be considered anti-dilutive. The Company’s Series C Preferred Stock and related outstanding dividends are convertible into 2,853,721 shares of Common Stock at December 31, 2023. The Company’s Series D Preferred Stock and related outstanding dividends are convertible into 820,800 shares of common stock at December 31, 2023. During the years ended December 31, 2022 and 2023, the Company had warrants outstanding to purchase 892,165 shares of common stock. These shares related to these potentially dilutive common shares are included in the weighted average diluted shares outstanding for the year ended December 31, 2022 and are excluded for the year ended December 31, 2023, as including them would be anti-dilutive. Years ended December 31, 2023 2022 Net income (loss) attributable to common shareholders $ ( 14,767,803 ) $ 6,451,503 Shares: Weighted average number of common shares outstanding, Basic 22,705,923 19,456,765 Weighted average number of common shares outstanding, Diluted 22,705,923 22,890,246 Basic earnings (loss) per share $ ( 0.65 ) $ 0.33 Diluted earnings (loss) per share $ ( 0.65 ) $ 0.29 Diluted Earnings Per Share is calculated as follows: Dec 31, 2022 Net income attributable to common shareholders $ 6,451,503 Deemed Dividends of Series C Preferred Stock 173,499 Deemed Dividends of Series D Preferred Stock 60,800 Adjusted Diluted Earnings $ 6,685,802 Weighted average number of share outstanding - Basic 19,456,765 Series C Preferred Stock Common Stock Equivalent 2,643,081 Series D Preferred Stock Common Stock Equivalent 790,400 Weighted average number of share outstanding - Diluted 22,890,246 Diluted Earnings Per Share $ 0.29 |
Related Party Transactions | Related Party Transactions FASB ASC 850 "Related Party Disclosures" requires companies to include in their consolidated financial statements disclosures of material related party transactions. The Company discloses all material related party transactions. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. |
Significant Judgments, Estimates and Assumptions | Significant Judgments, Estimates and Assumptions The preparation of financial statements in accordance with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period. These judgments, estimates and assumptions are regularly evaluated and are based on management’s experience and knowledge of the relevant facts and circumstances. While management believes the estimates to be reasonable, actual results could differ from those estimates and could impact future results of operations and cash flows. The areas which require significant judgment and estimates that management has made at the financial reporting date, that could result in a material change to the carrying amounts of assets and liabilities, in the event actual results differ from the assumptions made, relate to, but are not limited to the following: Significant judgments: • the determination of income tax is inherently complex and requires making certain estimates and assumptions about future events; • quantitative and qualitative factors used in the assessment of impairment of the Company’s mineral property; • the analysis of resource calculations, drill results, etc. which can impact the Company’s assessment of impairment, and provisions, if any, for environmental rehabilitation and restoration; and The valuation of derivatives liabilities requires management to determine the most appropriate valuation model and inputs to the valuation model. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” , which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of the adoption of this new guidance on our Consolidated Financial Statements and related disclosures. |
Nature of Activities and Sign_3
Nature of Activities and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Exchange Rates Used in Preparation of Financial Statements | December 31, 2023 December 31, 2022 Current exchange rate Pesos 16.97 19.48 Weighted average exchange rate for the year ended Pesos 17.23 20.11 |
Schedule of Earnings Per Share | Years ended December 31, 2023 2022 Net income (loss) attributable to common shareholders $ ( 14,767,803 ) $ 6,451,503 Shares: Weighted average number of common shares outstanding, Basic 22,705,923 19,456,765 Weighted average number of common shares outstanding, Diluted 22,705,923 22,890,246 Basic earnings (loss) per share $ ( 0.65 ) $ 0.33 Diluted earnings (loss) per share $ ( 0.65 ) $ 0.29 |
Schedule of Diluted Earnings Per Share | Dec 31, 2022 Net income attributable to common shareholders $ 6,451,503 Deemed Dividends of Series C Preferred Stock 173,499 Deemed Dividends of Series D Preferred Stock 60,800 Adjusted Diluted Earnings $ 6,685,802 Weighted average number of share outstanding - Basic 19,456,765 Series C Preferred Stock Common Stock Equivalent 2,643,081 Series D Preferred Stock Common Stock Equivalent 790,400 Weighted average number of share outstanding - Diluted 22,890,246 Diluted Earnings Per Share $ 0.29 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INVENTORIES | |
Inventories | 2023 2022 Mined Tonnage $ 2,061,149 $ 2,610,116 Gold-Silver Concentrates 28,045 110,695 Total Inventories $ 2,089,194 $ 2,720,811 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY AND EQUIPMENT | |
Schedule of Property and Equipment | Property and equipment consists of the following as of December 31, 2023 and 2022: 2023 2022 Leasehold improvements $ 21,274 $ 9,340 Office equipment 42,483 31,012 Office furniture and fixtures 24,453 78,802 Other 27,063 — Sub-total 115,273 119,154 Less: Accumulated depreciation and amortization ( 12,239 ) ( 119,154 ) Total Property and Equipment $ 103,034 $ - |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | As of December 31, 2023 and 2022, the Company had the following accrued liabilities: December 31, December 31, 2023 2022 Accrued interest $ 2,352,869 $ 1,532,971 Accrued mining expenses 2,104,938 1,138,698 Accrued payroll taxes 1,122,644 920,685 Other accrued liabilities 2,147,170 2,164,607 Total accrued liabilities $ 7,727,621 $ 5,756,961 |
Derivative Liabilities (Tables)
Derivative Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVE LIABILITIES | |
Summary of Inputs valuation to be Level 3 in Fair Value | The Company considered the inputs in this valuation to be level 3 in the fair value hierarchy under ASC 820 and used the Black-Scholes model to determine the value of conversion feature of the Warrants issued with the notes convertible into Series D Preferred Stock based on the assumptions below: 2023 2022 Annual volatility rate 123 % 116 % Risk free rate 4.23 % 4.41 % Remaining term 6.37 years 7.37 years Fair value of common stock $ 2.02 $ 2.44 |
Summary of Change in the Fair Value of the Derivative Liability | The below table represents the change in the fair value of the derivative liability during the years ended December 31, 2023 and 2022. Year Ended 2023 2022 Fair value of derivative (warrants), beginning of year $ 2,172,417 $ 1,559,103 Exercise of warrants — — Change in fair value of derivative ( 375,076 ) 613,314 Fair value of derivative (warrants), end of year $ 1,797,341 $ 2,172,417 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
STOCKHOLDERS EQUITY | |
Summary of Warrants Outstanding | As of December 31, 2023, the Company had a total of 892,165 warrants outstanding. Weighted Weighted Average Average Exercise Remaining Number Price Contractual Intrinsic of Shares per share Life (Years) Value Balance at December 31, 2021 3,060,998 $ 1.46 2.79 — Exercise of the 2015 warrant ( 2,166,775 ) 2.04 — Forfeiture of the 2015 warrant ( 2,058 ) — — Balance at December 31, 2022 892,165 $ 0.01 7.37 — Exercise of warrants — — — Forfeiture of the warrants — — — Balance at December 31, 2023 892,165 $ 0.01 6.37 — Exercisable at December 31, 2023 892,165 $ 0.01 6.37 — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Deferred Tax Assets | December 31, December 31, 2023 2022 Deferred Tax Assets: Federal net operating loss carryforwards $ 1,389,426 $ 509,711 Foreign net operating loss carryforwards 6,288,045 2,459,782 Lease liability 195,275 — Accrued bonus 105,240 — Other 185,867 917 Gross Deferred Tax Assets 8,163,853 2,970,410 Valuation allowance ( 3,468,858 ) — Total Deferred Tax Asset 4,694,995 2,970,410 Deferred Tax Liabilities: Right of use asset ( 178,253 ) — Other ( 252,627 ) — Total Deferred Tax Liabilities ( 430,880 ) — Net Deferred Tax Asset $ 4,264,115 $ 2,970,410 Deferred Tax Liability $ 334,236 $ - |
Summary of Pre-Tax Income (Loss) | The Company's pre-tax income (loss) by jurisdiction was as follows for the years ending December 31, 2023 and 2022 December 31, December 31, 2023 2022 Domestic $ ( 3,925,864 ) $ 3,221,618 Foreign ( 11,540,379 ) 883,774 Total $ ( 15,466,243 ) $ 4,105,392 |
Income Tax Provision | The provision for income taxes for continuing operations for the year ended December 31, 2023 and 2022 consist of the following December 31, December 31, 2023 2022 Current income taxes Federal $ ( 148,666 ) $ 220,000 State — — Foreign ( 170,000 ) 170,000 Total current income taxes $ ( 318,666 ) $ 390,000 Deferred income taxes Federal $ ( 983,296 ) $ ( 510,629 ) State — — Foreign 369,223 ( 2,459,781 ) Total deferred income taxes $ ( 614,073 ) $ ( 2,970,410 ) Total income tax benefit $ ( 932,739 ) $ ( 2,580,410 ) December 31, December 31, 2023 2022 Tax Expense at statutory federal rate of 21% $ ( 3,247,911 ) $ 808,560 Permanent differences ( 118,773 ) 927,343 Foreign rate differential ( 1,038,635 ) 56,580 Return to provision ( 274,501 ) — GILTI NOL impact — 145,913 GILTI NOL adjustment – previously offset by valuation allowance — 7,781,388 Change in valuation allowance 3,468,858 ( 12,328,462 ) Statutory to GAAP 278,223 — Other — 28,268 Income tax benefit $ ( 932,739 ) $ ( 2,580,410 ) |
Schedule of Cumulative Net Operating Loss Carryforward | The net deferred tax asset and benefit for the current year is generated primarily from cumulative net operating loss carryforward, which totals approximately $ 28 million at December 31, 2023. December 31, December 31, 2023 2022 United States Expiring 2029 to 2037 $ - $ - United States Indefinite Limited to 80% 6,578,856 2,800,000 Foreign NOLs 21,742,318 8,200,000 Total Net Operating Loss Carryforward $ 28,321,174 $ 11,000,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
Lease Expense | The Company’s components of lease expense are as follows: Year Ended Operating Lease – Office Lease $ 99,627 Operating Lease – Ground Lease 94,074 Short Term Lease Costs 18,570 Variable Lease Costs 154,917 TOTAL $ 367,188 Weighted average remaining lease term and weighted average discount rate are as follows: Weighted Average Remaining Lease Term (Years) – Operating Leases 6.96 Weighted Average Discount Rate – Operating Leases 12.50 % Estimated future minimum lease obligations are as follow for the years ending December 31: YEAR 2024 $ 216,046 2025 221,426 2026 226,903 2027 211,191 2028 109,058 Thereafter 469,946 Total 1,454,570 Less Imputed Interest ( 524,691 ) OPERATING LEASE LIABILITY $ 929,879 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value of assets and liabilities | As of December 31, 2023 and 2022, the Company’s financial assets were carried at fair value and were measured at fair value using Level 3 inputs, with the exception of cash, which was valued using Level 1 inputs. A description of the valuation of the Level 3 inputs is discussed in Note 10. Quoted Prices Significant Significant Fair Value Measurement at December 31, 2023: (Level 1) (Level 2) (Level 3) Liabilities: Derivative Liabilities $ 1,797,341 - - $ 1,797,341 Totals $ 1,797,341 $ - $ - $ 1,797,341 Fair Value Measurement at December 31, 2022: Liabilities: Derivative Liabilities $ 2,172,417 - - $ 2,172,417 Totals $ 2,172,417 $ - $ - $ 2,172,417 |
Installment Notes Payable (Tabl
Installment Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INSTALLMENT NOTES PAYABLE | |
Summary of Installment Notes Payable Transaction | The following is a summary of the transaction during the years ended December 31, 2023, and December 31, 2022: Balance December 31, 2021 $ 1,962,525 Exchange Rate Adjustment 100,424 2022 Principal Payments ( 94,698 ) Balance December 31, 2022 1,968,251 Exchange Rate Adjustment 291,181 2023 Principal Payments — Balance December 31, 2023 $ 2,259,432 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Change in Asset Retirement Obligation | December 31, December 31, 2023 2022 Asset retirement obligation at beginning of year $ - $ - Additions to ARO liability 198,468 — Asset retirement obligation at end of year $ 198,468 $ - |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Schedule of Geographic Concentrations | The Company operates as one segment: test-mining and pilot milling gold-silver concentrate for sale from its location in Mexico, and had the following geographic concentrations as of December 31, 2023 and 2022: Mexico United States Total December 31, 2023 Mineral property $ 4,132,678 $ - $ 4,132,678 Property and equipment — 103,034 103,034 Current assets 8,475,858 5,669,642 14,145,500 Other assets 15,271,752 1,785,386 17,057,138 Total assets $ 27,880,288 $ 7,558,062 $ 35,438,350 December 31, 2022 Mineral property $ 4,132,678 $ - $ 4,132,678 Property and equipment — — — Current assets 23,272,128 9,851,827 33,123,955 Other assets 3,092,483 593,796 3,686,279 Total assets $ 30,497,289 $ 10,445,623 $ 40,942,912 Period Ended December 31, 2023 December 31, 2022 Total comprehensive income (loss) for the year - Mexico $ ( 11,249,628 ) $ 3,559,456 Total comprehensive income (loss) for the year - United States ( 2,698,254 ) 3,486,089 Total comprehensive income (loss) for the year $ ( 13,947,882 ) $ 7,045,545 |
Nature of Activities and Sign_4
Nature of Activities and Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Segment shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 shares | |
Amortization of lease term | 52 months | ||
Bank Deposite Excess Of Fdic Limit | $ 5,250,603 | ||
Cash equivalents | 0 | $ 0 | |
Currency Transaction Gains (losses) | (45,177) | 58,426 | |
Deferred Contract Revenue | $ 9,350,000 | $ 9,250,000 | |
Warrants outstanding | shares | 892,165 | 892,165 | 3,060,998 |
Derivative liability correction amount | $ 2,334,377 | ||
Derivative liabilities | $ 1,797,341 | 2,172,417 | |
Accrued liabilities | 2,169,128 | 316,757 | |
Accrued liabilities correction amount | 96,757 | ||
Net income (loss) attributable to common shareholders | $ (14,767,803) | 6,451,503 | |
Net income (loss) attributable to common shareholders correction amount | $ 6,744,654 | ||
Number of operating segments | Segment | 1 | ||
DynaResource de Mexico, S.A. de C.V | |||
Ownership Percentage | 100% | ||
DynaResource Operaciones S.A. de C.V | |||
Ownership Percentage | 100% | ||
Mineras de DynaResource S.A. de C.V | |||
Ownership Percentage | 100% | ||
Mexico | |||
Ownership Percentage | 100% | ||
Minimum | Leasehold Improvements | |||
Property Estimate Useful Life | 3 years | ||
Maximum | Leasehold Improvements | |||
Property Estimate Useful Life | 5 years | ||
Series C Preferred Stock | |||
Outstanding dividends convertible into shares of common Stock | shares | 2,853,721 | ||
Series D Preferred Stock | |||
Outstanding dividends convertible into shares of common Stock | shares | 820,800 |
Nature of Activities and Sign_5
Nature of Activities and Significant Accounting Policies - Exchange Rates Used in Preparation of Financial Statements (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Current exchange rate | 16.97 | 19.48 |
Weighted average exchange rate for the year ended | 17.23% | 20.11% |
Nature of Activities and Sign_6
Nature of Activities and Significant Accounting Policies - Schedule of Potentially Dilutive Common Shares Included in Weighted Average Diluted Shares Outstanding (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Net income (loss) attributable to common shareholders | $ (14,767,803) | $ 6,451,503 |
Shares: | ||
Weighted average number of common shares outstanding, Basic | 22,705,923 | 19,456,765 |
Diluted weighted average number of common shares outstanding, | 22,705,923 | 22,890,246 |
Basic earnings (loss) per share | $ (0.65) | $ 0.33 |
Diluted earnings (loss) per share | $ (0.65) | $ 0.29 |
Nature of Activities and Sign_7
Nature of Activities and Significant Accounting Policies - Schedule of Diluted Earnings Per Share (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Accounting Policies [Abstract] | |
Net income attributable to common sharholders | $ | $ 6,451,503 |
Deemed Dividends of Series C Preferred Stock | $ | 173,499 |
Deemed Dividends of Series D Preferred Stock | $ | 60,800 |
Adjusted Diluted Earnings, | $ | $ 6,685,802 |
Weighted average number of share outstanding - Basic | shares | 19,456,765 |
Series C Perferred Stock Common Stock Equivalent | shares | 2,643,081 |
Series D Perferred Stock Common Stock Equivalent | shares | 790,400 |
Weighted average number of share outstanding - Diluted | shares | 22,890,246 |
Diluted Earnings Per Share | $ / shares | $ 0.29 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Total Inventories | $ 2,089,194 | $ 2,720,811 |
Mined Tonnage [Member] | ||
Total Inventories | 2,061,149 | 2,610,116 |
GoldSilver Concentrates [Member] | ||
Total Inventories | $ 28,045 | $ 110,695 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Sub-total | $ 115,273 | $ 119,154 |
Less: Accumulated depreciation and amortization | (12,239) | (119,154) |
Total Property and Equipment | 103,034 | 0 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | 21,274 | 9,340 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | 42,483 | 31,012 |
Office furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | 24,453 | 78,802 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Sub-total | $ 27,063 | $ 0 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT | ||
Depreciation and amortization expense | $ 12,239 | $ 2,729 |
Mining Concessions - Additional
Mining Concessions - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Mining Concessions [Abstract] | ||
Mining concessions | $ 4,132,678 | $ 4,132,678 |
Depletion expense | $ 0 | $ 0 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued interest | $ 2,352,869 | $ 1,532,971 |
Accrued mining expenses | 2,104,938 | 1,138,698 |
Accrued payroll taxes | 1,122,644 | 920,685 |
Other accrued liabilities | 2,147,170 | 2,164,607 |
Total accrued liabilities | $ 7,727,621 | $ 5,756,961 |
Derivative Liabilities - Additi
Derivative Liabilities - Additional Information (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2020 | May 14, 2020 |
Derivative [Line Items] | |||
Exercise price | $ 2.04 | ||
Convertible Promissory Notes | |||
Derivative [Line Items] | |||
Convertible promissory notes that bore interest rate | 10% | ||
Series D Preferred Stock | |||
Derivative [Line Items] | |||
Exercise price | $ 0.01 | $ 0.01 | |
2020 Warrants | |||
Derivative [Line Items] | |||
Warrants expiry term | 10 years |
Derivative Liabilities - Summar
Derivative Liabilities - Summary of Inputs valuation to be Level 3 in Fair Value (Details) - Preferred Series D Warrant - Level 3 | Dec. 31, 2023 | Dec. 31, 2022 |
Annual Volatility Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 1.23 | 1.16 |
Risk Free Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0423 | 0.0441 |
Remaining Term | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Remaining Term | 6 years 4 months 13 days | 7 years 4 months 13 days |
Fair Value of Common Stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0202 | 0.0244 |
Derivative Liabilities - Summ_2
Derivative Liabilities - Summary of Change in the Fair Value of the Derivative Liability (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Exercise of warrants | $ 0 | $ (5,416,935) |
Preferred Series D Warrant | ||
Fair Value of Derivative, Beginning Balance | 2,172,417 | 1,559,103 |
Exercise of warrants | 0 | 0 |
Change in fair value of derivative | (375,076) | 613,314 |
Fair Value of Derivative, Ending Balance | $ 1,797,341 | $ 2,172,417 |
Advance Credit Line Facility__2
Advance Credit Line Facility/Customer Advances - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Aug. 17, 2023 | Jun. 29, 2023 | May 18, 2023 | Mar. 31, 2023 | Feb. 21, 2023 | Dec. 28, 2022 | Dec. 31, 2023 | Sep. 29, 2023 | May 01, 2021 | Feb. 04, 2021 | |
Debt Disclosure Abstract | ||||||||||
Revolving credit line facility amount | $ 3,750 | |||||||||
Amount increased revenue percentage | 80% | |||||||||
Maximum advance line | $ 17,500 | |||||||||
Delivery percentage | 100% | |||||||||
Revolving credit line facility interest free term | 45 days | |||||||||
Revolving credit line facility deliveries of concentrates or cash free term | 120 days | |||||||||
Description of line of credit | Beginning in September 2023, up to $10 million of the ACL advance may be converted into a one-year installment loan bearing interest at 3M SOFR + 7.5% and amortized as follows: Month 1, interest only; Month 2-11, 5% principal plus interest; and Month 12, final 50% principal plus interest. | |||||||||
Advances from buyers | $ 10,750 | $ 10,000 | $ 9,850 | $ 9,200 | $ 9,600 | $ 9,350 | ||||
Conversion of advance to note payable | $ 9,750 | |||||||||
Advances settlement date from buyers | Sep. 16, 2023 | Aug. 14, 2023 | Jun. 28, 2023 | May 17, 2023 | Mar. 31, 2023 | Feb. 16, 2023 | ||||
Advance credit line facility, converted to installment note | Converted to a one year note payable on December 1, 2023. (Note 8). |
Notes Payable - Additional Info
Notes Payable - Additional Information (Details) | Dec. 01, 2023 USD ($) |
NOTES PAYABLE | |
Notes payable outstanding amount | $ 9,750,000 |
Installment Notes Payable - Add
Installment Notes Payable - Additional Information (Details) - USD ($) | 1 Months Ended | ||||
Oct. 31, 2019 | Feb. 28, 2019 | Jun. 30, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | |
Installment Notes Payable [Line Items] | |||||
Initial financing agreement amount | $ 335,350 | ||||
Financing agreement, amount | $ 299,474 | $ 1,739,392 | |||
Initial payment amount | $ 59,895 | $ 67,070 | $ 347,826 | ||
Initial payment percentage rate | 20% | 20% | 20% | ||
Remaining finance balance term over the period | 36 months | 36 months | 36 months | ||
Remaining finance balance term over the period percentage rate | 22% | 22% | 22% | ||
Accrued interest | $ 2,352,869 | $ 1,532,971 | |||
Reduction in the volume of mining concession | In June 2018, the Company applied for a reduction of the Francisco Arturo mining concession, from 69,121 hectares to 3,280 hectares. | ||||
Reduction in the value of initial payment amount in pesos | $ 985,116 | ||||
Reduction in the value of initial payment amount | $ 22,500 | ||||
Accrued Liabilities [Member] | |||||
Installment Notes Payable [Line Items] | |||||
Accrued interest | $ 2,244,771 |
Installment Notes Payable - Sum
Installment Notes Payable - Summary of Installment Notes Payable Transaction (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INSTALLMENT NOTES PAYABLE | ||
Installment notes payable, beginning balance | $ 1,968,251 | $ 1,962,525 |
Exchange Rate Adjustment | 291,181 | 100,424 |
Principal Payments | 0 | (94,698) |
Installment notes payable, ending balance | $ 2,259,432 | $ 1,968,251 |
Asset Retirement Obligation - A
Asset Retirement Obligation - Additional Information (Details) | Dec. 31, 2023 USD ($) |
Asset Retirement Obligation Disclosure [Abstract] | |
Estimated undiscounted costs | $ 316,800 |
Credit-adjusted risk-free interest rate | 9.20% |
Asset Retirement Obligation - S
Asset Retirement Obligation - Schedule of Change in Asset Retirement Obligation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation at beginning of year | $ 0 | $ 0 |
Additions to ARO liability | 198,468 | 0 |
Asset retirement obligation at end of year | $ 198,468 | $ 0 |
Convertible Promissory Notes -
Convertible Promissory Notes - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Jul. 01, 2022 | Oct. 31, 2019 | Feb. 28, 2019 | Jun. 30, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 01, 2023 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 59,895 | $ 67,070 | $ 347,826 | |||||
Notes payable outstanding amount | $ 9,750,000 | |||||||
Notes Payable - Series I [Member] | April and May 2013 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 1,495,000 | |||||||
Conversion of stock, amount converted | $ 0 | 340,000 | ||||||
Proceed from debt instrument | $ 1,155,000 | |||||||
Simple interest rate | 12.50% | |||||||
Common shares received upon conversion, to purchase additional common shares | $ 7.5 | |||||||
Debt instrument maturity date | Dec. 31, 2015 | |||||||
Notes payable outstanding amount | $ 455,905 | |||||||
Unpaid principal and accrued interest into common stock | $ 2.5 | |||||||
Number of stock warrants issue | 0 | |||||||
Notes Payable - Series I [Member] | 2013 and 2014 [Member] | Additional Note Agreements [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Simple interest rate | 12.50% | |||||||
Common shares received upon conversion, to purchase additional common shares | $ 7.5 | |||||||
Debt instrument maturity date | Dec. 31, 2015 | |||||||
Notes payable outstanding amount | $ 87,374 | |||||||
Conversion rate into common stock | $ 2.5 | |||||||
Notes payable | $ 199,808 | $ 250,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||||
Aug. 04, 2023 | Apr. 19, 2023 | Oct. 07, 2021 | May 14, 2020 | Dec. 28, 2022 | Jun. 28, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Oct. 18, 2021 | Dec. 31, 2020 | Dec. 31, 2007 | |
Capital stock authorized issue | 60,001,000 | ||||||||||||
Preferred stock, par value | $ 0.0001 | ||||||||||||
Amount recieved from preferred right | $ 784,500 | ||||||||||||
Repaid amount under preferred right | 744,500 | ||||||||||||
Current balance, preferred right | $ 40,000 | $ 40,000 | |||||||||||
Number of shares issued for purchase of warrants | 2,166,527 | ||||||||||||
Common stock share used for settlement of fees | 25,000 | ||||||||||||
Treasury stock transactions | $ 0 | ||||||||||||
Treasury stock outstanding | 37,180 | 12,180 | |||||||||||
Common stock, shares authorized | 40,000,000 | 40,000,000 | |||||||||||
Common stock, shares issued | 1,000,000 | 23,371,708 | 22,246,654 | ||||||||||
Common stock, par value | $ 5 | $ 0.01 | $ 0.01 | ||||||||||
Common stock, shares outstanding | 23,371,708 | 22,246,654 | |||||||||||
Stock compensation expense | $ 881,250 | $ 881,250 | |||||||||||
Warrants outstanding | 892,165 | 892,165 | 3,060,998 | ||||||||||
Exercise price | $ 2.04 | ||||||||||||
Common Stock | |||||||||||||
Issuance of anti-dilution shares | 125,054 | ||||||||||||
Common stock, par value | $ 0.01 | ||||||||||||
Series C Senior Convertible Preferred Stock | |||||||||||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |||||||||||
Preferred stock, shares authorized | 1,734,992 | 1,734,992 | |||||||||||
Preferred stock shares outstanding | 1,734,992 | 1,734,992 | |||||||||||
Preferred stock, shares issued | 1,734,992 | 1,734,992 | |||||||||||
Description of 2015 warrant | Attached to the Series C Preferred Stock issued in 2015 were 2,000,000 warrants (the “2015 Warrant”), which gave the holder the right to purchase common shares at $2.50 per share. After anti-dilution protection, these warrants became 2,166,527 warrants to purchase common shares at $2.04 and on June 28, 2022, the 2015 Warrant was exercised and the common shares were issued. | ||||||||||||
Series A Preferred Stock | |||||||||||||
Preferred stock, par value | $ 0.0001 | ||||||||||||
Preferred stock, shares designated | 1,000 | ||||||||||||
Preferred stock, shares authorized | 0 | 1,000 | |||||||||||
Preferred stock shares outstanding | 0 | 1,000 | |||||||||||
Preferred stock, shares issued | 0 | 1,000 | 1,000 | ||||||||||
Series A Preferred Stock | Chief Executive Officer | |||||||||||||
Repurchased stock | $ 1,250,000 | ||||||||||||
Preferred Stock Undesignated | |||||||||||||
Preferred stock, par value | $ 0.0001 | ||||||||||||
Preferred stock, shares designated | 1,734,992 | ||||||||||||
Preferred stock, additional shares authorized | 15,266,008 | ||||||||||||
Preferred stock shares outstanding | 0 | 0 | |||||||||||
Series C Preferred Stock | |||||||||||||
Preferred stock, shares designated | 1,734,992 | ||||||||||||
Deemed dividends | $ 234,299 | $ 234,299 | |||||||||||
Issuance of anti-dilution shares | 125,054 | ||||||||||||
Exercise of warrant | 2,166,775 | ||||||||||||
Common stock, par value | $ 2.04 | ||||||||||||
Common stock purchase | 2,655,361 | ||||||||||||
Series C Senior Preferred Stock | |||||||||||||
Shares dividend receive per annum | 4% | ||||||||||||
Total arrears on dividend | $ 1,227,276 | $ 1,053,777 | |||||||||||
Preferred stock shares outstanding | 1,734,992 | 1,734,992 | |||||||||||
Number of shares issued for purchase of warrants | 2,000,000 | ||||||||||||
Conversion price per shares | $ 1.95 | ||||||||||||
Common stock acquired | 2,655,361 | ||||||||||||
Dividend payable | $ 4,337,480 | ||||||||||||
Exercise price | $ 2.5 | ||||||||||||
Series D Preferred Stock | |||||||||||||
Preferred stock, shares designated | 3,000,000 | ||||||||||||
Total arrears on dividend | $ 121,600 | ||||||||||||
Number of shares issued for purchase of warrants | 1,260,633 | ||||||||||||
Preferred stock, shares issued | 760,000 | ||||||||||||
Dividend payable per annum | 4% | ||||||||||||
Dividend payable | $ 1,520,000 | ||||||||||||
Convertible note into preferred stock | $ 1,520,000 | ||||||||||||
Convertible note into preferred stock | $ 4,020,000 | ||||||||||||
Convertible note into preferred stock price per share | $ 2 | ||||||||||||
Deemed dividends | $ 234,299 | $ 234,299 | |||||||||||
Convertible note repurchase amount | $ 2,500,000 | ||||||||||||
Common stock, shares issued | 368,468 | ||||||||||||
Common stock, par value | $ 0.01 | ||||||||||||
Common stock purchase | 368,468 | ||||||||||||
Exercise price | $ 0.01 | $ 0.01 | |||||||||||
Stockholder Equity | |||||||||||||
Preferred stock, shares authorized | 20,001,000 | ||||||||||||
Stock Issuances | |||||||||||||
Common stock, shares issued | 2,166,775 | ||||||||||||
Exercise of warrant | 2,655,361 | ||||||||||||
Common stock, par value | $ 2.04 | ||||||||||||
Stock compensation expense | $ 881,250 | $ 881,250 | |||||||||||
Description of stock issuances | stock awards approved vested 25% immediately with the remainder vesting 25% each year on December 28 for the next three years, subject to resignation or termination provisions. |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Warrants Outstanding (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
STOCKHOLDERS EQUITY | |||
Number of Shares, Beginning Balance | 892,165 | 3,060,998 | |
Number of Shares, Exercise | 0 | (2,166,775) | |
Number of Shares, Forfeiture | 0 | (2,058) | |
Number of Shares, Ending Balance | 892,165 | 892,165 | 3,060,998 |
Number of Shares, Exercisable | 892,165 | ||
Weighted Average Exercise Price per Share, Beginning Balance | $ 0.01 | $ 1.46 | |
Weighted Average Exercise Price per Share, Excercise | 0 | 2.04 | |
Weighted Average Exercise Price per Share, Forfeiture | 0 | 0 | |
Weighted Average Exercise Price per Share, Ending Balance | 0.01 | $ 0.01 | $ 1.46 |
Weighted Average Exercise Price per Share, Exercisable | $ 0.01 | ||
Weighted Average Remaining Contractual Life, Beginning Balance | 2 years 9 months 14 days | ||
Weighted Average Remaining Contractual Life, Ending Balance | 6 years 4 months 13 days | 7 years 4 months 13 days | |
Weighted Average Remaining Contractual Life, Exercisable | 6 years 4 months 13 days | ||
Intrinsic Value, Forfeiture | $ 0 | $ 0 | |
Intrinsic Value, Excercisable | $ 0 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets: | ||
Lease liability | $ 195,275 | $ 0 |
Accrued bonus | 105,240 | 0 |
Other | 185,867 | 917 |
Gross Deferred Tax Assets | 8,163,853 | 2,970,410 |
Valuation allowance | (3,468,858) | 0 |
Total deferred tax asset | 4,694,995 | 2,970,410 |
Deferred Tax Liabilities: | ||
Right of use asset | (178,253) | 0 |
Other | (252,627) | 0 |
Total Deferred Tax Liabilities | (430,880) | 0 |
Net deferred tax assets | 4,264,115 | 2,970,410 |
Deferred Tax Liability | 334,236 | |
Federal [Member] | ||
Deferred Tax Assets: | ||
Net Operating Loss Carryforwards | 1,389,426 | 509,711 |
Foreign [Member] | ||
Deferred Tax Assets: | ||
Net Operating Loss Carryforwards | $ 6,288,045 | $ 2,459,782 |
Income Taxes - Summary of Pre-T
Income Taxes - Summary of Pre-Tax Income (Loss) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INCOME TAXES | ||
Domestic | $ (3,925,864) | $ 3,221,618 |
Foreign | (11,540,379) | 883,774 |
NET INCOME BEFORE TAXES | $ (15,466,243) | $ 4,105,392 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current income taxes | ||
Federal | $ (148,666) | $ 220,000 |
State | 0 | 0 |
Foreign | (170,000) | 170,000 |
Total current income taxes | (318,666) | 390,000 |
Deferred income taxes | ||
Federal | (983,296) | (510,629) |
State | 0 | 0 |
Foreign | 369,223 | (2,459,781) |
Total deferred income taxes | (614,073) | (2,970,410) |
INCOME TAXES BENEFIT | $ (932,739) | $ (2,580,410) |
Income Taxes - Schedule of Cumu
Income Taxes - Schedule of Cumulative Net Operating Loss Carryforward (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INCOME TAXES | ||
Tax Expense at statutory federal rate | $ (3,247,911) | $ 808,560 |
Permanent differences | (118,773) | 927,343 |
Foreign rate differential | (1,038,635) | 56,580 |
Return to provision | (274,501) | 0 |
GILTI NOL impact | 0 | 145,913 |
GILTI NOL adjustment - previously offset by valuation allowance | 0 | 7,781,388 |
Change in valuation allowance | 3,468,858 | (12,328,462) |
Statutory to GAAP | 278,223 | 0 |
Other | 0 | 28,268 |
Total income tax benefit | $ (932,739) | $ (2,580,410) |
Income Taxes - Schedule of Cu_2
Income Taxes - Schedule of Cumulative Net Operating Loss Carryforward (Details1) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Total Net Operating Loss Carryforward | $ 28,321,174 | $ 11,000,000 |
United States Expiring 2029 to 2037 | ||
Total Net Operating Loss Carryforward | 0 | 0 |
United States Indefinite Limited to 80Percent | ||
Total Net Operating Loss Carryforward | 6,578,856 | 2,800,000 |
Foreign NOLs | ||
Total Net Operating Loss Carryforward | $ 21,742,318 | $ 8,200,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carry-forward | $ 28 |
Foreign net operating losses | 21.7 |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards, pre-tax, not subject to expiration | $ 6.6 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Short Term Lease Costs | $ 18,570 |
Variable Lease Costs | 154,917 |
Total | 367,188 |
Office Lease | |
Operating Lease | 99,627 |
Ground Lease | |
Operating Lease | $ 94,074 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details 1) | Dec. 31, 2023 |
COMMITMENTS AND CONTINGENCIES | |
Weighted Average Remaining Lease Term (Years) -- Operating Leases | 6.96% |
Weighted Average Discount Rate -- Operating Leases | 12.50% |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Details 2) | Dec. 31, 2023 USD ($) |
COMMITMENTS AND CONTINGENCIES | |
2024 | $ 216,046 |
2025 | 221,426 |
2026 | 226,903 |
2027 | 211,191 |
2028 | 109,058 |
Thereafter | 469,946 |
Total | 1,454,570 |
Less Imputed Interest | (524,691) |
OPERATING LEASE LIABILITY | $ 929,879 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 12 Months Ended | ||
Jan. 06, 2014 | Dec. 31, 2023 MXN ($) | Dec. 31, 2023 USD ($) | |
Concession taxes, description | the Company does not anticipate that DynaMéxico will have any difficulties meeting the minimum annual expenditures for the concessions ($388 – $2,400 Mexican Pesos per hectare). DynaMéxico retains sufficient carryforward amounts to cover over 10 years of the minimum expenditure (as calculated at the 2017 minimum, adjusted for annual inflation of 4%). | the Company does not anticipate that DynaMéxico will have any difficulties meeting the minimum annual expenditures for the concessions ($388 – $2,400 Mexican Pesos per hectare). DynaMéxico retains sufficient carryforward amounts to cover over 10 years of the minimum expenditure (as calculated at the 2017 minimum, adjusted for annual inflation of 4%). | |
Description of arbitration proceeding against Mineras | In 2020, Mercuria Energy Trading, S.A. (“Mercuria”) initiated an arbitration proceeding against Mineras de Dynaresource, S.A. de C.V. (“Mineras”), arising out of the earlier-terminated supply agreement between the parties. In January 2022, The arbitration panel awarded Mercuria the sum of US$1,822,674, plus interest at 2% over the quarterly compounded USD 3- month LIBOR rate, from February 2020 forward. In August 2022, the panel also assessed costs of the arbitration proceeding against Mineras, in the aggregate amount of £ 376,232. DynaResource has accrued $1,000,000 for the arbitration award and related costs. | In 2020, Mercuria Energy Trading, S.A. (“Mercuria”) initiated an arbitration proceeding against Mineras de Dynaresource, S.A. de C.V. (“Mineras”), arising out of the earlier-terminated supply agreement between the parties. In January 2022, The arbitration panel awarded Mercuria the sum of US$1,822,674, plus interest at 2% over the quarterly compounded USD 3- month LIBOR rate, from February 2020 forward. In August 2022, the panel also assessed costs of the arbitration proceeding against Mineras, in the aggregate amount of £ 376,232. DynaResource has accrued $1,000,000 for the arbitration award and related costs. | |
DynaMineras | |||
Lease payment annually | $ 1,359,443 | ||
Rent expense | $ 4,414,124 | ||
Land Lease Agreement | |||
Land area | 4,399 hectares | ||
Lease agreement term | 20 years | ||
Rent expense | $ 249,000 | ||
Land Lease Agreement | DynaMineras | |||
Land area | 4,399 hectares | 4,399 hectares |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 28, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Stock compensation expense | $ 881,250 | $ 881,250 | |
Deferred compensation | $ 1,762,500 | ||
Vested portion of the total stock value | 25% | 25% | |
Closing stock price | $ 2.35 | ||
Restricted Stock [Member] | |||
Shares vested at issuance | 25% | ||
Shares vested at additional | 25% | ||
Issued shares of common stock | 1,500,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair value of assets and liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Liabilities: | ||
Derivative Liabilities | $ 1,797,341 | $ 2,172,417 |
Total Liabilities | 1,797,341 | 2,172,417 |
Level 1 | ||
Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 2 | ||
Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 3 | ||
Liabilities: | ||
Derivative Liabilities | 1,797,341 | 2,172,417 |
Total Liabilities | $ 1,797,341 | $ 2,172,417 |
Concentrations - Additional Inf
Concentrations - Additional Information (Details) - Customer Concentration Risk - One Customer | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts Receivable | ||
Concentration of risk | 100% | 100% |
Revenue | ||
Concentration of risk | 100% | 100% |
Segmented Information - Additio
Segmented Information - Additional Information (Details) - Segment | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Number of Operating Segments | 1 | |
Mexico | Test-Mining and Pilot Milling Gold-Silver Concentrate | ||
Segment Reporting Information [Line Items] | ||
Number of Operating Segments | 1 | 1 |
Segmented Information - Schedul
Segmented Information - Schedule of Geographic Concentrations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Total Property and Equipment | $ 103,034 | $ 0 |
Current assets | 14,145,500 | 33,123,955 |
Other assets | 175,588 | 165,396 |
TOTAL ASSETS | 35,438,350 | 40,942,912 |
Total comprehensive income (loss) for the year | (13,947,882) | 7,045,545 |
Geographic Concentrations | ||
Mineral property | 4,132,678 | 4,132,678 |
Total Property and Equipment | 103,034 | |
Current assets | 14,145,500 | 33,123,955 |
Other assets | 17,057,138 | 3,686,279 |
TOTAL ASSETS | 35,438,350 | 40,942,912 |
Mexico | ||
Total comprehensive income (loss) for the year | (11,249,628) | 3,559,456 |
Mexico | Geographic Concentrations | ||
Mineral property | 4,132,678 | 4,132,678 |
Current assets | 8,475,858 | 23,272,128 |
Other assets | 15,271,752 | 3,092,483 |
TOTAL ASSETS | 27,880,288 | 30,497,289 |
United States | ||
Total comprehensive income (loss) for the year | (2,698,254) | 3,486,089 |
United States | Geographic Concentrations | ||
Total Property and Equipment | 103,034 | |
Current assets | 5,669,642 | 9,851,827 |
Other assets | 1,785,386 | 593,796 |
TOTAL ASSETS | $ 7,558,062 | $ 10,445,623 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts payable | $ 2,768,634 | $ 2,057,880 |
Stock based compensation | $ 881,250 | 881,250 |
Restricted Stock [Member] | ||
Shares issued as compensation | 1,500,000 | |
Immediate Vesting [Member] | Restricted Stock [Member] | ||
Stock awards vested percentage | 25% | |
Vesting for Next Three Years [Member] | Restricted Stock [Member] | ||
Stock awards vested percentage | 25% | |
Officers And Directors [Member] | ||
Awarded shares | 1,175,000 | |
Director [Member] | ||
Board compensation and management fees expense | $ 370,000 | 75,000 |
Related Party [Member] | ||
Accounts payable | 100,734 | |
Related Party [Member] | Restricted Stock [Member] | ||
Stock based compensation | $ 690,313 | $ 690,313 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - $ / shares | Feb. 19, 2024 | Dec. 31, 2023 | Aug. 04, 2023 | Dec. 31, 2022 |
Common stock, Shares | 23,371,708 | 1,000,000 | 22,246,654 | |
Subsequent Event [Member] | 2024 Equity Incentive Plan [Member] | ||||
Equity incentive plan term | 10 years | |||
Common stock, Shares | 2,700,000 | |||
Strike price of options issued | $ 5 | |||
Stock options vesting percentage | 25% | |||
Subsequent Event [Member] | 2024 Equity Incentive Plan [Member] | Stock Option Awards [Member] | ||||
Stock options issued during the period | 400,000 |