What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2023-04-17 compared with 2022-03-24 · 41 added, 10 removed, 62 unchanged (45% of the section changed)

3 unchanged sentences

In November 1998, the Company re-domiciled from California to Delaware and changed its name to DynaResource, Inc.

DynaUSA currently owns 80% of the outstanding shares of DynaMéxico, and DynaMéxico currently holds 20% of the outstanding shares of DynaMéxico as treasury stock.

DynaUSA currently owns 80% of the outstanding shares of DynaMéxico, 79% owned directly and 1% hold by the current CEO on behalf of the Company compliance with Mexican law and DynaMéxico currently holds 20% of the shares of DynaMéxico as treasury shares after complete foreclosure and recovery of those share on February 20, 2020 from goldgroup Resources, Inc., a wholly owned subsidiary of Goldgroup Mining Inc.

Vancouver, BC (“Goldgroup”).

DynaMéxico owns 100% of the mining concessions, equipment, camp and related facilities which comprise the San Jose de Gracía Property (“SJG”), in northern Sinaloa State, México.

9 unchanged sentences

Concentrates processed and produced from San Jose de Gracía are shipped to third-party smelters, refineries or third parties for further processing or re-sale.

During 2021, we reported the delivery and sale of 22,566 (subject to final settlements) net Oz gold contained in concentrates.

During 2022, we reported the delivery and sale of 25,554 (subject to final settlements) net Oz gold-silver contained in concentrates.

All gold-silver concentrate originated from the San Jose de Gracía Property in México.

6 unchanged sentences

The gravity and flotation concentrates are dewatered and shipped to purchasers in semi-truck trailers.

Gold and Silver Reserves / No Known Reserves

The Company currently has no mineral “reserves” as defined by SEC Industry Guide 7 promulgated by the SEC.

Exploration Stage

The Company is an exploration stage issuer as defined in Section 1300 of Regulation S-K.

General Government Regulations

Mining in México is subject to numerous federal, state and local laws, regulations and ordinances governing mineral rights, operations and environmental protection.

In Mexico, we are subject to various governmental laws and regulations, including environmental regulations.

Other than operating licenses for our mining and processing facilities and concessions granted under contracts with the host government, there are no third-party patents, licenses or franchises material to our business.

The applicable laws and regulations applicable to us include but are not limited to:

Mineral Concession Rights.

10 unchanged sentences

An Ejido may sell or lease lands directly to a private entity.

While the Company has agreements or is in the process of negotiating agreements with the Ejido that impact all of its projects in México, some of these agreements may be subject to renegotiations.

While the Company has agreements or is in the process of negotiating agreements with the Ejido that impact all of its projects in México, some of these agreements may be subject to renegotiation.

Environmental Law.

20 unchanged sentences

The Land Use Change requires that an evaluation be made of the existing conditions of the land, including a plant and wildlife study, an evaluation of the current and proposed use of the land, impacts to naturally occurring resources, and an evaluation of reclamation/re-vegetation plans.

We believe that all of our properties are operated in compliance with all applicable governmental laws and regulations and the costs of compliance are paid for on an ongoing basis.

Costs of compliance - due to the nature of our permit, we have requirements for landscape restoration which are fulfilled on an ongoing basis.

We do not have an asset retirement obligation.

We are working under a permit which required a Bond of approximately 120,000 pesos which was requested as a Forest Fund bond and does not require, other than the replanting of material, any reclamation work since we are mining underground.

The Company sells its concentrates to the buyer who offers the best terms based upon price, treatment costs, refining costs, and other terms of payment.

During the year ended December 31, 2021, the Company sold gold-silver concentrates to three purchasers.

As of December 31, 2021, we had 186 employees, including 181 employees based in México, and 5 in the United States.

Consultants are retained from time to time.

Employees based in México and the United States include laborers, engineers, geologists, information technologists, office administrators, managers and executives.

During the year ended December 31, 2022, the Company sold gold-silver concentrates to one purchaser pursuant to a Revolving Credit Line Facility and Commercial Offtake Agreement (the “RCL”).

As a result of the RCL, the Company’s financial well-being is heavily dependent on a single purchaser.

Distribution Methods

As gold and silver can be sold through numerous gold and silver market traders worldwide, the Company is not economically dependent on a limited number of customers for the sale of its product.

In 2022, we sold to one buyer that gave us the best overall terms.

Products and Raw Materials

We have no new products.

Gold concentrates is the only product we produce.

Additionally, we have no major suppliers of raw materials as the ore we mine is the most important raw material we use.

Supplementary supplies such as fuel and chemicals are in ready supply from a number of vendors.

Competitive Business Conditions

We compete with many companies in the mining and mineral exploration and production industry, including large, established mining companies with substantial capabilities, personnel, and financial resources.

There is a limited supply of desirable mineral lands available for claim-staking, lease, or acquisition in the United States, Canada, Mexico, Argentina, and other areas where we may conduct our mining or exploration activities.

We may be at a competitive disadvantage in acquiring mineral properties, since we compete with these individuals and companies, many of which have significantly greater financial resources and larger technical staffs than we do.

From time to time, specific properties or areas that would otherwise be attractive to us for exploration or acquisition may be unavailable due to their previous acquisition by other companies or our lack of financial resources.

Competition in the industry is not limited to the acquisition of mineral properties, but also extends to the technical expertise to find, advance, and operate such properties;

the labor to operate the properties;

and the capital for the purpose of funding such exploration and development.

Many competitors not only explore for and mine precious and base metals but conduct refining and marketing operations on a world-wide basis.

Such competition may result in our company not only being unable to acquire desired properties, but to recruit or retain qualified employees or to acquire the capital necessary to fund our operation and advance our properties.

Our inability to compete with other companies for these resources could have a material adverse effect on our results of operation, financial condition and cash flows.

Human Capital Resources

As of December 31, 2022, we had 200 employees in Mexico and 5 in the United States.

All our employees based in the United States work in an executive, technical or administrative position, while our employees in Mexico include management, laborers, craftsmen, mining, geologist environmental specialists, information technologists, and various other support roles.

We also frequently engage independent contractors in connection with certain administrative matters and the exploration of our properties, such as drillers, geophysicists, geologists, and other specialty technical disciplines.

For the United States, we also engage independent contractors for technical and professional expertise.

None of our employees in México are covered by union contracts and the Company believes we have good relations with our employees.

As part of our fundamental need to attract and retain talent, we regularly evaluate our compensation, benefits and employee wellness offerings.

We have determined that our compensation arrangements are competitive in the industry.

Not applicable for smaller reporting companies.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business