What changed in this filing

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Item 1. Financial Statements

2023-05-15 compared with 2022-11-14 · 120 added, 212 removed, 269 unchanged (55% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets (Unaudited)

September 30,

Current assets:

2 unchanged sentences

Joint venture receivable

Investment in equity securities

Other current assets

2 unchanged sentences

Mineral properties, net of accumulated amortization

Investment in Buckskin

Investment in Buckskin Gold and Silver

Investment in joint venture

4 unchanged sentences

Accrued payroll and related payroll expenses

Notes payable related parties, current portion

Note payable related parties, current portion

Notes payable, current portion

Small Business Administration loan, current portion

Total current liabilities

Asset retirement obligation

Notes payable related parties, long term

Convertible debt

Note payable related parties, long term

Notes payable, long term

Small Business Administration loan, long term

Total long-term liabilities

5 unchanged sentences

Common stock, no par value, 200,000,000 shares authorized;

September 30, 2022- 12,098,070 and December 31, 2021- 10,940,969 shares issued and outstanding

March 31, 2023- 12,256,523 and December 31, 2022- 12,098,070 shares issued and outstanding

Accumulated deficit

5 unchanged sentences

Total liabilities and stockholders’ equity

The accompanying notes are an integral part of these consolidated financial statements.

The accompanying notes are an integral part of these condensed consolidated financial statements.

Idaho Strategic Resources, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

For the Three and Nine-Month Periods Ended September 30, 2022 and 2021

September 30, 2022

September 30, 2021

For the Three-Month Periods Ended March 31, 2023 and 2022

Sales of products

4 unchanged sentences

Total costs of sales

Gross profit (loss)

Other operating expenses:

1 unchanged sentence

General and administrative

Loss on disposal of equipment

Loss on sale of equipment

Total other operating expenses

Operating loss

( 1,888,044 )

( 3,160,931 )

( 1,894,656 )

Operating income (loss)

Other (income) expense:

1 unchanged sentence

Timber revenue net of costs

Gain on forgiveness of SBA loan

Unrealized gain on equity security

Interest income

1 unchanged sentence

Total other (income) expense

( 1,909,424 )

( 3,234,742 )

( 2,040,843 )

Net income (loss)

Net loss attributable to non-controlling interest

Net loss attributable to Idaho Strategic Resources, Inc

$ ( 1,894,419 )

$ ( 3,168,619 )

$ ( 219,345 )

Net income (loss) attributable to Idaho Strategic Resources, Inc

$ ( 455,602 )

Net loss per common share-basic and diluted

Weighted average common shares outstanding-basic and diluted

The accompanying notes are an integral part of these consolidated financial statements.

Net income (loss) per common share-basic

Weighted average common share outstanding-basic

Net income (loss) per common share-diluted

Weighted average common shares outstanding- diluted

The accompanying notes are an integral part of these condensed consolidated financial statements.

Idaho Strategic Resources, Inc

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited)

For the Nine-Month Periods Ended September 30, 2022 and 2021

Common Stock Shares

Common Stock Amount

For the Three-Month Periods Ended March 31, 2023 and 2022

Accumulated Deficit Attributable to Idaho Strategic Resources, Inc

Non-Controlling Interest

Stockholders’ Equity

Balance January 1, 2022

$ ( 15,832,955 )

Contribution from non-controlling interest in Mill JV

Issuance of common stock for services

Options issued to management, directors, and employees

Options issued for services

Issuance of common stock for cashless option exercise

( 1,646,487 )

( 1,662,404 )

Balance March 31, 2021

$ ( 14,319,273 )

Contribution from non-controlling interest in Mill JV

Contribution from non-controlling interest in New Jersey Mill Joint Venture

Issuance of common stock for cash, net of offering costs

Issuance of common stock for services

2 unchanged sentences

Conversion of convertible debt to common stock

Balance June 30, 2021

$ ( 14,428,461 )

Contribution from non-controlling interest in Mill JV

Issuance of common stock for investment in Buckskin

Conversion of convertible debt to common stock

Balance September 30, 2021

Balance March 31, 2022

$ ( 16,288,557 )

1 unchanged sentence

$ ( 18,368,384 )

Contribution from non-controlling interest in Mill JV

Contribution from non-controlling interest in New Jersey Mill Joint Venture

Issuance of common stock for cash, net of offering costs

Issuance of common stock for services

Issuance of common stock for warrants exercised

Issuance of common stock for cashless option exercise

Conversion of convertible debt to common stock

Net income (loss)

Balance March 31, 2023

$ ( 18,307,785 )

Contribution from non-controlling interest in Mill JV

Issuance of common stock for cash, net of offering costs

Issuance of common stock for warrants exercised

Issuance of common stock for cashless option exercise

Balance June 30, 2022

$ ( 17,107,155 )

Contribution from non-controlling interest in Mill JV

Issuance of common stock for warrants exercised

Options issued to management, directors, and employees

Issuance of common stock for cashless option exercise

( 1,894,419 )

( 1,909,424 )

Balance September 30, 2022

$ ( 19,001,574 )

The accompanying notes are an integral part of these consolidated financial statements.

The accompanying notes are an integral part of these condensed consolidated financial statements.

Idaho Strategic Resources, Inc

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the Nine-Month Periods Ended September 30, 2022 and 2021

September 30,

For the Three-Month Periods Ended March 31, 2023 and 2022

Cash flows from operating activities:

$ ( 3,234,742 )

Net income (loss)

$ ( 473,069 )

Adjustments to reconcile net loss to net cash used by operating activities:

Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:

Depreciation and amortization

Disposal of equipment

Accretion of asset retirement obligation

Stock based compensation

Loss on sale of equipment

Issuance of common stock for services

Gain on forgiveness of SBA loan

Equity income on investment in Buckskin

5 unchanged sentences

Accrued payroll and related payroll expenses

Net cash used by operating activities

( 2,007,155 )

Net cash provided (used) by operating activities

Cash flows from investing activities:

Purchases of property, plant, and equipment

( 1,145,186 )

Deposits on equipment

Proceeds from sale of equipment

Additions to mineral property

( 2,346,181 )

Purchase of reclamation bonds

Purchase of equity securities

Net cash used by investing activities

( 1,787,414 )

( 2,684,936 )

Cash flows from financing activities:

Proceeds from sale of common stock, net of offering cost

Proceeds from common stock warrants

Proceeds from exercise of common stock warrants

Principal payments on notes payable

Principal payments on notes payable, related parties

Issuance of convertible debt

Contributions from non-controlling interest

1 unchanged sentence

Net change in cash and cash equivalents

( 2,058,758 )

Cash and cash equivalents, beginning of period

1 unchanged sentence

Non-cash investing and financing activities:

Deposit on equipment applied to purchase

Notes payable for land and equipment purchase

Notes payable for equipment purchased

Deposit on equipment paid by lender

Conversion of convertible debt to common stock

Investment in Buckskin acquired with issuance of common stock

The accompanying notes are an integral part of these consolidated financial statements.

Deposit applied to equipment

The accompanying notes are an integral part of these condensed consolidated financial statements.

Idaho Strategic Resources, Inc

Notes to Consolidated Financial Statements (Unaudited)

Notes to Condensed Consolidated Financial Statements (Unaudited)

The Company and Significant Accounting Policies

These unaudited interim consolidated financial statements have been prepared by the management of Idaho Strategic Resources, Inc (IDR) (the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information.

These unaudited interim condensed consolidated financial statements have been prepared by the management of Idaho Strategic Resources, Inc (IDR) (the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information.

Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements.

In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair statement of the interim consolidated financial statements have been included.

In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair statement of the interim condensed consolidated financial statements have been included.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period.

1 unchanged sentence

accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's financial position and results of operations.

Operating results for the three and nine-periods ended September 30, 2022, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022.

On December 6, 2021, New Jersey Mining Company changed its name to Idaho Strategic Resources Inc.

and also finalized a 1 for 14 reverse stock split of its common stock as previously approved by shareholders at a Special Meeting of the Shareholders held on October 6, 2021.

On the date of the reverse stock split, every fourteen (14) shares of New Jersey Mining Company were automatically converted into one issued and outstanding share of Idaho Strategic Resources, Inc.

common stock without any change in the par value per share.

All disclosure of share information within the financial statements reflects the reverse split.

For further information refer to the financial statements and footnotes thereto in the Company’s audited consolidated financial statements for the year ended December 31, 2021, as filed with the Securities and Exchange Commission.

Operating results for the three-month period ended March 31, 2023, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2023.

For further information refer to the financial statements and footnotes thereto in the Company’s audited consolidated financial statements for the year ended December 31, 2022, in the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 31, 2023.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its majority-owned subsidiary, the New Jersey Mill Joint Venture (“NJMJV”).

The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiary, the New Jersey Mill Joint Venture (“NJMJV”).

Intercompany accounts and transactions are eliminated.

11 unchanged sentences

See Note 4 for more information on our sales of products.

Other Revenue Recognition -Revenue from harvest of raw timber is recognized when the performance obligation under a contract and transfer of control of the timber have both been completed.

Other Revenue Recognition -Revenue from harvest of raw timber is recognized when the performance obligation under a contract and transfer of the timber have both been completed.

Sales of timber found on the Company’s mineral properties are not a part of normal operations.

3 unchanged sentences

Supplies inventory is stated at the lower of cost or estimated net realizable value.

Idaho Strategic Resources, Inc

Notes to Consolidated Financial Statements (Unaudited)

The Company and Significant Accounting Policies (continued)

Mine Exploration and Development Costs

5 unchanged sentences

Amortization of deferred development costs is calculated using the units-of-production method over the expected life of the operation based on the estimated recoverable mineral ounces.

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

The Company and Significant Accounting Policies (continued)

Fair Value Measurements

4 unchanged sentences

The amount of the total gains or losses for the period that are included in earnings are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date.

At September 30, 2022, and December 31, 2021, the Company had no assets or liabilities that required measurement at fair value on a recurring basis.

At March 31, 2023, the Company had marketable equity securities measured at fair value using level 1 quoted prices, no liabilities required measurement at fair value.

At December 31, 2022, the Company had no assets or liabilities that required measurement at fair value on a recurring basis.

Accounting for Investments in Joint Ventures and Equity Method Investments

10 unchanged sentences

If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period.

At September 30, 2022, and December 31, 2021, the Company’s 37% common stock holding of Buckskin Gold and Silver , Inc.

At March 31, 2023, and December 31, 2022, the Company's 37 % common stock holding of Buckskin Gold and Silver, Inc.

is accounted for using the equity method (Note 10).

At September 30, 2022 and December 31, 2021, the Company’s percentage ownership and method of accounting for each joint venture and equity method investment is as follows:

September 30, 2022

At March 31, 2023 and December 31, 2022, the Company’s percentage ownership and method of accounting for each joint venture and equity method investment is as follows:

March 31, 2023

December 31, 2022

9 unchanged sentences

Reclassifications had no effect on net loss, stockholders’ equity, or cash flows as previously reported.

Idaho Strategic Resources, Inc

Notes to Consolidated Financial Statements (Unaudited)

Investments in Equity Securities

Investments in equity securities are generally measured at fair value.

Unrealized gains and losses for equity securities resulting from changes in fair value are recognized in current earnings.

If an equity security does not have a readily determinable fair value, we may elect to measure the security at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer.

At the end of each reporting period, we reassess whether an equity investment security without a readily determinable fair value qualifies to be measured at cost less impairment, consider whether impairment indicators exist to evaluate if an equity investment security is impaired and, if so, record an impairment loss.

At the end of each reporting period, unrealized gains and losses resulting from changes in fair value are recognized in current earnings.

Upon sale of an equity security, the realized gain or loss is recognized in current earnings.

The Company and Significant Accounting Policies (continued)

New Accounting Pronouncement

Accounting Standards Updates Adopted- In August 2020, the FASB issued ASU No.

2020 - 06 Debt with Conversion and Other Options (Subtopic 470 - 20 ) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815 - 40 ):

Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.

The update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity.

The update is effective for fiscal years beginning after December 15, 2023 for smaller reporting companies, including interim periods within those fiscal years and with early adoption permitted.

The early adoption of this update on January 1, 2022, did not have a material impact on our consolidated financial statements.

Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

Going Concern

2 unchanged sentences

As a result of its planned production, equity sales and potential debt borrowings or restructurings, management believes cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the next 12 months.

At September 30, 2022 and December 31, 2021, the Company’s inventories consisted of the following:

September 30,

At March 31, 2023 and December 31, 2022, the Company’s inventories consisted of the following:

March 31, 2023

December 31, 2022

Concentrate inventory

6 unchanged sentences

Total supplies inventory

The carrying value of inventory is determined each period based on the lower of cost or net realizable value.

At September 30, 2022 and December 31, 2021 gold concentrate is carried at cost.

Sales of Products

Our products consist of both gold flotation concentrates which we sell to a single broker (H&H Metal), and an unrefined gold-silver product known as doré which we sell to a precious metal refinery.

At September 30, 2022, metals that had been sold but not final settled thus exposed to future price changes totaled 3,685 ounces of gold.

At March 31, 2023, metals that had been sold but not finally settled included 5,844 ounces of which 4,500 ounces were sold at a predetermined price with the remaining 1,344 exposed to future price changes.

The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable.

Sales of products by metal type for the three and nine-month periods ended September 30, 2022 and 2021 were as follows:

September 30, 2022

September 30, 2021

Sales of products by metal type for the three-month periods ended March 31, 2023 and 2022 were as follows:

Smelter and refining charges

Sales by significant product type for the three and nine-month periods ended September 30, 2022, and 2021 were as follows:

September 30, 2022

September 30, 2021

Sales by significant product type for the three-month periods ended March 31, 2023, and 2022 were as follows:

Concentrate sales to H&H Metal

Dore sales to refinery

At September 30, 2022 and December 31, 2021, our gold sales receivable balance related to contracts with customers of $ 428,755 and $ 408,187 , respectively, consist only of amounts due from H&H Metal.

At March 31, 2023 and December 31, 2022, our gold sales receivable balance related to contracts with customers of $ 1,342,390 and $ 909,997 , respectively, consist only of amounts due from H&H Metal.

There is no allowance for doubtful accounts.

Idaho Strategic Resources, Inc

Notes to Consolidated Financial Statements (Unaudited)

Notes to Condensed Consolidated Financial Statements (Unaudited)

Related Party Transactions

At September 30, 2022 and December 31, 2021, the Company had the following note payable to related parties:

September 30,

At March 31, 2023 and December 31, 2022, the Company had the following note payable to related parties:

Ophir Holdings LLC, a company owned by two officers of the Company, 3.99% interest, monthly payments of $1,250 with a balloon payment of $39,854 in February 2025

1 unchanged sentence

Long term portion

As of September 30, 2022 and December 31, 2021, there was no accrued interest payable to related parties.

Related party interest expense for the three and nine-months ended September 30, 2022 and 2021 is as follows.

September 30, 2022

September 30, 2021

As of March 31, 2023 and December 31, 2022, there was no accrued interest payable to related parties.

Related party interest expense for the three-months ended March 31, 2023 and 2022 is as follows.

The Company leases office space from certain related parties on a month-to-month basis.

$ 1,500 per month is paid to NP Depot, a company owned by the Company’s president, John Swallow.

Payments under these short-term lease arrangements are included in general and administrative expenses on the Consolidated Statement of Operations and are as follows:

September 30, 2022

September 30, 2021

$ 1,500 per month is paid to NP Depot, a company owned by the Company’s president, John Swallow and approximately $ 1,700 is paid quarterly to Mine Systems Design which is partially owned by the Company’ vice president Grant Brackebusch.

Payments under these short-term lease arrangements are included in general and administrative expenses on the Consolidated Statement of Operations and for the three-months ended March 31, 2023 and 2022 are as follows:

Joint Ventures

2 unchanged sentences

Thus, the venture is included in the consolidated financial statements along with presentation of the non-controlling interest.

At September 30, 2022 and December 31, 2021, an account receivable existed with Crescent Silver, LLC, the other joint venture participant (“Crescent”), for $ 1,682 and $ 4,442 , respectively, for shared operating costs as defined in the JV agreement.

At March 31, 2023 and December 31, 2022, an account receivable existed with Crescent Silver, LLC, the other joint venture participant (“Crescent”), for $ 3,527 and $ 1,926 , respectively, for shared operating costs as defined in the JV agreement.

Butte Highlands JV, LLC (“BHJV”)

On January 29, 2016, the Company purchased a 50% interest in Butte Highlands JV, LLC (“BHJV”) from Timberline Resources Corporation for $225,000 in cash and 3,000,000 restricted shares of the Company’s common stock valued at $210,000 for a total consideration of $435,000 .

On January 29, 2016, the Company purchased a 50% interest in Butte Highlands JV, LLC (“BHJV”) for a total consideration of $ 435,000 .

Highland Mining, LLC (“Highland”) is the other 50 % owner and manager of the joint venture.

3 unchanged sentences

Earnings per Share

For the three and nine-month periods ended September 30, 2022, and 2021, potentially dilutive shares including outstanding stock options (Note 13), warrants (Note 12), and convertible debt (Note 14) were excluded from the computation of diluted loss per share because they were anti-dilutive due to net losses in those periods.

For the three and nine-month periods ended September 30, 2022 and 2021, potentially dilutive common stock equivalents excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:

September 30,

Net income (loss) per share is computed by dividing the net amount excluding net income (loss) attributable to a non-controlling interest by the weighted average number of common shares outstanding during the period.

Diluted net income (loss) per share reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities.

Such common stock equivalents are included or excluded from the calculation of diluted net income (loss) per share for each period as follows:

March 31, 2023

March 31, 2022

Incremental shares included in diluted net income (loss) per share

Stock options

Stock purchase warrants

Convertible debt

Excluded in diluted net income (loss) per share as inclusion would have an antidilutive effect:

Stock options

Stock purchase warrants

Idaho Strategic Resources, Inc

Notes to Consolidated Financial Statements (Unaudited)

Notes to Condensed Consolidated Financial Statements (Unaudited)

Property, Plant, and Equipment

Property, plant and equipment at September 30, 2022 and December 31, 2021 consisted of the following:

September 30,

Property, plant and equipment at March 31, 2023 and December 31, 2022 consisted of the following:

March 31, 2023

December 31, 2022

Less accumulated depreciation

6 unchanged sentences

Total building and equipment

Salmon Building

Salmon property

Mineral Properties

Mineral properties at September 30, 2022 and December 31, 2021 consisted of the following:

September 30,

Mineral properties at March 31, 2023 and December 31, 2022 consisted of the following:

Mineral Property

3 unchanged sentences

Less accumulated amortization

For the three and nine-month periods ended September 30, 2022 and 2021 interest expense was capitalized in association with the ramp access project at the Golden Chest as follows.

September 30, 2022

September 30, 2021

Idaho Strategic Resources, Inc

Notes to Consolidated Financial Statements (Unaudited)

For the three-month periods ended March 31, 2023 and 2022 interest expense was capitalized in association with the ramp access project at the Golden Chest as follows.

March 31, 2023

March 31, 2022

Investment in Buckskin

3 unchanged sentences

The Company’s closing share price on the date of the exchange (October 15, 2021) was recorded as the cost basis for the investment addition.

This investment in Buckskin is being accounted for using the equity method and resulted in recognition of equity income on the investment of $ 542 and $ 1,213 for the three- and nine-month periods ending September 30, 2022.

This investment in Buckskin is being accounted for using the equity method and resulted in recognition of equity income on the investment of $ 350 and $ 331 during the quarters ended March 31, 2023 and 2022 respectively.

The Company makes an annual payment of $ 12,000 to Buckskin per a lease covering 218 acres of patented mining claims.

As of September 30, 2022, the Company holds 37 % of Buckskin’s outstanding shares.

As of March 31, 2023, the Company holds 37 % of Buckskin’s outstanding shares.

Notes Payable

At September 30, 2022 and December 31, 2021, notes payable are as follows:

September 30,

At March 31, 2023 and December 31, 2022, notes payable are as follows:

March 31, 2023

December 31, 2022

Building in Salmon, Idaho, 60-month note payable, 7 .00% interest payable monthly through June 2027, monthly payments of $ 2,500 with a balloon payment of $ 260,886 in July 2027

2 unchanged sentences

LHD, 60-month note payable, 3.45 % interest rate payable through July 2024, monthly payments of $ 4,847

Compressor, 48-month note payable, 5.25 % interest rate payable monthly through January 2022, monthly payments of $ 813

CarryAll transport, 36-month note payable, 4.5 % interest rate payable monthly through June 2024, monthly payments of $ 627

CarryAll transport, 36-month note payable, 4.5 % interest rate payable monthly through February 2024, monthly payments of $ 303

Two CarryAll transports, 36-month note payable, 6.3 % interest rate payable monthly through May 2025, monthly payments of $ 1,515

CarryAll transport, 36-month note payable, 6.3 % interest rate payable monthly through June 2025, monthly payments of $ 866

Atlas Copco loader, 60-month note payable, 10.5 % interest rate payable monthly through June 2023, monthly payments of $ 3,550

9 unchanged sentences

2016 Dodge Ram, 75-month note payable, 5.99 % interest rate payable monthly through June 2028, monthly payments of $ 1,190

Two CarryAll transports, 36-month note payable, 6.3 % interest rate payable monthly through May 2025, monthly payments of $ 1,515

CarryAll transport, 36-month note payable, 6.3 % interest rate payable monthly through June 2025, monthly payments of $ 866

2020 Ford Transit Van, 72-month note payable, 9.24 % interest rate payable monthly through December 2028, monthly payments of $ 1,060

Total notes payable

2 unchanged sentences

Idaho Strategic Resources, Inc

Notes to Consolidated Financial Statements (Unaudited)

Notes to Condensed Consolidated Financial Statements (Unaudited)

Notes Payable;

All notes are collateralized by the property or equipment purchased in connection with each note.

Future principal payments of notes payable at September 30, 2022 are as follows:

12 months ended September 30,

In the second quarter of 2020 the Company received a loan of $ 149,900 pursuant to the Small Business Act Section 7(b).

The loan which was in the form of a Note dated May 16, 2020, matures May 16, 2050, and bears interest at a rate of 3.75 % per annum.

Payments of $ 731 are due monthly and will begin in November 2022.

At September 30, 2022, and December 31, 2021 accrued interest on the loan was $ 13,415 and $ 9,311 , respectively and is included in the Small Business Administration Loan balance on the consolidated balance sheet.

In the second quarter of 2022, it was determined that an additional $ 10,000 also received in the second quarter of 2020 was a grant that was forgiven as part of the Covid-19 relief program.

This $ 10,000 was recorded as a gain on forgiveness of the SBA loan in the statement of operations during the second quarter of 2022.

Future principal payments of notes payable at March 31, 2023 are as follows:

12 months ended March 31,

The balance of convertible debt at December 31, 2021 consisted of $ 200,000 convertible to Common shares at a price of $ 5.60 per share ( 35,715 shares) and $ 1,750,000 convertible to Common shares at a price of $ 4.90 per share ( 357,151 shares).

All of this debt was converted to Common shares as provided in the respective agreements in March 2022.

Stockholders’ Equity

1 unchanged sentence

The Company closed a private placement in February 2023.

Under the private placement, the Company sold 123,365 shares at $ 5.50 per share and 35,088 shares at $ 5.70 per share for net proceeds of $ 878,503 .

The Company closed a private placement in February 2022.

Under the private placement, the Company sold 360,134 shares at $ 7.50 per share for net proceeds of $ 2,701,000 .

In the second quarter of 2022, the Company sold 138,665 shares of common stock for net proceeds of $ 980,107 .

In the first nine months of 2022 the Company issued 3,572 shares of common stock at $ 9.05 per share for services provided for a total value of $ 32,326 .

In the first nine months of 2022, the Company issued 392,866 shares of the Company’s common stock in exchange for $ 1,950,000 of debt at $ 4.96 per share.

In the first nine months of 2021 the Company issued 1,785 shares of the Company’s common stock for services rendered at an average price of $ 3.64 for a total value of $ 6,500 .

In the first nine months of 2021 the Company issued 331,350 shares of the Company’s Stock in exchange for $ 835,000 of debt at $ 2.52 per share.

The Company issued 45,940 shares of the Company’s common stock for 22% of Buckskin Gold and Silver in August 2021 valued $192,496 .

In the first quarter of 2022 the Company issued 3,572 shares of common stock at $ 9.05 per share for services provided for a total value of $ 32,326 .

Stock Purchase Warrants Outstanding

4 unchanged sentences

$ 2.52 - 5.60

Balance December 31, 2021

$ 2.52 - 5.60

Exercised quarter 1, 2022

$ 2.52 - 5.60

Balance September 30, 2022

Exercised in remainder of 2022

Balance December 31, 2022 and March 31, 2023

$ 5.60 - 7.00

4 unchanged sentences

November 12, 2023

Idaho Strategic Resources, Inc

Notes to Consolidated Financial Statements (Unaudited)

Stock Options

In September 2022, the board granted 165,000 stock options to officers, board members, and employees.

These options vested immediately and are exercisable at $ 5.25 for 3 years.

Total stock-based compensation recognized on these options was $ 505,476 and was recognized in management, professional services, and general administrative expenses in the statement of operations.

In September 2022, the board granted an additional 15,000 total stock options, 7,500 each to our independent board members.

These options vested immediately and are exercisable at $ 4.75 for 3 years.

Total stock-based compensation recognized on these options was $ 41,799 and was recognized in management expenses in the statement of operations.

In February 2021, the board granted 283,936 stock options to officers, board members, and employees.

These options vested immediately and are exercisable at $ 5.60 for 3 years.

Total stock-based compensation recognized on these options was $ 604,571 and was recognized in management, professional services, and general administrative expenses in the statement of operations.

In March 2021, the Company granted 3,572 stock options to an individual for services rendered to the Company.

These options vested immediately and are exercisable at $ 5.60 for 3 years.

Total stock-based compensation recognized on these options was $ 9,860 and was recognized in general administrative expenses in the statement of operations.

The fair value of stock option awards granted, and the key assumptions used in the Black-Scholes valuation model to calculate the fair value of the options are as follows:

September 28,

Options issued

Exercise price

Expected term (in years)

Risk-free rate

There were no stock options granted during the three months ended March 31, 2022 or 2023.

Activity in the Company’s stock options is as follows:

Number of Options

Weighted Average Exercise Prices

Balance December 31, 2021

Balance September 30, 2022

Outstanding and exercisable at September 30, 2022

At September 30, 2022, outstanding stock options have a weighted average remaining term of approximately 2 years and have no intrinsic value.

Intrinsic value of the options exercised for the three and nine-month periods ended September 30, 2022, was $ 46,500 and $ 302,493 , respectively.

Intrinsic value of the options exercised for the nine-month period ended September 30, 2021 was $ 164,000 , none were issued in the three month period ending September 30, 2021.

Convertible Debt

All of this debt was converted to Common shares as provided in the respective agreements in March 2022

Exercised quarter 1, 2022

Exercised in remainder of 2022

Balance December 31, 2022 and March 31, 2023

Outstanding and exercisable at March 31, 2023

At March 31, 2023, outstanding stock options have a weighted average remaining term of approximately 1.58 years and have an intrinsic value of $ 1,800 .

There were no stock options exercised during the first three months of 2023.

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-Q

Item 1. Financial Statements