What changed in this filing

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Item 1. Financial Statements

2023-11-06 compared with 2023-08-14 · 106 added, 74 removed, 339 unchanged (35% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets (Unaudited)

September 30,

Current assets:

27 unchanged sentences

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

June 30, 2023- 12,256,523 and December 31, 2022- 12,098,070 shares issued and outstanding

September 30, 2023- 12,256,523 and December 31, 2022- 12,098,070 shares issued and outstanding

Accumulated deficit

8 unchanged sentences

Condensed Consolidated Statements of Operations (Unaudited)

June 30, 2023

June 30, 2022

For the Three and Nine-Month Periods Ended September 30, 2023 and 2022

September 30, 2023

September 30, 2022

Sales of products

4 unchanged sentences

Total costs of sales

Gross profit (loss)

Other operating expenses:

5 unchanged sentences

( 1,888,044 )

( 3,160,931 )

Other (income) expense:

8 unchanged sentences

( 1,909,424 )

( 3,234,742 )

Net loss attributable to non-controlling interest

9 unchanged sentences

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

For the Three and Six-Month Periods Ended June 30, 2023 and 2022

Common Stock Shares

Common Stock Amount

Attributable to

Idaho Strategic Resources, Inc

Non-Controlling Interest

For the Three and Nine-Month Periods Ended September 30, 2023 and 2022

Accumulated Deficit

Attributable to Idaho

Resources, Inc

Non-Controlling

Stockholders’

15 unchanged sentences

( 17,107,155 )

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

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 )

Balance January 1, 2023

9 unchanged sentences

( 17,979,992 )

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

Net income (loss)

Balance September 30, 2023

$ ( 17,559,313 )

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

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the Six-Month Periods Ended June 30, 2023 and 2022

For the Nine-Month Periods Ended September 30, 2023 and 2022

September 30,

Cash flows from operating activities:

3 unchanged sentences

Depreciation and amortization

Loss on disposal of equipment

Loss (gain) on disposal of equipment

Accretion of asset retirement obligation

Stock based compensation

Issuance of common stock for services

Gain on forgiveness of SBA loan

Loss in investment in equity securities

Loss on investment in equity securities

Equity income on investment in Buckskin

9 unchanged sentences

Purchases of property, plant, and equipment

( 1,145,186 )

Deposits on equipment

1 unchanged sentence

Purchase of reclamation bonds

Refund of reclamation bonds

Additions to mineral property

1 unchanged sentence

Net cash used by investing activities

( 1,065,507 )

( 1,787,414 )

Cash flows from financing activities:

22 unchanged sentences

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 consolidated financial position and results of operations.

Operating results for the three and six-month periods ended June 30, 2023, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2023.

Operating results for the three and nine-month periods ended September 30, 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.

33 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 June 30, 2023, the Company had equity securities measured at fair value using level 1 quoted prices and no liabilities required measurement at fair value.

At September 30, 2023, the Company had equity securities measured at fair value using level 1 quoted prices and 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.

14 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 June 30, 2023, and December 31, 2022, the Company's 37 % common stock holding of Buckskin Gold and Silver, Inc.

At September 30, 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 June 30, 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:

June 30, 2023

At September 30, 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:

September 30, 2023

December 31, 2022

1 unchanged sentence

Significant Influence?

Accounting Method

Significant Influence?

Accounting Method

Butte Highlands Joint Venture (“BHJV”)

17 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 June 30, 2023 and December 31, 2022, the Company’s inventories consisted of the following:

At September 30, 2023 and December 31, 2022, the Company’s inventories consisted of the following:

September 30,

Concentrate inventory

9 unchanged sentences

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 June 30, 2023, metals that had been sold but not finally settled included 5,223 ounces of which 4,276 ounces were sold at a predetermined price with the remaining 947 exposed to future price changes.

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

At September 30, 2023, metals that had been sold but not finally settled included 6,512 ounces of which 4,182 ounces were sold at a predetermined price with the remaining 2,330 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 six-month periods ended June 30, 2023 and 2022 were as follows:

June 30, 2023

June 30, 2022

Sales of products by metal type for the three and nine-month periods ended September 30, 2023 and 2022 were as follows:

September 30, 2023

September 30, 2022

Smelter and refining charges

Sales by significant product type for the three and six-month periods ended June 30, 2023, and 2022 were as follows:

June 30, 2023

June 30, 2022

Concentrate sales to H&H Metal

Sales by significant product type for the three and nine-month periods ended June 30, 2023, and 2022 were as follows:

September 30, 2023

September 30, 2022

Concentrate sales to H&H Metals

Dore sales to refinery

At June 30, 2023 and December 31, 2022, our gold sales receivable balance related to contracts with customers of $ 840,288 and $ 909,997 , respectively, consist only of amounts due from H&H Metal.

At September 30, 2023 and December 31, 2022, our gold sales receivable balance related to contracts with customers of $ 1,127,604 and $ 909,997 , respectively, consist only of amounts due from H&H Metals.

There is no allowance for doubtful accounts.

2 unchanged sentences

The Company paid the remaining amount due to Ophir Holdings on May 10, 2023.

This payment resulted in a negative net interest charge for the three and six-months ended June 30, 2023.

Related party interest expense for the three and six-months ended June 30, 2023 and 2022 is as follows.

June 30, 2023

June 30, 2022

This payment resulted in a negative net interest charge for the nine-months ended September 30, 2023.

Related party interest expense for the three and nine-months ended September 30, 2023 and 2022 is as follows.

September 30, 2023

September 30, 2022

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 and approximately $ 1,700 is paid quarterly to Mine Systems Design which is partially owned by the Company’s 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 and six-months ended June 30, 2023 and 2022 are as follows:

June 30, 2023

June 30, 2022

Payments under these short-term lease arrangements are included in general and administrative expenses on the Consolidated Statement of Operations and for the three and nine-months ended September 30, 2023 and 2022 are as follows:

September 30, 2023

September 30, 2022

Joint Ventures

2 unchanged sentences

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

At June 30, 2023 and December 31, 2022, an account receivable existed with Crescent Silver, LLC, the other joint venture participant (“Crescent”), for $ 1,554 and $ 1,926 , respectively, for shared operating costs as defined in the JV agreement.

At September 30, 2023 and December 31, 2022, an account receivable existed with Crescent Silver, LLC, the other joint venture participant (“Crescent”), for $ 1,637 and $ 1,926 , respectively, for shared operating costs as defined in the JV agreement.

Butte Highlands JV, LLC (“BHJV”)

10 unchanged sentences

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

June 30, 2023

June 30, 2022

September 30, 2023

September 30, 2022

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

1 unchanged sentence

Stock purchase warrants

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

Potentially dilutive shares excluded from diluted net income (loss) per share as inclusion would have an antidilutive effect:

Stock options

1 unchanged sentence

Property, Plant, and Equipment

Property, plant and equipment at June 30, 2023 and December 31, 2022 consisted of the following:

Property, plant and equipment at September 30, 2023 and December 31, 2022 consisted of the following:

September 30,

Less accumulated depreciation

8 unchanged sentences

Mineral Properties

Mineral properties at June 30, 2023 and December 31, 2022 consisted of the following:

Mineral properties at September 30, 2023 and December 31, 2022 consisted of the following:

September 30,

Mineral Property

6 unchanged sentences

Mineral Properties (continued)

For the three and six-month periods ended June 30, 2023 and 2022, interest expense was capitalized in association with the ramp access project at the Golden Chest as follows.

June 30, 2023

June 30, 2022

For the three and nine-month periods ended September 30, 2023 and 2022, interest expense was capitalized in association with the ramp access project at the Golden Chest as follows.

September 30, 2023

September 30, 2022

Investment in Buckskin

The investment in Buckskin is being accounted for using the equity method and resulted in recognition of equity income on the investment of $ 1,007 and $ 1,357 for the respective three and six-month periods ended June 30, 2023 and $ 339 and $ 670 in 2022 for the respective three and six month periods ended June 30, 2022.

The investment in Buckskin is being accounted for using the equity method and resulted in recognition of equity income on the investment of $ 1,608 and $ 2,965 for the respective three and nine-month periods ended September 30, 2023, and $ 542 and $ 1,213 in 2022 for the respective three and nine-month periods ended September 30, 2022.

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

As of June 30, 2023, the Company holds 37 % of Buckskin’s outstanding shares.

As of September 30, 2023, the Company holds 37 % of Buckskin’s outstanding shares.

Notes Payable

At June 30, 2023 and December 31, 2022, notes payable are as follows:

At September 30, 2023 and December 31, 2022, notes payable are as follows:

September 30, 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

23 unchanged sentences

Due after one year

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

Future principal payments of notes payable at September 30, 2023 are as follows:

12 months ended September 30,

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

Notes Payable (continued)

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

Future principal payments of notes payable at June 30, 2023 are as follows:

12 months ended June 30,

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

2 unchanged sentences

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

No shares were issued in the second quarter of 2023.

No shares were issued in the second or third quarter of 2023.

The Company closed a private placement in February 2022.

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

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 .

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

In the nine-months ended September 30, 2022, the Company sold 138,665 shares of common stock for net proceeds of $ 980,107 .

In the nine-months ended September 30, 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 .

Also, in the nine-months ended September 30, 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.

Stock Purchase Warrants Outstanding

In the six months ended June 30, 2022, 93,976 shares of common stock were issued in exchange for outstanding warrants for net proceeds of $ 465,453 .

In the nine-months ended September 30, 2022, 194,869 shares of common stock were issued in exchange for outstanding warrants for net proceeds of $ 1,030,158 .

The activity in stock purchase warrants is as follows:

1 unchanged sentence

$ 2.52 - 7 .00

Exercised quarter 1, 2022

Exercised quarter 2, 2022

Exercised in remainder of 2022

Balance December 31, 2022 and June 30, 2023

$ 2.52 - 5.60

Balance December 31, 2022 and September 30, 2023

$ 5.60 - 7 .00

These warrants expire as follows:

3 unchanged sentences

November 12, 2023

These outstanding warrants were amended and extended on October 12, 2023, see note 14.

Stock Options

There were no stock options granted during the six months ended June 30, 2023 or 2022.

There were no stock options granted during the nine-months ended September 30, 2023.

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.

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

Weighted Average Exercise Prices

Average Exercise

Balance December 31, 2021

Exercised quarter 1, 2022

Exercised quarter 2, 2022

Expired quarter 2, 2022

Exercised in remainder of 2022

Balance December 31, 2022 and June 30, 2023

Outstanding and exercisable at June 30, 2023

At June 30, 2023, outstanding stock options have a weighted average remaining term of approximately 1.31 years and have an intrinsic value of $ 21,810 .

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

Balance December 31, 2022

Outstanding and exercisable at September 30, 2023

At September 30, 2023, outstanding stock options have a weighted average remaining term of approximately 1.07 years and have an intrinsic value of $ 4,350 .

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

Subsequent Events

On October 12, 2023, IDR amended and restated warrants issued in private placements completed in October and November of 2021.

The amended and restated warrants extended the exercise period of the warrants for an additional one year.

The October 2021 private placement issued warrants gave the holders the right to purchase a total of 235,722 shares of common stock at an exercise price of $ 5.60 per share.

The expiration date of the warrants was extended from October 15, 2023 to October 15, 2024.

The November 2021 private placement issued warrants gave the holders the right to purchase a total of 53,572 shares of common stock at an exercise price of $ 7 .00 per share.

The expiration date of the warrants was extended from November 12, 2023 to November 12, 2024.

There were no other changes in the terms of the warrants.

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