What changed in this filing

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Item 1. Financial Statements

2024-05-06 compared with 2023-11-06 · 161 added, 191 removed, 254 unchanged (58% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets (Unaudited)

September 30,

Current assets:

7 unchanged sentences

Mineral properties, net of accumulated amortization

Investment in Buckskin Gold and Silver

Investment in Buckskin Gold and Silver, Inc

Investment in joint venture

4 unchanged sentences

Accrued payroll and related payroll expenses

Note payable related parties, current portion

Notes payable, current portion

Total current liabilities

Asset retirement obligation

Note payable related parties, long term

Asset retirement obligations

Notes payable, long term

1 unchanged sentence

Total liabilities

Commitments (Note 11)

Stockholders’ equity:

2 unchanged sentences

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

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

March 31, 2024- 12,683,037 and December 31, 2023- 12,397,615 shares issued and outstanding

Accumulated deficit

8 unchanged sentences

Condensed Consolidated Statements of Operations (Unaudited)

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

September 30, 2023

September 30, 2022

For the Three-Month Periods Ended March 31, 2024 and 2023

Sales of products

4 unchanged sentences

Total costs of sales

Gross profit (loss)

Other operating expenses:

1 unchanged sentence

General and administrative

(Gain) loss on disposal of equipment

Loss on disposal of equipment

Total other operating expenses

Operating income (loss)

( 1,888,044 )

( 3,160,931 )

Operating income

Other (income) expense:

Equity income on investment in Buckskin

Equity income on investment in Buckskin Gold and Silver, Inc

Timber revenue net of costs

Gain on forgiveness of SBA loan

Loss on investment in equity securities

(Gain) loss on investment in equity securities

Interest income

1 unchanged sentence

Total other (income) expense

Net income (loss)

( 1,909,424 )

( 3,234,742 )

Net loss attributable to non-controlling interest

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

$ ( 1,894,419 )

$ ( 3,168,619 )

Net income (loss) per common share-basic

Net income attributable to Idaho Strategic Resources, Inc

Net income per common share-basic

Weighted average common share outstanding-basic

Net income (loss) per common share-diluted

Net income per common share-diluted

Weighted average common shares outstanding-diluted

2 unchanged sentences

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

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

Accumulated Deficit

Attributable to Idaho

Resources, Inc

Non-Controlling

Stockholders’

For the Three-Month Periods Ended March 31, 2024 and 2023

Common Stock Shares

Common Stock Amount

Accumulated Deficit Attributable to Idaho Strategic Resources, Inc

Non-Controlling Interest

Stockholders’ Equity

Balance January 1, 2023

2 unchanged sentences

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 New Jersey Mill Joint Venture

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 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, 2024

2 unchanged sentences

Issuance of common stock for cash, net of offering costs

Issuance of common stock for warrants exercised

Issuance of common stock for stock options exercise

Issuance of common stock for cashless stock options exercise

Net income (loss)

1 unchanged sentence

$ ( 15,039,529 )

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

Net income (loss)

Balance June 30, 2023

( 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 Nine-Month Periods Ended September 30, 2023 and 2022

September 30,

For the Three-Month Periods Ended March 31, 2024 and 2023

Cash flows from operating activities:

Net income (loss)

$ ( 3,234,742 )

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

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Loss (gain) on disposal of equipment

Loss 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 on investment in equity securities

Equity income on investment in Buckskin

Equity income on investment in Buckskin Gold and Silver, Inc

Change in operating assets and liabilities:

4 unchanged sentences

Accrued payroll and related payroll expenses

Net cash provided (used) by operating activities

( 2,007,155 )

Net cash provided 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

Purchase of reclamation bonds

Refund of reclamation bonds

Additions to mineral property

Purchase of equity securities

Proceeds from sale of investment in equity securities

Investment in equity securities

Net cash used by investing activities

( 1,004,815 )

( 1,787,414 )

Cash flows from financing activities:

Proceeds from sale of common stock, net of issuance cost

Proceeds from exercise of common stock warrants

Proceeds from issuance of common stock for warrants exercised

Proceeds from issuance of common stock for stock options exercised

Principal payments on notes payable

7 unchanged sentences

Deposit on equipment applied to purchase

Notes payable for equipment and land purchase

Conversion of convertible debt to common stock

Notes payable for equipment purchase

Notes payable for mineral property purchase

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

2 unchanged sentences

The Company and Significant Accounting Policies

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.

These unaudited interim condensed consolidated financial statements have been prepared by the management of Idaho Strategic Resources, Inc.

(“IDR”, “Idaho Strategic” or 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.

3 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 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.

Operating results for the three-month periods ended March 31, 2024, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024.

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, 2023, in the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 25, 2024.

23 unchanged sentences

The mine development stage begins once the Company identifies ore reserves which is based on a determination whether an ore body can be economically developed.

Expenditures incurred during the development stage are capitalized as deferred development costs and include such costs for drift, ramps, and infrastructure.

Expenditures incurred during the development stage are capitalized as deferred development costs and include such costs for drift, ramps, raises, and related infrastructure.

Costs to improve, alter, or rehabilitate primary development assets which appreciably extend the life, increase capacity, or improve the efficiency or safety of such assets are also capitalized.

7 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, 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.

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

At March 31, 2024, the Company had no assets or liabilities that required measurement at fair value on a recurring basis.

Idaho Strategic Resources, Inc

1 unchanged sentence

The Company and Significant Accounting Policies (continued)

Accounting for Investments in Joint Ventures and Equity Method Investments

Investment in Joint Ventures -For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest.

Accounting for Investments in Joint Ventures (“JV”) and Equity Method Investments

Investment in JVs -For JVs where the Company holds more than 50% of the voting interest and has significant influence, the JV is consolidated with the presentation of non-controlling interest.

In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee.

For joint ventures in which the Company does not have joint control or significant influence, the cost method is used.

For those joint ventures in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in joint ventures and its investments therein are adjusted by a similar amount.

The Company periodically assesses its investments in joint ventures for impairment.

For JVs in which the Company does not have joint control or significant influence, the cost method is used.

For those JVs in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in JVs and its investments therein are adjusted by a similar amount.

The Company periodically assesses its investments in JVs for impairment.

If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations.

4 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, 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, 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

At March 31, 2024, and December 31, 2023, the Company's 37 % common stock holding of Buckskin Gold and Silver, Inc.

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

At March 31, 2024 and December 31, 2023, the Company’s percentage ownership and method of accounting for each JV and equity method investment is as follows:

March 31, 2024

December 31, 2023

Joint Venture

Significant Influence?

Butte Highlands Joint Venture (“BHJV”)

Buckskin Gold and Silver Inc.

Accounting Method

Significant Influence?

Accounting Method

Butte Highlands JV, LLC

Reclassifications

9 unchanged sentences

New Accounting Pronouncement

Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“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.

In August 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-05, Business Combinations-Joint Venture Formations (Subtopic 805-60):

Recognition and Initial Measurement, which clarifies the business combination accounting for joint venture formations.

The amendments in the ASU seek to reduce diversity in practice that has resulted from a lack of authoritative guidance regarding the accounting for the formation of joint ventures in separate financial statements.

The amendments also seek to clarify the initial measurement of joint venture net assets, including businesses contributed to a joint venture.

The guidance is applicable to all entities involved in the formation of a joint venture.

The amendments are effective for all joint venture formations with a formation date on or after January 1, 2025.

Early adoption and retrospective application of the amendments are permitted.

We do not expect adoption of the new guidance to have a material impact on our consolidated financial statements and disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures, amending reportable segment disclosure requirements to include disclosure of incremental segment information on an annual and interim basis.

Among the disclosure enhancements are new disclosures regarding significant segment expenses that are regularly provided to the chief operating decision-maker and included within each reported measure of segment profit or loss, as well as other segment items bridging segment revenue to each reported measure of segment profit or loss.

The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and are applied retrospectively.

Early adoption is permitted.

We are currently evaluating the impact of this update on our consolidated financial statements and disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid.

The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are applied prospectively.

Early adoption and retrospective application of the amendments are permitted.

We are currently evaluating the impact of this update on our consolidated financial statements and disclosures.

Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

Going Concern

The Company is currently producing from underground at the Golden Chest Mine.

The Company is currently producing profitably from underground mining at the Golden Chest Mine.

In the past, the Company has been successful in raising required capital from sale of common stock, forward gold contracts, and debt.

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

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

September 30,

As a result of its profitable 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.

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

At March 31, 2024 and December 31, 2023, the Company’s inventories consisted of the following:

March 31, 2024

December 31, 2023

Concentrate inventory

6 unchanged sentences

Total supplies inventory

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

Sales of Products

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.

At March 31, 2024, metals that had been sold but not finally settled included 5,737 ounces of which 4,421 ounces were sold at a predetermined price with the remaining 1,316 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, 2023 and 2022 were as follows:

September 30, 2023

September 30, 2022

Sales of products by metal type for the three-month periods ended March 31, 2024 and 2023 were as follows:

Smelter and refining charges

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

Sales by significant product type for the three-month periods ended March 31, 2024, and 2023 were as follows:

Concentrate sales to H&H Metal

Dore sales to refinery

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.

At March 31, 2024 and December 31, 2023, our gold sales receivable balance related to contracts with customers of $ 1,238,474 and $ 1,038,867 , respectively, consist only of amounts due from H&H Metals.

There is no allowance for doubtful accounts.

Related Party Transactions

At December 31, 2022, the Company had a note payable to Ophir Holdings, a company owned by two officers and one former officer of the Company, with a balance of $ 75,183 of which $ 12,226 was due within one year and the remaining $ 62,957 due thereafter.

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 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

At March 31, 2024 and December 31, 2023, there were no notes payable to related parties.

On May 10, 2023, the Company paid the remaining amount due to Ophir Holdings, a company owned by two officers and one former officer of the Company.

Prior to this payment, there was a related party interest expense of $ 715 during the three-month period ended March 31, 2023 associated with this note.

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 nine-months ended September 30, 2023 and 2022 are as follows:

September 30, 2023

September 30, 2022

Joint Ventures

New Jersey Mill Joint Venture Agreement

The Company owns 65% of the New Jersey Mill Joint Venture (JV) and has significant influence in its operations .

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

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”)

$ 2,000 per month is paid to NP Depot LLC, a company owned by the Company’s president, John Swallow and approximately $ 1,700 is paid quarterly to Mine Systems Design Inc 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-months ended March 31, 2024 and 2023 are as follows:

JV Arrangements

NJMJV Agreement

The Company owns 65% of the NJMJV and has significant influence in its operations .

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

At March 31, 2024 and December 31, 2023, an account receivable existed with Crescent Silver, LLC (“Crescent”), the other JV participant, for $ 1,598 and $ 2,080 , respectively, for shared operating costs as defined in the JV agreement.

Butte Highlands JV, LLC

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.

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

Under the agreement, Highland will fund all future project exploration and mine development costs.

The agreement stipulates that Highland is manager of BHJV and will manage BHJV until such time as all mine development costs, less $ 2 million are distributed to Highland out of the proceeds from future mine production.

The Company has determined that because it does not currently have significant influence over the joint venture’s activities, it accounts for its investment on a cost basis.

The Company has determined that because it does not currently have significant influence over the JV’s activities, it accounts for its investment on a cost basis.

Idaho Strategic Resources, Inc

1 unchanged sentence

Earnings per Share

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:

September 30, 2023

September 30, 2022

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

Net income 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 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 per share for each period as follows:

March 31, 2024

March 31, 2023

Incremental shares included in diluted net income per share

Stock options

Stock purchase warrants

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

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

Stock options

1 unchanged sentence

Property, Plant, and Equipment

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

September 30,

Property, plant and equipment at March 31, 2024 and December 31, 2023 consisted of the following:

March 31, 2024

December 31, 2023

Less accumulated depreciation

8 unchanged sentences

Mineral Properties

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

September 30,

Mineral properties at March 31, 2024 and December 31, 2023 consisted of the following:

March 31, 2024

December 31, 2023

Mineral Property

2 unchanged sentences

McKinley-Monarch

Park Copper/Gold

Less accumulated amortization

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

Mineral Properties (continued)

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

In February 2024 the Company purchased the surface rights and subsequently cancelled the NSR from the previous agreement with the seller for a 169-acre parcel known as Butte Gulch adjacent to the Golden Chest.

The Company had already owned the mineral rights to this property.

The sale price was $1,001,000 of which $351,000 was paid in cash and the remaining $650,000 is payable to the seller (monthly interest only payments of $2,750 at 5% interest, for three years with a balloon payment of $650,000 at the end of the term) .

For the three-month periods ended March 31, 2024 and 2023, interest expense was capitalized in association with the ramp access project at the Golden Chest as follows.

March 31, 2024

March 31, 2023

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 $ 1,608 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 investment in Buckskin is being accounted for using the equity method and resulted in recognition of equity income on the investment of $ 1,867 and $ 350 for the respective three-month periods ended March 31, 2024 and 2023.

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

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

As of March 31, 2024, the Company holds 37 % of Buckskin’s outstanding shares.

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

Notes Payable

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

September 30, 2023

At March 31, 2024 and December 31, 2023, notes payable are as follows:

December 31, 2023

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

Butte Gulch vacant mineral property, 5.00 % interest payable monthly through January 2027, monthly interest only payments of $ 2,750 with a balloon payment of $ 650,000 in February 2027

Resemin Muki Bolter, 36-month note payable, 7.00 % interest payable monthly through January 2025, monthly payments of $ 14,821

LHD, 48-month note payable, 4.78 % interest rate payable through September 2024, monthly payments of $ 5,181

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

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

Paus 2 yd LHD, 60-month note payable, 4.78 % interest rate payable through September 2024, monthly payments of $ 5,181

Paus 2 yd LHD, 60-month note payable, 3.45 % interest rate payable through July 2024, monthly payments of $ 4,847

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

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

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

1 unchanged sentence

Two CarryAll transports, 48-month note payable, 5.9 % interest rate payable monthly through June 2027, monthly payments of $ 1,174

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

CarryAll transport, 48-month note payable, 5.9 % interest rate payable monthly through April 2028, monthly payments of $ 576

Sandvik LH203 LHD, 36-month note payable, 4.5 % interest payable monthly through May 2024, monthly payments of $ 10,352

1 unchanged sentence

Doosan Compressor, 36-month note payable, 6.99 % interest payable monthly through July 2024, monthly payments of $ 602

Komatsu WX04 LHD, 24-month note payable, 8.24 % interest rate payable monthly through April 2026, monthly payments of $ 16,642

Caterpillar 306 excavator, 48-month note payable, 4.6 % interest payable monthly through November 2024, monthly payments of $ 1,512

Caterpillar 938 loader, 60-month note payable, 6.8 % interest rate payable monthly through August 2023, monthly payments of $ 3,751

Caterpillar R1600 LHD, 48-month note payable, 4.5 % interest rate payable through January 2025, monthly payments of $ 17,125

Caterpillar AD22 underground truck, 48-month note payable, 6.45 % interest rate payable through June 2023, monthly payments of $ 12,979

Caterpillar R1600 LHD bucket, 24-month note payable, 2.06 % interest rate payable monthly through April 2026, monthly payments of $ 4,572

Caterpillar AD30 underground truck, 40-month note payable, 8.01 % interest rate payable through October 2026, monthly payments of $ 29,656

Small Business Administration EIDL 30 year note payable, 3.75 % interest payable monthly through December 2054, monthly payments of $ 731

Caterpillar 259D3 skid steer, 36-month note payable, 8.50 % interest rate payable monthly through December 2026, monthly payments of $ 1,836

SBA Economic Injury Disaster (“EIDL”) Loan 30 year note payable, 3.75 % interest payable monthly through December 2054, monthly payments of $ 731

2022 Dodge Ram, 75-month note payable, 5.99 % interest rate payable monthly through June 2028, monthly payments of $ 1,152

1 unchanged sentence

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

2024 Dodge Ram, 60-month note payable, 9.94 % interest rate payable monthly through February 2029, monthly payments of $ 1,293

Total notes payable

1 unchanged sentence

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,

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

Future principal payments of notes payable at March 31, 2024 are as follows:

12 months ended March 31,

Idaho Strategic Resources, Inc

2 unchanged sentences

Stock Issuance Activity

In the first quarter of 2024, the Company issued common stock as follows:

Sold 127,152 shares of common stock at an average price of $ 6.67 per share for $ 847,492 .

Issued 147,026 shares of common stock in exchange for outstanding warrants for $ 823,346 .

Issued 5,357 shares of common stock in exchange for outstanding stock options for $ 29,999 ,

Issued 5,887 shares of common stock for outstanding stock options via cashless exercise.

The Company closed a private placement in February 2023.

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 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 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 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:

Balance December 31, 2021

$ 2.52 - 7 .00

$ 2.52 - 5.60

Exercise Prices

Balance December 31, 2022 and 2023

$ 5.60 - 7.00

Balance December 31, 2022 and September 30, 2023

Balance March 31, 2024

$ 5.60 - 7.00

4 unchanged sentences

November 12, 2024

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

Stock Options

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.

There were no stock options granted during the three-months ended March 31, 2024 and 2023.

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

Average Exercise

Number of Options

Weighted Average Exercise Prices

Balance December 31, 2022

Balance December 31, 2023

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

Outstanding and exercisable at March 31, 2024

In the first quarter of 2024 16,716 options were exchanged for 5,887 shares in a cashless exercise by employees.

Options exercised in the first quarter of 2024 had an intrinsic value of $ 65,229 .

At March 31, 2024, outstanding stock options have a weighted average remaining term of approximately 0.85 years and have an intrinsic value of $ 1,332,314 .

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.

Subsequent to March 31, 2024, 29,763 shares of common stock have been issued in exchange for outstanding warrants for net proceeds of $ 166,673 .

Additionally, subsequent to March 31, 2024 69,861 options were exchanged for 27,562 shares in a cashless exercise by employees.

Forward-Looking Statements

Certain statements contained in this Form 10-Q, including in Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk, are intended to be covered by the safe harbor provided for under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Our forward-looking statements include our current expectations and projections about future results, performance, results of litigation, prospects and opportunities, including reserves and other mineralization.

We have tried to identify these forward-looking statements by using words such as “may,” “will,” “expect,” “anticipate,” “believe,” “intend,” “feel,” “plan,” “estimate,” “project,” “forecast” and similar expressions.

These forward-looking statements are based on information currently available to us and are expressed in good faith and believed to have a reasonable basis.

However, our forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

These risks, uncertainties and other factors include, but are not limited to, those set forth under Part I, Item 1A.–Risk Factors in our 2023 Form 10-K and in Part II, Item 1.A.-Risk Factors in this Form 10-Q.

Given these risks and uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements.

All subsequent written and oral forward-looking statements attributable to Idaho Strategic or to persons acting on our behalf are expressly qualified in their entirety by these cautionary statements.

Except as required by federal securities laws, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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