What changed in this filing

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Item 1. Financial Statements

2024-07-30 compared with 2024-05-06 · 103 added, 65 removed, 350 unchanged (32% of the section changed)

4 unchanged sentences

Cash and cash equivalents

Short term investments

Gold sales receivable

18 unchanged sentences

Total liabilities

Commitments Notes 5 and 9

Stockholders’ equity:

2 unchanged sentences

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

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

June 30, 2024- 12,958,574 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-Month Periods Ended March 31, 2024 and 2023

For the Three and Six-Month Periods Ended June 30, 2024 and 2023

June 30, 2024

June 30, 2023

Sales of products

7 unchanged sentences

General and administrative

Loss on disposal of equipment

(Gain) loss on disposal of equipment

Total other operating expenses

1 unchanged sentence

Other (income) expense:

Equity income on investment in Buckskin Gold and Silver, Inc

Equity (income) loss on investment in Buckskin Gold and Silver, Inc

Timber revenue net of costs

(Gain) loss on investment in equity securities

Loss on investment in equity securities

Gain on short term investments

Interest income

10 unchanged sentences

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

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

For the Three and Six-Month Periods Ended June 30, 2024 and 2023

Common Stock Shares

10 unchanged sentences

( 18,307,785 )

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

Net income (loss)

Balance June 30, 2023

$ ( 17,979,992 )

Balance January 1, 2024

8 unchanged sentences

( 15,039,529 )

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 stock options exercise

Issuance of common stock for cashless stock options exercise

Net income (loss)

Balance June 30, 2024

$ ( 12,881,656 )

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 Three-Month Periods Ended March 31, 2024 and 2023

For the Six-Month Periods Ended June 30, 2024 and 2023

Cash flows from operating activities:

4 unchanged sentences

Loss on investment in equity securities

Gain on short term investments

Equity income on investment in Buckskin Gold and Silver, Inc

11 unchanged sentences

Additions to mineral property

Purchase of reclamation bond

Purchase of short term investments

( 6,322,863 )

Proceeds from sale of investment in equity securities

15 unchanged sentences

Deposit on equipment applied to purchase

Notes payable for equipment purchase

Notes payable for equipment

Notes payable for mineral property purchase

10 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-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.

Operating results for the three and six-month periods ended June 30, 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.

34 unchanged sentences

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.

At June 30, 2024, the Company had short term investments in treasury securities that were classified as Level 1 assets that required measurement at fair value and no liabilities that required measurement at fair value on a recurring basis.

Idaho Strategic Resources, Inc

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

At June 30, 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

At June 30, 2024 and December 31, 2023, the Company’s percentage ownership and method of accounting for each JV and equity method investment is as follows:

June 30, 2024

December 31, 2023

35 unchanged sentences

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.

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

Going Concern

2 unchanged sentences

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

At June 30, 2024 and December 31, 2023, the Company’s inventories consisted of the following:

June 30, 2024

December 31, 2023

8 unchanged sentences

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 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.

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 (Cascade Refining).

At June 30, 2024, metals that had been sold but not finally settled included 6,358 ounces of which 2,666 ounces were sold at a predetermined price with the remaining 3,692 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-month periods ended March 31, 2024 and 2023 were as follows:

Sales of products by metal type for the three and six-month periods ended June 30, 2024 and 2023 were as follows:

June 30, 2024

June 30, 2023

Smelter and refining charges

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

Sales by significant product type for the three and six-month periods ended June 30, 2024, and 2023 were as follows:

June 30, 2024

June 30, 2023

Concentrate sales to H&H Metal

Dore sales to refinery

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.

At June 30, 2024 our gold sales receivable balance related to contracts with H&H Metals and Cascade Refining of $ 1,516,514 .

At December 31, 2023 our gold sales receivable balance of $ 1,038,867 , consisted only of amounts due from H&H Metals.

There is no allowance for doubtful accounts.

Related Party Transactions

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

At June 30, 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.

$ 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:

$ 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 and six-month periods ended June 30, 2024 and 2023 are as follows:

June 30, 2024

June 30, 2023

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

JV Arrangements

2 unchanged sentences

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.

At June 30, 2024 and December 31, 2023, an account receivable existed with Crescent Silver, LLC (“Crescent”), the other JV participant, for $ 1,413 and $ 2,080 , respectively, for shared operating costs as defined in the JV agreement.

Butte Highlands JV, LLC

4 unchanged sentences

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

Notes to Condensed Consolidated Financial Statements (Unaudited)

Earnings 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

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:

June 30, 2024

June 30, 2023

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

Stock options

4 unchanged sentences

Property, Plant, and Equipment

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

March 31, 2024

Property, plant and equipment at June 30, 2024 and December 31, 2023 consisted of the following:

June 30, 2024

December 31, 2023

8 unchanged sentences

Salmon property

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

Mineral Properties

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

March 31, 2024

Mineral properties at June 30, 2024 and December 31, 2023 consisted of the following:

June 30, 2024

December 31, 2023

7 unchanged sentences

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 $ 1,867 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 March 31, 2024, the Company holds 37 % of Buckskin’s outstanding shares.

The purchase 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 and six-month periods ended June 30, 2024 and 2023, interest expense was capitalized in association with the ramp access project at the Golden Chest Mine as follows.

June 30, 2024

June 30, 2023

Idaho Strategic Resources, Inc

1 unchanged sentence

Notes Payable

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

December 31, 2023

At June 30, 2024 and December 31, 2023, notes payable are as follows:

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

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

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

11 unchanged sentences

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

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

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

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

10 unchanged sentences

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,

Future principal payments of notes payable at June 30, 2024 are as follows:

12 months ended June 30,

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

Investment in Buckskin

The investment in Buckskin is being accounted for using the equity method and resulted in recognition of change of equity value on the investment of loss of $ 1,589 and income of $ 278 for the respective three and six-month periods ended June 30, 2024 and income of $ 1,007 and $ 1,357 for the respective three and six-month periods ended June 30, 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 June 30, 2024, the Company holds 37 % of Buckskin’s outstanding shares.

Stockholders’ Equity

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 .

In the first six months of 2024 the Company issued common stock as follows:

Sold 265,016 shares of common stock at an average price of $ 8.15 per share for net proceeds of $ 2,160,884 .

Issued 176,789 shares of common stock in exchange for outstanding warrants for $ 990,019 .

1 unchanged sentence

Issued 92,368 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 .

Stock Purchase Warrants Outstanding

5 unchanged sentences

$ 5.60 - 7.00

Balance June 30, 2024

$ 5.60 - 7.00

These warrants expire as follows:

4 unchanged sentences

Stock Options

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

There were no stock options granted during the six-months ended June 30, 2024 and 2023.

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

Number of Options

Weighted Average Exercise Prices

1 unchanged sentence

Balance December 31, 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 .

Balance March 31, 2024

Outstanding and exercisable at June 30, 2024

In the three and six-month periods ending June 30, 2024, 197,438 and 214,154 options were exchanged for 86,481 and 92,386 shares in a cashless exercise by employees.

The intrinsic value of these options was $ 854,761 and $ 919,990 for the three and six-month periods ending June 30, 2024.

At June 30, 2024, outstanding stock options have a weighted average remaining term of approximately 0.68 years and have an intrinsic value of $ 1,005,415 .

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

Fair Value Measurements

The Company accounts for its financial instruments under ASC 820 Fair Value Measurement.

During the six months ended June 30, 2024, there were no reclassifications in financial assets or liabilities between Level 1, 2 or 3 categories.

The following is a listing of the Company’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of June 30, 2024:

Short-term investments

Investment in equity securities

Subsequent Events

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.

Subsequent to June 30, 2024, 50,000 shares of common stock have been issued for net proceeds of $ 520,506 .

Additionally, subsequent to June 30, 2024, 25,073 options were exchanged for 12,767 shares in a cashless exercise by employees.

Forward-Looking Statements

9 unchanged sentences

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