What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-11-04 compared with 2024-07-30 · 135 added, 103 removed, 350 unchanged (40% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets (Unaudited)

September 30,

Current assets:

Cash and cash equivalents

Short term investments

Investments in debt securities

Gold sales receivable

Government grant receivable

Joint venture receivable

6 unchanged sentences

Investment in joint venture

Investments in debt securities, non-current

Reclamation bond

14 unchanged sentences

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

June 30, 2024- 12,958,574 and December 31, 2023- 12,397,615 shares issued and outstanding

September 30, 2024-13,462,705 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 Six-Month Periods Ended June 30, 2024 and 2023

June 30, 2024

June 30, 2023

For the Three and Nine-Month Periods Ended September 30, 2024 and 2023

September 30, 2024

September 30, 2023

Sales of products

14 unchanged sentences

Loss on investment in equity securities

Gain on short term investments

Interest income

Interest expense

Government grant income

Total other (income) expense

8 unchanged sentences

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

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

Common Stock Shares

Common Stock Amount

Accumulated Deficit Attributable to Idaho Strategic Resources, Inc

Non-Controlling Interest

Stockholders’ Equity

For the Three and Nine-Month Periods Ended September 30, 2024 and 2023

Accumulated Deficit Attributable to

Idaho Strategic

Resources, Inc

Non-Controlling

Stockholders’

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 )

Balance January 1, 2024

16 unchanged sentences

( 12,881,656 )

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 September 30, 2024

$ ( 10,877,376 )

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, 2024 and 2023

For the Nine-Month Periods Ended September 30, 2024 and 2023

September 30,

Cash flows from operating activities:

1 unchanged sentence

Depreciation and amortization

Loss on disposal of equipment

Loss (gain) on disposal of equipment

Accretion of asset retirement obligation

Loss on investment in equity securities

Gain on short term investments

Equity income on investment in Buckskin Gold and Silver, Inc

Write down of reclamation bond

Change in operating assets and liabilities:

Gold sales receivable

Government grant receivable

Joint venture receivable

5 unchanged sentences

Purchases of property, plant, and equipment

( 1,188,481 )

Deposits on equipment

1 unchanged sentence

Additions to mineral property

( 1,544,271 )

Purchase of reclamation bond

Purchase of short term investments

Refund of reclamation bond

Purchase of investments in debt securities

( 6,139,232 )

Proceeds from sale of investment in equity securities

Investment in equity securities

Purchase of equity securities

Net cash used by investing activities

( 9,782,116 )

( 1,065,507 )

Cash flows from financing activities:

3 unchanged sentences

Principal payments on notes payable

( 1,195,146 )

Principal payments on notes payable, related parties

7 unchanged sentences

Notes payable for equipment

Notes payable for mineral property purchase

Notes payable for mineral property

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

9 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, 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 nine-month periods ended September 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.

2 unchanged sentences

Intercompany accounts and transactions are eliminated.

The portion of entities owned by other investors is presented as non-controlling interests on the consolidated balance sheets and statements of operations.

The portion of entities owned by other investors is presented as non-controlling interests on the condensed consolidated balance sheets and statements of operations.

Revenue Recognition

29 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 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.

At September 30, 2024, the Company had no assets or 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 June 30, 2024, and December 31, 2023, the Company's 37 % common stock holding of Buckskin Gold and Silver, Inc.

At September 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 11).

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

At September 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:

September 30, 2024

December 31, 2023

Significant Influence?

Accounting Method

Significant Influence?

Accounting Method

Butte Highlands JV, LLC

9 unchanged sentences

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

Investments in Debt Securities

The Company holds short term investments in United States Treasury notes and are classified as held to maturity based on management’s intent and ability to hold them to maturity.

Such debt securities are stated at cost, adjusted for unamortized purchase premiums and discounts and are amortized using the interest method over the stated terms of the securities.

Amortization of the premium or discount is included in interest income on the consolidated statement of operations.

Government Grant Income

The Company occasionally receives grant income from various government agencies.

Government grant income is recognized in earnings on a systematic basis in a manner that mirrors the manner in which the Company recognizes the underlying costs for which the grant is intended to compensate.

A grant receivable is recognized for expenses or losses already incurred but for which grant funding has not yet been received.

Grant funding received in excess of expenses or losses incurred is recognized as deferred revenue.

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

The Company and Significant Accounting Policies (continued)

New Accounting Pronouncement

6 unchanged sentences

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.

We continue to evaluate the impact of this update on our consolidated financial statements and disclosures and don’t expect any changes to amounts currently reported.

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

2 unchanged sentences

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.

We continue to evaluate the impact of this update on our consolidated financial statements and disclosures and don’t expect any changes to our current reportable segments.

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

2 unchanged sentences

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.

We continue to evaluate the impact of this update our consolidated financial statements and don’t expect any changes to amounts currently reported.

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

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 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.

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

June 30, 2024

Investments in Debt Securities

The table below provides the components of investments in debt securities held to maturity at amortized cost and fair value at September 30, 2024 and December 31, 2023.

September 30, 2024

Unrealized gains

Unrealized losses

US Treasury notes, current

US Treasury notes, non-current

December 31, 2023

US Treasury notes, current

US Treasury notes, non-current

Fair value of investments in debt securities is determined using Level 1 inputs.

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

September 30,

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 (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.

At September 30, 2024, metals that had been sold but not finally settled included 5,496 ounces of which 1,539 ounces were sold at a predetermined price with the remaining 3,957 exposed to future price changes until prices are locked in based on the month of settlement.

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, 2024 and 2023 were as follows:

June 30, 2024

June 30, 2023

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

September 30, 2024

September 30, 2023

Smelter and refining charges

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

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

September 30, 2024

September 30, 2023

Concentrate sales to H&H Metal

Dore sales to refinery

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.

Doré sales to Cascade Refining

At September 30, 2024 and December 31, 2023 our gold sales receivable balance of $ 1,054,051 , and $ 1,038,867 , respectively, consisted only of amounts due from H&H Metals.

There is no allowance for doubtful accounts.

Related Party Transactions

At June 30, 2024 and December 31, 2023, there were no notes payable to related parties.

At September 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.

2 unchanged sentences

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)

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-month periods ended September 30, 2024 and 2023 are as follows:

September 30, 2024

September 30, 2023

JV Arrangements

2 unchanged sentences

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

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.

At September 30, 2024 and December 31, 2023, an account receivable existed with Crescent Silver, LLC (“Crescent”), the other JV participant, for $ 855 and $ 2,080 , respectively, for shared operating costs as defined in the JV agreement.

This account receivable is included in the Balance Sheet as Joint venture receivable.

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

2 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, 2024

June 30, 2023

September 30, 2024

September 30, 2023

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

5 unchanged sentences

Property, Plant, and Equipment

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

June 30, 2024

December 31, 2023

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

September 30,

Less accumulated depreciation

7 unchanged sentences

Salmon property

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

Deposits on equipment in the statement of cash flows for the first nine months of 2024 of $ 923,228 includes $ 137,100 for mining equipment and $ 786,128 for paste backfill buildings and equipment to be delivered in the 4 th quarter of 2024.

Mineral Properties

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

June 30, 2024

December 31, 2023

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

September 30,

Mineral Property

4 unchanged sentences

Less accumulated amortization

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 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

Notes to Condensed Consolidated Financial Statements (Unaudited)

Mineral Properties (continued)

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

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 at 5% interest, for three years with a balloon payment of $650,000 at the end of the term ).

For the three and nine-month periods ended September 30, 2024 and 2023, interest expense was capitalized in association with the ramp access project at the Golden Chest Mine as follows.

September 30, 2024

September 30, 2023

Notes Payable

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

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

September 30,

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

9 unchanged sentences

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

CarryAll transport, 48-month note payable, 5.9 % interest rate payable monthly through August 2028, monthly payments of $ 583

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

7 unchanged sentences

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

Watermark Filter Press, 60-month note payable, 8.2 % interest rate payable monthly through September 2029, monthly payments of $ 9,868

BHS Sonthofen Batch Mixer, 60-month note payable, 8.2 % interest rate payable monthly through September 2029, monthly payments of $ 1,630

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

1 unchanged sentence

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

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

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

Total notes payable

1 unchanged sentence

Due after one year

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 June 30, 2024 are as follows:

12 months ended June 30,

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

Notes Payable (continued)

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 September 30, 2024 are as follows:

12 months ended September 30,

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 investment in Buckskin is being accounted for using the equity method and resulted in recognition of change of equity value on the investment of income of $ 1,301 and $ 1,579 for the respective three and nine-month periods ended September 30, 2024 and income of $ 1,608 and $ 2,965 for the respective three and nine-month periods ended September 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.

As of September 30, 2024, the Company holds 37 % of Buckskin’s outstanding shares.

Stockholders’ Equity

Stock Issuance Activity

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

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

Sold 664,874 shares of common stock at an average price of $ 11.18 per share for net proceeds of $ 7,432,216 .

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

Issued 26,786 shares of common stock in exchange for outstanding stock options for $ 150,001 .

Issued 223,816 shares of common stock upon exercise of warrants for $ 1,253,370 .

Issued 50,002 shares of common stock upon exercise of stock options for $ 280,011 .

Issued 126,398 shares of common stock for outstanding stock options via cashless exercise.

1 unchanged sentence

The activity in stock purchase warrants is as follows:

Exercise Prices

Balance December 31, 2022 and 2023

4 unchanged sentences

$ 5.60 - 7.00

Balance September 30, 2024

$ 5.60 - 7.00

These warrants expire as follows:

Exercise Price

Expiration Date

October 15, 2024

1 unchanged sentence

Stock Options

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

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

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

Weighted Average Exercise Prices

Weighted Average

Exercise Prices

Balance December 31, 2022

1 unchanged sentence

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

Balance June 30, 2024

Outstanding and exercisable at September 30, 2024

In the three and nine-month periods ending September 30, 2024, 58,861 and 273,015 options were exchanged for 34,030 and 126,399 shares, respectively, in a cashless exercise by employees.

The intrinsic value of these options was $ 466,201 and $ 1,320,963 for the three and nine-month periods ended September 30, 2024, respectively.

At September 30, 2024, outstanding stock options have a weighted average remaining term of approximately 0.58 years and have an intrinsic value of $ 1,401,549 .

Subsequent Events

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.

Subsequent to September 30, 2024:

97,500 shares of common stock have been issued for net proceeds of $ 1,635,017 .

65,478 shares of common stock have been issued in exchange for outstanding warrants for $ 441,678 .

53,573 stock options were exchanged for 35,456 shares of common stock 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