What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-08 compared with 2024-11-04 · 160 added, 228 removed, 257 unchanged (60% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets (Unaudited)

September 30,

Current assets:

Cash and cash equivalents

Investments in debt securities

Investments in US treasury notes

Gold sales receivable

Government grant receivable

Joint venture receivable

Investment in equity securities

Other current assets

4 unchanged sentences

Investment in joint venture

Investments in debt securities, non-current

Investments in US treasury notes, non-current

Reclamation bond

9 unchanged sentences

Total liabilities

Commitments Notes 5 and 9

Commitments Note 5

Stockholders’ equity:

2 unchanged sentences

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

September 30, 2024-13,462,705 and December 31, 2023- 12,397,615 shares issued and outstanding

March 31, 2025- 13,668,780 and December 31, 2024- 13,665,058 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, 2024 and 2023

September 30, 2024

September 30, 2023

Sales of products

For the Three-Month Periods Ended March 31, 2025 and 2024

Sales of products, net

Total revenue

6 unchanged sentences

General and administrative

(Gain) loss on disposal of equipment

Loss on sale of equipment

Total other operating expenses

1 unchanged sentence

Other (income) expense:

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

Equity income on investment in Buckskin Gold and Silver, Inc

Timber revenue net of costs

Loss on investment in equity securities

(Gain) loss on investment in equity securities

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 Nine-Month Periods Ended September 30, 2024 and 2023

Accumulated Deficit Attributable to

For the Three-Month Periods Ended March 31, 2025 and 2024

Attributable to

Idaho Strategic

Resources, Inc

Non-Controlling

Stockholders’

Stockholders' Equity

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 exercised

Issuance of common stock for cashless stock options exercised

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 )

Balance January 1, 2025

1 unchanged sentence

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

Stock options issued to management, directors and employees

Issuance of common stock for cashless stock options exercised

Net income (loss)

1 unchanged sentence

$ ( 6,764,974 )

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 )

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 Nine-Month Periods Ended September 30, 2024 and 2023

September 30,

For the Three-Month Periods Ended March 31, 2025 and 2024

Cash flows from operating activities:

1 unchanged sentence

Depreciation and amortization

Loss (gain) on disposal of equipment

Loss on sale of equipment

Accretion of asset retirement obligation

1 unchanged sentence

Equity income on investment in Buckskin Gold and Silver, Inc

Write down of reclamation bond

Stock-based compensation

Change in operating assets and liabilities:

Gold sales receivable

Government grant receivable

Joint venture receivable

9 unchanged sentences

Additions to mineral property

( 1,544,271 )

Purchase of reclamation bond

Refund of reclamation bond

Purchase of investments in debt securities

( 6,139,232 )

Purchase of US treasury notes

Proceeds from sale of investment in equity securities

Purchase of equity securities

Purchase of reclamation bond

Net cash used by investing activities

6 unchanged sentences

Principal payments on notes payable

( 1,195,146 )

Principal payments on notes payable, related parties

Contributions from non-controlling interest

Net cash provided by financing activities

Net cash provided (used) by financing activities

Net change in cash and cash equivalents

3 unchanged sentences

Deposit on equipment applied to purchase

Notes payable for equipment

Notes payable for mineral property

Notes payable for equipment purchase

Note payable for mineral property purchase

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 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.

Operating results for the three-month periods ended March 31, 2025, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025.

The effective tax rate expected for the full year ended December 31, 2025 is 0%.

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, 2024, in the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 31, 2025.

13 unchanged sentences

Refining, selling, and shipping costs related to sales of doré and metals from doré are recorded to cost of sales as incurred.

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

See Note 4 for more information on the Company’s sales of products.

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

6 unchanged sentences

The Company expenses exploration costs as such in the period they occur.

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, raises, and related infrastructure.

The exploration stage occurs up until the point ore reserves are identified.

The pre-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 pre-development stage are capitalized as deferred development costs and include such costs for drifts, ramps, and 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.

The development stage ends when the production stage of ore reserves begins.

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

The pre-development stage ends when the production stage of ore reserves begins, thus entering the secondary development stage.

Drilling, and related costs are either classified as exploration, pre-development or secondary development, as defined above, and charged to operations as incurred, or capitalized, based on the following criteria:

whether the costs are incurred to further define resources or exploration targets at and adjacent to existing reserve areas or intended to assist with mine planning within a reserve area;

whether the drilling or development costs relate to an ore body that has been determined to be commercially mineable, and a decision has been made to put the ore body into commercial production;

whether, at the time the cost is incurred:

(a) the expenditure embodies a probable future benefit that involves a capacity, singly or in combination with other assets, to contribute directly or indirectly to future net cash inflows, (b) the Company can obtain the benefit and control others’ access to it, and (c) the transaction or event giving rise to the Company’s right to or control of the benefit has already occurred.

If all of these criteria are met, drilling, development and related costs are capitalized.

Drilling and development costs not meeting all of these criteria are expensed as incurred.

The following factors are considered in determining whether or not the criteria listed above have been met, and capitalization of drilling and development costs is appropriate:

completion of a favorable economic study and mine plan for the ore body targeted;

authorization of development of the ore body by management and/or the Board of Directors;

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

The Company and Significant Accounting Policies (continued)

there is a justifiable expectation, based on applicable laws and regulations, that issuance of permits or resolution of legal issues and/or contractual requirements necessary for the Company to have the right to or control of the future benefit from the targeted ore body have been met.

Amortization of development costs is calculated using the units-of-production method over the expected life of the operation based on the estimated recoverable tonnes of mineral resources and reserves.

Fair Value Measurements

4 unchanged sentences

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

At 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 September 30, 2024, the Company had no assets or liabilities that required measurement at fair value on a recurring basis.

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

The Company and Significant Accounting Policies (continued)

At March 31, 2025 and December 31, 2024, the Company had no assets or liabilities that required measurement at fair value on a recurring basis.

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

7 unchanged sentences

In determining whether significant influence exists, the Company considers its participation in policy-making decisions and representation on governing bodies.

Under the equity method of accounting, our share of the net earnings or losses of the investee are included in net income (loss) in the consolidated statements of operations.

We evaluate equity method investments whenever events or changes in circumstance indicate the carrying amounts of such investments may be impaired.

Under the equity method of accounting, the Company’s share of the net earnings or losses of the investee are included in net income (loss) in the consolidated statements of operations.

The Company evaluates equity method investments whenever events or changes in circumstance indicate the carrying amounts of such investments may be impaired.

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

At March 31, 2025, and December 31, 2024, the Company's 37 % common stock holding of Buckskin Gold and Silver, Inc.

(“Buckskin”) is accounted for using the equity method (Note 11).

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

At March 31, 2025 and December 31, 2024, the Company’s percentage ownership and method of accounting for each JV and equity method investment is as follows:

March 31, 2025

December 31, 2024

3 unchanged sentences

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

Investments in Equity Securities

Investments in equity securities are generally measured at fair value.

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

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

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

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

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

Investments in Debt Securities

Investments in US Treasury Notes

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.

3 unchanged sentences

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.

Government grant income is recognized in earnings on a systematic basis in a manner that mirrors how the Company recognizes 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.

If a grant is received based solely on a capital expenditure, the amount of the asset is reduced by the amount received from the grant.

Segment Reporting

The Company operates as a single operating segment in accordance with Accounting Standards Update (“ASU”) 2023-07 Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

All financial information is presented on a consolidated basis and reviewed by the Company’s Chief Executive Officer as the Chief Operating Decision Maker (CODM).

The CODM uses consolidated net income, as presented in the consolidated statement of operations, to assess segment performance and allocate resources.

The measure of segment assets is reported on the balance sheet as total consolidated assets.

Idaho Strategic Resources, Inc

1 unchanged sentence

The Company and Significant Accounting Policies (continued)

New Accounting Pronouncement

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.

Recent Accounting Pronouncements

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

Recognition and Initial Measurement, which clarifies the business combination accounting for JV 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 JVs in separate financial statements.

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

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

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

Early adoption and retrospective application of the amendments are permitted.

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):

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.

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.

The Company has adopted this new guidance and there was no material impact on its consolidated financial statements and disclosures due to no new JV arrangement forming on or after January 1, 2025.

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

The Company is currently evaluating the impact of this update on its consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses, which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement.

The new disclosure requirements are effective for the Company's annual periods for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively.

The Company is currently evaluating the ASU to determine the impact on its 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.

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

Investments in US Treasury Notes

The table below provides the components of investments in US treasury notes held to maturity at amortized cost and fair value at March 31, 2025 and December 31, 2024.

March 31, 2025

US Treasury notes, current (Matures within 1 year)

US Treasury notes, non-current (Matures in 1-5 years)

December 31, 2024

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,

US Treasury notes, current (Matures within 1 year)

US Treasury notes, non-current (Matures in 1-5 years)

Fair value of investments in US treasury notes is determined using Level 1 inputs.

At March 31, 2025 and December 31, 2024, the Company’s inventories consisted of the following:

Concentrate inventory

4 unchanged sentences

Mill parts and supplies

Core drilling supplies and materials

Total supplies inventory

2 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 (Cascade Refining).

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’s products consist of both gold flotation concentrates which are sold to a single broker (H&H Metals (“H&H”)), and an unrefined gold-silver product known as doré which is sold to a precious metal refinery (Cascade Refining).

At March 31, 2025, metals that had been sold but not finally settled included 6,768 ounces of which 1,543 ounces were sold at a predetermined price with the remaining 5,225 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 nine-month periods ended September 30, 2024 and 2023 were as follows:

September 30, 2024

September 30, 2023

Sales of products by metal type for the three-month periods ended March 31, 2025 and 2024 were as follows:

Smelter and refining charges

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

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.

Sales by significant product type for the three-month periods ended March 31, 2025, and 2024 were as follows:

Concentrate sales to H&H

Dore sales to refinery

At March 31, 2025 and December 31, 2024 the gold sales receivable balance of $ 1,833,385 , and $ 1,578,694 , respectively, consisted only of amounts due from H&H.

There is no allowance for doubtful accounts.

Related Party Transactions

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.

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

1 unchanged sentence

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

September 30, 2024

September 30, 2023

Payments under these short-term lease arrangements are included in general and administrative expenses on the Consolidated Statement of Operations and for the three-month periods ended March 31, 2025 and 2024 are as follows:

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 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.

At March 31, 2025 and December 31, 2024, an account receivable existed with Crescent Silver, LLC (“Crescent”), the other JV participant, for $ 1,927 and $ 2,892 , respectively, for shared operating costs as defined in the JV agreement.

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

5 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:

September 30, 2024

September 30, 2023

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

Stock options

Stock purchase warrants

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

March 31, 2025

March 31, 2024

Incremental shares included in diluted net income per share

Stock options

Stock purchase warrants

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

Property, Plant, and Equipment

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

September 30,

Less accumulated depreciation

Property, plant and equipment at March 31, 2025 and December 31, 2024 consisted of the following:

Mine Equipment

Accumulated Depreciation

( 3,919,876 )

( 3,845,349 )

Building and equipment

Less accumulated depreciation

Total Mine Equipment

Mill Equipment

Accumulated Depreciation

( 2,709,346 )

( 2,453,673 )

Total building and equipment

Salmon property

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.

Total Mill Equipment

Accumulated Depreciation

Total Buildings

Mineral Properties

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

September 30,

Mineral properties at March 31, 2025 and December 31, 2024 consisted of the following:

Mineral Property

3 unchanged sentences

Park Copper/Gold

Less accumulated amortization

Accumulated Amortization

For the three-month periods ended March 31, 2025 and 2024, interest expense was capitalized in association with infrastructure at the Golden Chest Mine as follows.

March 31, 2025

March 31, 2024

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

Mineral Properties (continued)

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 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 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

Butte Gulch vacant mineral property, 5.00 % interest payable monthly through January 2027, monthly interest only payments of $ 2,291 with a balloon payment of $ 549,447 in February 2027

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

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

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

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

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

Sandvik LH202 LHD, 36-month note payable, 6.9 % interest payable monthly through August 2025, monthly payments of $ 4,933

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 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

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

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

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

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 , paid off early

At March 31, 2025 and December 31, 2024, notes payable are as follows:

Mine Equipment

Monthly payments of $ 127,288 and $ 55,803 as of March 31, 2025 and December 31, 2024, respectively

Mill Equipment

Monthly payments of $ 15,621 and $ 11,498 as of March 31, 2025 and December 31, 2024, respectively

Buildings/Land

Monthly payments of $ 2,500 and $ 2,500 as of March 31, 2025 and December 31, 2024, respectively

Total notes payable

1 unchanged sentence

Due after one year

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,

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

Future principal payments of notes payable at March 31, 2025 are as follows:

4/1/2025 – 3/31/2026

4/1/2026 – 3/31/2027

4/1/2027 – 3/31/2028

4/1/2028 – 3/31/2029

4/1/2029 – 3/31/2030

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 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 investment in Buckskin is being accounted for using the equity method and resulted in recognition of equity income on the investment of $ 1,346 and $ 1,867 for the respective three-month periods ended March 31, 2025 and 2024.

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

As of March 31, 2025, the Company holds 37 % of Buckskin’s outstanding shares.

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

Stockholders’ Equity

Stock Issuance Activity

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 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.

In the first quarter of 2025 the Company issued common stock as follows:

Issued 3,722 shares of common stock for outstanding stock options via cashless exercises by employees.

Stock Purchase Warrants Outstanding

The activity in stock purchase warrants is as follows:

Balance December 31, 2022 and 2023

There was no activity in the Company’s stock purchase warrants since December 31, 2024, therefore there were no stock purchase warrants outstanding at March 31, 2025.

Activity in stock purchase warrants is as follows:

Balance December 31, 2023

$ 5.60 - 7.00

1 unchanged sentence

$ 5.60 - 7.00

Balance June 30, 2024

$ 5.60 - 7.00

Balance September 30, 2024

$ 5.60 - 7.00

These warrants expire as follows:

Exercise Price

October 15, 2024

November 12, 2024

Balance December 31, 2024 and March 31, 2025

Stock Options

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

On January 15, 2025, the Company granted 400,000 stock options to employees with an exercise price of $ 11.50 .

These options expire on January 15, 2028, and vest equally on June 30, 2025, December 31, 2025, June 30, 2026 and December 31, 2026 (Exhibit 10.1) The stock-based compensation expense for these options in the current period was $ 495,146 .

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

Options issued

Exercise price

Expected term (in years)

Risk-free rate

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

Weighted Average

Exercise Prices

Balance December 31, 2023

Balance March 31, 2024

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 .

Balance December 31, 2024

Outstanding at March 31, 2025

In the first quarter of 2025, 6,000 options were exchanged for 3,722 shares in cashless exercises by employees.

The intrinsic value of these options was $ 51,476 .

At March 31, 2025, outstanding stock options have a weighted average remaining term of approximately 2.44 years and have an intrinsic value of $ 1,773,200 .

Subsequent Events

Subsequent to September 30, 2024:

Subsequent to March 31, 2025:

380,000 shares of common stock have been issued for net proceeds of $ 6,246,713 .

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.

11,000 stock options were exchanged for 7,658 shares of common stock in cashless exercises 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.

The Company’s forward-looking statements include current expectations and projections about future results, performance, results of litigation, prospects and opportunities, including reserves and other mineralization.

The Company has 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 the Company and are expressed in good faith and believed to have a reasonable basis.

However, these forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause the Company’s 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 the Company’s 2024 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 these forward-looking statements.

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

Except as required by federal securities laws, the Company does 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