What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-03-23 compared with 2025-03-31 · 166 added, 125 removed, 520 unchanged (36% of the section changed)

40 unchanged sentences

Investment in US treasury notes

Investment in equity securities

Investment in mutual funds

Gold sales receivable

Joint venture receivable

Investment in equity security

Other current assets

6 unchanged sentences

Reclamation bonds

$ 116,238,730

LIABILITIES AND STOCKHOLDERS ’ EQUITY

3 unchanged sentences

Notes payable, current portion

Income taxes payable

Total current liabilities

1 unchanged sentence

Notes payable, long term

Deferred income tax liability

Total long term liabilities

6 unchanged sentences

15,705,199 and 13,665,058 shares issued and outstanding, respectively

Accumulated deficit

( 8,373,953 )

Retained earnings (accumulated deficit)

( 8,373,953 )

4 unchanged sentences

Total liabilities and stockholders’ equity

$ 116,238,730

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

8 unchanged sentences

Other operating expenses:

(Gain) loss on disposal of equipment

Loss on disposal of equipment

Professional services

4 unchanged sentences

Equity income on investment in Buckskin Gold and Silver, Inc.

Loss on investment in equity securities

(Gain) loss on investment in equity securities and mutual funds

Timber revenue

Dividend income

Interest income

( 1,282,045 )

Interest expense

Total other (income) expense

( 1,456,343 )

Income before income taxes

Income tax provision

Net loss attributable to non-controlling interest

8 unchanged sentences

For the Years Ended December 31, 2025 and 2024

Common Stock Shares

Common Stock Amount

Accumulated Deficit Attributable to Idaho Strategic Resources, Inc.

Non-Controlling Interest

Stockholders’ Equity

Retained Earnings (Accumulated Deficit) Attributable to Idaho Strategic Resources, Inc.

Non-Controlling

Stockholders’

Balance, December 31, 2023

2 unchanged sentences

Issuance of common stock for cash, net of issuance 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)

2 unchanged sentences

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

Stock-based compensation

Issuance of common stock for cash, net of issuance costs

Issuance of common stock for warrants exercised

Issuance of common stock for stock options exercised

11 unchanged sentences

Accretion of asset retirement obligation

(Gain) loss on disposal of equipment

Loss on disposal of equipment

Unrealized (gain) on investment in equity securities and mutual funds

Loss on investment in equity securities

1 unchanged sentence

Write down of reclamation bond

Stock-based compensation

Amortization of discount on US treasury notes

Deferred tax expense

Change in operating assets and liabilities:

Gold sales receivable

( 2,334,228 )

Joint venture receivable

2 unchanged sentences

Accrued payroll and related payroll expenses

Income taxes payable

Net cash provided by operating activities

2 unchanged sentences

( 6,714,393 )

( 2,219,147 )

Proceeds from sale of equipment

4 unchanged sentences

( 2,392,822 )

Purchase of mineral property

Purchase of reclamation bonds

2 unchanged sentences

( 51,759,798 )

( 17,465,887 )

Maturity of US treasury notes

Proceeds from sale of investment in equity securities

Purchase of equity securities

( 4,026,781 )

Purchase of mutual funds

( 3,950,145 )

Net cash used by investing activities

8 unchanged sentences

( 2,382,434 )

Principal payments on notes, related parties

Contributions from non-controlling interest

8 unchanged sentences

Notes payable for equipment

Notes payable for mineral property

Note payable for mineral property

Note payable assumed by 3 rd party

Principal payments on notes payable paid by 3 rd party

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

4 unchanged sentences

The Company’s primary business is exploring for, developing, and extracting gold, and to a lesser extent, silver, and base metal mineral resources in the greater Coeur d’Alene Mining District of North Idaho.

From an operational perspective, the Company produces gold at the Golden Chest located in the Murray Gold Belt area of the world-class Coeur d’Alene Mining District, north of the prolific Silver Valley.

With over 7,000 acres of patented and unpatented land, the Company has the largest private land position in the area following its consolidation of the Murray Gold Belt for the first time in over 100-years.

From an operational perspective, the Company produces gold at the Golden Chest Mine located in the Murray Gold Belt area of the world-class Coeur d’Alene Mining District, north of the prolific Silver Valley.

Following its consolidation of the Murray Gold Belt for the first time in over 100-years, the Company has the largest private land position in the area.

In addition to gold and gold production, the Company maintains an important strategic presence in the U.S.

Critical Minerals sector, specifically focused on the more “at-risk” REE’s.

Critical Minerals sector, specifically focused on the more “at-risk” rare earth elements “(REE”)’s.

Its business strategy is to grow its asset base and mineral production over time while advancing its REE projects.

The Company’s Diamond Creek and Mineral Hill REE properties are included the U.S.

national REE inventory as listed in USGS, IGS and DOE publications.

Both projects are in central Idaho and participating in the USGS Earth MRI program, with the Diamond Creek Project also participating in the Idaho Department of Commerce’s IGEM program.

The Company’s Mineral Hill and Diamond Creek REE properties are included the U.S.

national REE inventory as listed in United States Geological Survey (“USGS”), Idaho Geological Survey (“ IGS”), and Department of Energy (“DOE”) publications.

Both projects are located near Salmon, Idaho.

Summary of Significant Accounting Policies

3 unchanged sentences

The portion of NJMJV partially owned by another investor is presented as non-controlling interest on the consolidated balance sheets, statements of operations, and statement of changes in stockholders’ equity.

Accounting for Investments in JVs and Equity Method Investments

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

Investment in JVs

16 unchanged sentences

(“Buckskin”) is accounted for using the equity method (Note 9).

Idaho Strategic Resources, Inc.

Notes to Consolidated Financial Statements

Summary of Significant Accounting Policies (continued)

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

2 unchanged sentences

Significant Influence?

Accounting Method

Significant Influence?

Accounting Method

Butte Highlands JV

Equity Method

Idaho Strategic Resources, Inc.

Notes to Consolidated Financial Statements

Summary of Significant Accounting Policies (continued)

Non-controlling Interest

Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Company’s stockholders’ equity and its net income (loss).

Non-controlling interests represent non-controlling investor’s initial contribution at the date of the original acquisition, ongoing contributions, and percentage share of earnings since inception.

Non-controlling interests represent non-controlling investor’s initial contribution at the date of the original acquisition, ongoing contributions, and percentage share of earnings and losses since inception.

Use of Estimates

14 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 13 for more information on our sales of products.

See Note 13 for more information on the sales of products.

Other Revenue Recognition:

8 unchanged sentences

A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized.

The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense.

Uncertain tax positions are evaluated in a two-step process, whereby (i) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the related tax authority would be recognized .

8 unchanged sentences

The amount of the total gains or losses for the period are included in earnings that 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, 2024 and 2023, the Company did not have any assets or liabilities that were valued at a fair value measurement other than its gold sales receivable.

At December 31, 2025, the Company’s investments in equity securities and mutual funds as well as its gold receivable were measured at fair value.

At December 31, 2024, only the Company’s gold sales receivable was measured at fair value.

Due to the time elapsed from shipment to the customer and the final settlement with the customer, management must estimate the prices at which sales of gold concentrates will be settled.

2 unchanged sentences

Financial Instruments

The carrying amounts of financial instruments including cash and cash equivalents, reclamation bond, equity method investments, investments in US treasury notes and equity securities, and notes payable approximate their fair values.

The carrying amounts of financial instruments including cash and cash equivalents, reclamation bond, equity method investments, investments in US treasury notes, and notes payable approximate their fair values.

Net Income (Loss) Per Share

1 unchanged sentence

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.

For the years ended December 31, 2024, and 2023, Such common stock equivalents are included or excluded from the calculation of diluted net income per share for each period as follows:

For the years ended December 31, 2025, and 2024, such common stock equivalents are included in the calculation of diluted net income per share for each period as follows:

December 31, 2025

December 31, 2024

Incremental shares included in diluted net income per share

Stock options

Stock purchase warrants

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

Stock options

Stock purchase warrants

Weighted average shares-basic

Effect of dilutive potential common shares from stock options

Effect of dilutive potential common shares from warrants

Weighted average shares-diluted

Net income per share-basic

Net income per share-diluted

Cash and Cash Equivalents

36 unchanged sentences

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 us 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 resources.

Amortization of development costs is calculated using the units-of-production method over the expected life as per the Financial Accounting Standards Board (“FASB”).

This includes the cost to define proven and probable reserves and measured and indicated resources accessible via the Main Access Ramp (“MAR”).

Inferred resources are excluded to reduce uncertainty, and therefore, the volumes are risk-adjusted.

Assumptions are regularly evaluated, with material deviations disclosed to ensure a systematic and rational cost allocation.

Unpatented claim fees paid at time of staking are expensed when incurred.

5 unchanged sentences

The Company evaluates the carrying amounts of its long-lived assets for impairment whenever events and circumstances indicate the carrying value may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition.

If such events and circumstances exist, estimated undiscounted future net cash flows from each mineral property are calculated using estimated future production, three-year average metals prices, operating capital and costs, and reclamations costs.

If such events and circumstances exist, estimated undiscounted future net cash flows from each long-lived asset is calculated using estimated future production, three-year average metals prices, operating capital and costs, and reclamations costs.

If the carrying value exceeds the undiscounted future net cash flows, estimated discounted future net cash flow is calculated.

1 unchanged sentence

The Company’s estimates of future cash flows are subject to risks and uncertainties.

It is reasonably possible that changes in estimates could occur which may affect the expected recoverability of the Company’s investments in mineral properties.

It is reasonably possible that changes in estimates could occur which may affect the expected recoverability of the Company’s long-lived assets.

Idaho Strategic Resources, Inc.

11 unchanged sentences

Various laws and permits require that financial assurances be in place for certain environmental and reclamation obligations and other potential liabilities.

In 2023, the Company deposited $2,890 in additional bonds for trenching activities at Lemhi Pass, and a partial refund of $78,600 occurred after reclaiming the drill pads from drilling the Diamond Creek project in 2022 .

The remaining amount on this bond is expected to be refunded after revegetation is established.

The balance of reclamation bonds at December 31, 2023 was $ 251,310 .

In 2024, the Company deposited $ 5,000 in additional bonds for a mineral lease and received $ 6,900 of the remaining $ 7,200 on the Diamond Creek drilling bond from 2022.

The final $ 300 for this bond was written off as an exploration expense during the year.

The final $ 300 for this bond was written off as an exploration expense during that year.

The balance at December 31, 2024 was $ 249,110 .

In 2025, the Company deposited $ 106,110 in additional bonds for drilling and for a mineral lease.

The balance at December 31, 2025 is $ 355,220 .

6 unchanged sentences

Any forfeitures of stock options are recognized as they occur.

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.

If stock options are granted on a vesting schedule, the stock-based compensation is expensed on a graded schedule based on the vesting period of each tranche of stock options.

Investments in Equity Securities or Mutual Funds

Investments in equity securities are generally measured at fair value, while investments in mutual funds are generally measured at net asset value (“NAV”).

Unrealized gains and losses for equity securities or mutual funds resulting from changes in fair value or NAV, respectively, are recognized in current earnings.

If an equity security or mutual fund does not have a readily determinable fair value or NAV, respectively, the Company may elect to measure the investment 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, the Company reassesses whether an investment in equity security or mutual fund without a readily determinable fair value or NAV, respectively, qualifies to be measured at cost less impairment, considers whether impairment indicators exist to evaluate if an investment in an equity security or mutual fund is impaired and, if so, record an impairment loss.

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

Dividends received from investments in equity securities or mutual funds are recognized in current earning.

Investments in US Treasury Notes

The Company holds short- and long-term investments in US 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 effective interest method over the stated terms of the securities.

Such debt securities are accounted for at cost on the acquisition date, adjusted for unamortized purchase premiums and discounts and are amortized using the effective 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.

Interest income is recognized when earned.

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 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 ASU 2023-07 Segment Reporting (Topic 280):

I mprovements to Reportable Segment Disclosures .

The Company operates as a single operating segment.

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”).

6 unchanged sentences

Accounting Standards Updates Adopted

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 beginning January 1, 2025, and are applied retrospectively.

The Company adopted this pronouncement for its fiscal year ended December 31, 2024.

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

In December 2023, the FASB issued Accounting Standards Update (“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.

1 unchanged sentence

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.

As the amendments apply to income tax disclosures only, the Company does not expect adoption to have a material impact on its consolidated financial statements and disclosures.

The Company retrospectively adopted the amended tax disclosures in its financial statements for the year ended December 31, 2025.

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

1 unchanged sentence

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.

We are currently evaluating the ASU to determine its impact on our consolidated financial statements and disclosures.

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

At December 31, 2025 and 2024, inventories consisted of the following:

Concentrate inventory

Finished goods

Total concentrate inventory

Total concentrate inventory (finished goods)

Supplies inventory

1 unchanged sentence

Mill parts and supplies

Core drilling supplies and materials

Total supplies inventory

Idaho Strategic Resources, Inc.

Notes to Consolidated Financial Statements

Property, Plant and Equipment

12 unchanged sentences

Total Buildings

For the years ended December 31, 2025 and 2024, depreciation expense for property, plant, and equipment was as follows:

December 31, 2025

December 31, 2024

Idaho Strategic Resources, Inc.

Notes to Consolidated Financial Statements

Mineral Properties

6 unchanged sentences

Less accumulated amortization

For the years ended December 31, 2024 and 2023, $ 98,330 and $ 102,727 , respectively, interest expense was capitalized in Golden Chest mineral property in association with core drilling and the ramp.

During 2025, the Company purchased the Little Baldy property adjacent to the Golden Chest Mine for $ 300,000 .

For the years ended December 31, 2025 and 2024, amortization expense for mineral properties was as follows:

December 31, 2025

December 31, 2024

For the years ended December 31, 2025 and 2024, interest expense was capitalized in association with infrastructure at the Golden Chest Mine as follows:

December 31, 2025

December 31, 2024

The Golden Chest is an underground mine project currently producing for the Company located near Murray, Idaho consisting of 34 patented claims (449 acres) and 217 unpatented claims (4,300 acres).

7 unchanged sentences

The Company started exploring the property in 2013 .

Idaho Strategic Resources, Inc.

Notes to Consolidated Financial Statements

Mineral Properties (continued)

In 2018, the Company purchased the Potosi property near the Golden Chest.

6 unchanged sentences

The greater Oxford property consists of 26 unpatented claims (537 acres) as well as a state mineral lease on 2,500 acres in Clearwater County, Idaho .

Idaho Strategic Resources, Inc.

Notes to Consolidated Financial Statements

Notes Payable

1 unchanged sentence

Mine Equipment

Monthly payments of $ 55,803 and $ 98,752 as of December 31, 2024 and 2023, respectively

Weighted average interest rate of 7.30 %, and weighted average remaining term of 2.5 years as of December 31, 2025

Mill Equipment

Monthly payments of $ 11,498 and $ 0 as of December 31, 2024 and 2023, respectively

Weighted average interest rate of 8.05 %, and weighted average remaining term of 3.4 years as of December 31, 2025

Buildings/Land

Monthly payments of $ 2,500 and $ 2,500 as of December 31, 2024 and 2023, respectively

Monthly payments of $ 0 and $ 731 as of December 31, 2024 and 2023, respectively

Weighted average interest rate of 7.00 %, and weighted average remaining term of 1.4 years as of December 31, 2025

Total notes payable

9 unchanged sentences

Accretion expense

Change in asset retirement obligation estimate

Balance at December 31

The change in the asset retirement obligation estimate during the year ended December 31, 2023 was due to a revision to the estimated start of the reclamation process and an updated reclamation cost estimate.

Idaho Strategic Resources, Inc.

Notes to Consolidated Financial Statements

Joint Venture Arrangements

NJMJV Agreement

In January 2011, the Company and Crescent (formerly United Mine Services, Inc.) entered into a JV agreement relating to the New Jersey Mill.

In January 2011, the Company and Crescent Silver, LLC (“Crescent”) (formerly United Mine Services, Inc.) entered into a JV agreement relating to the New Jersey Mill.

To earn a 35 percent interest in the JV, Crescent provided $ 3.2 million in funding to expand the processing plant to 15 tonnes/hr.

18 unchanged sentences

Notes to Consolidated Financial Statements

The Company did not recognize a provision (benefit) for income taxes for the years ended December 31, 2024 and 2023.

In the year ended December 31, 2025, the Company recognized a provision for income taxes in the amount of $ 426,100 .

The Company did not recognize a provision or (benefit) for income taxes for the year ended December 31, 2024, but the minimum Idaho state tax was paid.

The components of the 2025 tax provision are as follows:

Total current income tax provision

Total deferred income tax provision

Total income tax provision

The significant components of net deferred tax assets at December 31, 2025 and 2024 were as follows:

7 unchanged sentences

( 3,176,700 )

( 4,506,700 )

Deferred tax liabilities

6 unchanged sentences

( 1,356,900 )

Net deferred tax assets

At December 31, 2024 and 2023, the Company had net deferred tax assets principally arising from the net operating loss carryforward for income tax purposes.

As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the deferred tax assets, a valuation allowance equal to 100 % of the net deferred tax asset exists at December 31, 2023 and 2022.

At December 31, 2024, the Company had net operating loss carry forwards of approximately $ 14,311,000 for federal purposes, $ 4,684,000 which expire between 2030 through 2038.

At December 31, 2024, the Company had net operating loss carry forwards of approximately $ 12,001,000 for state purposes, which expire between 2030 and 2042.

The remaining balance of $ 9,627,000 will never expire but its utilization is limited to 80 % of taxable income in any future year.

Net deferred tax assets (liabilities)

At December 31, 2025, the Company had net deferred tax assets principally arising from the net operating loss carryforward for income tax purposes.

There is no valuation allowance necessary as the Company has a net deferred tax liability at December 31, 2025.

At December 31, 2024, the Company had net deferred tax assets principally arising from the net operating loss carryforward for income tax purposes.

As management of the Company could not determine that it was more likely than not that the Company would realize the benefit of the deferred tax assets, a valuation allowance equal to 100 % of the net deferred tax asset existed at December 31, 2024.

At December 31, 2025, the Company had net operating loss carry forwards of approximately $ 5,525,295 for federal purposes, none of which will expire, but utilization is limited to 80% of taxable income in any future year.

At December 31, 2025, the Company did not have any net operating loss carry forwards for state purposes.

The income tax provision (benefit) for the years ended December 31, 2025 and 2024 differ from the statutory rate of 21 % as follows:

Provision (benefit) at statutory rate for the period

State taxes, net of federal taxes

Idaho state taxes, net of federal taxes

Taxable grant income

Adjustment of prior year tax estimates

Change in state tax rate

Stock-based compensation

Non-deductible items

( 1,311,100 )

Change in estimates

Increase (decrease) in valuation allowance

( 3,176,600 )

( 1,330,000 )

Total provision (benefit)

3 unchanged sentences

The Company has reviewed its tax positions and believes it has not taken a position that would not be sustained under examination.

During the years ended December 31, 2025 and 2024, there were no material uncertain tax positions taken by the Company.

Idaho Strategic Resources, Inc.

2 unchanged sentences

In addition, the Company has authorized 1,000,000 shares of no-par preferred stock, none of which had been issued at December 31, 2025 or 2024.

S tock Purchase Warrants Outstanding

Stock Purchase Warrants Outstanding

Transactions in common stock purchase warrants for the years ended December 31, 2025 and 2024 are as follows:

1 unchanged sentence

Exercise Prices

Balance December 31, 2022 and 2023

Balance December 31, 2023

$ 5.60 - 7.00

Balance December 31, 2024

Balance December 31, 2024 and 2025

Stock Options

In April 2014, the Board of Directors of the Company established the 2014 Equity Incentive Compensation Plan to authorize the granting of stock options to officers and employees.

Upon exercise of the options, shares are issued from the available authorized shares of the Company.

Options reserved to any one related person on an annual basis may not, upon exercise, exceed 5% and the aggregate number of all options outstanding will not exceed 10% of the issued outstanding common shares in total as calculated at that time.

In May 2023, the 2023 Equity Incentive Compensation Plan was voted on, and approved, by the shareholders of the Company.

This plan allows for the issuance of up to 1,225,600 shares of the Company’s common stock in the form of stock options (which may be incentive stock options or nonqualified stock options) or other stock-based awards, such as stock appreciation rights, restricted stock, restricted stock units and performance shares.

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 17, 2028, and vest equally on June 30, 2025, December 31, 2025, June 30, 2026 and December 31, 2026.

The stock-based compensation expense for these options in the current year was $ 1,505,244 .

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 was as follow:

Options issued

Exercise price

Expected term (in years)

Risk-free rate

Transactions in stock options for the years ended December 31, 2025 and 2024 are as follows:

Number of Options

Weighted Average Exercise Prices

Exercise Prices

Balance December 31, 2023

Balance December 31, 2024

Outstanding and exercisable at December 31, 2024

At December 31, 2024 and 2023, the outstanding stock options have an intrinsic value of approximately $ 387,880 ($ 410,638 in 2023) and have a weighted average remaining term of 0.69 years ( 0.82 in 2023).

The intrinsic value of stock options exercised for cash in the year ended December 31, 2024 was $ 263,516 .

Cashless options exercised in the year ended December 31, 2024 had an intrinsic value of $ 1,958,047 .

No cash or cashless options were exercised in the year ended December 31, 2023.

Balance December 31, 2025

At December 31, 2025, the outstanding stock options have an intrinsic value of approximately $ 9,486,000 ($ 387,880 in 2024) and have a weighted average remaining term of 2.04 years ( 0.69 in 2024).

The intrinsic value of stock options exercised for cash in the year ended December 31, 2025 was $ 620,580 ($ 263,516 in 2024).

Cashless options exercised in the year ended December 31, 2025 had an intrinsic value of $ 1,454,148 ($ 1,958,047 in 2024).

Future stock-based compensation expense will be $138,641 for each of the first and second quarters of 2026, and $59,418 for each of the third and fourth quarters of 2026 .

Related Party Transactions

On May 10, 2023 the Company paid the remaining amount due on the note payable of $ 57,397 to Ophir Holdings, LLC, a company owned by two officers and one former officer of the Company.

There has not been any other related party debt since this transaction.

The Company leases office locations from certain related parties on a month-to-month basis (not long term).

These related parties are NP Depot, a company owned by John Swallow, the Company’s president, and Mine Systems Design, a company partially owned by Grant Brackebusch, one of the Company’s vice presidents.

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

These related parties are NP Depot, LLC, a company owned by John Swallow, the Company’s president, and Mine Systems Design, a company partially owned by Grant Brackebusch, one of the Company’s vice presidents.

Payments under these month-to-month lease arrangements totaled $ 30,752 and $ 30,684 for the years ended December 31, 2025 and 2024, respectively, and are included in general and administrative expenses on the consolidated statement of operations.

24 unchanged sentences

Doré sales to refineries

In 2024 and 2023, flotation concentrates sold to H&H accounted for 99% of all gold sales.

The remaining 1 % was doré sold to a third party.

In 2025, flotation concentrates sold to H&H accounted for 98 % ( 99 % in 2024) of all gold sales.

The remaining 2 % ( 1 % in 2024) was doré sold to a third party.

At December 31, 2025 and 2024, the Company’s gold sales receivable balance related to contracts with customers of $ 3,912,922 and $ 1,578,694 , respectively, consist only of amounts due from H&H.

8 unchanged sentences

December 31, 2025

Gross Unrealized

Gross Unrealized losses

Amortized Cost

US treasury notes, current

US treasury notes, non-current

$ ( 106,191 )

$ ( 154,542 )

December 31, 2024

6 unchanged sentences

Due one year to five years

Investments in Equity Securities and Mutual Funds

The table below provides the components of investments in equity securities and mutual funds at cost and fair value (equity securities) or NAV (mutual funds) at December 31, 2025 and 2024.

December 31, 2025

gains (losses)

Fair value or

Equity securities

December 31, 2024

Equity securities

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

Idaho Strategic Resources, Inc.

Notes to Consolidated Financial Statements

Subsequent Events

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.

Subsequent to December 31, 2025:

Issued 36,976 shares of common stock for net proceeds of $ 1,778,817 .

Issued 17,500 shares of common stock upon the exercise of outstanding stock options for $ 201,250 .

Issued 46,626 shares of common stock upon the exercise of 61,375 outstanding stock options in cashless exercises by employees.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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-K

Item 8. Financial Statements and Supplementary Data