What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-05-14 compared with 2025-11-12 · 140 added, 163 removed, 306 unchanged (50% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets (Unaudited)

September 30,

Current assets:

1 unchanged sentence

Investments in US treasury notes

Investment in equity securities

Investment in mutual funds

Gold sales receivable

4 unchanged sentences

Mineral properties, net of accumulated amortization

Investments in US treasury notes, non-current

Investment in Buckskin Gold and Silver, Inc.

Investment in joint venture

Investments in US treasury notes, non-current

Reclamation bond

Reclamation bonds

$ 125,969,531

$ 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 liabilities

Total long-term liabilities

5 unchanged sentences

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

September 30, 2025- 15,089,600 and December 31, 2024- 13,665,058 shares issued and outstanding

Accumulated deficit

( 1,022,958 )

( 8,373,953 )

March 31, 2026- 15,806,301 and December 31, 2025- 15,705,199 shares issued and outstanding

Retained earnings

Total Idaho Strategic Resources, Inc stockholders’ equity

2 unchanged sentences

Total liabilities and stockholders’ equity

$ 125,969,531

$ 116,238,730

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

1 unchanged sentence

Condensed Consolidated Statements of Operations (Unaudited)

For the Three and Nine-Month Periods Ended September 30, 2025 and 2024

September 30, 2025

September 30, 2024

Sales of products

For the Three-Month Periods Ended March 31, 2026 and 2025

Sales of products, net

Total revenue

6 unchanged sentences

General and administrative

(Gain) loss on disposal of equipment

(Gain) loss on sale of equipment

Total other operating expenses

1 unchanged sentence

Other (income) expense:

Equity income on investment in Buckskin Gold and Silver, Inc

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

Loss on investment in equity securities and mutual funds

Timber revenue net of costs

Loss on investment in equity securities

Dividend income

Interest income

Interest expense

Total other (income) expense

Total other income

Income before income taxes

Income tax provision

Net loss attributable to non-controlling interest

6 unchanged sentences

Idaho Strategic Resources, Inc.

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

For the Three and Nine-Month Periods Ended September 30, 2025 and 2024

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

For the Three-Month Periods Ended March 31, 2026 and 2025

Earnings (Accumulated

Attributable to

Idaho Strategic

Resources, Inc

Idaho Strategic Resources, Inc.

Non-Controlling Interest

Stockholders’

Balance January 1, 2024

$ ( 17,210,638 )

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 exercised

Issuance of common stock for cashless stock options exercised

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 exercised

Issuance of common stock for cashless stock options exercised

Net income (loss)

Balance September 30, 2024

$ ( 11,295,376 )

Balance January 1, 2025

Balance December 31, 2024

$ ( 8,373,953 )

1 unchanged sentence

Stock-based compensation

Issuance of common stock for cash, net of offering costs

Issuance of common stock for cashless stock options exercised

Net income (loss)

Balance June 30, 2025

Balance March 31, 2025

$ ( 6,764,974 )

Balance December 31, 2025

$ 110,841,948

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

Stock-based compensation

Issuance of common stock for cash, net of offering costs

Issuance of common stock for cash, net of issuance costs

Issuance of common stock for stock options exercised

1 unchanged sentence

Net income (loss)

Balance September 30, 2025

Balance March 31, 2026

$ 101,946,729

$ 119,333,642

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, 2025 and 2024

September 30,

For the Three-Month Periods Ended March 31, 2026 and 2025

Cash flows from operating activities:

1 unchanged sentence

Depreciation and amortization

Loss on disposal of equipment

(Gain) loss on sale of equipment

Accretion of asset retirement obligation

Loss on investment in equity securities

Equity income on investment in Buckskin Gold and Silver, Inc

Write down of reclamation bond

Loss on investment in equity securities and mutual funds

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

Stock-based compensation

Gain from debt payments made by 3 rd party

Amortization of discount on US treasury notes

Deferred tax expense

Change in operating assets and liabilities:

Gold sales receivable

( 3,102,359 )

Government grant receivable

Joint venture receivable

2 unchanged sentences

Accrued payroll and related payroll expenses

Income taxes payable

Net cash provided by operating activities

4 unchanged sentences

Deposits on equipment

( 2,257,968 )

Proceeds from sale of equipment

2 unchanged sentences

( 1,658,777 )

( 1,126,271 )

Purchase of US treasury notes

2 unchanged sentences

Maturity of US treasury notes

Proceeds from sale of investment in equity securities

Proceeds from sale of equity securities

Proceeds from sale of mutual funds

Purchase of reclamation bond

Refund of reclamation bond

Net cash used by investing activities

( 32,792,837 )

Net cash provided (used) by investing activities

( 1,998,031 )

1 unchanged sentence

Proceeds from sale of common stock, net of issuance cost

Proceeds from issuance of common stock for warrants exercised

Proceeds from issuance of common stock for stock options exercised

Principal payments on notes payable

( 1,195,146 )

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

4 unchanged sentences

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, 2025, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025.

Management estimates that the effective tax rate expected for the full year ended December 31, 2025 will be 0% due to the Company’s cumulative loss position, historical net operating losses (“NOLs”), and other available evidence related to the Company’s ability to generate taxable income.

Accordingly, there is no income tax provision or benefit for the nine-month period ended September 30, 2025.

Operating results for the three-month periods ended March 31, 2026, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026.

Management estimates that the effective tax rate expected for the full year ended December 31, 2026 will be 17.48% now that the Company has worked through its cumulative loss position and historical net operating losses (“NOLs”).

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, 2025, in the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 23, 2026.

41 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 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 as per the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-35-4.

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”).

Measured resources are 90-100% interpolated, and indicated resources 75-80% interpolated, using a 2 grams per tonne gold cut-off grade at the diluted minimum mining width.

Conservative estimation parameters (three samples within 25 meters for measured, two within 50 meters for indicated) and economic factors ensure viability.

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.

More information on the Company’s reserves and resources can be found in the Technical Report Summary For the Golden Chest Mine which was included as Exhibit 96.1 to the Company’s Form 10-K filed with the Securities and Exchange Commission on March 31, 2025.

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 September 30, 2025 and December 31, 2024, the Company measured its gold sales receivable and investments in US treasury notes, at fair value.

At March 31, 2026 and December 31, 2025, the Company measured its gold sales receivable at fair value.

At December 31, 2025, the Company measured its investments in equity securities at fair value, and its investments in mutual funds at net asset value (“NAV”).

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

10 unchanged sentences

If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period.

At September 30, 2025, and December 31, 2024, the Company's 37 % common stock holding of Buckskin Gold and Silver, Inc.

At March 31, 2026, and December 31, 2025, 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, 2025 and December 31, 2024, the Company’s percentage ownership and method of accounting for each JV and equity method investment is as follows:

September 30, 2025

At March 31, 2026 and December 31, 2025, the Company’s percentage ownership and method of accounting for each JV and equity method investment is as follows:

March 31, 2026

December 31, 2025

3 unchanged sentences

Reclassifications had no effect on stockholders’ equity as previously reported.

Government grant income was reclassified in prior periods which had an effect on net income.

Cash flows were reclassified due to the US treasury notes.

12 unchanged sentences

Recent Accounting Pronouncements

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

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

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

Early adoption and retrospective application of the amendments are permitted.

The Company does not believe there will be an impact from this update on its condensed 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):

4 unchanged sentences

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 September 30, 2025 and December 31, 2024.

September 30, 2025

Gross Unrealized

US Treasury notes, current (Matures within 1 year)

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

The table below provides the components of investments in US treasury notes held to maturity at amortized cost and fair value at March 31, 2026 and December 31, 2025.

March 31, 2026

Amortized Cost

Gross Unrealized gains

Gross Unrealized losses

US Treasury notes, current

US Treasury notes, non-current

December 31, 2025

US Treasury notes, current (Matures within 1 year)

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

US Treasury notes, current

US Treasury notes, non-current

$ ( 106,191 )

$ ( 154,542 )

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

At September 30, 2025 and December 31, 2024, the Company’s inventories consisted of the following:

September 30,

The maturity dates for the US treasury notes as of March 31, 2026 are as follows:

Amortized Cost

Due within one year

Due one year to five years

At March 31, 2026 and December 31, 2025, the Company’s inventories consisted of the following:

Concentrate inventory:

10 unchanged sentences

(“H&H”)), and an unrefined gold-silver product known as doré which is sold to various precious metals refineries.

At September 30, 2025, gold concentrate that had been sold but not finally settled included 9,533 ounces of gold of which 8,384 ounces were sold at a predetermined price with the remaining 1,149 exposed to future price changes until prices are locked in based on the month of settlement.

At March 31, 2026, gold concentrate that had been sold but not finally settled included 7,819 ounces of gold of which 7,102 ounces were sold at a predetermined price with the remaining 717 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, 2025 and 2024 were as follows:

September 30, 2025

September 30, 2024

Sales of products by metal type for the three-month periods ended March 31, 2026 and 2025 were as follows:

Smelter and refining charges

Sales by significant product type for the three and nine-month periods ended September 30, 2025, and 2024 were as follows:

September 30, 2025

September 30, 2024

Sales by significant product type for the three-month periods ended March 31, 2026, and 2025 were as follows:

Concentrate sales to H&H

Doré sales to refinery

At September 30, 2025 the gold sales receivable balance of $ 4,681,053 consisted of $ 3,707,965 due from H&H for concentrates and $ 973,088 due from Northern Metals Processing for doré.

At December 31, 2024 the gold sales receivable balance of $ 1,578,694 consisted only of amounts due from H&H for concentrates.

Dore sales to refinery

At March 31, 2026 and December 31, 2025, the gold sales receivable balance of $ 3,920,174 , and $ 3,912,922 , respectively, consisted only of amounts due from H&H for concentrates.

There is no allowance for doubtful accounts.

1 unchanged sentence

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

$ 2,000 per month is paid to NP Depot LLC, a company owned by the Company’s president, John Swallow and approximately $ 1,700 is paid quarterly to Mine Systems Design, Inc.

$ 2,000 per month plus utilities is paid to NP Depot LLC, a company owned by the Company’s president, John Swallow and approximately $ 1,700 is paid quarterly to Mine Systems Design, Inc.

which is partially owned by the Company’s vice president, Grant Brackebusch.

Payments under these short-term lease arrangements are included in general and administrative expenses on the condensed consolidated statement of operations and for the three and nine-month periods ended September 30, 2025 and 2024 are as follows:

September 30, 2025

September 30, 2024

$ 23,064 $ 7,688 $ 22,996

Payments under these short-term lease arrangements are included in general and administrative expenses on the condensed consolidated statement of operations and for the three-month periods ended March 31, 2026 and 2025 are as follows:

JV Arrangements

2 unchanged sentences

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

At September 30, 2025 and December 31, 2024, an account receivable existed with Crescent Silver, LLC (“Crescent”), the other JV participant, for $ 171 and $ 2,892 , respectively, for shared operating costs as defined in the JV agreement.

At March 31, 2026 and December 31, 2025, an account receivable existed with Crescent Silver, LLC (“Crescent”), the other JV participant, for $ 3,796 and $ 12,760 , respectively, for shared operating costs as defined in the JV agreement.

This account receivable is included in the condensed consolidated balance sheet as Joint venture receivable.

6 unchanged sentences

Earnings per Share

The following table presents the calculation of basic and diluted net income per common share for the three and nine-month periods ended September 30, 2025 and 2024.

September 30, 2025

September 30, 2024

The following table presents the calculation of basic and diluted net income per common share for the three-month periods ended March 31, 2026 and 2025.

Weighted average shares-basic

Effect of dilutive potential common shares from stock options

Effect of dilutive potential common shares from warrants

Potentially dilutive common shares from stock options- included

Weighted average shares-diluted

1 unchanged sentence

Net income per share-diluted

Potentially dilutive common shares from stock options- excluded

Idaho Strategic Resources, Inc

1 unchanged sentence

Property, Plant, and Equipment

Property, plant and equipment at September 30, 2025 and December 31, 2024 consisted of the following:

September 30,

Property, plant and equipment at March 31, 2026 and December 31, 2025 consisted of the following:

Mine Equipment

1 unchanged sentence

( 4,679,153 )

( 3,845,349 )

Total Mine Equipment

6 unchanged sentences

Total Buildings

For the three and nine-month periods ended September 30, 2025 and 2024, depreciation expense for property, plant, and equipment was as follows.

September 30, 2025

September 30, 2024

For the three-month periods ended March 31, 2026 and 2025, depreciation expense for property, plant, and equipment was as follows:

Mineral Properties

Mineral properties at September 30, 2025 and December 31, 2024 consisted of the following:

September 30,

Mineral properties at March 31, 2026 and December 31, 2025 consisted of the following:

March 31, 2026

December 31, 2025

Mineral Property

3 unchanged sentences

Park Copper/Gold

Silver Prospect

Accumulated Amortization

In the three-month period ended September 30, 2025, the Company purchased the Toboggan property adjacent to the Golden Chest Mine for $ 300,000 .

For the three and nine-month periods ended September 30, 2025 and 2024, amortization expense for mineral properties was as follows.

September 30, 2025

September 30, 2024

For the three and nine-month periods ended September 30, 2025 and 2024, interest expense was capitalized in association with infrastructure at the Golden Chest Mine as follows.

September 30, 2025

September 30, 2024

In the three-month period ended March 31, 2026, the Company purchased the Silver Prospect for $ 202,405 .

For the three-month periods ended March 31, 2026 and 2025, amortization expense for mineral properties was as follows.

For the three-month periods ended March 31, 2026 and 2025, interest expense was capitalized in association with infrastructure at the Golden Chest Mine as follows.

Idaho Strategic Resources, Inc

1 unchanged sentence

Notes Payable

At September 30, 2025 and December 31, 2024, notes payable are as follows:

September 30,

At March 31, 2026 and December 31, 2025, notes payable are as follows:

March 31, 2026

December 31, 2025

Mine Equipment

Monthly payments of $ 107,574 and $ 55,803 as of September 30, 2025 and December 31, 2024, respectively

Weighted average interest rate of 7.28 %, and weighted average remaining term of 2.4 years as of March 31, 2026

Mill Equipment

Monthly payments of $ 15,621 and $ 11,498 as of September 30, 2025 and December 31, 2024, respectively

Weighted average interest rate of 8.06 %, and weighted average remaining term of 3.2 years as of March 31, 2026

Buildings/Land

Monthly payments of $ 2,500 and $ 2,500 as of September 30, 2025 and December 31, 2024, respectively

Weighted average interest rate of 7.00 %, and weighted average remaining term of 1.2 years as of March 31, 2026

Total notes payable

2 unchanged sentences

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

Future principal payments of notes payable at September 30, 2025 are as follows:

10/1/2025 – 9/30/2026

10/1/2026 – 9/30/2027

10/1/2027 – 9/30/2028

10/1/2028 – 9/30/2029

10/1/2029 – 9/30/2030

Future principal payments of notes payable at March 31, 2026 are as follows:

For the twelve-months ended:

March 31, 2027

March 31, 2028

March 31, 2029

March 31, 2030

March 31, 2031

Investment in Buckskin

The investment in Buckskin is being accounted for using the equity method and resulted in a change in equity from the income of $ 1,189 and $ 2,376 for the respective three and nine-month periods ended September 30, 2025 and income of $ 1,301 and $ 1,579 for the respective three and nine-month periods ended September 30, 2024.

The investment in Buckskin is being accounted for using the equity method and resulted in a change in equity from the loss of $ 168 and income of $ 1,346 for the respective three-month periods ended March 31, 2026 and 2025.

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

As of March 31, 2026 and December 31, 2025, the Company held 37 % of Buckskin’s outstanding shares.

Stockholders’ Equity

Stock Issuance Activity

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

In the first three months of 2026, the Company issued common stock as follows:

Sold 36,976 shares of common stock at an average price of approximately $ 48.11 per share for net proceeds of $ 1,778,817 .

Issued 24,500 shares of common stock for outstanding stock options for net proceeds of $ 155,810 .

Issued 62,284 shares of common stock for outstanding stock options via cashless exercises by employees.

Stock Purchase Warrants Outstanding

There was no activity in the Company’s stock purchase warrants since December 31, 2024, therefore there were no stock purchase warrants outstanding at September 30, 2025.

Activity in stock purchase warrants is as follows:

Balance December 31, 2023

$ 5.60 - 7.00

Balance June 30, 2024

$ 5.60 - 7.00

Balance December 31, 2024 and September 30, 2025

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

Issued 46,626 shares of common stock for exercise of outstanding stock options via cashless exercises by employees.

Idaho Strategic Resources, Inc

3 unchanged sentences

These options expire on January 15, 2028, and vest equally on June 30, 2025, December 31, 2025, June 30, 2026 and December 31, 2026.

The stock-based compensation expense recognized for these options for the three and nine-month periods ended September 30, 2025 was $ 257,476 and $ 1,247,768 , respectively.

Future expense for this stock option grant will be $ 257,476 for the fourth quarter of 2025, $ 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.

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 follows:

Options issued

Exercise price

Expected term (in years)

Risk-free rate

Stock-based compensation expense recognized for the three-month periods ended March 31, 2026 and 2025 was $ 138,641 and $ 495,146 , respectively.

Future expense for this stock option grant will be $138,641 for the second quarter of 2026, and $59,418 for each of the third and fourth quarters of 2026 .

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

Number of Options

Weighted Average Exercise Prices

Balance December 31, 2024

Outstanding at September 30, 2025

In the three and nine-month periods ended September 30, 2025, 86,625 options were exchanged for 49,003 shares, and 106,625 options were exchanged for 62,284 shares, respectively, in cashless exercises by employees.

The intrinsic value of all options exercised was $ 1,449,138 and $ 1,660,969 for the three and nine-month periods ended September 30, 2025, respectively.

At September 30, 2025, outstanding stock options have a weighted average remaining term of approximately 2.3 years and have an intrinsic value of $ 7,642,684 .

Balance December 31, 2025

Outstanding at March 31, 2026

Vested at March 31, 2026

In the first quarter of 2026, 61,375 options were exchanged for 46,626 shares in cashless exercises, and 17,500 options were exercised for cash.

The intrinsic value of all options exercised was $ 2,829,788 .

At March 31, 2026, outstanding stock options have a weighted average remaining term of approximately 1.8 years and have an intrinsic value of $ 5,165,310 .

Vested stock options at March 31, 2026 have an intrinsic value of $ 1,041,310 .

Investments in Equity Securities and Mutual Funds

During the three-months ended March 31, 2026, the Company sold its investments in equity securities and mutual funds, resulting in a realized loss for the period of $ 194,149 .

There was also an unrealized gain of $ 110,092 from the prior period that was adjusted to $ 0 upon the sale of the investments.

Subsequent to March 31, 2026, the Company reinvested these funds into US treasury notes.

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

For the quarter ended March 31, 2026, the Company recognized a provision for income taxes in the amount of $ 1,359,320 .

The Company did not recognize a provision or (benefit) for income taxes for the quarter ended March 31, 2025.

The components of the tax provision for the three-months ended March 31, 2026 and 2025 are as follows:

March 31, 2026

March 31, 2025

Total current income tax provision

Total deferred income tax provision

Total income tax provision

The income tax provision for the three-months ended March 31, 2026 varies from the amounts that would have resulted from applying the statutory tax rates to pre-tax income or loss due primarily to the impact of the percentage depletion calculation and usage of net operating loss carryforwards.

For the three-months ended March 31, 2026, the annual effective tax rate method was used to calculate the tax provision.

The effective tax rate for the three-months ended March 31, 2026 was 17.48 % compared to 0 % in 2025.

Tax effects of significant, unusual or infrequent items are recognized as discrete items in the periods they occur.

None were recognized in the first quarter of 2026.

There were no federal or state income taxes paid in the first quarter of 2026.

Subsequent Events

Subsequent to September 30, 2025:

496,000 shares of common stock have been issued for net proceeds of $ 19,498,502 .

Subsequent to March 31, 2026:

Issued 3,000 shares of common stock upon the exercise of outstanding stock options for $ 34,500 .

Issued 3,774 shares of common stock upon the exercise of 5,000 outstanding stock options in cashless exercises by employees.

Issued 3,585 shares of common stock upon the exercise of 5,000 outstanding stock options in cashless exercises.

Invested approximately $ 8 million of cash into US treasury notes.

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