What changed in this filing

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Item 1. Financial Statements

2020-05-07 compared with 2020-02-05 · 68 added, 61 removed, 279 unchanged (32% of the section changed)

2 unchanged sentences

Condensed Consolidated Interim Balance Sheets

as at December 31, 2019 and June 30, 2019

As at December 31,

as at March 31, 2020 and June 30, 2019

As at March 31,

As at June 30,

18 unchanged sentences

Stockholders' Equity

Common stock, par value $0.01, 50,000,000 authorized shares, 27,616,745 issued and outstanding at December 31, 2019 and 26,519,954 issued and outstanding at June 30, 2019

Common stock, par value $0.01, 50,000,000 authorized shares, 27,777,962 issued and outstanding at March 31, 2020 and 26,519,954 issued and outstanding at June 30, 2019

Additional paid in capital

1 unchanged sentence

Total Liabilities and Stockholders' Equity

Subsequent Events:

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

1 unchanged sentence

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss

for the Three and Six Month Periods ended December 31, 2019 and 2018

Period Ended December 31, 2019

December 31, 2018

Period Ended December 31, 2019

Decmber 31, 2018

for the Three and Nine-Month Periods Ended March 31, 2020 and 2019

Period Ended March 31, 2020

March 31, 2019

Period Ended March 31, 2020

March 31, 2019

Other income (Note 9)

19 unchanged sentences

Condensed Consolidated Interim Statements of Stockholders’ Equity

for the Three Month Periods Ended September 30, 2019 and December 31, 2019 and Years ended June 30, 2019 and 2018

for the Three-Month Periods Ended September 30, 2019, December 31, 2019 and March 31, 2020 and Years ended June 30, 2019 and 2018

Paid-In Capital

10 unchanged sentences

Balance at December 31, 2019

Stock based compensation

Capital issued for payment of interest (Note 4)

Balance at March 31, 2020

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

1 unchanged sentence

Condensed Consolidated Interim Statements of Cash Flows

for the Six Month Periods ended December 31, 2019 and 2018

Period Ended December 31, 2019

December 31, 2018

for the Nine-Month Periods Ended March 31, 2020 and 2019

Period Ended March 31, 2020

March 31, 2019

Adjustment for:

13 unchanged sentences

Convertible debt issued (Note 6)

Capital issued for warrant exercise (Note 5)

Cash provided by financing activities

18 unchanged sentences

In the opinion of management, all the normal and recurring adjustments necessary to fairly present the interim financial information set forth herein have been included.

The results of operations for interim periods are not necessarily indicative of the operating results of a full year or future years.

The Company faces various risks related to the COVID-19 global pandemic.

The Company cannot at this time predict the impact of the COVID-19 pandemic, but it could have a material adverse effect on the business, financial position, results of operations and/or cash flows.

The results of operations for the interim period ending March 31, 2020 is not necessarily indicative of the operating results expected for the year ended June 30, 2020 or for any future period.

The condensed consolidated interim financial statements have been prepared on an accrual basis of accounting, in conformity with accounting principles generally accepted in the United States of America (“U.S.

3 unchanged sentences

The condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and related footnotes for the year ended June 30, 2019.

The Company has conducted a subsequent events review through the date the financial statements were issued, and has concluded that there were no subsequent events requiring adjustments or additional disclosures to the Company’s financial statements at December 31, 2019 except as disclosed in Note 12.

Use of Estimates

9 unchanged sentences

The Company maintains cash and cash equivalents in accounts which may, at times, exceed federally insured limits.

At December 31, 2019, the Company had $1.71 million of balances in excess of federally insured limits.

At March 31, 2020, the Company had $1.41 million of balances in excess of federally insured limits.

We deposit our cash with financial institutions which we believe have sufficient credit quality to minimize the risk of loss.

30 unchanged sentences

Diluted loss or income per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.

For the three and six month periods ended December 31, 2019 and 2018, the shares of common stock equivalents related to outstanding stock options and convertible notes have not been included in the diluted per share calculation as they are anti-dilutive as the Company has recorded a net loss from continuing operations for those periods.

For the three and nine-month periods ended March 31, 2020 and 2019, the shares of common stock equivalents related to outstanding stock options and convertible notes have not been included in the diluted per share calculation as they are anti-dilutive as the Company has recorded a net loss from continuing operations for those periods.

Recent Accounting Guidance

25 unchanged sentences

Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The fair value of financial assets and liabilities carried at book value by level within the fair value hierarchy in the Condensed Consolidated Interim Balance Sheets at December 31, 2019 and June 30, 2019 are presented in the following table:

Fair Value at December 31, 2019

The fair value of financial assets and liabilities carried at book value by level within the fair value hierarchy in the Condensed Consolidated Interim Balance Sheets at March 31, 2020 and June 30, 2019 are presented in the following table:

Fair Value at March 31, 2020

June 30, 2019

4 unchanged sentences

Non-Cash Transactions

During the six-month period ended December 31, 2019, the Company issued 1,096,791 shares to Ausenco Engineering USA South Inc.

During the nine-month period ended March 31, 2020, the Company issued 1,096,791 shares to Ausenco Engineering USA South Inc.

(“Ausenco”) in exchange for services valued at $976,144 to complete a feasibility study at its Grassy Mountain Project.

The shares are being held in escrow until Ausenco delivers a feasibility study to the Company.

During the six-month period ended December 31, 2018, the Company did not enter into any material non-cash activities.

During the three-month period ended March 31, 2020, the Company issued 161,217 shares of Common Stock for payment of interest accrued and owing at December 31, 2019 on its outstanding 2023 Secured Convertible Notes

During the three-month and nine-month period ended March 31, 2019, the Company did not enter into any material non-cash activities.

Capital Stock

1 unchanged sentence

Authorized capital stock consists of 50,000,000 common shares with par value of $0.01 per common share (June 30, 2019 – 50,000,000 common shares with par value $0.01 per common share).

During the six-month period ended December 31, 2019, the Company issued 1,096,791 shares at $0.89 to Ausenco in exchange for services to complete a feasibility study at its Grassy Mountain Project (Note 4) .

During the six-month period ended December 31, 2018, the Company issued 2,400,000 units at $1.25 per unit for net proceeds of $2,911,286.

Each unit consists of one share of common stock and one warrant to purchase one-half of a share of common stock.

Each warrant will have a two-year term and will be exercisable at the following exercise prices:

During the nine-month period ended March 31, 2020, the Company issued 1,096,791 shares at a value of $0.89 per share to Ausenco in exchange for services to complete a feasibility study at its Grassy Mountain Project (Note 4) .

The Company also issued 161,217 shares for payment of interest accrued and owing at December 31, 2019 (Note 4 and 6).

During the nine-month period ended March 31, 2019, the Company issued 2,400,000 units at $1.25 per unit for net proceeds of $2,911,286.

Each unit consisted of one share of common stock and one warrant to purchase one-half of a share of common stock.

Each warrant has a two-year term and will be exercisable at the following exercise prices:

in the first year at $1.30 per share and in the second year at $1.50 per share.

At December 31, 2019 there were 27,616,745 common shares issued and outstanding (June 30, 2019 – 26,519,954 common shares).

A summary of warrants exercisable into common stock activity as of December 31, 2019, and changes during the six month period ended is presented below:

At March 31, 2020 there were 27,777,962 common shares issued and outstanding (June 30, 2019 – 26,519,954 common shares).

A summary of warrants exercisable into common stock activity as of March 31, 2020, and changes during the nine-month period ended is presented below:

Exercise Price

3 unchanged sentences

Outstanding at July 1, 2019

Outstanding at December 31, 2019

Outstanding at March 31, 2020

Stock Options and Stock Based Compensation

1 unchanged sentence

Option awards are generally granted with an exercise price equal to the market price of Paramount’s stock at the date of grant and have contractual lives of 5 years.

To better align the interests of its key executives and employees with those of its stockholders, a significant portion of those stock option awards will vest contingent upon meeting certain stock price appreciation performance goals or other performance conditions.

To better align the interests of its key executives and employees with those of its stockholders, a significant portion of those stock option awards will

vest contingent upon meeting certain stock price appreciation performance goals or other perf ormance conditions.

Option and stock awards provide for accelerated vesting if there is a change in control (as defined in the employee stock option plan).

During the three month period ending December 31, 2019, the Company granted 595,000 stock options to employees, directors and consultants with a strike price of $1.00.

During the nine-month period ending March 31, 2020, the Company granted 690,000 stock options to employees, directors and consultants with a strike price of $1.00.

Each option carries a 5 year term.

10 unchanged sentences

Weighted average fair value

A summary of option activity under the Stock Incentive and Compensation Plan as of December 31, 2019, and changes during the six month period ended are presented below:

A summary of option activity under the Stock Incentive and Compensation Plan as of March 31, 2020, and changes during the nine-month period ended are presented below:

Exercise Price

4 unchanged sentences

Forfeited or expired

Outstanding at December 31, 2019

Exercisable at December 31, 2019

A summary of the status of Paramount’s non-vested options as of July 1, 2019 and changes during the six month period ended December 31, 2019 is presented below.

Outstanding at March 31, 2020

Exercisable at March 31, 2020

A summary of the status of Paramount’s non-vested options as of July 1, 2019 and changes during the nine-month period ended March 31, 2020 is presented below:

Non-vested Options

2 unchanged sentences

Non-vested at July 1, 2019

Non-vested at December 31, 2019

As of December 31, 2019, there was $254,513 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the employee share option plan.

Non-vested at March 31, 2020

As of March 31, 2020, there was $229,983 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the employee share option plan.

That cost is expected to be recognized over a weighted-average period of 1.11 years.

The total fair value of share based compensation arrangements vested during the six month period ended December 31, 2019 and 2018, was $nil and $nil, respectively.

The total fair value of share based compensation arrangements vested during the nine-month period ended March 31, 2020 and 2019, was $49,408 and $69,628, respectively.

Convertible Debt

December 31, 2019

March 31, 2020

June 30, 2019

5 unchanged sentences

Unamortized discount and issuance costs of $275,883 will be amortized as an additional interest expense over the four year term of the 2019 Convertible Notes.

During the six-month period ended December 31, 2019, the Company amortized $20,030 of discount and issuance costs.

At any point after the second anniversary of the issuance of the convertible notes, Paramount may force

conversion if the share price of its common stock remains above $1.75 for 20 consecutive trading days.

During the nine-month period ended March 31, 2020, the Company amortized $37,225 of discount and issuance costs.

At any point after the second anniversary of the issuance of the convertible notes, Paramount may force conversion if the share price of its common stock remains above $1.75 for 20 consecutive trading days.

The convertible notes are secured by a lien on all assets of the Company and the Company is required to maintain a working capital balance of $250,000.

1 unchanged sentence

The Company has capitalized acquisition costs on mineral properties as follows:

December 31, 2019

March 31, 2020

June 30, 2019

9 unchanged sentences

As a part of its insurance policy, the Company has funds in a commutation account and reclamation bonds which are used to reimburse reclamation costs and indemnity claims.

The balance of the commutation account and reclamation bonds at December 31, 2019 is $1,082,774 (June 30, 2019- $1,401,833).

The balance of the commutation account and reclamation bonds at March 31, 2020 is $693,001 (June 30, 2019- $1,401,833).

Reclamation and environmental costs are based principally on legal requirements.

6 unchanged sentences

The current undiscounted estimate of the reclamation costs for existing disturbances at the Sleeper Gold Project is $ 3,977,751 as required by the U.S Bureau of Land Management and the Nevada Department of Environmental Protection.

Assumptions used to compute the asset retirement obligations as at December 31, 2019 and June 30, 2019 for the Sleeper Gold Project included a credit adjusted risk free rate and inflation rate of 9.76% (June 30, 2019– 9.76%) and 1.1% (June 30, 2019 – 1.1%), respectively.

Assumptions used to compute the asset retirement obligations as at March 31, 2020 and June 30, 2019 for the Sleeper Gold Project included a credit adjusted risk free rate and inflation rate of 9.76% (June 30, 2019– 9 .76%) and 1.1% (June 30, 2019 – 1.1%), respectively.

Expenses are expected to be incurred between the years 2019 and 2049.

Changes to the Company’s asset retirement obligations for the six - month period ended Dec ember 3 1 , 2019 and the year ended June 30, 201 9 are as follows:

Period Ended December 31, 2019

Changes to the Company’s asset retirement obligations for the nine-month period ended March 31, 2020 and the year ended June 30, 2019 are as follows:

Period Ended March 31, 2020

Year Ended June 30, 2019

3 unchanged sentences

Balance at end of period

The balance of the asset retirement obligation of $681,184 at December 31, 2019 (June 30, 2019 -$965,677 ) is comprised of a current portion of $97,287 (June 30, 2019 -$97,287 ) and a non-current portion of $583,897 (June 30, 2019 -$868,390).

The Company’s other income details for the six-month period ended December 31, 2019 and 2018 were as follows:

Six Month Period

The balance of the asset retirement obligation of $313,340 at March 31, 2020 (June 30, 2019 -$965,677 ) is comprised of a current portion of $97,287 (June 30, 2019 -$97,287 ) and a non-current portion of $216,053 (June 30, 2019 -$868,390).

The Company’s other income details for the nine-month period ended March 31, 2020 and 2019 were as follows:

Nine-Month Period

Ended March 31, 2020

Ended March 31, 2019

Re-imbursement of reclamation costs

2 unchanged sentences

Segmented information has been compiled based on the material mineral properties in which the Company performs exploration activities.

Expenses and mineral property carrying values by material project for the six-month period ended December 31, 2019:

Expenses and mineral property carrying values by material project for the nine-month period ended March 31, 2020:

Mineral Properties

As at December 31, 2019

As at March 31, 2020

Sleeper Gold Project

Grassy Mountain Project

Expenses for the six-month period ended December 31, 2018 and mineral property carrying values as at June 30, 2019 by material project:

Expenses for the nine-month period ended March 31, 2019 and mineral property carrying values as at June 30, 2019 by material project:

Mineral Properties

4 unchanged sentences

Lease Commitments

The Company has an office premise lease that expire on June 30, 2021.

The Company has an office premise lease that expires on June 30, 2021.

The aggregate minimum rentals payable for these operating leases are as follows:

During the six month period ended December 31, 2019, $24,452 was recognized as rent expense in the statement of operations and comprehensive loss/income.

During the nine-month period ended March 31, 2020, $38,288 was recognized as rent expense in the statement of operations and comprehensive loss/income.

Other Commitments

Paramount has an agreement to acquire 44 mining claims (“Cryla Claims”) covering 589 acres located immediately to the west of the proposed Grassy Mountain site from Cryla LLC.

Paramount will make annual lease payments of $40,000 per year for the first two years of the lease term and $60,000 per year thereafter with an option to purchase the Cryla Claims for $560,000 at any time.

Paramount is obligated to make annual lease payments of $40,000 per year for the first two years of the lease term commencing in 2018 and $60,000 per year thereafter with an option to purchase the Cryla Claims for $560,000 at any time.

The term of the agreement is 25 years.

2 unchanged sentences

The agreement with Cryla can be terminated by Paramount at any time.

All lease payments under the agreement are up-to-date and no other payments were made during the six-month period ending December 31, 2019.

All lease payments under the agreement are up-to-date and no other payments were made during the nine-month period ending March 31, 2020.

The Cryla Claims are without known mineral reserves and there is no current exploratory work being performed.

Paramount has an agreement with Nevada Select Royalty (“Nevada Select”) to purchase 100% in the Frost Project, which consists of 40 mining claims located approximately 12 miles west of its Grassy Mountain Project.

Paramount has an agreement with Nevada Select Royalty (“Nevada Select”) to purchase 100% of the Frost Project, which consists of 40 mining claims located approximately 12 miles west of its Grassy Mountain Project.

A total consideration of $250,000 payable to Nevada Select will be based on certain events over time.

Nevada Select will retain a 2% NSR on the Frost Claims and Paramount has the right to reduce the NSR to 1% for a payment of $1 million.

All required payments under the agreement are up-to-date as of December 31, 2019.

All required payments under the agreement are up-to-date as of March 31, 2020.

The Frost Claims are without known mineral reserves.

Subsequent Events:

Subsequent to the period end, the Company issued 161,217 shares of Common Stock for payment of interest accrued and owing at December 31, 2019 on its outstanding 2023 Secured Convertible Notes.

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